Title Processing Changes Overview
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Title Processing Changes Overview

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@ConsiderateAmericium

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Questions and Answers

What document must be received from the member after they visit the Secretary of State to place the lien?

  • Copy of the Original Title
  • UCC1 Financing Statement
  • Validated Application for MI Title (correct)
  • E-sign Certificate

    • Which statement best describes the handling of the new title once the loan is paid in full?

  • It remains electronic and is not mailed to either party. (correct)
  • It will be mailed to the member immediately.
  • The borrower will receive a digital copy by email.
  • It will be sent to ACCU in paper form.

    • In the UCC1 Financing Statement process, where do you indicate the collateral?

  • Under the Compliant Borrower section
  • In the Secretary of State application form
  • On the E-sign Certificate form
  • Using drop downs in the Collateral section (correct)

    • Who is responsible for filing the UCC1 with the Secretary of State?

    <p>Lending Support</p> Signup and view all the answers

    What piece of information must be included in the New Lienholder Information section during closing?

    <p>Secured Party's Address</p> Signup and view all the answers

    What is the primary change regarding title processing that begins on 10/1/2023?

    <p>Titles with a lienholder must be processed electronically.</p> Signup and view all the answers

    What Lien Code ID will ACCU use for title work starting 9/1/23?

    <p>LH051752</p> Signup and view all the answers

    What will happen to the original paper title after the lien placement?

    <p>Members will not receive an original paper title.</p> Signup and view all the answers

    What should members do with previously saved title forms on their desktops?

    <p>Stop using them as they are no longer valid.</p> Signup and view all the answers

    What is no longer required as a part of the title processing change?

    <p>The Special Mailer for paper titles.</p> Signup and view all the answers

    How should dealers be informed about lien placement for dealership loans?

    <p>By providing them with the Lienholder name, address, and Lien Code ID.</p> Signup and view all the answers

    Where can the required titling documents for a loan be found?

    <p>Under Consumer Forms or Commercial Forms in ELA.</p> Signup and view all the answers

    What is a key feature of the new electronic lien title forms?

    <p>They allow for multiple collaterals to be listed.</p> Signup and view all the answers

    What will happen to an electronically held title until the loan is paid in full?

    <p>It will be held electronically.</p> Signup and view all the answers

    What must a member present to the Secretary of State for title transfer?

    <p>Application for Title and validated Application for MI Title.</p> Signup and view all the answers

    In the case of Lease Buy-Out, when will the original title be mailed to ACCU?

    <p>After the lease is paid off.</p> Signup and view all the answers

    Which document does the member need to submit to verify ownership on a Lease title?

    <p>Copy of the Registration.</p> Signup and view all the answers

    What is required at closing for private party loans?

    <p>A paper title.</p> Signup and view all the answers

    What should a seller do if there is a lien on an electronic title?

    <p>Order a paper title through their Financial Institution.</p> Signup and view all the answers

    What is necessary for placing a lien on a Boat/Watercraft with an outboard motor or trailer?

    <p>Separate Title Work or UCC1.</p> Signup and view all the answers

    What is required from the member after they visit the Secretary of State to affix the lien?

    <p>Fax or email a copy of the validated Application for MI Title.</p> Signup and view all the answers

    What will ACCU do with original paper titles after a title transfer and lien placement?

    <p>Members will not receive original paper titles after title transfer and lien placement.</p> Signup and view all the answers

    What action must a member take to transfer a title and place the lien for dealership loans?

    <p>The member must take the original title and Application for Title to the Secretary of State.</p> Signup and view all the answers

    What does the leasing company do when the lease is paid off?

    <p>The leasing company will mail the original title to ACCU.</p> Signup and view all the answers

    Why must the seller order a paper title if there is a lien on the electronic title?

    <p>The seller must order a paper title to ensure compliance with closing requirements for private party loans.</p> Signup and view all the answers

    What must the lessor do before ACCU can place a lien on a lease buy-out title?

    <p>The lessor must sign off the title and mail it to ACCU.</p> Signup and view all the answers

    What happens to ACCU's lien on the title until the loan is paid in full?

    <p>ACCU's lien will be held electronically until the loan is paid in full.</p> Signup and view all the answers

    What should members provide to ACCU for lease buy-out transactions?

    <p>Members must provide a copy of the validated Application for MI Title.</p> Signup and view all the answers

    What documents are required to be imaged if a paper title exists during dealership loans?

    <p>Image the original title, Application for Title, and E-sign Certificate if applicable.</p> Signup and view all the answers

    What must a member take to the Secretary of State to transfer the title and place the lien?

    <p>The member must take the original title and Application for Title.</p> Signup and view all the answers

    What role does Lending Support play in the UCC1 Financing Statement process?

    <p>Lending Support is responsible for filing the UCC1 with the Secretary of State.</p> Signup and view all the answers

    What should be done with the UCC1 Financing Statement during loan processing?

    <p>A UCC1 Financing Statement should be created and imaged with other loan documents.</p> Signup and view all the answers

    What information is required in the New Lienholder Information section at closing?

    <p>ACCU's information must be placed using ACCU's lienholder stamp.</p> Signup and view all the answers

    What document must be imaged along with the title and the Application for Title?

    <p>The E-sign Certificate must also be imaged if applicable.</p> Signup and view all the answers

    The Credit Union can do private party loans from out of state

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

    Study Notes

    Title Processing Changes

    • Starting October 1, 2023, all titles with a lienholder processed by the Secretary of State (SOS) will be electronic.
    • ACCU will use its Lien Code ID (LH051752) on all title work starting September 1, 2023.
    • Members will not receive original paper titles after title transfer and lien placement.
    • When the loan is paid in full, ACCU will release its lien and the new paper title will be mailed to the member.
    • Title processing differs based on the type of collateral and where the purchase is made.
    • Electronic Lien Title (ELT) forms are available in ELA (electronic loan application) under Consumer or Commercial Forms.
    • The collateral information, borrower's name and address will be generated on the forms.
    • ACCU's name, address, and Lien Code ID will be filled in on the title forms.
    • Don't use any saved title forms on your desktop.

