Discipline: Banking and Finance ( Banking ) Degree Credit  [X]
Non Credit  [ ]
Nondegree Credit  [ ]
Comm Service  [ ]
 

Riverside Community College District
Integrated Course Outline of Record

Banking 52


COURSE DESCRIPTION
52 Consumer Lending Units: 3.00
 
Prerequisite: None.
 
A study of the consumer lending process, its importance to banks and consumers, and the environment in which it functions. Students will explore closed-end loans, indirect loans, related credit products, and open-end credit products, and analyze the consumer lending process from loan application, credit investigation, lender decision-making, loan pricing and policy, collection and recovery.
 
SHORT DESCRIPTION FOR CLASS SCHEDULE
Analyzes the consumer lending market, product and services, decision making process and regulatory laws.
 
ADVISORY ENTRY SKILLS
None.

STUDENT LEARNING OUTCOMES
 Upon successful completion of the course, students should be able to:

Describe key laws and regulations affecting consumer lending.

Explain characteristics, benefits, and disadvantages of 
direct lending, indirect lending, and open-end credit products.

Explain how effective marketing can increase application volume.

Describe consumer loan information sources and credit verification
processes.

Explain how the five C’s of credit are used in credit evaluation and
decision-making.

Identify types of consumer loan documents and describe their
purpose.

Discuss causes of consumer loan delinquencies and collection
stages and remedies.
 
COURSE CONTENT
  TOPICS
 
  1. Overview of Consumer Lending
  2. The Consumer Lending Market
  3. Direct Lending
  4. Indirect Lending
  5. Open-End, Revolving Credit Products
  6. Formulating a Consumer Loan Policy
  7. Generating Loan Applications
  8. Credit Investigation
  9. Credit Evaluation and Decision Making
  10. Loan Pricing and Profitability
  11. Selling and Loan Structuring
  12. Loan Documentation and Closing
  13. Collection and Recovery
  14. Essentials about closed-end loans
  15. Open-end credit products
  16. Developing and taking loan applications
  17. Loan collection and recovery
  18. The credit investigation process
  19. How loan decisions are made
  20. Client relationship building
  21. The importance of consumer regulations
  22. The loan application generating process
  23. How effective marketing increases loans outstanding and application volume
  24. Consumer loan information sources and the credit verification process
  25. How the five C's of credit are used in credit evaluation and decision making
  26. Loan documentation
  27. Laws and regulations important to the lending process
  28. Real-life situations faced by bankers assisting consumer loan clients
  29. Bank compliance policy
  30. Bank consumer lending policy
 
METHODS OF INSTRUCTION
 Methods of instruction used to achieve student learning outcomes may include, but are not limited to:

  • Lecturing/conducting discussions and demonstrations to explain consumer lending background, tools and procedures.
  • Showing videos to provide different perspectives on banking, credit and consumer finance issues of current value to consumers and students.
  • Conducting pair and small group activities/discussion to facilitate understanding of real-life situations faced by bankers assisting consumer loan clients.
  • Assigning report and paper writing to enable focused study of consumer lending area of interest.
  • Guest lecturers to explain actual procedures, expected advancements, and to bring current operational experience into the classroom.
  • Assigning web-based/web-enhanced/online tasks and activities to increase course coverage and understanding while also familiarizing students with available online resources.
  • Case study of a bank's lending function to clarify the use of balance sheets, income statements, portfolio reports, profit and loss reports, and interest rate analysis.
 
METHODS OF EVALUATION
 Students will be evaluated for progress in and/or mastery of learning outcomes by methods of evaluation which may include, but are not limited to:

  • Oral reports/presentations designed to demonstrate critical thinking about the issues related to banking and consumer finance.
  • Written reports/presentations designed to promote research and demonstrate critical thinking related to consumer lending topic of identified interest.
  • Quizzes/examinations designed to evaluate student ability to deal with the consumer lending market, product and services, decision making process and regulatory laws.
ASSIGNMENTS

Required Reading Assignments


Required Writing Assignments


Other Outside-of-Class Assignments
 
COURSE MATERIALS
 All materials used in this course will be periodically reviewed to ensure that they are appropriate for college level instruction. Possible texts include:

  • George E Ruth. Consumer Lending. 5th ed. American Bankers Association, 2006.
  • David Lawrence and Arlene Solomon. Managing a Consumer Lending Business. Solomon Lawrence Partners, 0.
  • Institute of Financial Education. Consumer Lending. 4th ed. -, 1997.
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