When Examiners Ask About Policy Exceptions

It’s 7:04 am on a Monday morning.

You arrived a little early today to take care of a few things before another crazy week officially begins. Unfortunately, that plan just went out the window. Why? Well, pleasantly waiting in your inbox is an email from your examiner. He’s asking for a list of all recent loans that fall outside of your loan policy. The exam is scheduled for Thursday this week, which means you don’t have much time to waste.

Fulfilling this request is going to require a lot of work, especially since your bank still does everything with paper documents. Despite advocating many times for an electronic loan management system like AccuAccount, sadly your requests have gone unheard. Now, you’re the one who has to hustle and get everything together for the exam.

Pour yourself another cup of coffee. This is already shaping up to be a busy week.

Spreadsheets, Paper Files, & Phone Calls…Oh My!

Your first move is to jump onto your bank’s shared network drive and look for the “loan policy exception tracking sheet.” After a few minutes of clicking through folders, you successfully locate the spreadsheet. Thankfully, it appears that your team has been relatively faithful in adding loans that fall outside of the bank’s policy. That’s the good news. The bad news is that some key details are missing. For example, there are several loans that fail to list any mitigating circumstances.

So, your next step is to pull the hard copy loan files for those in question. Luckily, two are available for your immediate review, but one loan file is checked out to another lender. (You’ll have to circle back to the missing one later.) You begin leafing through page after page of loan documentation. After several hours of a mind-numbing search, you successfully find what you’re looking for and update the master spreadsheet.

Now, it’s time to address the missing loan file. With some additional research you learn it’s checked out to a senior lender at the Springfield branch. Springfield is thirty miles south of your location, so you decide to give the lender a call. It goes straight to voicemail. Now what? After a few more calls, you learn that this particular lender is out of the office this week. Unbelievable.

Given the urgency of the situation, you make the decision to drive to Springfield and locate the file yourself. With the help of the branch’s lending assistant, you find what you’re looking for. Time to drive back to the main office and wrap things up for the day. What a Monday!

AccuAccount Simplifies Loan Policy Management

If only your bank had listened to you and implemented AccuAccount. Rather than chasing down loan files and lenders, AccuAccount could have done the heavy lifting for you. Our policy exception software provides instant access to your bank’s entire list of out-of-policy loans.

Have a question on a specific loan? Each loan can be clicked on and viewed individually, allowing you to review mitigating circumstances, borrower information, loan balance details, and much more. Better yet, everything is pulled nightly from your core banking system, which means AccuAccount always delivers the accurate and timely information you need.

Loan exceptions tab in AccuAccount


As the audit approaches, you can then export the requested loan info into a digital exam file. In some cases, the examiner may not even have to set foot on your premises to do the exam. With everything in a convenient zip folder or on a disk, examiners can perform their reviews wherever is most convenient for them.

Develop a Better Loan Policy Workflow

If you’re tired of scrambling to gather loan policy exception information for exams, it’s time you gave AccuAccount a try. Our software is trusted by more than 15,000 bankers worldwide.

View our plans, designed specifically for community banks.

Comments are closed.