ELA Secured Loan Procedure PDF

 Secured Loan in ELA Contents General Statement..................................................................................................................................4 Cre...

 Secured Loan in ELA Contents General Statement..................................................................................................................................4 Creating A New Application.....................................................................................................................4 Application Processing Work Area...........................................................................................................5 Enhanced Lending Application.................................................................................................................7 Accessing the Enhanced Lending Application............................................................................................7 Navigation within ELA.............................................................................................................................7 Applicant Info Screen..............................................................................................................................9 Keep In Mind......................................................................................................................................9 ELA BUTTONS.....................................................................................................................................9 Name Information............................................................................................................................ 10 ID Information.................................................................................................................................. 10 Residential Address information....................................................................................................... 11 Employment information.................................................................................................................. 12 Additional Income............................................................................................................................ 13 Asset information............................................................................................................................. 13 Reference Information...................................................................................................................... 13 Additional Information..................................................................................................................... 14 Additional Applicants............................................................................................................................ 14 Credit Retrieval..................................................................................................................................... 16 Reusing an Existing Credit Report...................................................................................................... 16 Pulling a New Credit Report.............................................................................................................. 16 Viewing the Credit Report................................................................................................................. 17 Document Viewing Toolbar............................................................................................................... 19 Liabilities Screen.................................................................................................................................... 20 Collateral Screen................................................................................................................................... 21 Vehicle Collateral.................................................................................................................................. 22 Vehicle Pricing Interface (NADA)/JD Powers...................................................................................... 22 Vehicle Insurance information.......................................................................................................... 26 Title Information.............................................................................................................................. 27 Title Transfer:................................................................................................................................... 27 Projection............................................................................................................................................. 28 1  Secured Loan in ELA Calculation Options........................................................................................................................... 29 Risk Based Pricing............................................................................................................................. 29 Auto Approval.................................................................................................................................. 30 Reproject......................................................................................................................................... 32 Insurance Options............................................................................................................................. 32 Application Summary........................................................................................................................ 33 Decision Options................................................................................................................................... 34 Forwarding An Application................................................................................................................ 34 Email a User..................................................................................................................................... 34 Additional Notes............................................................................................................................... 34 Create Cosigner................................................................................................................................ 34 Application summary........................................................................................................................ 35 Funding Instruction Options................................................................................................................... 35 GL Info............................................................................................................................................. 36 Loan Payments................................................................................................................................. 36 Check Disbursement......................................................................................................................... 37 Check Info........................................................................................................................................ 37 Share Deposits.................................................................................................................................. 38 Funds Disbursed Calculator............................................................................................................... 39 Loan Creation........................................................................................................................................ 39 Application Summary........................................................................................................................ 41 Loan Funding......................................................................................................................................... 