Who forms a Credit Review Committee when the direct lender must obtain its supervising bank’s approval on a credit decision?
Generally, a Credit Review Committee is formed at the direct lender level. In the case of non-direct lender approval actions, the committee may be formed at either the direct lender level or the approval level (supervising bank). If the Credit Review Committee will be formed at the approval level (supervising bank), then the committee must, at a minimum, include a member who is a supervising bank director from the direct lender where the loan application originated. If there is no such director at the supervising bank, then one of the Credit Review Committee members must be a farmer board member from the direct lender. The rules that prohibit the loan officer/decision maker from serving on a Credit Review Committee still apply.
Related Questions
- If I apply for level III and do not obtain approval for progression, will the committee recommend another level (such as level II) commensurate with my documentation?
- How does a Lender who is already Title I or Titel II approved obtain the other approval?
- How long does it take to obtain an approval from the environmental review committee?
