COPY: Title Processing Changes Overview
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Questions and Answers

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

  • Member's account number
  • Original loan amount
  • Secured Party's Address (correct)
  • Member's Social Security Number

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

  • All titles will be processed as paper documents.
  • Only new loan titles will be electronic.
  • Titles with a lienholder must be processed electronically. (correct)
  • Every member will receive an original paper title.

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

  • Members will receive it by mail.
  • It will be stored electronically only.
  • Members will not receive an original paper title. (correct)
  • It will be destroyed immediately.

    • 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

    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>Both the Original Title and 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>The original paper title.</p> Signup and view all the answers

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

    <p>Seller needs their Financial Institution to order a paper title if there is a lien on the electronic title</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 is needed for each</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 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

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

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

    What is the late fee charged if a payment is more than 10 days late?

    <p>$15 or 15% of the interest due</p> Signup and view all the answers

    Members can choose their due date for payments on the Home Equity Line of Credit.

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

    What is the minimum loan amount for a Home Equity Line of Credit?

    <p>$20,000</p> Signup and view all the answers

    The Home Equity Line of Credit has a _____ draw period.

    <p>10 year</p> Signup and view all the answers

    Members are required to pay an application fee for classic vehicle loans.

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

    The interest rate for a Share/CD Secured Loan is ____% over the interest rate on the pledged share.

    <p>3.5</p> Signup and view all the answers

    Members can select their due date for the Share/CD Secured Loan.

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

    What types of shares can be used to secure funds?

    <p>Prime Share, Secondary Share, Certificate of Deposit</p> Signup and view all the answers

    What is our lowest auto loan rate available before discounts on a term of 48 months or lower? (This is currently our lowest auto rate)

    <p>5.49</p> Signup and view all the answers

    What is the minimum loan amount required for a classic vehicle loan with a term of 120 months?

    <p>$15,000</p> Signup and view all the answers

    What are the available maximum terms for Recreational Vehicle Loans?

    <p>180 months</p> Signup and view all the answers

    Which of the following is not a requirement for classic vehicle members?

    <p>Provide a classic vehicle certificate</p> Signup and view all the answers

    What is the maximum loan amount for a Home Equity Line of Credit (HELOC)?

    <p>$200,000</p> Signup and view all the answers

    Which types of recreational vehicles can be financed through Recreational Vehicle Loans?

    <p>Motor homes, boats, ATVs, jet skis, snowmobiles, and travel trailers</p> Signup and view all the answers

    What is the minimum loan amount required for a primary or vacation home mortgage?

    <p>$10,000</p> Signup and view all the answers

    Which of the following best describes the maximum loan amount for mortgages?

    <p>Less than $548,250</p> Signup and view all the answers

    What is the minimum loan amount for an investment property mortgage?

    <p>$32,000</p> Signup and view all the answers

    Which option is included as a type of mortgage available through our partner Member First Mortgage?

    <p>Mortgages for vacation homes</p> Signup and view all the answers

    For which type of property is the minimum mortgage loan amount set at $10,000?

    <p>Vacation homes</p> Signup and view all the answers

    What must be included when providing proof of insurance for a loan?

    <p>Information about the driver listed on the policy</p> Signup and view all the answers

    Which document is required to verify ownership when there is a lien on a title?

    <p>Release of lien from current lien holder</p> Signup and view all the answers

    What type of title is needed for vehicles other than boats?

    <p>Green title</p> Signup and view all the answers

    What information must be included in the vehicle information for the loan?

    <p>VIN, Year, Make, Model</p> Signup and view all the answers

    Which of the following is NOT a component required in the purchase agreement for a loan?

    <p>Color of the Vehicle</p> Signup and view all the answers

    What is the maximum amount covered by GAP as the primary insurance deductible for a vehicle?

    <p>$1,000</p> Signup and view all the answers

    What is the maximum number of occurrences of GAP deductible assistance allowed in a 12 month period?

    <p>2</p> Signup and view all the answers

    At what point can a member purchase GAP assistance?

    <p>Anytime during the life of the loan</p> Signup and view all the answers

    What is required for a vehicle to be considered protected under this program?

    <p>It must be a new or used vehicle 20 model years or newer.</p> Signup and view all the answers

    What GAP Loans are allowed for watercraft protection?

