Loan exceptions occur any time a loan file does not meet the established standards for a financial institution.  Lenders typically have guidelines they must follow, and when those guidelines are not exactly adhered to, an exception occurs.  There are typically two types of loan exceptions: 1) Policy exceptions and 2) underwriting exceptions.  Policy exceptions occur when...

Conducting a second review of Adverse Action notices is one of the best ways to reduce fair lending risk.  For this reason, examiners will often recommend a formal process by which to conduct a secondary review of adverse action notices if a bank or credit union does not already have one established.  We believe that a second review should include two parts: 1) a technical...