Lending Terminology
An additional product offered by underwriting after reviewing an application
What is a cross sale?
Our standard minimum credit score for a vehicle loan request
What is 600?
Debt to Income is the way in which we measure this
What is Capacity?
The information the member input in the application does not match XP2 or the credit report information
What is a fraud alert?
Underwriting requested proof of income in order to approve a loan and the member was unable to provide it or stopped responding after the request was made.
What is a decline?
On a tradeline being paid off by proceeds from the loan the liabilities screen should be notated in this manner
What is a refinance?
After this type of an event, we typically like to see 2 new tradelines open and being paid as agreed
What is bankruptcy?
LTV is the way in which we measure this?
What is Collateral?
On a vehicle loan request, you would want to obtain an explanation from the member on this prior to submission to underwriting
What is a repossession?
Underwriting offered alternate terms which were not accepted by the borrower. After 7 days the application automatically moved to decline.
What is a counteroffer?
Often viewed as a compensating factor - this type of individual who is applying for the loan has a current relationship with us including a direct deposit.
What is a full service member?
With adequate discretionary income to support it the maximum ratio we can approve is 55%
What is Debt to Income?
We use credit history to demonstrate this
What is Character?
When noticing high DTI on the loan request an advisor should ask their member some additional questions regarding their payment on this type of tradeline
What is a student loan?
These two types of loans do not need to be sent to underwriting for review
What is an Instant Approved or Pre-Approved Loan?
This is ratio of unsecured debt outstanding compared to the borrower's annual income
What is an Unsecured Debt Ratio (USDR)?
We offer three different variations of this product and therefore the advisor must notate in the comments which product the member is requesting
What is a credit card?
A member with unstable or insufficient income for the amount requested will have difficulty proving this
What is Capacity?
On an unsecured loan request, you notice the member has no derogatory history but their credit score is being negatively impacted by this
What is revolving utilization?
BONUS QUESTION: You might offer the member this product instead to potentially help their situation
A qualified co-signer would be required for underwriting to consider approval
What is a decline?
This is a program we may use to qualify members to who would not otherwise qualify for an auto loan.
What is Lenders Protection?
These two additional items are typically required for borrowers with a credit score below 640
What is Proof of Income?
AND
What are References?
Without sufficient history of repayment on a similar type and size of loan a member lacks this
What is Character?
A advisor notices derogatory history on a member's credit report during a particular period in time and notates an isolated life event to provide underwriting with context to aid in an approval
What is documenting an extenuating circumstance?
OR
What is a letter of explanation?
Underwriting makes a decision you would like to appeal, and you request a second look
What is review?