    <p>Personal only</p> Signup and view all the answers

    What is the maximum benefit provided by the Guaranteed Asset Protection (GAP) for all vehicle types?

    <p>$50,000</p> Signup and view all the answers

    Which of the following vehicles is excluded from the GAP protection eligibility criteria?

    <p>Electronic/Pedal Bicycles</p> Signup and view all the answers

    What is the maximum loan-to-value ratio applicable under the GAP program?

    <p>110%</p> Signup and view all the answers

    What happens if a vehicle is declared a total loss while being protected by GAP?

    <p>The difference between insurance settlement and loan balance is waived.</p> Signup and view all the answers

    What is the maximum term for loans under the GAP program?

    <p>84 Months</p> Signup and view all the answers

    Which of these statements regarding GAP is incorrect?

    <p>Every type of vehicle qualifies for GAP coverage.</p> Signup and view all the answers

    What is the duration of the waiting period before benefits begin for protected events?

    <p>14 days</p> Signup and view all the answers

    Which of the following events would be considered non-protected immediately after the Effective Date of Protection?

    <p>Disability occurring due to a normal pregnancy</p> Signup and view all the answers

    Which protection product is not available from ACCU?

    <p>LifePlus Disability with Voluntary Unemployment Coverage</p> Signup and view all the answers

    Under LifePlus coverage, a death event is not protected if the death occurs as a result of a pre-existing condition within how many months of the effective date?

    <p>6</p> Signup and view all the answers

    With LifePlus coverage, suicide occurring after the first 6 months of policy date will be a covered event.

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

    What is the price of GAP insurance coverage?

    <p>449</p> Signup and view all the answers

    Which of the following IRA types requires an owner to take Required Minimum Distributions (RMD)?

    <p>Traditional IRA</p> Signup and view all the answers

    Which type of contribution does the member not have access to the funds?

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

    Which contributions have a 60-day rule? (Select the two that apply)

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

    What are the four common types of distributions?

    <p>Normal, Transfer, Rollover, Early</p> Signup and view all the answers

    Which type of withdrawal can only be done once every 12 months?

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

    When discussing IRAs you can do the following:

    <p>Give tax information</p> Signup and view all the answers

    The interface communication between Symitar and Ascensus pushes information:

    <p>From Core (Symitar) back to the Ascensus Only.</p> Signup and view all the answers

    What conditions prevent a loan from closing on a used auto loan? (Select all that apply)

    <p>If the vehicle has been totaled, rebuilt, or salvaged</p> Signup and view all the answers

    How much is the cost for a Carfax report as required by ACCU?

    <p>$20.00</p> Signup and view all the answers

    What must be done with the Carfax report if there is an application for the vehicle?

    <p>Scan the report under the loan application</p> Signup and view all the answers

    What is the lifespan of a Carfax report from ACCU?

    <p>60 days</p> Signup and view all the answers

    In addition to the Carfax report, what else must be included when emailing?

    <p>The NADA value</p> Signup and view all the answers

    Which document must be provided to determine the value for new collateral?

    <p>Dealer invoice with MSRP</p> Signup and view all the answers

    A Carfax report is required for all new vehicles being financed.

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

    What should be included in a Certificate of Insurance for collateralized loans?

    <p>Insurance company name, policy holder's name, policy number, effective date, and collateral information.</p> Signup and view all the answers

    What is a requirement for using a Dealer Purchase Agreement?

    <p>The agreement includes MSRP and any additional accessories</p> Signup and view all the answers

    Match the following insurance details with their requirements:

    <p>Insurance company name = Must be listed on the Certificate Policy Number = Required for coverage verification Effective date = Must be valid at the time of closing Collateral information = Needs to match the loan collateral details</p> Signup and view all the answers

    It is acceptable to lend on vehicles that have been deemed a total loss if approved by a loan officer.

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

    What is the primary purpose of pulling a NADA/JD Power value with the MSRP?

    <p>To verify the vehicle's value against the loan amount.</p> Signup and view all the answers

    What information must match between the payoff letter and the application when refinancing a loan?

    <p>Borrower and collateral information</p> Signup and view all the answers

    Only the lessee(s) can refinance to purchase their lease vehicle.

