Indirect Lending Policy Template

Description

This comprehensive Indirect Lending Policy Template is an essential tool for credit unions looking to establish or refine their indirect lending programs. Designed by industry experts, this Word-downloadable document provides a robust framework for managing the risks and opportunities associated with indirect lending.

The template covers all critical aspects of indirect lending, including dealer relationships, underwriting standards, loan pricing, documentation requirements, and ongoing portfolio management. It offers detailed guidance on risk assessment, compliance with regulatory requirements, and best practices for monitoring dealer performance.

Key sections include:

1. Program Overview and Objectives
2. Dealer Selection and Management
3. Underwriting Guidelines
4. Loan Terms and Pricing
5. Application Processing and Decisioning
6. Funding and Documentation
7. Quality Control and Auditing
8. Portfolio Management and Reporting
9. Compliance and Regulatory Considerations
10. Risk Mitigation Strategies

This policy template is fully customizable, allowing credit unions to tailor the content to their specific needs and risk appetite. It includes placeholders for institution-specific information and offers flexibility to adapt to various indirect lending models.

The document is written in clear, concise language, making it accessible to board members, executives, and operational staff alike. It incorporates the latest industry standards and regulatory expectations, ensuring your credit union’s indirect lending program aligns with current best practices.

By implementing this comprehensive policy, credit unions can effectively manage their indirect lending operations, mitigate risks, and capitalize on the growth opportunities presented by this important lending channel.