Secured Loan Processes in ELA
29 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What does a dealership purchase equate to on the tracking record?

  • 3
  • 4
  • 2
  • 1 (correct)

    • What must you do if you have a refinance of an ACCU loan?

  • Re-file the title (correct)
  • Delete the tracking record
  • Keep the file unchanged
  • Modify the loan amount

    • What is the default payment frequency setting in the secured loan process?

  • 03 monthly
  • 04 monthly (correct)
  • 01 semi-annually
  • 02 weekly

    • What will happen when the Risk Based Pricing button is clicked?

    <p>It will pull in the correct risk rate and discounts</p> Signup and view all the answers

    What is a necessary step after completing the Tracking Record?

    <p>Click Update to save the information</p> Signup and view all the answers

    Which option should be selected if a member wants to make payments on their own?

    <p>Cash</p> Signup and view all the answers

    What choice should be made to add the cost of GAP or MRC warranty to the loan amount?

    <p>Select: add to loan</p> Signup and view all the answers

    When adjusting the due dates, what information is critical to consider?

    <p>Loan closing date</p> Signup and view all the answers

    What happens if the wrong loan type is selected based on the year of the collateral?

    <p>An interest rate will not be displayed.</p> Signup and view all the answers

    What is the purpose of the Auto Approval button within the loan application process?

    <p>To submit the application for system approval or referral.</p> Signup and view all the answers

    After utilizing the Reproject function, what is NOT true regarding the loan status?

    <p>A new Risk Based rate will be calculated automatically.</p> Signup and view all the answers

    What does clicking OK after auto approval indicate?

    <p>The application has been referred.</p> Signup and view all the answers

    Which of the following is a function of the Reproject button?

    <p>To recalculate changed values in the loan application.</p> Signup and view all the answers

    What must be done if a loan term changes during a reprojection?

    <p>Press the Risk Based Pricing button again.</p> Signup and view all the answers

    What information is updated in the Application Record after auto approval?

    <p>Decision Code, Decision Date, Approval Code, Approval Date, and Approval Amount.</p> Signup and view all the answers

    What happens if the selected loan amount or term is incorrect during the application?

    <p>The loan status may change to referred.</p> Signup and view all the answers

    What must be faxed to State National after a loan has closed?

    <p>Proof of insurance</p> Signup and view all the answers

    Who should review the Symitar and closing documents for accuracy during the audit process?

    <p>The MSR that closes the loan</p> Signup and view all the answers

    What action should be taken if a co-borrower is added to a loan application?

    <p>Change the ECOA code under the App ID</p> Signup and view all the answers

    Which document is NOT required in the optional insurance forms for GAP?

    <p>Proof of insurance</p> Signup and view all the answers

    Which document should accompany the original title when submitted?

    <p>A copy of the title for the file</p> Signup and view all the answers

    What indicates how Episys should report the application to credit bureaus?

    <p>ECOA code</p> Signup and view all the answers

    For document printing procedures, what item is explicitly listed as being necessary?

    <p>Special Mailer</p> Signup and view all the answers

    What is the fax number for State National where proof of insurance must be sent?

    <p>877.451.3548</p> Signup and view all the answers

    What should be included in the notes if a member has applied for multiple loans?

    <p>References to other applications by the same member</p> Signup and view all the answers

    What is required from self-employed borrowers to confirm their income?

    <p>Last two years of full personal tax returns</p> Signup and view all the answers

    If a member's reason for bankruptcy was a divorce, what should be noted?

    <p>The impact of decreased household income</p> Signup and view all the answers

    What should be noted if a member's credit report shows a fraud alert?

    <p>Verification of the member's identity and the method used</p> Signup and view all the answers

    What is necessary to include when a member states their purpose of funds is for debt consolidation?

