Similar to identity theft, this type of fraud happens when an unauthorized individual gain access through online banking applications, capturing the account information to create and write bad checks.
Account-centric enterprise content management solutions allow users to access account holder information based on their account numbers.
An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
The term “aging exceptions” refers to a group of critical exceptions that have not been resolved within a reasonable amount of time.
Altered check fraud occurs when a fraudster changes the amounts and Payee from a stolen check.
API is short for “application programming interface.” Technology companies like Alogent rely on APIs to connect multiple software applications, thereby enabling a two-way exchange of information to support users’ needs.
Audit and exam prep is a process that financial institutions go through in order to adequately prepare for upcoming audits and exams.
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.

Loan Policy

A loan policy is a bank or credit union’s lending guidelines that set the terms on how and to whom it will loan funds. A financial institution develops its own policy, which should also be compliant with all applicable regulations. Once developed, a bank is under an obligation to follow its own mandates set forth by the loan policy.

Setting the Parameters

A financial institution’s loan policy outlines the types of loans it will consider and the associated terms. For example, this might include:

  • Maximum dollar amount and term length on a new car loan
  • Maximum percentage of loan-to-property value, how appraisals are conducted, and if guarantors are required on real estate loans
  • Whether or not principals of the organization must guarantee a commercial loan

Loan policy usually defines a bank or credit union’s market area and the types of loans that an institution does not extend to account holders. For example, a bank or credit union might decide to concentrate on commercial and agricultural loans rather than personal auto loans.

Making Exceptions

Sometimes an institution will consider a loan that is outside of its own lending policy. In this case, the lender may need to make a loan presentation to a committee and explain why he or she wants to supersede the guidelines due to special circumstances.

Financial institutions track loan policy exceptions for internal audits and external examinations. Often, they use spreadsheets to document loan policy exceptions and the rationale for deviating from standard policy. Instead of spreadsheets, some banks opt for electronic account management systems, such as AccuAccount, which can make it easier to flag policy exceptions for audits and examinations.

If a bank or credit union is making many exceptions to a specific loan policy, then it may need to reevaluate its policy and adjust it to be in closer alignment with actual business practices.

Managing Loan Policies

A financial institution’s lenders should always be conversant with and have ready access to the most current version of its loan policy. Hard copy loan policies are difficult to manage and quickly become outdated when policies change. A digital repository, such as AccuDoc, can streamline the management and sharing of a bank or credit union’s loan policy.

Additional Banking Resources

Does your bank or credit union need a more efficient approach to document management and tracking? Be sure to check out our extensive resource library with free spreadsheets, whitepapers, and eBooks.

Browse our banking definitions page for more terminology.
 

Explore more resources

Related articles

Monday 1 June 2026

Why Modern Branch Transformation Fails Without the Right Banking Technology Infrastructure

Modern branch transformation depends not just on physical design, but on aligning technology and operations to support lean staffing, faster service, and more consistent experiences…

Read the Blog

Tuesday 26 May 2026

Ag Lending: The Hidden Risk of Expired and Outdated Documents

Agricultural lending is critical to supporting America’s farming economy, but it comes with ongoing risks—especially when required documentation becomes outdated or incomplete. From cross-collateralized assets…

Read the Blog

Thursday 21 May 2026

Why the Strongest Fintech and Banking Technology Ecosystems Are Built on Partnerships, Not Transactions

Growth in financial services is increasingly driven by collaboration rather than standalone development, with stronger outcomes emerging when providers align around shared goals and complementary…

Read the Blog

Tuesday 19 May 2026

The Operational Backbone of a Successful Instant Payments Strategy for Banks and Credit Unions

Delivering instant payments at scale requires more than access to new rails. Financial institutions must overcome legacy systems, fragmented workflows, and fraud risks to support…

Read the Blog

Thursday 7 May 2026

Inflated Exception Reports? Try This Instead.

Tracking document requirements in commercial lending can become overly complex, leading many institutions to collect more documentation than necessary and inflate exception reports with items…

Read the Blog

Monday 4 May 2026

How Regulation CC Changes Are Forcing Faster Funds Availability and Raising Check Fraud Risk

As Regulation CC accelerates funds availability, banks and credit unions are being required to release larger portions of check deposits sooner, often before fraud review…

Read the Blog

Monday 27 April 2026

The Hidden Cost of Lost Documents: How Banks and Credit Unions Modernize Content Management to Reduce Risk and Improve Service

Outdated content management creates real challenges for banks and credit unions—driving audit risk, slowing lending decisions, and pulling staff away from high-value work. It also…

Read the Blog

Thursday 23 April 2026

Why Check Fraud Is Forcing Banks and Credit Unions to Rethink Their Risk Appetite

Check fraud has become one of the most persistent operational risks facing banks and credit unions, and leadership teams are feeling the pressure. Data highlighted…

Read the Blog