Credit Evaluation School eBook

Credit Evaluation School Line Decks and Loan Rating Discussion Instructions

Introduction Students will receive two line decks during the school. In groups, students will review the line sheets in each deck and prepare for discussions with the loan officers. The instructors will be playing the part of the loan officer responsible for the credit. Students will then submit their ratings for each of the loans, a 6 P’s write-up on a classified line, and a self evaluation. OBJECTIVES 1. Determine which loans should/should not be discussed with the loan officer. 2. Choose pertinent questions (based on 6 P’s) to ask the loan officer regarding each loan to be discussed. 3. Rate loans properly based on discussion and evaluation of loan quality. 4. Evaluate communication skills. * The accuracy of your ratings decisions and communication skills will be evaluated by the instructors. Criteria will include your introduction, overview of the credit being discussed, appropriate use of open and closed ended questions, listening and reacting to the loan officer response and asking pertinent follow up questions when necessary, and reaching a supported conclusion. Professionalism, preparedness, and maintaining eye contact are additional considerations. Assignment • Monday, March 3: Hand out Line Deck # 1 • Tuesday, March 4: Loan Discussion Prep & Loan Discussions o Materials due: Students must submit a loan ratings grid and 6 P’s bullet-style write-up on a classified line for Line Deck #1 by end of day. • Wednesday, March 5: Hand out Line Deck #2 & Loan Discussion Prep • Thursday, March 6: Loan Discussions o Materials due: Students must submit loan ratings grid and 6 P’s write-up on a classified line for Line Deck #2 by end of day. Students will also submit a self-evaluation which covers both loan discussions by the end of the day. PREPARATION Students will first look through all lines individually and identify the 6 P’s for each line. Once students are placed into groups, the group should use the time to briefly review the lines together and determine which lines need to be discussed with the loan officers. The students will then, as a group, formulate questions for those lines which need clarification and discussion with the loan officers. Students should be prepared to discuss any of the loans in the line deck. GUIDELINES FOR LOAN OFFICER DISCUSSIONS • Each instructor will act as a loan officer, responsible for specific lines in the deck. The list of which instructors are responsible for each loan is included in the Line Deck folder. • Students will have 20 minutes with each loan officer and 10 minutes to debrief with their group, therefore it is important to manage time effectively and focus efforts on credits which appear riskier than others. • Students should be prepared to discuss any of the loans in the decks. • Each group member must discuss at least one loan before any group member can discuss a second loan. • The group must agree on the loans to be discussed. If a group member wants to discuss a loan that the rest of the group does not want to discuss, that loan may be discussed only if time allows.