📘 Policy Says What?!
This percentage is GCU’s standard maximum DTI before the Net Discretionary Income Calculator comes into play.
What is 46%?
These three parts make up Notes 1-2-3.
What are Motivation, Credit + Member Context, and Your Recommendation?
At 41%, this is the largest factor in VantageScore 4.0.
What is payment history?
You cannot approve the loan as requested, but you can offer different terms. This is called a...
What is a counteroffer?
At this point in the delinquency timeline, ATM and debit cards automatically freeze.
What is 18 days past due?
A member has no credit score. For pricing purposes, their file falls into this paper tier.
What is E Paper?
“Needs $10,000. Score is 650. Recommend approval.”
This file-documentation artist has given underwriting the outline, but almost none of the story.
Who is the Black & White?
A member pays a collection in full. The collection may remain on the report, but VantageScore 4.0 does this with it.
What is disregards it when calculating the score?
A member's loan request is denied. The Adverse Action notice must be completed and sent within this many days of the application.
What is 30 days?
A member is denied because a high DTI and maxed-out credit cards show they're simply not ready yet. After delivering the decision, your best next step is this.
What is make a warm Financial Coaching referral?
A member has a 745 score and two established tradelines, but only 18 months of credit history. The Loan Officer wants to waive the VOE.
What is “The VOE cannot be waived”
Underwriting asks why balances increased. You call the member. Then underwriting asks about purpose. You call again. Then another question comes back.
Congratulations. You have created this masterpiece.
What is Ping Pong?
The member's application lists all the debts appearing on the credit report. Their pay stub reveals a 401(k) loan, and your interview uncovers Klarna payments.
Your move?
What is include the additional debts in the ratios?
The original request is denied, but you offer a lower amount. The member accepts the counteroffer within 90 days and signs the Note and TIL disclosure.
Is a formal Adverse Action required?
What is no?
A member calls because their loan payment unexpectedly increased. Before assuming their rate changed, you should check the account comments for this.
What is CPI?
A loan has a 49% DTI. The Net Discretionary Income Calculator produces a positive result. What happens next?
What is “The loan may continue through underwriting”?
A member says they want $15,000 to consolidate credit cards. You know the amount, purpose, income, and score. Name two areas a Picasso should still explore before painting the final picture.
What are things such as the reason the debt accumulated, how long it has existed, credit trends, member/GCU history, motivation, existing resources, or other opportunities?
Two applicants both score 680.
Applicant A has rising utilization and high balances.
Applicant B has older derogatory history but appears to be rebuilding.
Who is automatically the better credit risk?
Who is neither based on score alone?
You deny the original request and have a counteroffer available, but repeated attempts to reach the member are unsuccessful.
What should the Adverse Action show?
What are both the denial of the original request AND the counteroffer made?
A member tells you they filed for bankruptcy yesterday. Their GCU loan is completely current, so there has been no collection activity.
What should you do with the bankruptcy information?
What is the route to the VP of Collections, and do not act independently on the account?
Mom signs an auto loan so her adult son can qualify. She gets no benefit from the vehicle. Her income cannot simply be added to his DTI just because she signed. Why?
What is “She is a guarantor/co-signer, not a co-applicant”?
A member’s credit is trending downward. Revolving balances are climbing, and they’re applying for another unsecured loan. DTI still fits policy.
A Black & White asks,“Can I approve it?”
What does a Picasso need to understand first?
What is “Why is the debt increasing, and does the member have the capacity to take on more”?
A 695 applicant shows:
Despite the respectable score, these clues point in this direction.
What is trending downward?
A Loan Officer discourages a prospective applicant from applying because of a prohibited-basis characteristic.
This violates which regulation?
What is Regulation B - ECOA?
A member is six months into a loan you originated. They haven't missed a payment, but a new financial hardship is making the next payment difficult.
The best time to bring in Financial Coaching is...
What is now, before the situation escalates?