Affordable, Responsible Loans for the Military: Programs and Prototypes
Agenda and Presentations
Wednesday, December 6, 2006
This template for an affordable, small-dollar loan program was developed by bankers who attended the December 6, 2006 FDIC Conference, “Affordable, Responsible Loans for the Military: Programs and Prototypes”. Conference participants agreed that the range of options it sets forth would be useful in developing a responsible small-dollar loan program suitable to both a bank and its military customers.
How Military Banks are Meeting the Credit Needs of Service Personnel Bankers discuss features of responsible loan products and the priority military banks place on offering alternatives to predatory loans.
Opportunities and Obstacles in Creating an Affordable Loan Product Regulators discuss recent statutory and regulatory developments, and the impact of the Talent Amendment, the Community Reinvestment Act, Regulation E and other applicable rules and regulations on small, affordable loans.
Luncheon Keynote Address Kelvin Boston, star of the PBS MoneyWise Series and member of the FDIC's Committee for Economic Inclusion
High-Cost Credit and its Impact on Military Personnel Panelists representing the armed forces discuss the negative impact of high cost loans and the demand for affordable small loans in the military market.
Workshop: Developing an Affordable Loan Product Template Collaborate with other bankers in developing a template for an affordable alternative small loan product(s)
Three separate working groups explore different aspects of developing an affordable loan product following an outline similar to the morning's discussions.
Group One will discuss the pros and cons of loan features relating to affordability and pricing, principal reduction, and loan amounts along with recommendations for these to be used in a small loan template
Group Two will discuss the pros and cons of using different underwriting criteria and the use of technology and automated processes to facilitate making a small loan, along with recommendations for use of these in a small loan template
Group Three will explore how to incorporate other services into an account package such as a savings component, financial education, etc. that can be marketed as an asset building strategy resulting in a long-term and profitable customer relationship