Similar to identity theft, this type of fraud happens when an unauthorized individual gain access through online banking applications, capturing the account information to create and write bad checks.
An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
The term “aging exceptions” refers to a group of critical exceptions that have not been resolved within a reasonable amount of time.
Altered check fraud occurs when a fraudster changes the amounts and Payee from a stolen check.
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.

In general, credit documents are those documents that pertain specifically to the borrower (not the loan).

Financial institutions rely on credit documents to provide information about the customer or member and establish their creditworthiness. In other words, banks and credit unions look to credit documents as an indication of a customer or member’s financial track record and capacity to repay borrowed money.

Examples of Credit Documents for Consumer Loans

Most consumer loans in the United States depend on the borrower’s credit score. Even so, consumer loans still require confirmation of identification for the account holder, such as a driver’s license. Furthermore, the bank or credit union may need a W2, tax return, and CIP document.

Required credit documents may vary depending on the type of commercial account and its formation. However, banks and credit unions will likely ask for the following information for new commercial accounts:

  • Articles of incorporation / organization
  • Operating agreements
  • Bylaws
  • Corporate financials
  • Accounts receivable statements
  • Inventory statements

Banks and credit unions often ask business owners to provide personal documentation, too. Such requests may include tax returns and credit reports.

Furthermore, throughout the life of the loan, banks and credit unions may need to collect updated credit documentation to ensure ongoing creditworthiness of the commercial account holder. Additional financial statements and tax return documents are common examples.

Managing Credit Documentation

Historically, banks and credit unions relied on paper folders and shared network drives to manage credit documentation. Leveraging a core-integrated document management system, such as AccuAccount, provides an opportunity to increase credit document management efficiency. Automated exception reports keep lenders informed about missing credit documentation with minimal effort.

Browse Additional Resources

Continue reading additional banking definitions from Alogent. You can also download a free eBook or spreadsheet on our resources page.

Explore more resources

AccuAccount: Solution Overview Brochure

Track and manage every loan document in one system and streamline loan management from application through servicing with our core-integrated software platform. From loan application automation, to drag-and-drop document imaging, to document tracking, and five...
Read More »

Alogent Fraud Mitigation Solutions

Check fraud - using paper or electronic checks to obtain money illegally - can occur at any step in the user journey and from any device or workflow by forging an account holder’s signature on a stolen check, altering a legitimate check, or writing a...
Read More »

Related articles

Tuesday 26 March 2024

Check Fraud: Common Examples and How to Stay Ahead of the Fraudsters

Check fraud is the most prevalent type of fraud at financial institutions, costing billions of dollars in losses annually, while impacting millions of account holders…

Learn More »

Wednesday 20 March 2024

Accelerating Efficiency by Leveraging Alogent’s Full Suite of Process Automation Solutions

Why should your bank or credit union consider implementing FASTdocs alongside AccuAccount? For financial institutions looking to retire legacy systems, consolidate vendors, and reduce paper-based…

Learn More »

Thursday 14 March 2024

Show Me the Money: Best Practices to Accelerate Funds Availability through Check Deposits

The Financial Brand recently published an article highlighting how faster access to funds could reshape the battle for deposits. Would you implement new processes if…

Learn More »

Tuesday 12 March 2024

With Delinquencies on the Rise, It’s Time to Rethink Collateral Perfection & Risk Management

Delinquent loans seem to be on the rise at financial institutions across the United States. Such trends may indicate macroeconomic difficulties, but they also pose…

Learn More »

Tuesday 5 March 2024

3 Loan Management Workflows to Help You Save Time & Drive Efficiency

Automating a single task may not seem like a big savings in the grand scheme of things. But, what if that task occurred multiple times…

Learn More »

Monday 26 February 2024

Banking Innovation: Are You Keeping Up with Transaction Processing Trends Shaping the Banking Market?

The payments landscape continues to take shape with alternative payment and cashless transaction methods, yet in the face of persistent digitalization, checks remain a viable…

Learn More »

Thursday 15 February 2024

Meeting Gen Z’s Banking Demands and Remaining Relevant with the Largest Generation in American History

The year is in full swing, and financial institutions are keenly observing the emerging powerhouse of economic influence: Generation Z. This generation isn’t just digitally…

Learn More »

Tuesday 6 February 2024

From Loan Imaging to Cold Storage: Extend AccuAccount’s Automation Potential with Additional Content Management Capabilities from Alogent

Efficient document and information management is increasingly important for modern financial institutions. Paper documents, siloed information, and outdated technology create operational bottlenecks that can be…

Learn More »