Recreational Marine Program Pricing Guidelines (effective November 1, 2018)

Transcription

1 Recreational Marine Program Pricing Guidelines (effective November 1, 2018) Specialty Lending: Program Manager: Eric Craig (D) (F) Score Max DTI Max PTI Advance / LTV Greater than $300,001 $75,001 to $300,000 $75,000 or Less Tier 1 Greater than % 15% Tier % 15% Tier % 10% < 80% 81% - 90% > 91 % < 80% 81% - 90% > 91 % < 80% 81% - 90% > 91 % 5.24% 5.49% 5.74% 5.99% 6.24% 6.49% 7.24% N/A N/A 5.49% 5.74% 5.99% 6.24% 6.49% 6.74% 7.49% N/A N/A 5.99% 6.24% 6.49% 6.74% 6.99% 7.24% 7.99% N/A N/A Rates Valid For 30 Days from Approval Date. Closing Documentation must be dated within 30 calendar days of approval date and funding must occur within 7 calendar days from contract date Credit Approval Valid for 60 Days from Credit Pull Date Primary Earner's score will determine the score used for pricing above Minimum Term 60 months New Boat Advance Rate is up to 130% of Base Invoice (Hull, Engine(s), Generator, Bow Thruster, Stabilizer, Trailer), Current or prior model year if the vessel has never been titled or documented Rates and guidelines based on date of submittal Used Boat Advance Rate will be based solely upon the Lender's Valuation Applicant(s) should have 6 months of debt service, held personally, after down payment Max LTV, as per Lenders valuation, not to exceed 80% for any transaction in excess of $750,000. USCG Documentation required when applicable (recreational endorsement only) USA Specialty Lending will not finance Vessels with a Salvaged Title or Insurer in the Title Chain Vessels held in a Special Purpose Entity must be pre approved by Lender, see SPE & Business Guaranty Checklist Add 50 Basis Points (0.50%) when sum of Amortization and Vessel Age exceeds 30 years Add 25 Basis Points (0.25%) for any Foreign Funding or MIPA transaction Add 50 Basis Points (0.50%) for any Limited Charter Rate Reduction of 25 Basis Points (0.25%) allowed when participation is reduced to 100 Basis Points (1.0%), No rate buydowns allowed for loan amounts over $1.5 million Borrower(s) must qualify for USALLIANCE Membership NAMS or SAMS Survey required for all Pre Owned Vessels older than 3 model years and greater than $75,000, Engine Survey required on case by case basis Max Term for any Vessel is 240 months or 180 months for vessels that do not have a head, galley and berth All Marine Loans must meet USA Specialty Lending "Marine Loan Closing Requirements", "Marine Loan Insurance Requirements" and "Marine Loan Survey Requirements" Borrower's with prior bankruptcies, loan selements, short sales or foreclosures will be priced on a case by case basis as an exception Custom Build Vessels, not typically represented in BUC, NADA, or ABOS, will be priced on a case by case basis as an exception 2.0% Participation to a Maximum of $30,000, 100% Participation Chargeback for any Payoff or Event of Default within 180 days of funding, 360 days for loans in excess of $1,000,000, Participation paid for refinancing current exposure is discretionary All Exceptions to above guidelines will be priced on a case by case scenario Add 100 Basis Points (1.0%) for High Performance, Houseboats and Steel Hull Vessels (classification determined by lender) with Max LTV of 80% and Max 180 month term

2 UNDERWRITING REQUIREMENTS All Applicants: Completed and signed Loan Application for all applicants and persons having ownership in the asset. Legible copies of each applicant s Driver s License or Passport (additional address verification required with Passport) Completed, signed and dated Personal Financial Statement (not older than 60 days) Bank and Brokerage Statements supporting liquid assets as disclosed on the PFS (not older than 60 days) Two most recent Personal Tax Returns for each applicant (include all schedules: A through E and all K-1 s) Two most recent Paystubs (not older than 30 days) Include most recent W2(s) where current year personal tax return has yet to be filed Copy of Purchase Agreement/Bill of Sale/Brokerage Agreement Self-Employed Applicants: Two (2) years Corporate Returns (1120, 1065 or 1120S - include all K1s where applicable Current Balance Sheet and Profit and Loss Statement (not older than 90 days) Brief description and history of the business(s) Additional Items Required Existing Vessel Survey, when applicable (Pre-Owned) Aircraft VREF Reference Guide Valuation (Pre-Owned) Manufacturer s Invoice (New Vessels, New Aircraft and New Motorized RV s) USAlliance FCU doing business as USA Specialty Lending

