Contractor s Manual Fixture Finance Program

Transcription

1 Contractor s Manual Fixture Finance Program Consumer Lending Effective:

2 Table of Contents 1. About Us Contact Info 2. Program Description & Guidelines 3. Credit Applications a. Completing & Submitting b. Call-In Applications c. Online Applications 4. Underwriting & Decision Notifications 5. Stipulation Guide 6. Loan Documents 7. UCC Fixture Filings 8. Funding Loans 2

3 About Welcome Us -Contact Info Welcome to Security Bank Consumer Lending! Thank you for giving us the opportunity to increase your sales by providing financing for your customers. We are committed to helping your company grow and look forward to working closely with you. Your Account Executive will schedule a time with you to walk through the online portal and process including training your Sales Staff on how to best use 1st Security Bank s financing program. Included in this manual is all of the essential information you will need to submit a loan application, print loandocuments,howtogetyourloanfunded,andwhotocontact. Sales Team: Craig Brown, VP, Indirect Sales Manager Phone: craigb@fsbwa.com Blake Mittelstaedt, Account Executive Phone: blakem@fsbwa.com Leilani Mendoza, Sales Support Specialist Phone: leilani.mendoza@fsbwa.com Consumer Lending & Underwriting: Phone: Fax: loanofficers@fsbwa.com Dayton Hughes, Underwriting Manager dayton.hughes@fsbwa.com We offer financing in Washington, Oregon, California, Colorado and Idaho. Hours of Operation: Monday-Friday 7:30am-5:00pm PST Sales Team Program, Process, or Rate Questions Who should you contact? Consumer Lending & Underwriting Credit Application Submittal Call-In Training Web Portal Issues Login or Support Obtain Loan Documents Decision Questions Financed Amount Changes Stipulation or Funding Questions Advertising or Marketing Referrals 3

4 Program Description Welcome& Guidelines Program Description The 1st Security Bank finance program is available in five (5) states Washington, Oregon, Idaho, Colorado, and California. Our program offers credit installment loans secured by the goods installed. 1st Security Bank offers four (4) loan options standard, special reduced rate loans, deferred loans, and no interest-equal payment loans. The standard loan option has no fees giving you the highest job profitability for the prime credit customer. Our three(3) other options have fees and are designed to cater to the interest rate conscious customer, cash customer or the tough sale. Refer to the Finance Program Rate Sheet for specific rates and fees for each product. Borrower Guidelines Borrower must own the home/property on which the home improvement goods will be installed. We verify homeownership at the time of approval. Split financing is not allowed. 1st Security Bank should be the only finance source associated with any home improvement project. Eligible Properties 1-4 unit owner occupied residential homes, condo/townhouse, or manufactured homes are eligible. 1 unit residential dwellings owned as second homes not rentals. Rentals are not permitted. Manufactured homes that meet the following: Borrower must own both the land and manufactured home taxed as real property. Homecannotbelocatedinapark. Loan amount does not exceed $15,000 Eligible Products Windows, doors, siding, roofing, HVAC, kitchen & bathroom remodels, pellet/wood stoves, fireplaces, water heaters, furnaces, heat pumps, decks, fences, pavers, pools, spas, patio covers, solar photovoltaic, concrete, geo-thermal, re-piping, sewer lines, and Tex Cote 4

5 Program Description Welcome& Guidelines Credit Guidelines Minimumcreditscoreis640FICOscoreforanyloan. Specialreducedrateloanshaveaminimum720 FICO score. Debt-to-income ratio guideline is 45% including loan payment. Exceptions made at Underwriter s discretion. Gross personal monthly income amounts for each borrower is required. Household income is not acceptable. In some instances, we will require proof of income(poi). Social Security income including Supplemental Security income, VA Disability, and Military Pension may be grossed-up. Gross-Up Requirements: Standard gross-up on non-taxable income is 15%. Income will be considered grossed-up when presented unless proven otherwise. Major derogatory items and/or bankruptcy(within last 4 years) will result in an automatic decline. Other derogatory items will get a detailed review. Loan Criteria Guidelines Minimum loan amount is $2,500 Maximum loan amount is $50,000. Exceptions can be made for loans over $50,000 for qualified borrowers. Maximum loan term is 144 months(12 years). Minimum monthly payment is $50 5

