Consumer lending training is a function that should be experienced by loan officers, bank managers and other lending professionals. This training deals with evaluating a consumer's potential for receiving consumer loans such as automobile loans, home equity loans and other loan products.
Many banks, mortgage companies and credit unions provide consumer lending to their platform staff such as assistant branch managers, branch managers and loan officers. The time frame for consumer lending training can vary depending on the organization. Many organizations provide consumer lending training to lending professionals.
When a credit application is taken, lending professionals need to make sure they secure all information such as name, address, social security number, date of birth and place of employment of all applicants.
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To be efficient with consumer lending, individuals working with financial institutions need to understand the principles of ability, stability and willingness to pay. Ability deals with the individual’s income. All reliable, consistent sources of income have to be evaluated. Stability centers on an individuals time on the job and at the residence. Homeowners are considered more stable than renters. Willingness to pay concerns an individual’s pay history in the past.
Lending professionals have to be trained to read credit reports. A credit report provides information about a borrower’s credit history. Every account that is reported to a credit bureau is done so in the form of a trade line, which includes all information for a particular account.
A lending professional has to make sure an applicant does not have too much debt. If a debtor has an excessive amount of debt, he may not be able to make the loan payments for the new loan.