3 MARINE LOAN CLOSING REQUIREMENTS Required for all Marine Loans (*Validate HIN, Serial and Trailer ID numbers): Signed and dated Loan, Security and Disclosure Agreement (Note) * Signed and dated (prior to closing) Purchase Agreement/Bill of Sale/Brokerage Agreement * Evidence of Down Payment (Cashier s Check or Wire showing borrower as remitter/originator, Personal Checks from borrower s account only, Credit Card receipts cannot exceed 5% of the purchase price) Completed Marine Loan Information Form Certificate of Insurance or Insurance Binder (see Marine Loan Insurance Requirements) * An enlarged legible copy of each borrower s Valid Driver License (prior to closing) Signed and dated USALLIANCE Financial Membership Agreement Signed and dated USALLIANCE Loan Application Signed and dated Recreational Use Agreement Signed and dated Survey Compliance Agreement, when applicable USCG Documentable Vessels (documentation company must be AVDA): Signed and dated USALLIANCE Preferred Ships Mortgage (no other mortgage accepted) USCG Application for Initial, Exchange, or Replacement of Certificate of Documentation; Redocumentation (CG ), All applicable fields must be completed USCG General Index or Abstract of Title (CG ), Must be dated within 30 days of funding date USCG Bill of Sale (CG ), including all reassignments Manufacturer s Statement of Origin and Builder s Certificate/First Transfer of Title (CG ) if new Non - USCG Documentable Vessels: State Title Application for vessel (if applicable), all outboard motors (if applicable), and trailer UCC Filing in non-title states (if applicable), covering hull, outboard motors and trailers not otherwise titled Copy of Certificate of Title for used, or MSO if new Completed Trailer Acknowledgement Form (when no trailer is secured as a part of the transaction) Current Title/DMV Report for state of registration Additional Items: Evidence of Florida Stamp Tax Collection, if not financed (all loans executed in FL) Trade Evidence (front and back of trade title or the certification of Documentation for the trade or USCG Bill of Sale) Evidence of all Lien Payoffs Prior to closing documentation preparation, it is important we have the Driver License(s), Purchase Agreement/Brokerage Agreement and all SPE documents (when applicable) USAlliance FCU doing business as USA Specialty Lending

4 General Endorsements and Notice: MARINE LOAN INSURANCE REQUIREMENTS Insurance must be placed with companies, underwriters, associations, clubs or underwriting funds having A.M. Best rating of no less than B Lienholder with Loss Payee endorsement: USAlliance Federal Credit Union ISAOA US Highway 19 North, Suite 103 Clearwater, Florida Days Cancellation notice with the policy is preferred Insurance Binder must be effective on or before the funding date Preferable evidence for property insurance is ACORD 75 or certificate of insurance Coverages: Agreed Value coverage on Hull and Machinery is required in an amount equal to or greater than the note amount. Actual Cash Value (ACV) coverage is not acceptable Deductibles may not exceed 2% of the Hull and Machinery coverage Breach of Warranty coverage is required for all loans in excess of $1.0 million, in favor of USAlliance FCU for an amount equal to or greater than the note amount Liability Coverage is required as per state statute where applicable Trailers and outboard engines must be identified with serialized detail on the insurance binder Borrower(s) must be the Named Insured(s). Third parties, unrelated to the loan transaction, will not be accepted Named Storm Coverage required in AL, FL, GA, HI, LA, MS, NC, SC, TX Named Storm Deductible cannot exceed 10% Additional Limited Charter Coverages: Bareboat Charter acknowledgment and/or endorsement with policy, skippered as applicable USAlliance FCU and Charter Management Company named as Additional Insureds Liability Coverage with a minimum of $1.0 million coverage Breach of Warranty for physical damage coverage, in favor of USAlliance Federal Credit Union Additional Foreign Funding Coverages: Standard Cargo/Shipping coverage, naming USAlliance FCU as loss payee, in an amount equal to or greater than the note amount, which includes war-risk endorsement and lists shipping dates Breach of Warranty coverage is required, unless vessel is being immediately cargo/shipped post closing If transported on its own bottom, policy must include Trip Endorsement or appropriate Navigational Limits USAlliance FCU doing business as USA Specialty Lending