    <p>The specific debts to be paid and plans for the trade lines</p> Signup and view all the answers

    Study Notes

    Secured Loan in ELA

    • Loan applications require a valid interest rate based on the year of the collateral, term and borrower's information.
    • Applications can be submitted for Auto Approval.
      • This creates a note record with applicant details.
      • Depending on the application's criteria, loans may be auto approved, referred, or denied.

    Auto Approval Process

    • When the application is submitted for Auto Approval, it will be reviewed by the system and automatically added to the application.
    • Based on the review, the loan will be:
      • Approved - A message will indicate this and the loan will be approved.
      • Referred - This occurs when a secondary review is necessary. A note is added to the application, and the loan details are updated.

    Reprojecting Loans

    • The "Reproject" button recalculates values changed in the loan application.
    • Reprojecting doesn't recalculate the risk-based rate.
    • If the loan term is changed, the "Risk Based Pricing" button needs to be selected again to update the rate.
    • Reprojecting can change the loan status from Approved to Referred.

    Tracking Records

    • A Tracking Record is essential for Loan Details. It captures:
      • Dealer:
        • Dealership purchase - Tracking code: "1"
      • Member:
        • Private party purchase - Tracking code: "2"
        • Lease Buyout
      • Credit Union:
        • Refinance from another financial institution - Tracking code: "3"
      • In File: This option should not generally be used. Refinance of an ACCU loan warrants a new title file
    • The Tracking Record shows the year, make, and model of the vehicle.

    Loan Projection

    • The Loan Projection screen pre-populates data.
    • The loan amount and term are pulled from the application wizard.
    • The rate is populated after selecting the "Risk Based Pricing" button.
    • The due day and due date are populated based on the application dates.
    • The payment frequency is always "04 monthly".
    • Members have a choice between paying cash or setting up a scheduled auto transfer.

    Loan Amount Calculation

    • Include any costs associated with GAP or MRC warranty under this section.
    • Use the CUNA link to obtain a quote for warranty products.
    • The loan amount will increase with the selected CUNA product.

    Calculation Options

    • Loan options include:
      • Risk Based Pricing button: This pulls the correct risk rate and discounts based on the ELA parameters.
    • The calculation options determine the loan's rate, payment, and auto approval status.

    Audit Check List

    • Complete the Audit sheet located in the specfile.
    • Two audits are required per loan closing:
      • First Audit: Completed by MSR, reviewing Symitar and closing documents for accuracy.
      • Second Audit: Completed by the Branch Manager or assigned individual.

    Post-Closing Procedures

    • Proof of insurance needs to be faxed to State National.
    • Fax number: 877.451.3548

    ECOA Code

    • ECOA code determines how applications are reported to credit bureaus.
    • The ECOA code will be populated based on the original application.
      • If there is one borrower, the code will be individual.
      • If a co-borrower is added, the ECOA code should be changed in the application.
    • On a loan with co-signers:
      • The primary borrower is labeled as the "Maker".
      • The co-signer is labeled as "Co-maker".

    Application Notes

    • Note member relationship with the institution: If new, include referral source or advertising method
    • For members with less than two years on job, document the reason for job change
    • If multiple applications are submitted by the same member, include details about all applications
    • Document proof of income verification: Include scanned documents or direct deposit information. Self-employed individuals require two years of tax returns.
    • For signature loans, record the intended use of funds and provide specific details
    • If debt consolidation is the purpose, list all debts to be paid and whether they will be closed or kept open
    • Explain any late payments appearing on the credit report within the last six months, including the reason for the delay
    • For applicants with bankruptcy within the last two years, record the reason for filing
    • If a fraud alert is present on the credit report, verify the applicant's identity and document the verification method

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    ELA Secured Loan Procedure PDF
    Unsecured Loan Notes PDF

    Description

    This quiz covers the processes involved in securing loans, including the auto-approval mechanism and the reprojecting of loans. You'll learn about how loan applications are evaluated and the significance of recalculating loan values as per changes made. Test your knowledge of these financial procedures and improve your understanding of secured loans.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser