HDFS Credit Culture Survey


  1. Please characterize the tolerance for risk within HDFS.
    Very Low
    Low
    Moderate
    High
    Very High


  1. Has the tolerance for risk changed at HDFS in the past year?
    No, it’s about the same
    Yes, the tolerance for risk is much lower
    Yes, the tolerance for risk is lower
    Yes, the tolerance for risk is higher
    Yes, the tolerance for risk is much higher


  1. Please rank in order of importance to management of HDFS the following items. Each is important, but what is the order of importance?
        1 2 3 4
    Asset Quality  
    Immediate Earnings  
    Growth  
    Return on Equity/Balance risk and reward  


  1. Credit Culture describes “how we do things around here.” Culture is unwritten rules of behavior. Check the five (5) statements heard most frequently within HDFS.
    We want quality assets only.
    We will not book loans that don’t meet our quality standards.
    Our priority is to book loans that will perform.
    If you want to make money, you’ve got to take some risks.
    We must meet plan, even if we have to stretch.
    We want to be the lender of choice in our market.
    Credit Associates and managers are held accountable for loan decisions.
    We must carefully underwrite, structure, and manage our loans.
    We’re looking for steady growth based on quality assets.
    Credit Associates are responsible for quality and profitability of their portfolios.
    We’re willing to bend policy to get or keep a good customer.
    We must find creative ways to structure loans that will give us a competitive edge.
    We must carefully balance risk and return.
    If we won’t lose money, it’s a “doable” deal.
    Loan growth is the key to our profitability.


  1. Select the statement that best describes HDFS’s top priority.
    Long-term, consistent performance
    Manage Losses
    Current earnings, stock price
    Market share, loan growth, sales volume
    Uncertain, tends to change with prevailing winds


  1. Select the statement that best describes the driving force at HDFS.
    Corporate values, market consistency
    Annual earnings plan
    Incentive, bonus program
    Commitment to be the preferred lender; sales and loan growth
    Support retail sales of HDMC, Buell, and MV Agusta
    Unclear, varies


  1. Select the statement that best describes the credit environment at HDFS.
    Strong credit organization with few policy exceptions and excellent communications.
    Generally strong emphasis on credit quality. Shifts in priorities becomes evident only during periods of soft loan demand.
    Strong systems and controls and good credit leadership in place. However, as pressure to produce increases, it is uncertain whether these systems and controls will stand up. Credit staff and business group management may conflict over priorities.
    Varies; depends on strength of credit management or on current priorities. Each business group could have its own unique attitude toward credit quality.


  1. Select the statement that best describes the credit environment at HDFS one year ago
    Strong credit organization with few policy exceptions and excellent communications.
    Generally strong emphasis on credit quality. Shifts in priorities becomes evident only during periods of soft loan demand.
    Strong systems and controls and good credit leadership in place. However, as pressure to produce increases, it is uncertain whether these systems and controls will stand up. Credit staff and business group management may conflict over priorities
    Varies; depends on strength of credit management or on current priorities. Each business group could have its own unique attitude toward credit quality.


  1. When you hear the term “hidden policy/tribal knowledge,” which of the following statements apply to HDFS?
    Not a factor, consistent with written credit policy/procedure.
    Conflicts with Written credit policy during high-growth mandates or periods of soft market demand.
    Generally dominates written credit policy. Credit Associates understand that their primary role is to produce.
    The lack of consistency and tendency to shift priorities leaves Credit Associates confused. Don’t know what behavior is desired.


  1. Credit quality is a corporate value.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. Senior Management supports credit quality priority through words and actions.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. Origination/Operations management support credit quality priority through words and actions.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. Origination/Operations Management supports credit quality objectives.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. There is strong leadership within Credit and Risk Management.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. Material exceptions to lending policy are infrequent and difficult to obtain.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. There is a commitment to credit training.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. Strong credit systems and controls exist.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. Consumer Credit Operations has clear and demanding credit standards and objectives. Employees are rewarded based on achieving them.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. Employees in Consumer Credit Operations are rewarded/penalized for credit performance.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. There are subject matter experts (SME) at HDFS; people who are highly regarded for their credit expertise.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. Credit standards, credit policy, business plan, incentive plans, and credit communications are harmonious.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. The Credit Quality Assurance feedback helps me to understand credit culture.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. The Credit Quality Assurance process and feedback are consistent.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. Credit Associates and Leadership describes the credit culture using the same words (credit vocabulary).
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. All new Consumer Credit and Operations personnel receive extensive indoctrination on “how we do things around here.”
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. There are communicators at HDFS who persistently repeat the credit message.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. All consumer Credit and Operations personnel receive regular training on HDFS’s lending policy and understand and adhere to it.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. New lines of business and markets are carefully selected to conform with portfolio risk guidelines.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. Business growth are managed prudently.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. Promotions are used effectively and prudently to support HD Sales.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. I have a strong understanding of the 5 C’s of credit as they pertain to credit analysis.
      1 2 3 4 5  
    Strongly agree   Strongly disagree


  1. Please identify your location:
    Carson City
    Chicago
    Plano
    Rolling Meadows


  1. Please identify your group:
    Compliance/Legal
    Credit Underwriting
    Dealer Solutions
    Credit and Risk


  1. Please identify your position:
    Data Entry/Clerical
    Credit Associate
    Manager/ Consumer Credit Officer/ Professional
    Funding Associate
    Director


  1. Please identify the number of years of experience you have in credit underwriting:
    Less than 1 year
    1-3 years
    3-5 years
    5-10 years
    10 + years
    N/A


  1. Please identify the number of years of experience you have in credit underwriting with HDFS.
    Less than 1 year
    1-3 years
    3-5 years
    5-10 years
    10 + years
    N/A


  1. Please provide your comments on changes to our credit culture and practices in the past year.


  1. Please provide any additional comments you wist to add.





OD&L
TX