Loan Amount For Consumer Purpose Loans

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For 2014, this particular institutions average loan amount for consumer purpose loans was $230,000. The interest rate was 4.80 percent, average cost of funds spread was 2.32 percent, average cost of funds spread of 2.32 percent, and fee average was approximately $1,000. In comparison, the non-consumer purpose loan average was $241,000. The interest rate was 4.73 percent, average cost of funds spread of 2.90 percent, and fee average was approximately $1,000. So as you can see, the spread on the agriculture portfolio was higher than home loans. In this particular case, they originated over 700 agriculture loans compared to 30 home loans in 2014. While the fees by dollar average out the same, it costs them considerably more to process …show more content…

That being said, survey results indicate that a significant number of institutions have complied but also expanded their consumer lending staff and hope to gain a larger market share. Here are a comments gathered through the survey. (System Survey [12])
1. “The association has developed a new rural home program including staff expert to focus on these loans only.” “The association has recently designated a Compliance Officer and if anything he anticipates expansion in the volume of consumer loans in the future.”
2. “We have spent a significant amount of time in training loan officers on compliance, and they have hired a compliance employee at the association at this point.”
3. “We plan on increasing emphasis on consumer lending. Currently process all consumer loans through its in-house consumer loan processing department and will continue to do so going forward. In addition, recently hired an additional consumer lending expert in anticipation of increasing consumer lending portfolio.”
4. “The compliance officer reviews all consumer loans so this cost would be at least $5k depending on the number of loans originated.”
5. “We have spent in excess of $500,000 in employee training in 2014 to ensure they can comply with new/revised consumer regulations issued by the CFPB. We also have a full time compliance officer to monitors any new/revised regulations and are planning on adding a compliance specialist to their ICR staff.”
6. “We are

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