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through expertise and experience

Risk-Based Lending

Concerns

  • Regulatory non-compliance
  • Heightened portfolio risk
  • Strained net interest margins
  • Inability to increase loan volumes

Goals

Validate that the risk-based lending program is supporting the credit union’s financial and credit objectives in a manner that is regulatory compliant.

Results

Enhanced lending strategies and improved portfolio returns at a given level of risk.

What is Risk-Based Lending?

The Rochdale Group’s risk-based lending program entails a comprehensive approach of analyzing and assessing a credit union’s existing risk-based lending program. The Rochdale Group reviews consumer loans for the specific reporting period to potentially increase loan volumes, ensure compliance with applicable laws and regulations, ensure that credit scoring and other risk assessments are being applied to the current loan applications, and ensure that the risk tiers appropriately reflect credit quality and that there are no unnecessary delays in loan approvals and funding.

First and foremost, The Rochdale Group’s approach is designed to ensure that the credit union’s risk-based lending program meets the strategic and financial goals of the credit union. The effectiveness of the program design ensures that the credit union is maximizing its opportunities to make safe and sound loans to a broad cross section of its members.

Why The Rochdale Group?

The Rochdale Group has been in the business of implementing and revalidating risk-based lending programs for several years, and our collective experience can help to ensure that your risk-based lending supports today’s and tomorrow’s challenges. 

The traditional approach in revalidating a risk-based lending program involves a review of a statistical sampling of your portfolio. Utilizing our new approach and modeling system, The Rochdale Group provides a comprehensive review of your entire risk-based lending program, which in turn provides your credit union the most detailed and comprehensive report possible.