Pub. 7 2017-2018 Issue 1

14 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S ChanceWilliams brings a wealth of knowledge and practical expe- rience to our banks. Chance developed an expertise in compliance while working as a BSA and Compliance Officer in banks of all sizes during his career. He contributed as a member of Business Development Teams, Loan Committees, Audit Committees, Prod- uct Steering Committees, IT Committees and as a direct liaison with the regulatory agencies. Chance also holds 10 years of experience as a compliance officer/auditor and 4 years as a senior compliance/audit consultant. As a Compliance Officer and Auditor, Chance has spent his career working with banks under enforcement action to strengthen bank compliance management systems. Chance holds the ICB CRCM certification; as well as ICBA certifications in BSA (CBAP), Compliance (CCBCO), and IT (CCBTO). He has worked in the banking industry for 20 years in all departments of the bank. He possesses a strong working knowledge of bank operations and compliance. out of 200million Americans that currently have a credit scores, about 12 million consumers will see their scores increase. The increase is thought to potentially raise the credit score for those individualsbyapproximately20points.Thisequates toabout6.5% of thepopulationwhocurrentlyhavea score thatwill bepositively affected by the change in reporting. This impacts the banks and financial institutions that have borrowers that would be on the cusp of the credit score requirements and could now appear to have a stronger credit standing. Banks and other institutionswill need todetermine if the riskof business asusual ismore than they arewilling tobear and if there isaneed toamplify theirunderwrit- ing processes to ensure they have the whole story when it comes to borrowers, their financial obligations, and financial stability. A system of more robust interviewing, reference checking, and additionof predictivemeasureswill help to reduce the riskbanks and other institutions face when the new reporting begins. One additional consideration for banks to make is whether the change in the reporting will result in employees who would not have been hirable based on credit may now have adequate scores to procure employment. Many times banks will use credit scores as a determining factor for making or denying applicants for employment. There is an increased possibility that a person who was once considered un-hirable may now meet the credit standards put forth by the bank and be eligible for hire. As the industry and consumer needs evolve the Bureaus will continue to seek ways to ensure the data they maintain on consumer files is accurate and timely. Changes that are currently beingmadeby theBureaus arenot seenaspullinga splinter out of yourhandbut rather asfixingabrokenarm. Judgements and liens are in the major derogatory events category of the credit formula and thus thought to make it much tougher for banks to rely on simply the credit score. This will inevitably put the responsibility onthefinancial industry tocontinue toassess thepracticesutilized when make safe and sound credit decisions. A continual review and assessment of your policies, procedures, and underwriting guidelines will ensure that the banks and other institutions have addressed changes to industry landscape.    continued from page 13 WORDS. DANI GORDEN Advertising Sales 801.676.9722 dani@thenewslinkgroup.com