How to Automate Secondary Reviews of Adverse Actions

Roy has been a commercial lender at your bank for over 35 years. (He likes to point that out at every chance he gets.)

And, he’s especially good at engaging customers. His ability to understand each business owner’s needs is uncanny. So much so, in fact, that several clients have tried luring Roy away over the years. Lucky for your bank, Roy loves his job and is perfectly content staying put.

As good as Roy is at creating lasting business relationships, he’s awful when it comes to details. Take, for example, the year that he was put in charge of the bank’s Christmas party. When Roy forgot to book the banquet hall, you had to bail him out at the last minute. That’s just classic Roy.

Roy’s laissez-faire perspective is especially frustrating when it comes to Regulation B (Equal Credit Opportunity Act) compliance. Everyone at your bank knows that Roy makes smart and ethical lending decisions, but his poor record keeping is exposing your bank to unnecessary risk. You’ve asked Roy countless times to submit his denials to your compliance department for secondary review. Unfortunately, Roy just can’t seem to break his bad habits.

What, if anything, can you do to help Roy (and reduce your bank’s exposure to an exam nightmare)?

In this post, we’ll discuss how an electronic loan routing system, such as AccuAccount, can solve the “Roy problem.”

Paper vs. Electronic Routing

Let’s be honest – a big part of your problem is your institution’s ongoing reliance on all things paper.

For example, Roy works at a branch 20 miles from the main office, which is where your compliance department is located. Historically, Roy has saved his declined applications in an accordion folder and dropped them off at the main office whenever he has time. Sometimes weeks pass without Roy stopping by. You’ve even started calling him weekly just to check if there are any adverse actions lurking on his desk.

Even when Roy remembers to submit the right documentation, your compliance department still has many questions to answer. Why was the loan declined in the first place? What criteria were considered? Roy strikes again.

Compare this approach to one that leverages an electronic commercial loan approval system, such as AccuAccount.

The moment Roy declines a loan, your compliance team receives an email with details about the adverse action. Specific compliance officers can be auto-assigned, ensuring the declined application gets a second look. By clicking the link from the email notification, compliance officers gain instant access to everything they need to make their secondary review. (AccuAccount could also send a notification to the person responsible for generating and mailing the Adverse Action Notice. The system captures the time and date this step was completed.)

Keep in mind that we built AccuAccount to “look like” a traditional loan file – customer info is at the top, credit information is on the left side, and account (or in this case, application) information is on the right. This offers a familiar layout for both your lenders and review committee, making it easier to find the correct application, drill down, and see what Roy was thinking.

Loan Approval Module Customer Page

Better yet, AccuAccount offers a required field that captures the reason for declining the application. This forces lenders like Roy to identify specific reasons (set by your bank) as to why the loan was declined. In other words, Roy can’t decline a loan without providing a good reason.

Declined Adverse Actions

For more complex workflows, a declined application can simultaneously assign the loan to multiple stakeholders at your bank. If they’re unable to take action immediately, they’ll be reminded continuously (via the AccuAccount dashboard) until they’ve fulfilled their obligations. Timers can also be set to ensure tasks happen within the required timeframe.

Lender Dashboard Pending Approvals

With AccuAccount, you can get back to what you do best – rather than chasing down Roy for updates. And, best of all, you can know that each declined application will automatically follow your bank’s desired secondary review process. No more waiting on Roy to “stop by” with his accordion folder full of goodies!

Automate Secondary Reviews

We’ve kind of beat up Roy in this post. In all fairness, it’s people like Roy who keep your bank viable and engaged in the community. Let Roy stay focused on lending. AccuAccount will help him do exactly that.

Ready to automate your bank’s secondary review process? Click here to learn more about our affordable plan options.

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