⏰ Know Your Numbers
Under GCU Consumer Loan Policy, this is the standard maximum debt-to-income ratio before the Net Discretionary Income Calculator comes into play.
What is 46%?
The application usually tells you the purpose. A good interview uncovers this: the story behind why the member needs the loan now.
What is motivation?
Two applicants will both benefit from the loan. Their incomes may be combined for DTI, and their intent to apply together must be documented. They are these.
What are co-applicants/co-borrowers?
A credit report shows a different address than the application. Rather than ignoring it or immediately denying the loan, your next move is this.
What is verify the discrepancy / investigate further?
This federal law, implemented through Regulation B, is the foundation for GCU's adverse-action requirements.
What is the Equal Credit Opportunity Act, or ECOA?
Regulation B generally gives us this many days from application to notify an applicant of the credit decision.
What is 30 days?
Open, Probe, Clarify, Close. These four steps make up this interviewing technique.
What is the Interview Funnel?
A parent signs so an adult child can purchase a vehicle, but the parent receives no benefit from the loan proceeds. Under GCU policy, the parent is generally this.
What is a guarantor/co-signer?
An applicant's strong score is almost entirely supported by authorized-user accounts. That should prompt you to determine this.
What is what credit the applicant has established independently?
A loan officer cannot pull a credit report merely because the loan officer is curious. Under FCRA, the pull must have this.
What is a permissible purpose?
Under GCU Collections Policy, ATM and debit cards automatically freeze when a loan reaches this many days past due.
What is 18 days?
In Notes 1-2-3, these are the three pieces that help an underwriter see the full picture.
What are Why, What the File Shows, and Recommendation?
A member's DTI comes out at 48%. Instead of automatically denying, GCU policy directs the lender to complete this.
What is the Net Discretionary Income Calculator?
You see a medical collection on a credit report. "What happened medically?" is NOT the question. A compliant approach focuses on this instead.
What is the status of the collection/debt rather than the underlying medical condition?
GCU cannot complete a decision because an applicant has not supplied the necessary supporting information. On the adverse action form, this reason can generally be used.
What is Credit Application Incomplete?
Under VantageScore 4.0, hard inquiries of a like type made within this window are treated as a single inquiry for scoring purposes.
What is 14 days?
This "artist" submits incomplete information, causing the file to bounce from lender to underwriter to member and back again.
Who is The Ping Pong?
An application is more than 30 days old because the member has been searching for the right vehicle. Before funding, the lender should obtain this type of updated credit inquiry to ensure no new debt materially changed the file.
What is a soft credit inquiry?
A vehicle offered as collateral has a salvage title. Under GCU consumer loan policy, your answer is this.
What is not eligible / GCU does not lend on salvage titles?
A credit report contains a discrepancy in identifying information such as name, address, date of birth, or SSN. GCU uses this document to record that the applicant was properly identified.
What is a FACT Sheet?
Put these three collection milestones in order from earliest to latest: repossession begins with no member contact, foreclosure eligibility on a principal-dwelling mortgage, and charge-off.
What are 60 days, 120 days, and 180 days?
A member says, "I need $18,000 for a truck." Instead of immediately processing the request, the lender asks what the truck will be used for and discovers a growing landscaping business. This behavior demonstrates the biggest difference between an order taker and this type of lender.
What is a Trusted Advisor / Interviewer?
An applicant has a 720 score, perfect recent payment history, several newly opened accounts, increasing card balances, and high utilization. The best loan officer response is not "720 equals automatic approval." It is to do this.
What is look beyond the score, review the reason codes/trends, and ask additional questions?
A member files bankruptcy while collection activity is underway. Your first move is NOT to call and "just check in." It is this.
What is stop collection activity immediately and route the account to Collections?
A loan officer tells a member, "Honestly, with that score, I don't think you should even apply." Besides being terrible member service, GCU policy specifically prohibits staff from doing this.
What is discouraging an applicant from applying?