42 ELA Funding Tracking Record............................................................................................................. 42 Print Docs............................................................................................................................................. 43 Working in a Form............................................................................................................................ 43 Electronic Signatures......................................................................................................................... 44 Printing............................................................................................................................................ 44 Imaging............................................................................................................................................ 45 Saving.............................................................................................................................................. 45 Other Print Option Capabilities......................................................................................................... 46 Explanation of the Forms....................................................................................................................... 46 Documentation Requirements............................................................................................................... 52 Dealership Purchase:..................................................................................................................................... 52 Private Party Purchase:................................................................................................................................. 52 Refinance:..................................................................................................................................................... 52 2  Secured Loan in ELA Lease Buy Out:.............................................................................................................................................. 52 Member Closing Packet......................................................................................................................... 53 Dealer loans-new and used........................................................................................................................... 53 Private Party, Refinance, Lease Buy Out....................................................................................................... 53 Audit Check List-.................................................................................................................................... 53 Procedure Exceptions............................................................................................................................ 55 Definitions........................................................................................................................................ 55 Document Control............................................................................................................................ 56 3  Secured Loan in ELA General Statement This is the procedure for submitting a loan in ELA secured by collateral. This includes: new & used Auto, boats/watercraft, motorcycle, ATV, RV and travel Trailers, snowmobiles, lawn tractors or anyother collateral that is used to secure the loan. Interest rates are determined using the FICO score of the Primary borrower. Creating A New Application To create a new application, select Create A New Application on the Application Setup Wizard screen, typean Application ID at the prompt or accept the default and then click Next. Note: Application ID 0000 is for membership applications only. 1. The Application Type prompt is displayed. Select the appropriate application type for the kind of loan that you will be processing from the drop-down menu and then click Next. 2. Select: Secured 3. Make entries on the Application Creation screen as required, click Finish to continue. Make entries in each field as follows. a. Loan Type – Click in the field and select the type loan for which the member is applying from the drop-down menu. i. There are several loan types that fall under the secured category. Auto, Boat & watercraft/motorcycles/RV & travel trailers/ATV, snowmobiles, lawn tractors. (subject to change) b. Update From Loan Defaults - Click this button to have the system update all associated fields with the values previously set up in the Loan record defaults for this loan type. c. Description – This field value initially defaults to the loan type description. After the loan record is created, the description changes to the year, make, and model of the collateral, if applicable (for example: 2011 Volkswagen Beetle). 4  Secured Loan in ELA d. Collateral code- set by loan defaults e. Loan Calc Screen – The Loan calc screen is used to submit the loan request in symitar. When submitting an application, you will need the: loan amount, term, due date & interest rate to calculate the payment. The interest rate will be adjusted based on the Risk Based Pricing section under the Projection tab using the member’s FICO score. So this is only an estimated payment. f. Select: OK g. Click Finish when you have completed the Application Setup Wizard. The account application records, work flow, and notes for the new application will be created based on your selections and input. Application Processing Work Area The Application Processing work area has five sections. 5  Secured Loan in ELA 1. The Records section displays records related to the application. 2. The Actions checklist displays the steps required to complete the application workflow. These steps are defined by your credit union. Your application workflow may be different than the workflow shown here. 3. Status indicates the application’s status. In the example above, the status is In Progress, since no decision has been made. 4. The Debt Ratios section displays the debt-to-income ratios. Debt Ratio 1: the debt ratio NOT including the new payment from this application Debt Ratio 2: the debt ratio including the new payment from this application Debt Ratio 3: Unsecured Balances (or Credit Limits based on your credit union’s preference / Annual Income) 5. This section of the screen displays the selected Episys record. The Application record is the default display and is shown in the example above. The Actions toolbar icons perform the following functions. Stop working on an application: Perform other Application Processing actions: Work flow actions are listed in the sequence they are typically completed. As a workflow item is accessed, Episys puts a check in the checkbox. Clicking on a checked work flow stepwill return a confirmation message. Selecting I would like to perform this action again will take you to that workflow step to revise what youhave previously done. Choosing I would like to clear this action unchecks the workflow as being completed, but does not erase anydata previously inputted. 6  Secured Loan in ELA Enhanced Lending Application The Enhanced Lending Application (ELA) walks you through completing the information necessary to process a loan application. ELA facilitates gathering application information, adding collateral, reviewing debt/income ratios, approval criteria, printing lending documents, and preparing the application for funding. Accessing the Enhanced Lending Application ACCU workflow is based on application types. (secured, unsecured, credit card, real estate, LOC, etc.) Click Start/Continue ELA on the Actions menu to process an application, which will walk you through eachwork flow step ending with the Print Documents step. Workflow for secured application type If you exit ELA, you may return to it later by clicking on the Start/Continue ELA action. You will be taken tothe first unchecked tab within ELA. Note: If all of the actions items included in ELA (Start/Continue ELA through Print Documents) are checked,you must clear the check in at least one of the boxes other than Start/Continue ELA to access ELA. Navigation within ELA Within ELA, a row of buttons displays. You may click on the buttons to navigate to different areas within ELA, though some screens require a minimum amount of information to be completed prior to moving to a different screen. For example, to create the loan record, the loan must have an Approved decision code, or to fund a loan, the Loan record must be created. 