Title Processing Procedure 2023 PDF

TITLE PROCESSING Beginning 10/1/2023 it will be Mandatory that all titles with a lienholder, processed by Secretary of State, (SOS) be Electronic. ACCU will start using our Lien Code ID (LH051752) on all title work starting on 9/1/23. The member will no longer receive an original paper title af...

TITLE PROCESSING Beginning 10/1/2023 it will be Mandatory that all titles with a lienholder, processed by Secretary of State, (SOS) be Electronic. ACCU will start using our Lien Code ID (LH051752) on all title work starting on 9/1/23. The member will no longer receive an original paper title after the title transfer and lien placement. As this is a new process for our members who are not familiar with the change, you need to remind them that they will not receive an original paper title in the mail for the collateral on the new loan. Once the loan is paid in full, we will release our lien and have the new paper title mailed to the member. Title Processing differs based on the type of collateral and where the purchase is made. We will still see some paper titles being used for certain titling processes. The titling documents in ELA needed for each loan will be checked under the Consumer Forms or Commercial Forms according to the loan type. The collateral information and the borrower’s name and address will generate on the form. Our Lienholder name, address and Lien Code ID will be filled in on the title forms. Stop using any Title forms that you may have saved to your desktop. They should no longer be used. The forms include, Application for MI Title, Application for Watercraft, and UCC1. In ELA they are named Electronic Lien Title, Electronic Lien Title Watercraft, and Electronic Lien Title UCC1. The Special Mailer is no longer needed as a title will not be mailed. Uncheck any forms that you do not need for your loan’s collaterals. Examples: The screenshot below shows the ELT forms under Consumer Forms in ELA. 1 Example of information generated to the title forms. 2 You will need to choose the collateral for each of the forms. A prompt will come up with the name of the ELT form with a dropdown for you to choose the collateral to be populated to that form. There could be more than one collateral on the loan that would need additional forms generated. There isn’t a prompt for the UCC1 form, as you will have dropdowns on the bottom of the form to choose the collateral on the UCC1, Dealership Loans Dealership handles Title Processing. You must place our lien with the dealer and give them our Lienholder name, address, and Lien Code ID. Lienholder Information: Alliance Catholic Credit Union 28800 Orchard Lake Road Farmington Hills, MI 48334 Lien Code ID LH051752 A copy of the RD-108 or Purchase Agreement showing our ACCU Lienholder information and Lien Code ID is required from the Dealership before close. Only the name or names on the loan are allowed as purchasers on the Purchase Agreement. Private Party Loans (Auto/Motorcycle/ATV/Motorhome/RV/Titled Trailer) A paper title is required at closing. If there is a lien on title and they say it is an electronic title, the seller needs to have their Financial Institution order a paper title. It could take at least 2 weeks to receive a paper title from Secretary of State. We cannot close on the loan until we have the paper title. 3 At close: Using our Lienholder Stamp, place ACCU's information in the New Lienholder Information section: Secured Party: Alliance Catholic Credit Union Address: 28800 Orchard Lake Road, Farmington Hills, MI 48334 Image Original Title, Application for Title, and E-sign Certificate (if E-signed) before giving to the member to take to Secretary of State to transfer title and place our lien. Member takes Original Title and Application for Title to Secretary of State to transfer title and place our lien. A copy of the validated Application for MI Title needs to be received from the member once they go to SOS and place our lien. They can fax or email Lending Support or drop it off at a branch. A new Title will not be mailed from SOS to ACCU or the member. It will be electronically held until the loan is paid in full. Refinance or Finance (No Owner Change) If the title is Electronic: Contact Lending Support by email with the member’s name, RC code, Lienholders name, and collateral information with Vin#. They will verify the current title information on the Secretary of State website. They will email you a copy of the title for you to scan to the member’s account as copy of title and let you know if you are ok to proceed. For Refinances where the name is not changing, we can proceed with the loan if we can verify the information on title. It is very important that we send the Payoff Secured letter with the check to payoff the lienholder. This letter tells them to release the electronic lien and have the title mailed to ACCU. When we receive the free & clear title from the previous lienholder, Lending Support will send to Secretary of State to place our lien. A new Title will not be mailed from SOS to ACCU or the member. It will be held electronically until the loan is paid in full. If you have a paper title: Using our Lienholder Stamp, place ACCU’s information in the New Lienholder Information section: Secured Party: Alliance Catholic Credit Union Address: 28800 Orchard Lake Road, Farmington