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My experience is the banks are prioritizing by the strength of their relationship with the borrower. That probably aligns with the customer’s strength as well, since stronger customers work harder to cultivate their bank relationships.
I also think, using that relationship, some pushing and nudging is appropriate to move the application along.
In terms of fees, the program was $350 billion with $339 billion for loans and $11 billion for fees. The bank earns a fee for participating and completing the loans, has no risk of loss and doesn’t use its own capital. Pretty sweet. And doing one of these loans doesn’t stop the bank from offering additional loans to the borrower, but they’d need to do credit reviews for that.
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