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

    What is required at the time of closing, except for Lease Buyouts and Refinances?

    <p>Original Title</p> Signup and view all the answers

    Match the following document requirements with their purposes:

    <p>Vehicle Registration = Verify lessee names on title Odometer statement = Required to be signed and returned to Lessor Payoff letter = Refinancing or paying off a loan Appraisal report = Scanned for underwriting review</p> Signup and view all the answers

    The original title can be a copy as long as it's stamped with the correct information.

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

    What should be reviewed in the 10-Day Payoff letter to ensure accuracy?

    <p>Borrower and collateral information</p> Signup and view all the answers

    Which of the following pieces of information is NOT required on the Dealer Purchase Agreement?

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

    The dealership contact information must be verified for all loan transactions.

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

    What must match the information on the member's account during the loan process?

    <p>Member's address</p> Signup and view all the answers

    Out of state dealership transactions must be approved by __________.

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

    What information is needed to verify collateral for the loan?

    <p>VIN#/Hull/Serial # and mileage</p> Signup and view all the answers

    A member can have a second name listed on the purchase agreement without being on the loan.

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

    What type of transactions are not allowed for out of state purchases?

    <p>Private party transactions</p> Signup and view all the answers

    Study Notes

    Home Equity Line of Credit (HELOC)

    • A Home Equity Line of Credit is a variable rate line of credit secured by the member's home.
    • Requires a $349 application fee.
    • Has a 10-year draw period and 20-year repayment term.
    • The maximum loan-to-value ratio (LTV) is 80% for primary residences and 70% for vacation homes.
    • Requires a minimum loan amount of 20,000andamaximumloanamountof20,000 and a maximum loan amount of 20,000andamaximumloanamountof200,000.
    • Funds are typically available 4 business days after loan closing.
    • Funds are accessible via check, or loan advance.
    • Late payments incur a fee of 15% of the interest due or $15, whichever is greater.

    Classic Vehicle Loan

    • Has no application fee.
    • Offers fixed rates and terms up to 180 months (15 years).
    • Requires the vehicle to be designated as "classic" by NADA, be age-appropriate and in running condition, and have good interior and exterior condition.
    • Members may be asked to provide pictures of the vehicle from all angles, vehicle history, and a certified classic vehicle appraisal.
    • A minimum loan amount of $15,000 is required for financing terms between 85 and 180 months.
    • A late payment fee of 15% of the interest due or $15 is charged if payment is more than 10 days late.
    • There are no early payoff penalties.

    ACCU Account Secured Loan

    • No application fee.
    • Uses the borrower's shares or certificate of deposit as collateral.
    • Has a fixed rate of 3.5% over the interest rate on the pledged share.
    • Members can choose their due date and have a 10-day grace period.
    • Maximum loan amount is $10,000 with a maximum term of 60 months.
    • Late payment fee is $15 or 15% of the amount due, whichever is higher.
    • Does not require prepayment penalties.
    • Eligible shares to secure funds: Prime Share, Secondary Share, and Certificate of Deposit.

    Recreational Vehicle Loan

    • No application fee.
    • Offers fixed rates and terms up to 180 months (15 years).
    • Requires a minimum loan amount of $25,000 for financing terms between 85 and 180 months.
    • A late payment fee of 15% of the interest due or $15 is charged if payment is more than 10 days late.
    • There are no early payoff penalties.
    • Can be used to purchase or refinance new or used recreational vehicles.
    • Includes boats, jet-skis, ATVs, snowmobiles, motor homes, and travel trailers.

    Classic Vehicle Loans

    • Minimum loan amount: $15,000
    • Loan terms: 85-180 months
    • Classic vehicle designation: determined by NADA listings, age appropriateness, and condition

    Recreational Vehicle Loans

    • Collateral types: boats, jet-skis, ATVs, snowmobiles, motor homes, and travel trailers
    • Loan terms: Up to 180 months

    Home Equity Line of Credit (HELOC)

    • Application fee: $349
    • Available terms: 10-year draw, 20-year term
    • Maximum loan to value (LTV): 80% for primary residences, 70% for vacation homes
    • Maximum loan amount: $200,000