Hills, MI 48334 Image Original Title, Application for Title, and E-sign Certificate (if E-signed) Mail Original Title, Application for Title, and E-sign Certificate (if E-signed) to Admin. - Attn: LendingSupport. A new Title will not be mailed from SOS to ACCU or the member. It will be held electronically until the loan is paid in full. 4  Refinance or Finance (Owner Change) Example: Name being added or removed on title If the title is Electronic: Contact Lending Support by email with the member’s name, RC code, Lienholders name, and collateral information with Vin#. They will verify the current title information on the Secretary of State website. They will email you a copy of the title for you to scan to the member’s account as copy of title and let you know if you are ok to proceed. For Refinances where the name is changing, we can proceed with the loan if we can verify the information on title. Primary borrower to stay on title. It is very important that we send the Payoff Secured letter with the check to payoff the lienholder. This letter tells them to release the electronic lien and have the title mailed to ACCU. When ACCU receives the free & clear title from the previous lienholder, Lending Support will mail the title and title work to the member. Member takes Original Title and Application for Title to Secretary of State to transfer title and place our lien. A copy of the validated Application for MI Title needs to be received from the member once they go to SOS and place our lien. They can fax or email to Lending Support or drop it off at a branch. A new Title will not be mailed from SOS to ACCU or the member. It will be electronically held until the loan is paid in full. If you have a paper title: Using our Lienholder Stamp, place ACCU’s information in the New Lienholder Information section: Secured Party: Alliance Catholic Credit Union Address: 28800 Orchard Lake Road, Farmington Hills, MI 48334 Image Original Title, Application for Title, and E-sign Certificate (if E-signed) before giving to the member to take to Secretary of State to transfer title and place our lien. Member takes Original Title and Application for Title to Secretary of State to transfer title and place our lien. A copy of the validated Application for MI Title needs to be received from the member once they go to SOS and place our lien. They can fax or email to Lending Support or drop it off at a branch. A new Title will not be mailed from SOS to ACCU or the member. It will be held electronically until the loan is paid in full. Lease Buy-Out Lease Buy-Out titles will be paper until the collateral is paid off, the Lessor signs off the title and mails ACCU the title so we can place our lien on the new title. Only a Lessee named on the title can buy out their lease. 5  Request a copy of the Registration to verify owners on Lease title. After lease is paid off, the leasing company will mail the original title to ACCU. Lending Support will place lien on the title and mail Original title and supporting documents to the member. The member needs to take all Lease buyout documents to Secretary of State to transfer title and place our lien. A copy of the validated Application for MI Title needs to be received from the member once they go to SOS and place our lien. They can fax or email to Lending Support or drop it off at a branch. A new Paper Title will not be mailed from SOS to ACCU or the member. It will be held electronically until the loan is paid in full. Boats/Watercraft If the Boat/Watercraft has an Outboard Motor or a Trailer titled separately, these will require separate Title Work or UCC1. Watercraft Titles Private Party Loans A paper title is required at closing. If there is a lien on title and they say it is an electronic title, the seller needs to have their Financial Institution order a paper title. It could take at least 2 weeks to receive a paper title from Secretary of State. We cannot close on the loan until we have the paper title. At close: Using our Lienholder Stamp, place ACCU's information in the New Lienholder Information section: Secured Party: Alliance Catholic Credit Union Address: 28800 Orchard Lake Road, Farmington Hills, MI 48334 Image Original Title, Application for Title, and E-sign Certificate (if E-signed) before giving to the member to take to Secretary of State to transfer title and place our lien. Member takes Original Title and Application for Title to Secretary of State to transfer title and place our lien. A copy of the validated Application for MI Title needs to be received from the member once they go to SOS and place our lien. They can fax or email Lending Support or drop it off at a branch. A new Title will not be mailed from SOS to ACCU or the member. It will be held electronically until the loan is paid in full. 6 Snowmobile/Tractor/Untitled Trailer/Outboard Motor The UCC1 Financing Statement should be created and imaged along with the other Loan documents. Place a note under the loan that you created a UCC1 for collateral. Lending Support will file the UCC1 with the Secretary of State. You will be prompted to complete the UCC1 through ELA during the loan process under Consumer Forms or Commercial Forms depending on the loan type. Using the drop downs in the Collateral section, choose the correct collaterals that need to be on the UCC1. Example: Revised 8/30/23 7