Podcast
Questions and Answers
What does a dealership purchase equate to on the tracking record?
What does a dealership purchase equate to on the tracking record?
What must you do if you have a refinance of an ACCU loan?
What must you do if you have a refinance of an ACCU loan?
What is the default payment frequency setting in the secured loan process?
What is the default payment frequency setting in the secured loan process?
What will happen when the Risk Based Pricing button is clicked?
What will happen when the Risk Based Pricing button is clicked?
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What is a necessary step after completing the Tracking Record?
What is a necessary step after completing the Tracking Record?
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Which option should be selected if a member wants to make payments on their own?
Which option should be selected if a member wants to make payments on their own?
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What choice should be made to add the cost of GAP or MRC warranty to the loan amount?
What choice should be made to add the cost of GAP or MRC warranty to the loan amount?
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When adjusting the due dates, what information is critical to consider?
When adjusting the due dates, what information is critical to consider?
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What happens if the wrong loan type is selected based on the year of the collateral?
What happens if the wrong loan type is selected based on the year of the collateral?
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What is the purpose of the Auto Approval button within the loan application process?
What is the purpose of the Auto Approval button within the loan application process?
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After utilizing the Reproject function, what is NOT true regarding the loan status?
After utilizing the Reproject function, what is NOT true regarding the loan status?
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What does clicking OK after auto approval indicate?
What does clicking OK after auto approval indicate?
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Which of the following is a function of the Reproject button?
Which of the following is a function of the Reproject button?
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What must be done if a loan term changes during a reprojection?
What must be done if a loan term changes during a reprojection?
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What information is updated in the Application Record after auto approval?
What information is updated in the Application Record after auto approval?
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What happens if the selected loan amount or term is incorrect during the application?
What happens if the selected loan amount or term is incorrect during the application?
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What must be faxed to State National after a loan has closed?
What must be faxed to State National after a loan has closed?
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Who should review the Symitar and closing documents for accuracy during the audit process?
Who should review the Symitar and closing documents for accuracy during the audit process?
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What action should be taken if a co-borrower is added to a loan application?
What action should be taken if a co-borrower is added to a loan application?
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Which document is NOT required in the optional insurance forms for GAP?
Which document is NOT required in the optional insurance forms for GAP?
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Which document should accompany the original title when submitted?
Which document should accompany the original title when submitted?
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What indicates how Episys should report the application to credit bureaus?
What indicates how Episys should report the application to credit bureaus?
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For document printing procedures, what item is explicitly listed as being necessary?
For document printing procedures, what item is explicitly listed as being necessary?
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What is the fax number for State National where proof of insurance must be sent?
What is the fax number for State National where proof of insurance must be sent?
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What should be included in the notes if a member has applied for multiple loans?
What should be included in the notes if a member has applied for multiple loans?
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What is required from self-employed borrowers to confirm their income?
What is required from self-employed borrowers to confirm their income?
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If a member's reason for bankruptcy was a divorce, what should be noted?
If a member's reason for bankruptcy was a divorce, what should be noted?
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What should be noted if a member's credit report shows a fraud alert?
What should be noted if a member's credit report shows a fraud alert?
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What is necessary to include when a member states their purpose of funds is for debt consolidation?
What is necessary to include when a member states their purpose of funds is for debt consolidation?
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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
-
Dealer:
- 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
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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.
