Subject: Key New Credit Directive
Good morning.
I just wanted you to be aware off some changes within our credit parameters. This certainly is not forever but most likely will continue over the next 6 months. See below:
Due to the continuing high level of charge-offs and delinquencies across the office products portfolio, Key has decided to make some modifications to our credit policy.
With continued increases in terms of charge-offs and delinquencies, we can no longer continue to utilize the same level of credit underwriting criteria.
For those reasons the following changes are being implemented across the office product segment:
We have seen a high percentage of our charge-offs associated with the mortgage & real estate industry across and across many related industries.
For the foreseeable future, we will not be able to approve or consider any real estate related industries including mortgage brokers, title companies, real estate agents, property insurance companies, construction.
The threshold for requesting financials will be more strictly administered with a cut-off of $150k. This includes deals where total exposure for a specific lessee exceeds $150K.
I just wanted you to be aware of these changes. This certain is not permanent but something that is necessary at this time to ensure the overall health of our leasing portfolio.
Thank you,
Regional Sales Manager
Key Equipment Finance
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