5 MARINE LOAN SURVEY REQUIREMENTS A Marine Survey is required for all vessels older than three (3) years (current model and previous two model years) Surveyor must be an active member in good standing with either National Association of Marine Surveyors (NAMS) or Society of Accredited Marine Surveyors (SAMS) Survey must be prepared for the benefit of our borrower(s) and valued in an As Is condition Survey must include the following o In-water and out-of-water review o Legible image, etching, or rubbing of the Hull Identification Number (HIN) o Complete set of photos, including images of HIN, living quarters, engine room, galley, head, and the vessel s transom with current vessel name o All motor/engine detail including the serial number(s), hours and horse power of each engine o Statement of condition, a statement of valuation and a list of recommended repairs, if any o Surveyor s certification For vessels in excess of $250,000 (loan amount), a sea trial is required to accompany the survey. Not applicable when survey itself isn t required, unless otherwise required by underwriting For vessels less than $75,000 (loan amount), no survey or haul out of is required, Exceptions to this will be vessels in excess of 15 year of age, or deemed to be custom built as defined by USA Specialty Lending, HIN, Serial Number & VIN photos are required when survey is not applicable Mechanical Survey required for any vessel model year 2000 or older USAlliance FCU doing business as USA Specialty Lending

6 MARINE LOAN INFORMATION FORM Application Number: Primary Borrower Last Name: Vessel Information (Year, Make, Model, Serial#): Contact Info: Primary Phone: Work Phone: Borrower 1: Borrower 2: Borrower 3: Borrower 3: Summer Mooring or Storage Location: Street: City: State, Zip: Winter Mooring or Storage Location (if applicable): Street: City: State, Zip: Two (2) Personal References (not living with borrower(s)): Name: Phone Number: Relationship: Secondary Residence Info (if applicable): Street: City: State, Zip: Prior Marine Experience: Year, Make, Model: Years Owned: USAlliance FCU doing business as USA Specialty Lending

7 MARINE LOAN DOCUMENT REQUEST FORM Please complete and upload to transaction in the portal. Make sure to include Driver License(s) and Purchase Agreement, if not already provided. Member Information: Application # Borrower Name SS# DOB Billing/Mailing Address Co-Borrower Name SS# DOB Vessel Name: Note Date: Date Documents Needed: Summer Mooring: Winter Mooring: Model Year: Builder: HIN: Official #: Model: Hailing Port: LOA: Beam: Depth: Engine Information 1 Make / HP / Year Serial # 2 Make / HP / Year Serial # 3 Make / HP / Year Serial # 4 Make / HP / Year Serial # Trailer information: Make/Year ID or Serial # Weight # of Axels FINAL DEAL STRUCTURE Purchase Price Trade Allowance Trade Pay Off Tax Title & Tag Down Payment (Cash) Net Loan Amount Other Notes: Rate Term (months) Balloon (months) FL Doc Stamp (Cash, Finance, n/a) Documentation Services Company: USAlliance FCU doing business as USA Specialty Lending

8 SPECIAL PURPOSE ENTITY (SPE) & BUSINESS GUARANTY CHECKLIST Limited Liability Companies (LLC s) and Trusts are the only acceptable SPE entities. A fully executed package of all documents is required at funding. Collateral must be the only asset of the SPE. SPE cannot be owned or managed by anyone other than the borrower(s). SPE may not be accepted, unless previously agreed upon, if language includes reference to nonrecreational use (i.e. rental, charter, fractional ownership, etc.). For all Trusts, a guaranty will be required. For all LLC transactions over $100,000, a guaranty will be required. Under $100,000, will be discretionary. For all Aircraft a Pledge of Shares Agreement will be required. For Aircraft held in SPE owned by Operating Entity, a full guaranty from the operating entity will be required. The operating entity must be owned 100% by the borrowers. Documents required by any SPE or GUARANTOR of the transaction: Filed Articles of Organization/Incorporation/Formation (include all amendments filed with Secretary of State) Signed Operating Agreement/Bylaws (include all amendments) Evidence of Corporate Status ( Active or have a Certificate of Good Standing issued by Secretary of State) For existing LLC s, not newly formed, a copy of the last report filed with the secretary of state IRS FEIN Letter Complete Trust Agreement, when applicable Additional Documents needed for SPE interest transfers or purchases (MIPA): UCC, Federal and State Lien Searches Termination of Initial Purchase Agreement (if applicable) MIPA (Membership Interest Purchase Agreement), including the following: o Vessel Inventory of machinery, furniture, fixtures, equipment, tenders and dinghies o Items of personal property removed by sellers o Buyer s Final Acceptance o Warranty of Title o Captain/Crew Releases o List of current members/managers/officers Amended and Restated Operating Agreement or Ratification and Amendment/Written Action and Consent to existing Operating Agreement (must confirm New Members/Managers, Authorities, Principal Business address, etc.) Irrevocable Membership Interest Transfer Power or Irrevocable Assignment of All Membership Interests Resignation of Existing Managers/Officers Other Comments: USAlliance FCU doing business as USA Specialty Lending