When a member applies for a loan, we can offer two decisions once we have the complete loan application, we can approve it or we can deny it.

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 An approval can have 3 variations:

• Approve as requested

• Approve with conditions (such as proof of an account/collection being paid off or satisfactory proof of income, etc.)

• Approve with counter terms (shorter term than requested, lower LTV requiring a down payment, etc.)

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No matter the type of approval, it can have 2 outcomes:

• A Booked loan 

• A Cancelled loan

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A loan can be cancelled in a few different ways, but the two most common are 1) we received the application, but then we never heard back from the member or never received all of the necessary documents to make a lending decision or 2) we approved the member, but the member decided not to move forward with completing the loan. In either case, we should complete the ECOA (Adverse Action) form to tell the member that we are cancelling their loan application because: we never heard back from them, they changed their mind, etc.

 

Any documents we gathered for the loan application and the ECOA notice need to be scanned to Digi Docs on their account/name in Forza. We also need to log the loan in the Denial and Withdrawn App Logs located in L:\LOANS\Loan Denials & Withdrawn Apps Log.

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Cancelled Loan Application Stacking Order (never include IDs in loan docs)

• Adverse Action Notice (one for each borrower) – stating why it was cancelled

• Worksheet - with explanation of what, why, etc

• Debt Ratio Tape or FORZA DR Print Out (if completed)

• Credit Application (if completed)

• Purchase Order (if received)

• NADA (if for specific collateral)

• Credit Report(s) (Primary first, then Co-Borrower(s))

• Proof of Income (if received/required for loan decision)

• Any other documents gathered for the loan 

• RightSignature Signature Certificate (if applicable)

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A denial requires an Adverse Action to be completed and mailed to the member within 30 days of the completed loan application. A loan application is considered complete when we have all of the documentation and information necessary for our lending decision.

 

Adverse Actions must be scanned into Digi Docs under the member's name/account in Member Services. For nonmembers, it can still be scanned into Digi Docs by searching their name and pulling up their contact tab in Member Services.

 

Adverse Actions File Stacking order (never include IDs in loan docs)

• Denied Loans/Adverse Actions

• Adverse Action Notice (one for each borrower)

• Worksheet – with explanation of what, why, etc

• Debt Ratio Tape or FORZA DR Print Out (if reason for denial is DR)

• Credit Application (if completed)

• Purchase Order (if received)

• NADA (if for specific collateral)

• Credit Report (Primary first, then Co-Borrower(s))

• Proof of Income (if received)

• Any other documents gathered for the loan

• RightSignature Signature Certificate (if applicable)