    Dealership Loans

    • Dealerships handle title processing.
    • Provide the dealership with ACCU's lienholder name, address, and Lien Code ID.
    • ACCU's lien will be held electronically until the loan is paid in full.
    • If a paper title exists:
      • Using ACCU's lienholder stamp, place ACCU's information in the New Lienholder Information section.
      • Image the original title, Application for Title, and E-sign Certificate (if applicable).
      • The member will take the original title and Application for Title to the Secretary of State to transfer title and place the lien.
      • The member must provide ACCU with a copy of the validated Application for MI Title.
    • A new title will not be mailed from the SOS to ACCU or the member.

    Lease Buy-Out Loans

    • Lease buy-out titles will remain paper until the collateral is paid off.
    • The lessor must sign off the title and mail it to ACCU.
    • Only a lessee named on the title can buy out their lease.
    • Request a copy of the registration to verify owners on the lease title.
    • After the lease is paid off, the leasing company will mail the original title to ACCU.
    • Lending Support will place a lien on the title and mail the original title and supporting documents to the member.
    • The member must take all lease buyout documents to the Secretary of State to transfer the title and place the lien.
    • The member must provide ACCU with a copy of the validated Application for MI Title.
    • A new paper title will not be mailed from the SOS to ACCU or the member.

    Private Party Loans

    • A paper title is required at closing.
    • If there is a lien on the title and the seller claims it is an electronic title, they must have their financial institution order a paper title.
    • It may take up to two weeks to receive a paper title from the Secretary of State.
    • The loan cannot close until the paper title is received.
    • At closing:
      • Using ACCU's lienholder stamp, place ACCU's information in the New Lienholder Information section.
      • Image the original title, Application for Title, and E-sign Certificate (if applicable).
      • The member will take the original title and Application for Title to the Secretary of State to transfer the title and place the lien.
      • The member must provide ACCU with a copy of the validated Application for MI Title.
    • A new title will not be mailed from the SOS to ACCU or the member.

    Snowmobile/Tractor/Untitled Trailer/Outboard Motor

    • A UCC1 Financing Statement should be created and imaged with other loan documents.
    • Place a note under the loan indicating a UCC1 was created for collateral.
    • Lending Support will file the UCC1 with the Secretary of State.
    • You will be prompted to complete the UCC1 through ELA during the loan process.
    • Use the dropdowns in the Collateral section to choose the correct collaterals for the UCC1.

    Title Processing Changes

    • Starting October 1, 2023, all titles with a lienholder processed by the Secretary of State (SOS) will be electronic.
    • ACCU will use its Lien Code ID (LH051752) on all title work starting September 1, 2023.
    • Members will not receive original paper titles after title transfer and lien placement.
    • When the loan is paid in full, ACCU will release its lien and the new paper title will be mailed to the member.

    Dealership Loans

    • Dealerships handle title processing.
    • Provide the dealership with ACCU's lienholder name, address, and Lien Code ID.
    • ACCU's lien will be held electronically until the loan is paid in full.
    • If a paper title exists:
      • Using ACCU's lienholder stamp, place ACCU's information in the New Lienholder Information section.
      • Image the original title, Application for Title, and E-sign Certificate (if applicable).
      • The member will take the original title and Application for Title to the Secretary of State to transfer title and place the lien.
      • The member must provide ACCU with a copy of the validated Application for MI Title.
      • A new title will not be mailed from the SOS to ACCU or the member.

    Lease Buy-Out Loans

    • Lease buy-out titles will remain paper until the collateral is paid off.
    • The lessor must sign off the title and mail it to ACCU.
    • Only a lessee named on the title can buy out their lease.
    • Request a copy of the registration to verify owners on the lease title.
    • After the lease is paid off, the leasing company will mail the original title to ACCU.
    • Lending Support will place a lien on the title and mail the original title and supporting documents to the member.
    • The member must take all lease buyout documents to the Secretary of State to transfer the title and place the lien.
    • The member must provide ACCU with a copy of the validated Application for MI Title.
    • A new paper title will not be mailed from the SOS to ACCU or the member.

    Private Party Loans

    • A paper title is required at closing.
    • If there is a lien on the title and the seller claims it is an electronic title, they must have their financial institution order a paper title.
    • It may take up to two weeks to receive a paper title from the Secretary of State.
    • The loan cannot close until the paper title is received.
    • At closing:
      • Using ACCU's lienholder stamp, place ACCU's information in the New Lienholder Information section.
      • Image the original title, Application for Title, and E-sign Certificate (if applicable).
      • The member will take the original title and Application for Title to the Secretary of State to transfer title and place the lien.
      • The member must provide ACCU with a copy of the validated Application for MI Title.
      • A new title will not be mailed from the SOS to ACCU or the member.

    Snowmobile/Tractor/Untitled Trailer/Outboard Motor

    • A UCC1 Financing Statement should be created and imaged with other loan documents.
    • Place a note under the loan indicating a UCC1 was created for collateral.
    • Lending Support will file the UCC1 with the Secretary of State.
    • Use the dropdowns in the Collateral section to choose the correct collaterals for the UCC1.

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    Related Documents

    Title Processing Procedure 2023 PDF

    Description

    This quiz covers the recent changes in title processing regarding lienholders by the Secretary of State effective October 1, 2023. It highlights the shift to electronic titles, the use of ACCU's Lien Code ID, and the impact of dealership loans on title processing. Test your understanding of these updates and their implications.

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