7  Secured Loan in ELA A checkmark displays on a button when the information in the corresponding screen has been completed. Clearing the checkmark from the Action list in the application processing work area will clear the checkmark on the corresponding button. To go directly to any field, click inside the field. Press Tab to go forward to the next field or hold the Shift + Tab to go back. Click the Unstack (red arrow) icon to exit ELA and return to the Application Processing work area. Pressing the ESC key on your keyboard or clicking the Exit button at the bottom of any of the screens will do the same thing. Click the Continue button at the bottom of any of the screens to save data entered and continue to the next page. When you click Continue, fields on the page are validated according to your credit union policy. If you left a required field blank, you will see a window similar to the following. Fields with missing information will be highlighted in red. 8  Secured Loan in ELA Applicant Info Screen The Applicant Info screen provides fields for entering or editing primary applicant information. You may also add additional applicants to the application from this screen. This screen captures all information (name, address, income, references, etc.) that your credit union requested to display and also performs validation for fields that are required by your credit unions policy. Keep In Mind The sections, fields and validations (required information) will display. If there is a previous application on file for the member, the Applicant Info screen will populate with the information from the last (most recent) application. Un-checking a section checkbox will collapse that section. Checking a section checkbox will expand that section. All phone number fields require 10 digits (ex.111-111-1111) The Primary Applicant Information screen automatically pulls information from one of the following records: o Application Person record: if there is a recent application in the account o Name Prime record: if there is no previous application in the account o Application Person record: if there is a previous application in the account o Episys will populate all information entered in this screen to the Application Person record and/or the Application Finance record, NOT the Name record. ELA BUTTONS These buttons allow you to have a direct link to the corresponding tab. HMDA is only required on Home Improvement Loans. 9  Secured Loan in ELA Name Information The Name Information section will display the primary applicant’s first, middle and last name, their Social Security Number, date of birth. Marital status is needed for consumer loans. ID Information To update the member account, after completing the application, unstack, go to the APP ID Select: update fields If there is a change of address, follow the appropriate procedures before updating the person record. ID Type: This drop down field will display a listing of available types of identification. ID Description: Text field to add an additional description. For example, if you chose State Driver’s License, you might type in the state that that the DL was issued in. ID Number: Text field to add the identification number. Ex. Driver’s license number. ID Issue Date: The date that the id was issued (must be in the past) ID Expiration Date: The date the id expires (must be a date in the future) 10  Secured Loan in ELA Residential Address information In the Residential Address Information section you can change any of the member’s personal info. The “#Months” is how many months the member has lived at their current address. If the residency is less than 2 years, you will be prompted to update the Previous Address section. Own/Rent - Select from the following options: Home Value - This field will display if you have selected, “Own” in the “Own/Rent field. Type in the amount the members home is worth if they own it. If the member does not want to disclose that information, type in $1.00. This information will populate to Tracking Record 51 for information purposes. If you add a Home Value, this information will update to the ELA Tracking Record. If you chose Rent as your housing option, a field will display asking for the rent amount. When you add a rent amount, Symitar will create a finance record on the account listed as a liability and be included in the debt ratios you are having calculated. 11  Secured Loan in ELA Employment information Employment Status- Use the drop down listing and select the current employment status for the member. Employers Name-Name of the employer for the member. Employers Address-Address of the employer. Occupation-Members occupation. Income- The income and pay frequency fields work in conjunction with one another. Type in the amount of income based on the frequency that you are choosing. For example, if you are putting in the hourly wage for the member, choose Hourly as your frequency. An “Hours Worked” field will display. Type the number of hours the member works in a week. Once this information is input, click on the “Calculate” button. ELA will calculate the Income and Pay Frequency fields and convert the amount to Monthly Income. Pay Frequency-Payment frequency (hourly, weekly, bi-weekly, semi-monthly, monthly, annually) Calculate-Based on the income and frequency you inputted, the calculate button will calculate the member’s income on a monthly basis. Years Employed – listed in years, if less than 2 years, you will be prompted to complete previous employment information. Months employed – listed in months If the member’s employment needs to be added or modified, this section needs to be completed. If the member has changed jobs since the last application, use the “Move Current Employer to Previous?” checkbox to easily transfer the fields. 12  Secured Loan in ELA Additional Income In the” Additional Income” section there are three spaces to include additional income for the applicant. In the description, put the source of funds (rental income, child support, etc.), the amount of income in the Monthly Income field, and a radio button to select to include or exclude the income from the debt ratio calculation. This information will display in the Total Amounts section in the Projections screen. Asset information In the “Asset Information” section there are several spaces to include a description and value of various assets of an applicant. This information will display in the Total Amounts section in the Projections screen. Reference Information Reference information is not required. 13  Secured Loan in ELA Additional Information The additional information will display. The default answer for each of the questions displayed here is “No”. Also, the check box for being a US citizen or permanent resident will be checked. Uncheck if not a US Citizen or permanent resident. Complete all the above questions. Two buttons display at the bottom of the screen. When all names have been added and corresponding information input, click the Continue button. Yourinformation will be saved and a validation of fields will be done. The Return to Top button will return you to the top of the Applicant Info. screen. Additional Applicants Follow these steps to add an additional applicant to the same application (Co-borrower), not Guarantor. (This is used for Commercial loans.) 1. From the Applicant Info tab click the Add button. 2. An SSN search box will display. Type in the SSN for the co-borrower and ELA will search the database for matches. 