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Loan Limits Maximum to one Borrower

  • 1.  Loan Limits Maximum to one Borrower

    Posted Sep 24, 2020 08:06 AM
    Dear all,

    Do you have a maximum aggregate to one Borrower?  We have $800,000 but feel we need to modify to be greater or have written exceptions.  We are  $290M assets.  Any advice?

    David Proffitt
    Alcoa Tenn FCU
    Alcoa TN

  • 2.  RE: Loan Limits Maximum to one Borrower

    Posted 30 days ago
    We have guidelines based on score and income for unsecured and secured.  We do not include mortgages in these guidelines.

    Angela Maynard CCE
    Chief Executive Officer
    TopMark FCU
    Cridersville OH

  • 3.  RE: Loan Limits Maximum to one Borrower

    Posted 27 days ago
    We found several institutions would have a % of net worth.  Some would have 0.75%-2% of net worth for a single loan to a single entity and 2%-4% of net worth to a single entity for aggregate loans.  Depending on how well your CU is diversified (borrower, geography, loan type, overall risk in portfolio, etc.) and how well your CU is capitalized should help determine how much you want to have out to one individual/entity.  You'll have to consider (worst case) if that person/entity goes under, how much can be
    • Written off without it hurting our CU/members? 
    • What will the impact to our overall capital be if we lose on this person/entity?
    • How much $s do we have to our top ten largest relationships?

      Good luck!

    Brody Mecham
    Commercial Underwriting Manager
    America First FCU
    Ogden UT