Podcast
Questions and Answers
What document must be received from the member after they visit the Secretary of State to place the lien?
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?
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?
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?
Who is responsible for filing the UCC1 with the Secretary of State?
What piece of information must be included in the New Lienholder Information section during closing?
What piece of information must be included in the New Lienholder Information section during closing?
What is the primary change regarding title processing that begins on 10/1/2023?
What is the primary change regarding title processing that begins on 10/1/2023?
What Lien Code ID will ACCU use for title work starting 9/1/23?
What Lien Code ID will ACCU use for title work starting 9/1/23?
What will happen to the original paper title after the lien placement?
What will happen to the original paper title after the lien placement?
What should members do with previously saved title forms on their desktops?
What should members do with previously saved title forms on their desktops?
What is no longer required as a part of the title processing change?
What is no longer required as a part of the title processing change?
How should dealers be informed about lien placement for dealership loans?
How should dealers be informed about lien placement for dealership loans?
Where can the required titling documents for a loan be found?
Where can the required titling documents for a loan be found?
What is a key feature of the new electronic lien title forms?
What is a key feature of the new electronic lien title forms?
What will happen to an electronically held title until the loan is paid in full?
What will happen to an electronically held title until the loan is paid in full?
What must a member present to the Secretary of State for title transfer?
What must a member present to the Secretary of State for title transfer?
In the case of Lease Buy-Out, when will the original title be mailed to ACCU?
In the case of Lease Buy-Out, when will the original title be mailed to ACCU?
Which document does the member need to submit to verify ownership on a Lease title?
Which document does the member need to submit to verify ownership on a Lease title?
What is required at closing for private party loans?
What is required at closing for private party loans?
What should a seller do if there is a lien on an electronic title?
What should a seller do if there is a lien on an electronic title?
What is necessary for placing a lien on a Boat/Watercraft with an outboard motor or trailer?
What is necessary for placing a lien on a Boat/Watercraft with an outboard motor or trailer?
What is required from the member after they visit the Secretary of State to affix the lien?
What is required from the member after they visit the Secretary of State to affix the lien?
What will ACCU do with original paper titles after a title transfer and lien placement?
What will ACCU do with original paper titles after a title transfer and lien placement?
What action must a member take to transfer a title and place the lien for dealership loans?
What action must a member take to transfer a title and place the lien for dealership loans?
What does the leasing company do when the lease is paid off?
What does the leasing company do when the lease is paid off?
Why must the seller order a paper title if there is a lien on the electronic title?
Why must the seller order a paper title if there is a lien on the electronic title?
What must the lessor do before ACCU can place a lien on a lease buy-out title?
What must the lessor do before ACCU can place a lien on a lease buy-out title?
What happens to ACCU's lien on the title until the loan is paid in full?
What happens to ACCU's lien on the title until the loan is paid in full?
What should members provide to ACCU for lease buy-out transactions?
What should members provide to ACCU for lease buy-out transactions?
What documents are required to be imaged if a paper title exists during dealership loans?
What documents are required to be imaged if a paper title exists during dealership loans?
What must a member take to the Secretary of State to transfer the title and place the lien?
What must a member take to the Secretary of State to transfer the title and place the lien?
What role does Lending Support play in the UCC1 Financing Statement process?
What role does Lending Support play in the UCC1 Financing Statement process?
What should be done with the UCC1 Financing Statement during loan processing?
What should be done with the UCC1 Financing Statement during loan processing?
What information is required in the New Lienholder Information section at closing?
What information is required in the New Lienholder Information section at closing?
What document must be imaged along with the title and the Application for Title?
What document must be imaged along with the title and the Application for Title?
The Credit Union can do private party loans from out of state
The Credit Union can do private party loans from out of state
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.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
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.