14  Secured Loan in ELA 3. If there are records in the database that match the SSN you have entered, a screen will display. If you select an existing record and click Continue, the information that exists in the record willimport to the Co- borrower record. If there are no matches or you want to create an empty record an empty Applicant Screen willdisplay: 4. Fill out the necessary information for the co-applicant and click Continue. a. Residential address information b. Employment information c. Additional income, if applicable d. Asset information, if applicable e. Additional information 15  Secured Loan in ELA 5. The Co-Applicant will then display under the existing applicant names. NOTE: When you add a co-borrower, the ECOA code on the application will change from Individual to Joint Contractual. Credit Retrieval To pull a new credit report, view a credit report, or use an existing credit report on an application go the Credit Retrieval tab. Reusing an Existing Credit Report A Credit report can be reused if it had been pulled within 30 days of a previous application. If you’re unsureas to reusing an existing report or pulling a new one because it’s just over the 30 day mark, call the Lending Department for approval. 1. Click the checkbox in front of the report/s you want to reuse from the Existing Credit Reports list. 2. Click the Continue button to go to the next workflow action Pulling a New Credit Report If there are no credit reports on file or if you want to request a new credit report. 1. Click to select the Pull Credit checkbox. 2. Click the drop-down arrow and select the bureau. 3. You will see the pending request under Existing Reports. 16  Secured Loan in ELA 4. Select who’s credit is being pulled for (this will list the applicants you have on the existing application) 5. For the Primary Applicant, highlight their name: 6. For the Coborrower, select their name in the Joint Credit Name list: NOTE: If you have already pulled a credit report for the Main Applicant and need to pull a creditreport for the co- borrower, the co-borrower is considered the main applicant for credit pulling purposes in this instance. 7. A message will pop up when the request is complete. Click OK in the Message Box. If the information appears in red, the credit report has either notfinished processing or came back in error. Viewing the Credit Report 1. Click on View Credit Report. 2. For credit reports, select the Experian bureau and click OK. 3. At the Display Options screen, select SymForm if you are going to send the form to Imaging OR HTML if you do not want to image the credit report, but want to view it. 17  Secured Loan in ELA 4. All credit reports are saved to host. 5. If there is more than one report, a drop-down menu will display. Select the report you wish to view and click OK. Reports are stamped with the time, date, and applicant name and will appear in order of newest to oldest. 6. The report will load. 7. The document viewing window will display. 18  Secured Loan in ELA Document Viewing Toolbar Submit to Host is not used. Print and/or Save is used to print and/or send the report to imaging. Save all credit reports to imaging. Next comes a Print window. Un-check the box Select: OK Do not print the credit report This will bring you back to the Liability screen. 19  Secured Loan in ELA Liabilities Screen This screen displays tradelines from the credit report(s) that were just retrieved or selected for use in ELA. Episys creates an Application Finance record for every trade found on the credit report and, based on the SSN in your Episys database for the applicant; credit union loans will display the most current information. There is also a section that allows you to select Associated Assets for cross collateral purposes. Fields on the Liabilities screen are editable and will update the corresponding finance record that was created for the particular liabilities. Description-Displays the name of the creditor as displayed on the credit report. If adding a new debt, you can add the name of the debt here. Reference- Reference number from the credit report. Narrative Code- The narrative code will display from the credit report. Liability Balance-Balance of the trade line. Credit limit- Credit limit of the trade line. Displays for open end loans (credit cards, line of credit loans) Monthly Expense- Amount that the liability costs on a monthly basis. Debt Ratio Code- In the Debt Ratio Code column, click the ”Exc.” radio button if you want to Exclude a trade from the debt ratios. Based on your credit union’s set-up, you can enter the reason for excluding the debt using the drop-down fields in the Exclusion Reason column. Exclusion Reason-Exclusion reasons will populate based on the help file set up by the credit union. Indicate Associated Assets- ELA has the ability to search the database to see if a member has any other loans with collateral and will display them as assets that can be associated with the current application that you are completing. 20  Secured Loan in ELA Notes: Re-launching the Credit Pull screen and going to the Liabilities screen from there will wipe out all the connections that have been made between liabilities, assets, and the derogatory comments made on past due tradelines. Any trades with missing payment amounts will have a default payment amount percentage defined by the credit union of either the trade balance or a minimum payment. The credit union’s loan information is pulled from the database, rather than the credit report so that it is more current. Any past due trades, from either the credit report or your Episys database, will be highlighted in red. Click the Add More button if you need to add more liabilities that may not be listed. Click the Continue button to go to the next workflow action. Collateral Screen The main Collateral Information screen lets you choose the type of collateral record to add. Based on the loan type, only the appropriate options are displayed. Click the Add button next to the collateral record if you want to add collateral information to the application. Once a record is added, you will have the option to add another record and to modify or delete the existing one. Episys will populate all information entered in this screen to the Application Tracking record. If you do not have all the information on hand, you may complete the fields at a later time. o Verify VIN Used to Verify the Vehicle VIN, also copy & paste VIN # to NADA/JD Powers for value This will also populate to the collateral tracking and the loan documents o Carfax Run a Carfax on all used vehicles Scan the report to synergy Used when you sell a Carfax report to a member o Secretary of State Direct link to MI DMV Used for: Application for title/special mailers/UCC1 o Black Knight Used by the Lending Department for Real Estate loans 21  Secured Loan in ELA To view or edit the contents of an existing Tracking Record, click the Modify button.To delete a tracking record, click the Delete button. Vehicle Collateral Episys will populate all Vehicle Collateral information entered in this screen to the Application Trackingrecord Type 30. Loan Tracking Type 30 will also be created with this same information during the Loan Create process. If your loan rates are based on the year of the collateral being offered, it is important that the CollateralRecord be added so that the correct risk rate can be applied to the application. If there is additional collateral, create a tracking record for each piece of collateral. E.g. boat motor or trailer. Pull NADA/JD Powers value for each piece of collateral. Vehicle Pricing Interface (NADA)/JD Powers NADA o For all auto loans, except classic auto NADA other o Marine o Boats o Trailers o Motors o Powersport o Motorcycles o Trailers o Snowmobiles o Side Cars o Personal Watercraft o Vintage Motorcycles o Motorcycles (older/vintage) 22  Secured Loan in ELA RV o Travel Trailers o Truck Campers o Camping Trailers o Motor Homes o Park Models o Tow Vehicles o Classic Cars To obtain a quote, Select the Request Type (typically NADA) from the drop down listing and click Get Quote and you will be brought to the NADA Online Used Car Guide or other interface. 