Making Money & Maximizing Opportunities in the Loan Application USING THE CU*BASE LOAN ORIGINATION SYSTEM TO PROCESS LOAN APPLICATIONS CU*BASE LENDING TOOLS WEBINAR SERIES #3 OF 8
Today s Agenda 2 Intro to the Lending Queue (more on this next week, too) The Loan File: Know the Power at your Fingertips Streamlining the Loan Request Tips for Filling out the App Booking the Loan The 5 Best Features You Aren t Using #1: The OL Action Code #2: Copying Collateral #3: URL to Pull Collateral Value #4: Estimating Rates #5: Alternate Calcs for Ratios
How to Learn More 3 To learn more about any of the controls available for your loan categories, use the help button on any of these screens
Starting a Loan Request 4
The Lending Queue Your starting point for new loan requests 5 Access the tool: 1. Lending Functions menu (MNLOAN) 2. Work/View Application Status 3. New Application NOTE: In next week s class we ll spend more time on other features available on this screen! If you d like tips on moving things more quickly through your loan queue, contact Lender*VP and let us help!
The Online Loan File Know the power at your fingertips 6 Let s look at a couple of these tools
Action Code CH Get some quick insights while you work the deal 7
Action Code OL What loan obligations does this borrower have? 8 Best Features You Aren t Using #1: The OL Action Code Even includes a summary analysis See the member s entire relationship, including co-borrower commitments
Action Code OL What loan obligations does this borrower have? 9 Best Features You Aren t Using #1: The OL Action Code (Here s another way to see that credit scores graph)
Starting a Loan Request Are you putting your best products forward? 10 Remember last week when we talked about reassigning product codes to change the order of this list?
Pulling a Credit Report Ask Lender*VP about new tools you should consider 11 Recently added: Tri-merge and Soft pull with full details If you run a decision model, don t forget these for your filters!
Loan Request Recording the terms of the deal 12 This box shows the results of your credit report pull and decision
Loan Request What do you auto-fill by loan product? 13 Anything highlighted here can be autofilled from your loon product config
Are you ready for more consistency in your lending factory? 14 Coming in the 16.05 release! Even more control of loan product defaults We ll be adding more choices for default values, and allowing you to hide or show anything you see highlighted here
Loan Request Tips for setting up loan collateral 15 To create a NEW collateral item for this loan, enter a type and check the Edit collateral box BUT...suppose you wanted to use collateral that s already on another loan?
Loan Request Tips for setting up loan collateral 16 Best Features You Aren t Using #2: Copying Collateral from Another Loan...then you d CLEAR the type but still check the Edit button, to proceed to the Collateral Selection screen
Collateral Selection Not just for updating collateral anymore 17...then use Copy From Loan to choose the other loan account TIP: Use this technique to copy collateral information from another loan for a refinance, a second mortgage on a house with a long property description, etc. even if the loan has already been paid off or closed Best Features You Aren t Using #2: Copying Collateral from Another Loan
Collateral Info In the development queue: Automated valuation for vehicles via NADA 18 Best Features You Aren t Using #3: Config a URL to Pull Collateral Value TIP: If the member is still shopping, don t forget to circle back to this later...otherwise your ratio calcs will treat this like an unsecured loan You can configure a URL now to jump out to a website to find a value
Choose a Payment 19 To see joint pricing like this, make sure to enter a co-borrower birthday (used temporarily for pricing only) Misc. coverages (like Gap, etc.) can be added now if configured in the loan product
Loan Request Recap 20 Here s where you start using your checklist Let s take a look at the override feature...
Overriding Loan Terms 21 If you adjust a term here, the system won t perform any more re-amortizations and will record these terms on the loan account when it s booked Great for indirect deals, thirdparty mortgage loans, etc. TIP: Items changed here will be marked with an asterisk (*) on the Loan Recap when you return
Completing the Loan App 22
Creating the Loan App 23 TIP: Use Clear App Data if you already started working the app but modified the debts data pulled from the credit report clearing the app will clear that without losing all of the other data from the household (employment, income, references, etc.) Has the app already been started? Do you want to start over?