    Mortgages

    • Partnered with Member First Mortgage
    • Available for: first-time home purchases, refinancing, vacation/second homes, investment properties, and new construction
    • Minimum loan amount: 10,000forprimary/vacationhomes,10,000 for primary/vacation homes, 10,000forprimary/vacationhomes,32,000 for investment properties
    • Maximum loan amount: Less than $548,250 (updated annually)

    Mortgage Options

    • Partnered with Member First Mortgage (MFM)
    • Offer 1st home purchase mortgages, existing mortgage refinance
    • Also available for vacation homes, investment properties, and new construction

    Minimum Loan Amount

    • For primary or vacation homes: $10,000
    • For investment properties: $32,000

    Maximum Loan Amount

    • Less than $548,250
    • Amount is updated annually

    Loan Documents for Alliance Catholic Credit Union

    • Proof of Income:
      • Two most recent pay stubs are required
      • Two most recent years of tax returns are required
      • Business owners must include all schedules
    • Proof of Insurance:
      • Declarations page or insurance binder is required
      • Comprehensive and collision deductibles must be under $1,000
      • Vehicle information, including VIN, year, make, and model, should be listed
      • Driver must be listed on the policy
      • Include ACCU insurance lien information:
        • Alliance Catholic Credit Union
        • P.O. Box 924402
        • Ft. Worth, TX 76124
    • Title:
      • Original green title is required (blue title for boats)
      • If a lien exists:
        • A release of lien is required
        • Payoff from the current lien holder is required, including:
          • Financial Institution Name
          • Account Number
          • 10-Day Payoff Amount
          • Mailing address to send the payoff (which may differ from where the payment is currently sent)
    • Purchase Agreement:
      • Final purchase amount is required
      • Salesperson name and contact information is required
      • Include ACCU lien information:
        • Alliance Catholic Credit Union
        • 28800 Orchard Lake Rd
        • Farmington Hills, MI 48334
    • Additional Documentation:
      • May be required depending on the loan

    GAP Coverage Maximums

    • The maximum amount covered by GAP as the primary insurance deductible is $1,000.
    • The maximum number of occurrences of GAP deductible assistance allowed in a 12-month period is 2.

    Eligibility for GAP

    • Members can purchase GAP assistance anytime during the life of the loan.
    • For a vehicle to be considered protected under this program, it must be a new or used vehicle 20 model years or newer.
    • GAP loans are allowed for watercraft protection only for personal use.
    • The maximum benefit provided by the Guaranteed Asset Protection (GAP) for all vehicle types is $50,000.
    • Electronic/Pedal Bicycles are excluded from the GAP protection eligibility criteria.
    • The maximum loan-to-value ratio applicable under the GAP program is 110%.

    GAP Coverage in Specific Situations

    • If a vehicle is declared a total loss while being protected by GAP, the difference between the insurance settlement and the loan balance is waived.
    • The maximum term for loans under the GAP program is 84 months.

    Key Points about GAP Coverage

    • The maximum loan amount varies by vehicle type.
    • GAP can help close financial gaps after insurance settlements.
    • GAP only covers total losses.

    Waiting Period for Benefits

    • The waiting period before benefits begin for protected events is 14 days.

    Non-Protected Events

    • Disability occurring due to a normal pregnancy is considered a non-protected event immediately after the Effective Date of Protection.

    ACCU Protection Products

    • LifePlus is not available from ACCU.
    • MRC, LifePlus Disability with Voluntary Unemployment Coverage, and GAP are available from ACCU.

    LifePlus Coverage Restrictions

    • A death event is not protected if it occurs as a result of a pre-existing condition within 6 months of the effective date.
    • Suicide occurring after the first 6 months of the policy date is not a covered event.

    IRA Requirements

    • Traditional IRAs require owners to take Required Minimum Distributions (RMDs)
    • Roth IRAs do not require RMDs

    IRA Contributions

    • Transfers lock in funds, making them unavailable to the member
    • Rollovers and Conversions have a 60-day rule
    • Recharacterizations do not have a 60-day rule

    IRA Distributions

    • There are four common types of distributions: Normal, Early, Rollover, and Late
    • Rollovers can only be done once every 12 months

    IRA Disclosures

    • You can give tax information about IRAs but cannot give tax advice
    • Do not explain specific SEP IRA offerings at a credit union

    IRA System Connectivity

    • The interface communication between Symitar and Ascensus pushes information from the Core (Symitar) system back to Ascensus

    Used Auto Loan Conditions

    • A used auto loan can be denied if the vehicle has been totaled, rebuilt, or salvaged.
    • A Carfax report must be no older than 30 days.
    • There are no restrictions on a vehicle's NADA value or mileage.