1. Complete the NADA screen with the necessary specifications Year, Make, Series, Body and Mileage. If you have the VIN, enter it in the “Lookup VIN” field. The VIN look up will only work on vehicle loans. All VIN #/HIN # will need to be manually added to the colleral screen. 2. If you do not have the VIN #, you will need to re run NADA when you get it. If you don’t, then the tracking will not be complete and your loan docs will be missing the VIN #. 3. Copy and paste the VIN # from the Verify VIN button on the collateral tab to the NADA “look up VIN” field. This ensures that you are pulling the correct vehicle information on to the loan. 4. If you get a pop up from NADA that there are similar vehicles with that VIN, check the title or a reliable source to validate the VIN # is correct. 23  Secured Loan in ELA 5. Once you have selected your vehicle, click on the Get Values button. You can then choose the custom options specific to the vehicle. 24  Secured Loan in ELA Example of a Used Vehicle Various trade in amounts and retail pricing will display for used vehicles. Example of a New Vehicle New vehicles will not show trade in or retail amounts. The vehicles MSRP will display: 6. When finished with the data entry, click on Save. 7. A confirmation window will appear. Click OK. 25  Secured Loan in ELA 8. Click on on the toolbar. This will write the information back to the Episys Tracking Record in ELA. 9. The information will then be stored in Tracking Record 30 (Collateral Tracking). What populates to Tracking Record 30 will be based on what type of vehicle you chose (New or Used). You will no longer need to print an NADA value as part of the loan closing. Enter the Year, Make and Model, ELA will automatically change the Loan Description to reflect this information. If there is a change in the collateral, you will need to update NADA/JD Powers. If you want to obtain the collateral value, click on the hyperlink Click Here for Vehicle Value. This will take you to the website you obtain your collateral values from NADA website. Complete the Vehicle Collateral Tracking Record screen. Vehicle Insurance information Complete the insurance information for the collateral that is being financed. This information is set to State National, (our insurance tracking company) to track collateral insurance for all loans secured by collateral. 26  Secured Loan in ELA Title Information Complete the Seller’s name (this can be a person or a dealership) This is required so that the Addendum to the Loan agreement will have the Seller’s name on the document. You may need to add additional notes regarding the title/lien Placement State: If the vehicle is being titled in any other state than MI. (This should be an exception, with the Lending Dept.’s approval) Phone: Phone number used to place lien Seller: Dealership Name or seller’s name Title Transfer: This section is used to identify the type of transaction. This will help Lending Support to complete title work or assist them in getting proof of lien on a title. Select the appropriate transaction. Dealer o Dealership purchase ▪ Equal to a 1 on the tracking Member o Private party purchase ▪ Equal to a 2 on the tracking o Lease Buyout Credit Union o Refinance from another financial institution ▪ Equal to a 3 on the tracking In file Do not use Always re-file a title should it be a refinance of an ACCU loan. When you have finished completing the Tracking Record, click Update to save the information. The Tracking Record will update with the year, make, and model of the vehicle. To change the tracking record, click on Modify. To delete the Tracking Record, click on Delete. 27  Secured Loan in ELA Projection Some of the information will pre-populate to this screen. The loan amount and term will pre populate from the application wizard calc screen. The rate will populate after you select the Risk Based Pricing button. (see below) The due day 1 & the due date will populate based on the loan application dates. This will need to beadjusted based on the loan closing date. Payment Frequency will always be “04 monthly”. Select: cash if the member wishes to make the payment on their own. E.G. bill pay/online banking. Select: scheduled auto transfer # 7 We do not offer coupons as a payment option. Loan payment amount on the loan due date 28  Secured Loan in ELA If the member opts for GAP or MRC warranty, include the cost of that product under this section. The link next to add warranty is the CUNA link for a quote. You would then select: add to loan if that’s whatthe member would like to do. The loan amount will increase by the CUNA product selected. Calculation Options Once you have entered the values for the loan and have filled out the appropriate information for the type of loan (Real Estate, Vehicle, Share) you have a variety of options to choose from to determine the rate, payment and auto approval status. Risk Based Pricing Clicking on the Risk Based Pricing button will initiate ELA to pull in the correct risk rate and additional discounts that are set up in the ELA parameters. If you have selected the wrong loan type based on the yearof the collateral or the wrong term based on the borrower, you will not see an interest rate. Review the application and correct the error. Select: The Risk Based Pricing button again to set the interest rate based on the borrower. 29  Secured Loan in ELA Auto Approval Click the Auto Approval button to submit the application for system approval or referral.A screen similar to the following will appear: When an application is submitted for Auto Approval, a note record will be created showing the applicants information for each approval criteria shown in the Auto Approval section. When you are done viewing the Auto Approval summary, click on the Continue and Unstack button. Depending on the information in the application, the type of loan and how it is set up for auto approvalcriteria, different responses will come back. 30  Secured Loan in ELA When you click on OK, the application will be referred. A note record will automatically be added to the application: A message will display showing the system has auto approved the loan, click on OK: The Decision Status of the loan will display, click OK: The Application Record will update with the Decision Code, Decision Date, Approval Code, Approval Date and Approval Amount: 31  Secured Loan in ELA Reproject Use the Reproject button to recalculate any of the values on the screen that you have changed. You might use this option if the member wants to see different calculation options would look (updating the 1st payment due date, funding date, specific payment amount, borrowing more or less money, etc.). When you do a Re-Project this information saves back to the application record. Reprojecting a loan will not calculate a new Risk Based rate. If the term has changed, you will need to select the Risk Based pricing button again to populate the correct rate based on term. A change to the loan amount/term on projection tab may change the status from approved to referred. When you do a reprojection, any previous decision status of the loan (Approved or Denied) will be appended to Referred. Insurance Options The Insurance Options section will display all of the applicable insurance types that can be added to the loan. You will see a breakdown of the Insurance Type, payment amount, final payment, final payment date, total interest total of payments, term and Loan Amount. Select the appropriate radio button and click on Reproject, you can select different insurance options and click on Reproject for the information to save. When the member has elected Credit Insurance, the Insurance Type field on the Application Record willupdate. When you create the loan record, this information will get copied to the loan record. 