6 Credit Welcome Applications Borrower information must be submitted on a 1st Security Bank credit application form. Completing a Credit Application The credit application has 5 sections that should be completed. Incomplete credit applications can delay a loan decision. 1. DealerName,loanamount&term,purposeofloan(whatareyouinstalling) a. You will need to specify what type of loan standard, special, deferred, or no interest-equal pay aswell. 2. Iamapplyingfor or Weareapplyingfor mustbeinitialedforindividualcreditorjointcredit 3. Property Information monthly mortgage payment, how many years in home 4. Applicant information address, contact info, social security#, birth date, valid picture ID#, ID type& expiration date, employment info, income& additional income(if applicable) 5. Joint Applicant information(if a joint application) address, contact info, social security#, birth date, valid picture ID #, ID type & expiration date, employment info, income & additional income (if applicable) The credit application must be signed by the borrower(s). Submitting the Credit Application There are four(4) options to submit a credit application for a decision. 1. DealerPro: Online Web Portal 2. Call-In: Fax: loanofficers@fsbwa.com 6

7 Credit Applications Welcome - Online DealerPro: Online Web Portal (Preferred Method) To submit an application online, login to your portal at: > Login(green button with padlock icon) > DealerPro(middle icon at bottom of page). Use the assigned username and password sent to you by your Account Executive. Onceloggedin,clickon ApproOnlineforDealers inthemenuontheleft-handsideandthen StartNew Application. Complete the fields using the information from the credit application and click continue. If the loan is given an automatic decision, you will see the loan decision, terms, and any stipulations(when applicable). Aloan thatisn t given an auto decision will belooked at by anunderwriter. Youwill receiveanotification onceadecisionismade. Utilizing our preferred method gives you a quicker response time with an immediate decision. 7

8 Credit Application Welcome Call-In, Fax or Call-In Credit Applications Our call-in program is available to salespeople when in the borrower s home. Calling in an application can give you a credit decision prior to leaving the borrower s home which can increase closing sales. A salesperson should have a completed application before calling to ensure we are efficient with your time. An Underwriter will need the information from the completed application along with what type of loan the borrower would like, the amount to be financed, term, and collateral(product you will be installing). In most instances, an Underwriter can share the loan decision and any stipulations with the salesperson at thetimeofcall-in. A notificationwillbesenttoyourfinanceofficewhenthedecisionismade. Tips: You must have a completed and signed credit application before submitting the application over the phone. When declined, we will give an explanation to a salesperson over the phone. Should a borrower have extenuating circumstances in regards to their credit, please call Consumer Lending to discuss them. More information is always good. All income must be listed as individual income not household income. Faxing Credit Applications Fax your credit application to Please ensure the application is complete and includes your dealer name, the amount to be financed, term, and product you are installing. ing Credit Applications your credit application to loanofficers@fsbwa.com as another option for loan decisioning. As with all of the other options and to not delay a decision, ensure the application is complete and includes your dealer name, the amount to be financed, term, and product you are installing. We recommend sending credit applications via secure portal. 8

9 Underwriting & Welcome Decision Notifications Once an application has been submitted, our Underwriters will review the application based on our program guidelines, loan criteria, and borrower credit. Loan decisions are communicated via and/or fax dependent on what optionyouchoose. You can also callus or loginto theweb portal for updates on submitted applications. Approval The approval notification will specify the following: Borrower s Name(s) Credit Grade Amount Financed Loan Term, Interest Rate, Loan Type Application Date Stipulations(If Applicable) Review these details thoroughly. Stipulations must be satisfied in order for the loan to fund. Approvals are good for 120 days from the application date. Expired approvals will need to be submitted for re-approval. Decline The decline notification will specify the following: Borrower s Name(s) Credit Grade Reasons for Decline Comments Review these details thoroughly. Underwriter may request additional information to reverse the decision. Declines should be communicated to your customer based on the reason for decline as specified on the notification. 1st Security Bank will send an Adverse Action Notice within 30 days of decline. General Notification A general notification is sent when action needs to be taken in order to move forward in the funding process. These notifications can ask for stipulations, invoices/purchase orders, initials or signatures, etc. General notifications should be handled with urgency to avoid additional delays. Funding Notification A funding notification is sent to you when a loan funds. The notification will specify the amount being deposited into your account less any fees UCC filing fees and/or dealer fees. 9

10 Stipulation Welcome Guide On certain occasions, an Underwriter may request additional information for a Borrower such as proof of homeownership, proof of income, or certification of trust. The following guide lists the acceptable forms of proof in order to satisfy stipulations. Proof of Homeownership Our Underwriters will attempt to verify homeownership before asking you for proof. The following documents are acceptable: County Records from the County Website Recorded Mortgage or Deed of Trust Proof of Trust WerequireacopyoftheTrustdocumentsandtheloandocumentstobesignedas Trustee inordertofund the loan. The following documentation is what we need from the trust to satisfy the stipulation: FrontpageoftheTrustshowingtheTrustName,dateofcreation,andalltheTrustees Section showing that the Trustee(s) has the authority to encumber the property. This must be stated clearly. Page showing Trustee(s) signatures and Notary acknowledgement Any addendums showing change of Trustee(s) if applicable Proof of Income Proof of income is required for loan amounts over $20,000 or at an Underwriter s discretion. The following are acceptable forms: Hourly or Salary Employees: a paystub dated within 45 days of the approval Self-Employed Borrowers: Two years worth of tax returns Retirement Income Pension: a tax return, bank statement or award letter showing the source and monthly amount. Documents must specify Borrower(s) name clearly. Military Pension or VA Disability: VA statement or military pension award letter IRA or Annuity: a statement showing the entire balance and the monthly withdrawal amount Social Security: an award letter for each Borrower(s) Child Support: court documentation or statement specifying the monthly amount for each child Rental Income: a rental agreement or tax returns along with the Schedule E showing profits and losses. We use 75% of the rental amount as supplemental income. 10

