​​​​Collateral Loans

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Q: What is different about processing a loan for purchasing a Leased vehicle?

    A: When a member wants to purchase their leased vehicle, we can process it the same as a regular loan, but we need to have the sales agreement paperwork from the Leasing company, including the Odometer statement.

 

Q:  What rate sheet do I look at for a loan on a boat?

    A: Boats are considered RVs and must have a motor. We cannot do a loan on a boat that does not have a motor.

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Q: What is the difference between a Co-Borrower and Co-Signer?​

    A: Co-Borrowers will jointly benefit from the proceeds of a loan and comingle their incomes. A Co-Signer has no direct benefit from the loan proceeds and does not share any of their income with the Primary Borrower for any reason.

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Q: Is an exception signature needed to have a parent be a Co-Borrower for a child instead of a Co-Signer?

    A: Yes! 

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Q: Who can sign on post close errors?

    A; GinGar, Lindsay and Stephanie

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Q: How long can we use a credit report pull?

    A: It depends:

• If it is below 700 then it is only good for 30 days. Exceptions to this need to be approved by GinGar, Lindsay or Stephanie.

• If the credit is 700 or higher, it can be used for no more than 60 days. As usual with lending, just because this is the rule, it doesn't mean it works for every situation. If it is a thin file with 700 or higher, it should only be good for 30 days. If there were a lot of inquiries when we pulled the report, it should only be good for 30 days.

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Q: What do I do if there is a bankruptcy on the credit report?

    A: It depends:

• If the bankruptcy does not show as discharged on the report, we need proof that it has been discharged before moving forward with the loan.

• If it has been discharged within the last 3 years, it must have 2% added to the rate and must be approved through loan review (2 approval signatures)

• If it was discharged more than 3 years ago, the loan can be processed as usual.

• If it is a Chapter 13 and shows as Dismissed instead of Discharged, we need to be careful! Chapter 13s, often turn into Chapter 7s. 

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​​Miscellaneous

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Q: Who can remove debt protection?

    A: GinGar, Lindsay and Stephanie

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Q: Where do I save the Debt Protection Removal Form?

    A: Attach it to the loan in Forza and save it in the Sub Action form on the L drive.

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Q: When do I put the credit score as 999? 

    A: Only on Share Secured loans of any type, on which you did not pull credit.

• If you did NOT pull credit when doing a loan secured by money, then put the credit score as 999.

• If you did pull credit while processing a loan secured by money and the member did not have a credit score, put their score as 0. If they did have a credit score, then put their actual score.

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Q: What do we need to be able to give loan information to anyone other than the member?

    A: The Limited Power of Attorney for Access to Loan/Account Information Form needs to be signed and notarized for the member in order to give any information to anyone other than the member. It can be found here (Limited POA).

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Q: Do the member's taxes for self-employed income go in the loan docs or Digi Docs?

    A: Only the tax analysis needs to be in the loan docs. The Taxes themselves should only be saved in Digi Docs for a couple of reasons:

    1) They are usually really long and can make the loan docs too big to attach in Forza.

    2) So that when we are processing their next loan, we can easily see what taxes we have, and we don't make the member get us something we already have!

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