32  Secured Loan in ELA Application Summary The Application Summary section of the Projection screen will display a summary of the application. A recap of the Projection Values section is displayed. The applicants’ monthly income and credit score(s) are displayed. The Debt Ratios box is displayed. A list of the member’s credit union shares and balances are displayed. A list of the member’s credit union loans, corresponding balances and payment amounts are displayed. A summary of the Finance records is displayed in the Total Amounts box: Total Amounts Total monthly income includes additional income from the Applicant Information screen/s. Total monthly expenses is the sum of expenses from the Liability screen plus the new loan monthlypayment. This is true total of the liabilities, including amounts excluded from the debt ratio. Total Assets is the sum of credit union shares and other manually created Finance asset records. Total Liabilities is the sum of liability balances from the Liability screen. Again, this is a true total of theliabilities, including loans excluded from the debt ratio. Total Credit Limit is the sum of all credit limits from the credit report and the applicants’ credit unionloans. The existing Notes section displays all application notes that have been created to date.When you have finished with the Projections screen click on Continue. 33  Secured Loan in ELA Decision Options If not system approved, the Loan Officers will make the loan decision in this section. Forwarding An Application The Forwarding and Email section will allow you to Forward an application to another user or loan queuewithin Application Processing. Forward all loan applications to the Loan queue 797. The loan Officers will forward the application back to the closing branch. Email a User The “Email to” drop down will let you select a user to send an email to. Sending an email and forwarding to a user is a good combination to use so that the employee is aware that they have been forwarded an application. The email will send the text you have typed and will not reveal any personal identifying information aboutthe member. Only send an e-mail if the member is in the branch waiting for a decision. You can still call to have a Loan Officer review this type of request. Emails will save to the notes under the application. Additional Notes The Additional Notes section provides a space for the employee to add further information pertaining to the loan application. Create Cosigner See detailed process under Communication Station: Adding a Co-Signer. 34  Secured Loan in ELA Application summary The Application Summary makes another appearance in ELA. This will again summarize the specific information for this loan request. The stop lights will be “green” if approved. The loan will be ready to close. Review all notes. Go back to the projection tab and update the loan closing dates Update GAP/MRC & debt protection before creating the loan. Funding Instruction Options Be sure to update the projection tab with the finalized loan amount, due date 1 & 1st payment due date, payment method & insurance information before proceeding to the funding instruction tab. This information populates to the loan agreement. GL Disbursements: This selection allows the user to create tracking records for GL transaction that areincluded in the loan approval amount. Loan Payments: This selection allows the user to create tracking records for all credit union loans that needto be paid down or paid off with funds from the new loan. Check Disbursements: This selection allows the user to create tracking records for all the checks that needto be disbursed from the new loan. Share Deposits: This selection allows the user to create tracking records for all the share deposits that needto be disbursed from the new loan. Select Next to move to each Funding Instruction 35  Secured Loan in ELA GL Info The screen allows the user to create tracking records for GL transaction that are included in the loan approval amount. The tracking records will then be used to fund the loan. If GAP and/or Warranty were addedto the loan during the Projections step, GL entries will be pre-filled for those transactions, containing the GL Amount and GL Account. Amount: Amount to be applied to GL GL Acct #: Click the drop-down to select the GL that the fee applies too.GL comment: Enter comment for your Accounting Department Click the checkbox if you need to define additional GLs. You can predefine up to 15 GLs Loan Payments The screen allows the user to create tracking records for all credit union loans that need to be paid down orpaid off with funds from the new loan being disbursed. The user can create up to 5 credit union owned loan payment/payoffs to be performed. 36  Secured Loan in ELA Check Disbursement Check Info Amount: Check amount to be disbursed Payee Lines 1-5: Payee Information and other information to be printed on checkPurpose: Additional information to be printed on the check stub Click the checkbox if you need to define additional checks. You can predefine up to 15 checks. If a check is paid to a dealership, you must include the name(s) (owner on title) and VIN # on the front ofthe check. Where possible, copy and paste the VIN # from the application or loan. This is required information. We will no longer be paying the dealership a $10. fee for lien placement. 37  Secured Loan in ELA Stamp the back of the check with the lien stamp. Include the VIN #. This is required information. Share Deposits The screen allows the user to create tracking records for all the share deposits that need to be disbursed from the new loan. The user can create up to 5 tracking records to perform transactions on share deposits. When the SSN Search button is clicked ELA will search the database for the 9-digit SSN. The shares found willdisplay in the drop-down in addition to the other shares already displayed for all the applicants on the application. The SSN (up to 5) will be stored in the Application Disbursal SSN Tracking Record, and the account(s) selected will be stored in the Application Disbursal Tracking Record. 38  Secured Loan in ELA Funds Disbursed Calculator The Funds Disbursed Calculator section will display a total approval amount. (Including all fees associated with the loan) Total Loan Amount-Includes the amount the member is financing including any additional fees (GAP.Warranty, Additional fees) that have included in the loan amount. Calculator- This will display the total amount of funds that you have used so far on the scripted funding transaction screen. As you enter funds in the checks or GL section, the Financial Information section will update to how the Click Continue to proceed to the next workflow action. Loan Creation Once your loan has been approved, and all information is verified with the member (loan amount, collateral being used for loan, etc.) use the loan creation step will add the loan record copying all information from the application (amount, rate, collateral being used, etc). New Loan ID-The next sequential loan ID will be used. If you do not want to use the system assigned ID you can change it in this field. A list of existing loans will appear in the Existing Loans Section. Loan Description-This is how the name of the loan will appear in all areas of Episys and on the members statement. Branch/Dept of Funding-Based on the parameters chosen, the branch of the employee who is creating the loan will populate, Collateral Code-This will copy from the application record Purpose Code-Copies from the application record and displays the purpose code of the loan Additional fields that may display based on Payment Method chosen for the specific application. 