11 Stipulation Welcome Guide Therearethree(3)waystoclearstipulations. BesuretoincludetheAppIDandBorrower slastname. Fax them to: them to: DealerPro: Online Web Portal(Preferred Method) Upload directly to the app using the Upload Document feature in the portal. Acceptable file typesincludepdfandjpg. Whenutilizingtheuploadfeature,addanoteinthe SectionNotes to notify us that a stipulation was uploaded to the application. 11

12 Loan Welcome Documents Once you receive an approval notification, you can print loan documents from the web portal. The documents are pre-filled for you, all you need are original signatures from the Borrowers. We suggest having the loan documents signed as soon as possible to establish the customer s obligation to your contract. When printing loan docs, be sure to verify the Borrower(s) information, loan amount, term and interest rate to avoidissuesatloansigningorfunding. Anydiscrepanciescanleadtoadelayinfunding. 1stSecurityBank does not complete pre-funding audits. Edit Loan Information You have the ability to change the financed amount as follows without additional approval: Increase $1,500 Decrease $5,000 Reduceinterestrateupto3%(maxratereductionis3%) Any changes outside of these parameters including changing the term, loan type, borrower information or number of borrowers must be submitted for re-approval. Tips: Ensure the description of collateral (goods being installed) is specified on the loan agreement. Examples: 12 Windows SpaModel# HVAC or Furnace/Heat Pump/Air Conditioner Siding Roofing Deck Fence Pavers Patio Cover Interest rates cannot be reduced more than 3%; Rate reduction is not available on deferred options. Maximum loan term is 144 months(12 years) Minimum monthly payment is $50.00 Finance charge listed in Truth-in-Lending is based on Borrower making minimum payment for full length of loan. Completed loan documents solidifies the loan as being a direct loan between us and the Borrower once it funds. 12

13 UCC Welcome Fixture Filing At times, our loans may be secured by a UCC Fixture Filing. A recorded UCC secures our interest in the personal property attached to the Borrower s real property. A UCC protects 1st Security in the event a Borrower becomes delinquent on their loan or files bankruptcy. WerequireaUCConanyloan>$5,000,deferredloanoratanUnderwriter sdiscretion. TheUCCFilingFee isinadditiontotheamounttobefinancedandincludedintheloan. Ifyoudonotwanttoincludethefeein the loan, we will take the fee out of your loan proceeds at funding. The fee is determined by the county where the property is located. Subordinations are available at an Underwriter s discretion. 13

14 Funding Welcome Loans Funding is prompted when we receive a loan package from you along with a completed and signed Completion Certificate. The following documents are required in order for us to fund your loan: Loan Agreement(2 pages): Page 1 signed by Borrower(s) and page 2 initialed by Borrower(s) Credit Application: initialed by Borrower(s) at top of page, ID type, ID#s& expiration dates, and signed by Borrower(s) Purchase Order/Work Order/Invoice: Must specify description of work; balance must match loan agreement(include any addendums when applicable) Completion Certificate: Signed by a Borrower(Borrower must be on loan) and Dealer. All sections must be complete. Approval Stipulations: Proof of Income, Proof of Homeownership, or Trust(necessary if stipulations were not satisfied prior to completion) (Optional) Auto Pay Form: Signed by the Borrower(s) along with a voided check. Submittheloanpackageoneofthreeways: Fax them to: them to: loanofficers@fsbwa.com UploadthemdirectlytotheAppIDinthewebportal& addnote toalerttheunderwriters A Loan Processor will complete a thorough review of the loan package. Any discrepancies, missing information, initials or signatures will delay funding. If the review is satisfactory documents are accurate and stipulations satisfied, you will receive a funding notification. Proceeds will reflect dealer fees and/or UCC filing fees when applicable. Funds will be dispersed via ACH(direct deposit) into your account within hours of you receiving the notification. Post Funding Welcome Letter After a loan has funded, the Borrower(s) will receive a welcome letter from us via mail. This letter states their account number, monthly payment, and when their first payment is due. It also includes important contact information for the Borrower(s). 14