Exam 16: Lending Policies and Procedures: Managing Credit Risk

Loans providing credit to finance the purchase of automobiles,mobile homes,appliances,and other retail goods to repair and modernize homes are classified under the category:

One of the 6 Cs of lending is ______________ which suggests that the lender must look at the position of the business firm in the industry and the outlook of the industry to evaluate a loan.

In a loan workout process,the preferred option is nearly always to seek a ___________,which gives both the lending institution and its customer a chance to restore normal operations.

The law that prevents individuals from being denied credit because of race,sex,religious affiliation,age or receipt of public assistance is called:

Loans that have minor weaknesses because a bank has not followed its written loan policy or which have missing documentation are called ______________ loans.