39  Secured Loan in ELA Auto Transfer-If you chose the Auto Transfer as the Payment Method for the loan, you will see a selection for which share the auto transfer will come from. Existing Loans-This will display the existing loan records in the database listing the Loan ID, Balance and Description. The new loan ID field will default to the next available loan ID, but can be manually changed if you choose. The Credit Limit Expiration Date and/or Maturity Date fields will only display for the loan types requiring this information that you have designated. Click Continue to create the Loan and its associated records. When the loan is created, an Information pop-up box will appear acknowledging that the Loan ID has been created Performing the Loan Create option will create some records automatically under the loan record based on how the application has been set up. Some of the records that will be created include: Loan Name: for joint applicants on Loan Tracking: Tracking record for the specific type of loan that you have processed will be created on the loan record Loan Note: for application notes Loan Transfer: for automatic payment Loan Pledge: for co-signers and share-secured loans Loan Pledge Name: for co-signer’s personal information. Share Hold: for share-secured loans Remember, any changes made after this point need to be made to the loan record and/or the associated records. 40  Secured Loan in ELA Application Summary A non-editable application summary will display at the bottom of the Loan Create screen. This is the same screen that appears on the Projections screen. If you attempt to create a loan record without it being approved the following message will display: If you attempt to create a loan record that has already been created, the following message will display. In this instance you will have to make changes to the Loan Record itself. 41  Secured Loan in ELA Loan Funding Once you’ve selected the Funding Instruction you want to use, the Loan Funding screen will display the transaction that it is going to be performed on the members account. After reviewing the transaction click thePost Transaction button when you are ready to move forward. Once the transaction has been posted to the account you will receive a message from the system to indicate it was processed successfully. ELA Funding Tracking Record Tracking Record 55 will be created for each separate instance of a separate funding request (each check,each GL Transaction, etc.) that is created during the Script Transaction. Prior to loan funding, tracking record 55 will display under the application ID: Selecting the Tracking record to view will display the following fields: Check Payee Line 1-5: Text that appear on lines 1-5 of the check. GL Account: Displays GL account selected GL Comment Displays GL Comment (either system generated or entered by user) Check Account Code: Will display 00 Check Number: Number of the check that disbursed.Disbursal Amount: Disbursal amount of check Disbursal Method: 0 = Check 1 = GL Check Type: 0 = Primary Check (KD) 1 = Secondary Check (KO) 42  Secured Loan in ELA Print Docs On the Document Printing screen, the names of loan documents programmed in Episys are displayed. Documents pertinent to the account type are pre-checked. See page 44. Review the pre-checked document names, selecting or deselecting documents as appropriate. Click Continue to display the selected documents that allow for data entry or require signature. Review each document, populating fields as needed. Ask the member to sign on the signature pad, as appropriate. Any documents not requiring data entry or a signature can be set to automatically print and be saved to imaging. The Risk Based Pricing Notice is checked off for all appropriate loans. If it’s not required you will get apop up letting you know that it is not required for this borrower. After all documents have been processed, the system returns to the Application Processing work area. Working in a Form Once a SymForm PDF is launched, the first page of the form displays along with a JavaScript window. Youmay click and drag the JavaScript window to move its location on the page, but do not close it. Clicking the red Unstack arrow will close the form without saving it and return you to the main work area. Data programmed to populate in fields will display in the form, pulling data from many records you have completed during the application process. Review the form for accuracy and completeness. Open and editable fields will display with a highlight in blue if Highlight Existing Fields is turned on. The usermay type in these fields and move from field to field by pressing the Tab button. Note: Data changed by the user on forms will not automatically populate back to the Episys records. Click Unstack to leave the document review page and return to ELA. 43  Secured Loan in ELA Electronic Signatures 1. If the form includes signature boxes, a signature pad should be connected to the workstation before launching the form. 2. To open a signature box, click on the signature box. A signature block displays on the screen. On the Signature Pad, Accept, Clear, and Cancel buttons display along with a signature line. 3. The member signs on the signature line. 4. The member clicks Accept. The signature displays on the form. Note: Once signatures are gathered, open and editable fields on the form become disabled. Gathersignatures as the last step in completing the form. Printing 1. To print, select “print & Submit” or “submit” depending on the form. If it only needs to 2. The Confirm print dialogue box displays. Note: Do not click Yes or No yet. 44  Secured Loan in ELA 3. The Print dialogue box displays. You should not need to change any of the settings (paper size, duplex, etc) which are programmed into the form. Click Print. 4. If the form prints successfully, click Yes in the Confirm print dialogue box. Go to Step 5. (If the form does not print, click No to return to the form and go back to Step 1.) 5. The form closes and is sent to imaging (if programmed to do so). Imaging To send the form to imaging but not print, click Submit. Saving You may wish to save the form for retrieval later. This may be used if a joint applicant is not present and will be coming in at a later time to sign the documents. 1. Click Save. The following window displays. 2. Click OK to save the form. To retrieve the partially executed form at a later time: 1. Access the application and launch the form. The following screen displays. 45  Secured Loan in ELA 2. Click the name of the form Description to re-launch the form. 3. Obtain additional signatures. 4. You may print, image, or save the file as directed previously. Other Print Option Capabilities Individual forms will also be available in your drop-down specfile menu. Click to select ELA Print Documents. You will return to Print docs Tab. Explanation of the Forms A. RBP - Risk Based Pricing Form: Must be provide to member’s who qualify for C, D, or E loan rates. The Risk Based Pricing form must be presented at closing before any loan documents are signed. Suggestions on what to say to a member who has a great credit score and due to their low FICO score they qualify for less than our best interest rate. “This form is an offer for you to get a free credit report from Experian due to the fact that the rate you received is less than our best rate. The rate that you received is based not only on your credit score but also onother factors our underwriters take into consideration when making a decision on a loan. The factors like time on the job, time at current residence and the overall length of established credit are also a part of the process that determines your interest rate.” B. Debt Protection for consumer Loans: Must be provided with all secured loans. This form discloses all of our optional debt protection products and lets the member know that purchasing this coverage has no bearing on the loan decision. The member must sign this form to indicate which products, if any are being purchased. 