Back in 1990, David Dickinson was an examiner for the FDIC.
The FDIC provided an 11-page matrix that outlined the various compliance requirements for just about any real estate loan scenario you could think of. While it was a great resource, it was quite cumbersome and he found himself highlighting the most common scenarios for quick reference.
He thought there had to be an easier way. But remember, this was the 90’s before computers had become mainstream.
David decided to take those highlighted loan scenarios (which covered about 95% of what he typically saw); cut each one out (with scissors!) and then taped them together on a single piece of paper.
This was the beginning of the Real Estate Loan Matrix, well before Banker’s Compliance Consulting was even a dream.
He then would photocopy it and use it during exams. Other examiners in his field office also liked the one-page matrix and asked to use it. Eventually, David was able to input his matrix on a computer using Lotus123, which was a painstaking process at the time. As David attended FDIC schools and conferences, word spread about this more efficient matrix and, it wasn’t long before FDIC examiners all around the country were asking to use his matrix. It became a trusted resource internally; however, the FDIC would not allow it to be distributed to banks.
In 1992, David left the FDIC to work for a bank that was part of a 16-bank holding company. He started to hand out his matrix to lenders throughout the organization, which is when the matrix really started to take off. In 1993, David started Banker’s Compliance Consulting. It was at this time he added the company logo and began distributing it to every bank he came in contact with.
Regulatory updates over the years have obviously necessitated changes to the matrix. Each time a major regulatory change occurs, the main version number is updated. For instance, Version 1.0, Version 2.0, etc. If slight tweaks were needed just for clarification, then a sub-version number was updated. For example, 1.1, 1.2, 1.3, etc., but you wouldn’t go wrong using an older subversion. In almost 30 years, the Matrix has gone from Version 1.0 to the current Version 11.1.
In all that time, however, it has stayed true to its original purpose, being a one-page, quick reference compliance guide for the most common loan scenarios.
You can download a copy from the Free Lending Resources on our website.
