What role if any does your Directors Loan Committee play in pricing "individual" credit requests. Are they active (micro-manage) in determining the pricing or do they rely and accept the pricing presented by the loan officer.

Well, the insitution should have some methodology for pricing to ensure you don't have fair lending issues. Anytime you are pricing loans on a one-on-one basis you may be inadvertently increasing your exposure to fair lending risks. So either pricing individual loans at the loan committee or the loan office level presents equal risks.

We of course have a methodolgy to determine pricing (which has been previously reviewed and accepted by DLC). By the time a loan request reaches DLC it has been reviewed by our Internal Loan Committee. The issue is that it appears that members of DLC really want to control the rate & fees charged rather accepting the recommendation of ILC & the Loan Officer. The question really boils down to "Do other Director Loan Committees retain such control of pricing, Yes or No"

It has been my experience that loan pricing is set by management. Deviations from the bank's pricing structure may well be authorized by the loan committee as a result of a loan officer's request. My concerns about fair lending come in here -especially since I have known directors with agendas of their own.

Thank you