46  Secured Loan in ELA C. GAP-Guaranteed Auto Pay GAP coverage is also optional on most collateral loans. The member needs to sign whether they accept the coverage or decline it. LOAN Application: Review the application with the member and have them sign appropriately. If there is more than 1 borrower, they will each initial for joint credit and sign the application, as applicant and co-applicant. If there is only 1 borrower, they will only sign the application as applicant D. Consumer Disclosure: This form is the legal loan document that discloses all of the loan details and the member signs to accept the terms and conditions of the loan. The box below must include where the funds will be disbursed. This information should populate from the funding instruction tab. Amount given to you directly ¬- funds deposited to the member’s account Amount paid on your account – ACCU loan payment/VISA payment Amount Paid to others on your behalf – checks paid to others If there are more than 8 checks to be paid. 47  Secured Loan in ELA Type in on the 1st line: “see attachment” Select: Amount paid to others under print Docs. On the attachment you will be able to include all itemized amountsand who they are being paid to. E.g. consolidation loan OTHER If there is additional collateral e.g. boat, motor, trailer, the 1st & 2nd collateral tracking records will populate to the loan agreement. If there is a 3rd piece of collateral, you will need to manually type it in under “other” and save it to the form. The signature(s) for all borrowers needs to be completed on the loan agreement. The borrower(s) would sign on the yellow highlighted section. A cosigner(s) would sign (magenta). The MSAR signs as a witness (blue). If there is someone who needs to sign as an “owner of collateral”, mark the X first before anyone signs the form. You will not be able to edit the form after it has been signed. Page 2 of the Credit Agreement Explain the document and have the member(s) initial in the highlighted area. 48  Secured Loan in ELA E. Notice of Requirement to Provide Ins - This form is used for auto loans to notify member of the minimum insurance requirements. F. Loan Addendum Disc Statement – this form is required for all loans with collateral that are titled. Snowmobiles are exempt, as they are not titled, so you can uncheck the box for this form. If you do not fill in the “Sellers” name under the collateral tab, the sellers name will be blank. You will either need to go back to the collateral tab, select “modify” and complete the seller’s name or update the field “seller” under collateral tracking 30. Re print the form. This unsecured interest rate will populate based on the signature rate for that borrower’s credit score. 49  Secured Loan in ELA The borrower(s) will sign on the left. The MSR will sign on the right G. Pay off & Closed Ltr for secured Lns – This form is sent to pay off another lender for a secured item, like a vehicle. H. Pay off Ltr for Consumer Loans – This form is sent to pay off another lender due to a consolidation loan. In some cases we will request lender to close out other source of credit at the receipt of this notification. More than one of these forms are possible to be sent to a variety of lenders. I. Out of State Letter for dealer Purch – Faxed to out of state dealer before closing requesting a guarantee that our lien will be placed on the vehicle and requesting original title to be mailed to ACCU. J. Out of State Letter for Lien Placement – Mailed to out of state dealer with check, requesting ACCU lien be placed on title and original title mailed to ACCU. K. Close Account Letter – Mailed out by the MSR when there is a Loan officer requirement to close an account. The MSR will not be mailing out the checks, as it will be the responsibility of the member to take care of those payments/payoffs. Funds will be deposited to the member’s account. The forms needed to secure ACCU as lien holder. Use the link to MI DMV. Application for MI Title - TR-11 for an auto/truck loan. Application for Watercraft Title -WR-11L for watercraft/jet ski Special Mailer- this is used for all types of collateral. It allows the State of MI to mail the original title to us so that we can get proof that our lien has been placed. Uniform Commercial Code- UCC1 – allows us to place lien on boat motors, equipment, snowmobile etc. 50  Secured Loan in ELA Application for Michigan Title / TR11L Application for Michigan Watercraft title/WR11L Special Mailing Certificate – TR-114 51  Secured Loan in ELA Documentation Requirements Proof of income is required for all loans, unless waived Dealership Purchase: Copy of Invoice-new vehicles/watercraft only Copy of Bill of Sale or Purchase Order- new and used Copy of Insurance with ACCU as lien holder Private Party Purchase: Original Title Name of lien holder or release of lien from lien holder Copy of insurance with ACCU as lien holder Application for MI title/Application for MI Watercraft title Special Mailer for title Refinance: Original Title Name of lien holder 10 day payoff from lien holder Address to send pay off check Copy of Insurance with ACCU as lien holder Application for MI title/ Application for MI Watercraft title Special Mailer Lease Buy Out: Lease buy out package Registration ( this identifies whose name is owner on title) Odometer Statement Copy of Insurance with ACCU listed as lien holder Application for MI title Special Mailer 52  Secured Loan in ELA Member Closing Packet Below is a list of documents the member should “walk out the door” with after the loan closing. Dealer loans-new and used 1. Risk Based Pricing Notice(s) (C,D, E paper only) 2. Debt Protection Form 3. Consumer Disclosure 4. Addendum to the loan agreement 5. Proof of Insurance Letter 6. Optional Insurance forms for GAP 7. MRC form, if purchased 8. Check- payable to the dealership 9. Business Card Private Party, Refinance, Lease Buy Out 1. Risk Based Pricing Notice(s) (C,D, E paper only) 2. Debt Protection Form 3. Consumer Disclosure 4. Addendum to the loan agreement 5. Proof of Insurance Letter 6. Optional Insurance forms for GAP 7. MRC-if purchased 8. Original title with our lien typed on it, make a copy for the file 9. Application for MI title/ Application for MI Watercraft title 10. Special Mailer 11. Check a. To be mailed to the lienholder by the MSAR 12. Business Card Audit Check List- Complete the Audit sheet which is located under the specfile. There should be 2 audits for each closing. The MSR that closes the loan should review Symitar & the closing documents for accuracy. The 2nd audit should be done by the Branch Manager or whoever is assign to complete the 2nd audit. 53  Secured Loan in ELA After the loan has closed, proof of insurance needs to be faxed to State National. State National Fax: 877.451.3548 54  Secured Loan in ELA Procedure Exceptions Definitions Definitions Term Definition The ECOA code will be determined by the borrower(s). The ECOA code will populate based on the original application. If you have 1 borrower, the ECOA code will be set to individual. If you add a co borrower, then you need to change the ECOA code under the App ID. Even though the system is populating the code, you still need to ensure that it is correct. If there is co –signer on the loan, you should see Maker for the primary borrower and Co-maker for the cosigner. ECOA Code - The ECOA (Equal Credit Opportunity Act) code indicates how Episys should report the application to credit bureaus. Episys translates the code you enter in this field to the correct credit bureau association code Selection Description 01 Reports the name of the Individual(Verified) primary borrower with code of (1) Individual Borrower. Note: 00 Individual (Default) is not used. 02 JointContractual Reports the name of the primary borrower with an association code of (2) Joint Account – Contractual Responsibility and the names from all applicable Name records with an association code of (4) Joint Account 07 Maker Reports the name of the 05 Co-maker primary borrower with an association code of (7) Maker and the names from all applicable Name records with an association code of (5) Comaker. 55  Secured Loan in ELA Document Control Supporting Management Standards/Procedures and/or Guidelines Document Title Author Description Revision Date Debbie 3.23.206 Raymo 3.28.2016 2019 2022 56