feeling a career change
Thread Starter
DAMIMRED
Joined: May 2002
Posts: 13,495
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From: Syracuse, NY
feeling a career change
yup. lets call it fundamental disagreements with industry norms. cant say standards because norms and standards dont always match up....
but i dont know what i want to do
but i dont know what i want to do
Thread Starter
DAMIMRED
Joined: May 2002
Posts: 13,495
Likes: 0
From: Syracuse, NY
im sick of lending decisions over my head be made based on "well he's good for it" or based on the capacity to pay vs. the propensity to pay....
example.... a couple came in today and applied for a loan, they have household income of 125k but their debt to income is lingering around 50%... our standard for unsecured lending is max 33%. these people have scores in the low 500's and have a bad payment history but they are getting the loan because they make good money. if somebody with 30k household applied for the same loan with the same scores at 50% they would be up shit creek... its stupid, i called my boss out on it and he said "well at 125k they are able to make the payments" but IMO it doesnt mean they will. we are just enforcing their belief that since they make good money, they dont have to make their payments to get loans...
example.... a couple came in today and applied for a loan, they have household income of 125k but their debt to income is lingering around 50%... our standard for unsecured lending is max 33%. these people have scores in the low 500's and have a bad payment history but they are getting the loan because they make good money. if somebody with 30k household applied for the same loan with the same scores at 50% they would be up shit creek... its stupid, i called my boss out on it and he said "well at 125k they are able to make the payments" but IMO it doesnt mean they will. we are just enforcing their belief that since they make good money, they dont have to make their payments to get loans...
d@weezel music
Joined: Jun 2002
Posts: 5,929
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You are going to have issues such as those in this industry, they are inevitable. However, how bad it is depends on the institution you work for. I see similar issues as you do with my bank, but I am on the commercial side which adds additional factors.
One thing that you realize; which is important, is that income does not equal the wherewithal to repay a loan. Issues arise when the decision makers don't have a firm understanding of the credit side of this business. On top of what's on paper (credit scores, tax returns, personal financial statements, etc) there are the intangibles that you need to rely on your instinct for. Low credit scores indicate poor ability to repay most of the time, but on occasion there can be good reasoning behind it.
Regardless, my advice to you is to understand that issues like this are all around. I forget your exact position but I believe you are on the retail side. Keep thinking the way you do, take this opportunity to get the experience you need, and eventually you will either be in a better situation or making those credit decisions.
One thing that you realize; which is important, is that income does not equal the wherewithal to repay a loan. Issues arise when the decision makers don't have a firm understanding of the credit side of this business. On top of what's on paper (credit scores, tax returns, personal financial statements, etc) there are the intangibles that you need to rely on your instinct for. Low credit scores indicate poor ability to repay most of the time, but on occasion there can be good reasoning behind it.
Regardless, my advice to you is to understand that issues like this are all around. I forget your exact position but I believe you are on the retail side. Keep thinking the way you do, take this opportunity to get the experience you need, and eventually you will either be in a better situation or making those credit decisions.