Selecting Co-Signers 24 Associated Apps designed just for community property states
Credit Report Evaluation Don t spend $$ pulling reports if you don t have to! 25 If we find anything on file we ll show the date here so you can choose to use it or pull fresh
Loan Request and Applicant Information 26 Remember you can view and update your collateral right from here! Use this to update the ember info (updates MASTER)
Want fewer steps for your loan officers? Are you using Loan App Workflow Controls yet? 27 New with the 15.2 release last fall App Workflow Styles will let you control which app pages your lenders need to see This takes some team planning how will you group your loan products based on the workflow you want?
Employers/Income 28 Choose one of each type to print on standard forms (custom forms vary depending on the form) View, Edit, or Delete this item Add a new mployer or income source
Income Summary 29 Includes all income amounts entered via the previous screen Summarizes the member s current CU account balances (in whole dollars)
References 30 Coming in the 16.05 release! Unlimited References (will also eliminate the dreaded warning message for external apps!)
Assets 31 Use this if you want to calculate a member s net worth on the Summary screen
Debts 32 Anything that didn t come in from the credit report can be entered manually This box means include in ratios use the Add/Update buttons to change this The Secured box affects the ratio calcs use the Add/Update buttons to change this
Debts Are you actively looking for cross-sales opportunities? 33 Best Features You Aren t Using #4: Estimating Rates at Other FIs Try this tool to calculate the rate a member is already paying...can you offer a better deal?
Debts Are you actively looking for cross-sales opportunities? 34 Best Features You Aren t Using #4: Estimating Rates at Other FIs You ll need to fill in anything the system couldn t find on the credit report
Modifying Debt Details 35 If consolidation or refi loan, uncheck this to exclude it from the ratios Can uncheck this if you don t want to consider something like student loans as an unsecured item in the ratios
Credit Report Analysis 36 Drill down to trade line detail See the humanreadable report and the decision Top 4 reasons for the score Bankruptcy predictor (if you pulled one)
Viewing Credit Report Detail 37 Jump quickly to any part of the report (goes back to the previous summary analysis screen) View the decision (if you pulled one)
Viewing the Decision Ask Lender*VP about new tools you should consider 38 TIP: Also can access this screen directly from the Loan Queue What have you already sold to this member?
Misc. Details and Comments 39 UW comments will print on the loan officer worksheet Applicant/coapplicant comments print on the back of the app form (but if you don t want them, can uncheck that when you print) TIP: App/co-app comments are useful where you need a member signature as part of the overall app record: Disclaimers Special circumstances Additional non-verifiable income etc.
Financial Summary: The Ratios 40 Best Features You Aren t Using #5: Alternate Calcs for Loan Officer Ratios Use these to recalc the ratios on the fly Remember this from our first class? Do you use this feature? Should we remove it and use the space for something else?
Printing App Forms 41 Choose whether to print comments on the back of the app form Coming in the 16.05 release! Choose a default packet of forms based on loan product
Booking the Loan 42
Approving and Booking the Loan 43 If this says Control On can t book the loan without an appropriate UW Code
Loan Creation Don t ever re-use the same acct type within 12 months as this messes up credit bureau reporting! (We have no control over this, so be careful!) 44 This links the credit report to the loan (human-readable is stored for the life of the loan) File verification tools are great for auditor review
Loan Creation Other things you can auto-fill 45 Available now Coming with 16.05...
Next week... 46 Join us on March 1 for Class #4! Register: http://www.cuanswers.com/education/?cat=13
Other Opportunities to Learn Lending Web Conference Sessions Tuesdays from 2:00p 3:00p ET January 19 February 16 January 26 February 23 February 2 March 1 February 9 March 8 February 16 March 15 February 23 March 22 March 1 March 29 March 8 #1 of 8: Driving Income and Efficiencies from Your Loan Servicing Solutions #2 of 8: Building a Better Loan Factory #3 of 8: Making Money and Maximizing Opportunities in the Loan Application #4 of 8: Putting the Marketplace to Work to Deliver Thousands of Loan Leads to Your Team #5 of 8: Making Online Loan Leads a Successful Business Line #6 of 8: How Many Indirect Channels Do You Have Working For You Today? #7 of 8: Member Profitability and Driving Success Stories into Your Existing Portfolio #8 of 8: Making Automated Underwriting a Key Success Factor at Your Credit Union To register: http://www.cuanswers.com/education/?cat=13 47 Note the new dates!