    Carfax Report Information

    • The cost of a Carfax report is $20.00.
    • The report must be scanned and attached to the loan application.
    • The report is valid for 60 days.
    • The NADA value must be included in the email with the Carfax report and loan application.

    Loan Documents

    • A Signature Loan can be considered for small loan amounts. A Secured Loan can be considered to pay off the Signature Loan if the borrower transfers the title to MI Title
    • Dealer Invoice with MSRP is required for new vehicle purchases, it must include the Manufacturer’s Suggested Retail Price (MSRP), the year, make, model, and Vehicle Identification Number (VIN). The MSRP can be used to determine the value of the collateral.
    • NADA/JD Power value can be used for collateral value if the loan amount is less than or equal to the value pulled.
    • Proof of Insurance is required for all collateralized loans, as well as Business loans with collateral.
    • Insurance Company Name and policy holder details such as the borrower’s name & policy number, must be included in the Certificate of Insurance.
    • The Certificate of Insurance also requires the effective date, and collateral information including year, make, model, VIN/Hull/Serial #, which must match the collateral information provided by the borrower.
    • A Carfax Report must be reviewed for all used vehicles to ensure that the vehicle has not been deemed a total loss, stolen, rebuilt, or salvaged.
    • Loan officers will review Carfax records for any accidents and will be able to proceed if the situation is deemed appropriate.
    • The collateral information, including year, make, model, VIN #, and mileage, recorded on the Carfax report must match the information provided on the application.
    • A 10-Day Payoff letter is required for loan refinancing or paying off a loan with another financial institution.
    • The payoff amount on the 10-Day Payoff letter must match the amount payable to the financial institution. Payoff date and good through amount must also be considered.
    • Appraisals from third-party licensed appraisers may be required, these will be scanned to the account for underwriting review.
    • Lease Buyout Packages must include the name of the borrower or borrowers. Only the lessee(s) can refinance the lease.
    • The Odometer statement must be signed and returned to the Lessor, before the leasing company can send the title.
    • Original Titles, except for those with Electronic titles, are required at closing.
    • Lease Buyouts and Refinances with Electronic titles are exempt from the Original Title requirement.
    • Titles cannot be salvage or rebuilt.
    • Our Lienholder name and address need to be stamped on the Original Title under New Lienholder Information, Secured Party.
    • The Dealer Purchase Agreement is a contract that must be reviewed carefully for accuracy before closing.
    • The Dealer Purchase Agreement should include the purchase price, amount to finance, Owner on Title, Down Payment, Taxes, Non-taxable items, Total Amount to Finance, and Trade-in Allowance.
    • ACCU lien should be placed with the dealership and printed on the Purchase Agreement with the Lien Code ID for Electronic titling.
    • The Dealership information, including the Michigan dealership name, contact information, and dealer address must be verified.
    • The Purchase Agreement must indicate that the borrower is the sole purchaser.
    • The Borrower's Address must match their application/member’s account information.
    • The Collateral information including year, make, model, VIN/Hull/Serial #, and mileage must be verified.
    • Additional collateral such as a boat with a motor and/or trailer should be noted.
    • The amount to finance must match the loan amount and the amount due.
    • The check should be made payable to the dealership.
    • The Dealership must confirm that the ACCU lien has been placed and is printed on the Purchase Agreement.
    • Out-of-state Dealership Transactions must be approved by Lending.
    • Lending must consider the following for out-of-state dealership transactions:
      • The state in which the purchase is made.
      • The Dealership name must belong to a franchised dealer and not a broker.
      • The Collateral information, including year, make, model, VIN#, and mileage.
      • The amount to be financed.
      • Whether the borrower will pick up the collateral at the dealership
      • Whether the dealership will collect sales tax
      • Whether the dealership will submit an application for title to the DMV.
      • If the dealership will submit an application for title to the DMV, the Lender should receive a MI Title with their lien on it.
    • Private party transactions are not allowed for out-of-state purchases.

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    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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