Basics
When don't we pull credit for an in-house loan?
We always pull credit.
Name three types of unsecured loans.
Credit cards.
Personal Loans
Personal Lines of Credit.
Name three types of secured loans.
Car, boat, rv, home, heloc, toy, trailer, etc.
What are the main loan products for these programs?
Credit card and vehicle.
Why does the NCUA care about our loans/lending practices?
They need to ensure that we are lending without discrimination.
True or False: Member must have verifiable income in order to qualify for a loan?
True.
How long can a member draw off a PLOC?
Three years.
True or False: Members must pay title/registration/plate fees out of pocket every time.
False. We build those into the loan as often as we can.
What is the minimum time on job for the FTB vehicle program? What about for the credit card program?
One year for both.
Can you quote rates to a member wanting a second fixed mortgage?
Not unless you have your NMLS.
When should a loan be declined?
When we have a reason to doubt repayment.
What is the difference between secured and unsecured loans?
Collateral.
Share secured credit cards hold what percentage of the loan or limit?
110%
How often, in general, do underwriters make exceptions on the FTB program requirements?
Rarely.
What other departments specialize in handling loan products?
Retail Lending, Commerical, Mortgage, Lending Admin, Indirect,
What constitutes verifiable income, and what do we need to verify it with?
Any income they claim on their taxes.
Two years tax returns or proof of income such as paystubs or direct deposit.
What are the two main types of credit cards that we offer and what are 2-3 differences between them?
Platinum and Rewards.
Platinum is a fixed rate, usually higher and doesn't offer rewards.
Rewards is a variable rate, and offers 1 point for every dollar spent on "qualified purchases".
What is the rate add on for salvaged titles?
5%. LTV must be 50% or less and these require an MC Inspection with photos.
How do you determine the target credit limit for the FTB credit card?
10% of the AGI or less.
What does it mean for a loan to be amortized? Name a loan product that isn't amortized.
It means that there are no other amounts due at the end of the term. Balloon mortgage.
We believe that lending has been and still is a [blank] [blank]. While we will instruct our staff to use good judgement in decision making, they must be careful not to judge someone's character.
Judgement Business.
Why are unsecured loans given a higher rate?
They are higher in risk. Members could stop paying, or file bankruptcy and there is no collateral to collect to attempt to gain some of the funds back.
What is the minimum score to qualify for a vintage car?
660.
What is the general term and loan rate for the FTB vehicle loan?
60 months at 10.49%
What is a UCC and when do we need it?
A UCC allows Wauna to put a lien against collateral that isn't titled. Tractors, some trailers, etc.