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Loan
officers as we all know are the people from the world of
loans and mortgage. They help people for getting a new
home loan, in refinance for lowering their interest
rates, in getting second mortgages, equity loans and
many other financial matters related to loans and
mortgage. |
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Lending
Officer Instruction
According to Lending Officer Instruction, lending officers have
the primary responsibility for the successful delivery of the
B&I loan program. In your initial contact with lending officers,
make sure that they are well aware of this responsibility and
the fact that the Agency will enforce the requirements of the
Conditional Commitment and the Lender's Agreement in this regard.
Lending Officer Instruction says that all lenders obtaining
or requesting a B&I loan guarantee are responsible for: processing
applications for guaranteed loans, developing and maintaining
adequately documented loan files, recommending only loan proposals
that are eligible and financially feasible, obtaining valid
evidence of debt and collateral in accordance with sound lending
practices, supervising construction.
Also they are responsible for distribution of loan funds, servicing
guaranteed loans in a prudent manner, including liquidation
if necessary, following Agency regulations and obtaining Agency
approvals or concurrence as required. Credit evaluation is a
key function of all lenders during the loan-processing phase,
says the Lending Officer Instruction. The lender must analyze
all credit factors associated with each proposed loan and apply
its professional judgment to determine that the credit factors,
considered in combination, ensure loan repayment. The lending
officer, according to Lending Officer Instruction must have
an adequate underwriting process to ensure that loans are reviewed
by other than the originating officer. There must be good credit
documentation procedures.
Lending Officers have a responsibility to become familiar with
Federal environmental requirements; to consider, in consultation
with the prospective borrower, the potential environmental impacts
of their proposals at the earliest planning stages; and to develop
proposals that minimize the potential to adversely impact the
environment, according to Lending Officer Instruction. Lenders
must alert the Agency to any controversial environmental issues
related to a proposed project or items that may require extensive
environmental review. Lenders must help the borrower prepare
Form RD 1940-20, "Request for Environmental Information" (when
required by subpart G of part 1940); assist in the collection
of additional data when the Agency needs such data to complete
its environmental review of the proposal; and assist in the
resolution of environmental problems, as far as Lending Officer
Instruction is concerned. |
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