Decisioning

Question 1

POA

Answer 1

Document that allows a person (principal) to assign another person (agent) to make financial decisions on their behalf

Question 2

Strong Compensating Factors

Answer 2

• Applicant is Path 1 or 2
• MACU has more than a 5 year relationship with MACU
• Applicant has paid off previous loans with MACU
• Applicant has paid well on MACU loans
• Applicant maintains high share balances
• Applicant has recently paid off collections
• low DTI
• Applicant has good job time
• low LTV on 1 to 2 year collateral
• Applicant has down Payment/ Low LTV
• Applicant has handled higher payment on same loan
• Applicant works for SEG

Question 3

Co-signer

Answer 3

Should only be added if the member is thin file

Question 4

Cash Down

Answer 4

One of the strongest factors for reducing risk. Borrowers who inject cash are less likely to default on loan.

Question 5

Current collections

Answer 5

Rather than deny, consider conditional approval with a condition to pay the collection

Question 6

Protected Status’s

Answer 6

Can never be a condition

“Need additional household income”

Question 7

Conditions

Answer 7

• Verify derogatory accounts are paid
• proof of insurance
• pay lenders directly
• need qualified co-signer (household income)
• max LTV %
• max DR %
• explain relationship between primary and co-signer
• cash down %

Question 8

Counter offers

Answer 8

Must be denied when it goes unfinished

Question 9

DTI

Answer 9

Debt to Income :

Expressed in percentage form, how much of your gross monthly income is spent on servicing liabilities such as loans, credit cards, mortgage payments, rent,etc.

Question 10

LTV for Path 6 No FICO

Answer 10

50% max

Question 11

Cash Out/Title Loan

Answer 11

DTI is high - max LTV 50%

Unsecured debt high - max LTV 50%

Question 12

Path 6 max DTI

Answer 12

20% DTI based on the amount of income

Question 13

Path 6 No FICO

Corporate 1 or 2

Answer 13

• Most cases we need a co-signer
• 50% cash down no co-signer
• Collateral should be less than $5,000 with less than 100,000 miles
• LTV 50% (up to 70% with strong compensating factors)

Question 14

Path 6 with FICO Score

Level 2

Answer 14

• 1st Auto.. same as No FICO Corporate 1 or 2
• 2nd auto 70% LTV 30% down
• compensating factors are collateral, job time, MACU relationship
• short job time (under 1 year), collateral is old or high miles, ask for cash down
• 2 or more years job time and good collateral, 80% LTV and 20% down

Question 15

How many years for a strong Path 6 credit history?

Answer 15

2-4 years

Question 16

Waive income on Path 3 Auto

Answer 16

-Loan is less than $30,000 and one of the following:

• MACU balances greater than $15,000
• 10% cash injection
• LTV less than 70%
• new payment is not greater than $100 of old

Question 17

Waive income Path 1 and 2 Auto

Answer 17

Loan is less than $50,000 and one of the following:

• MACU balances greater than $10k
• 5% cash injection
• LTV less than 75%
• new payment is not more than $100 of previous loan

Question 18

Waiving income on Path 1 and 2 RV

Answer 18

Loan is less than $75k and one of the following:

• 10% cash injection
• LTV less than 75%
• new payment less than $100 of old

Question 19

Waiving income on Business, Visa, Signature Path 1 and 2

Answer 19

Unsecured less than $10k and one of the following:

• MACU balance higher than $10k
• requested less than $5000

Question 20

Waiving income Path 3 Business, Visa, Signature

Answer 20

MACU Unsecured is less than $7.5k and one of the following:

• MACU balance $15k or more
• requested limit less than $5k

Question 21

Waiving Inspection

Answer 21

• Paths 1 to 3
• Paths 4 to 6 with compensating factors
• cannot waive if Purchase agreement is handwritten

Question 22

Big Picture

Answer 22

• are there reasons to approve?
• do you think the member will repay?
• What is in the best interest of the membership?
• should we counter offer?

Question 23

What is OFAC

Answer 23

Office of Foreign Asset Control

A division of the US Treasury that administers and enforces economic and trade sanctions based on countries, organizations, and individuals that sponsor or support terrorist activities or international drug trafficking

Question 24

When does OFAC apply

Answer 24

When Precise ID automatically determines an OFAC warning.

Submit an OFAC form on knowledge Center. Not available on the weekend.

Question 25

Unclaimed property

Answer 25

-annually MACU has to escheat to each states requirement
-cashiers checks 3 years old
-member account balance dormant for 3 years
-safe deposit box 5 years after the box expired
RG Unclaimed:

Death certificate
Affidavit for collecting personal property
Call accounting

Question 26

Escheated means

Answer 26

MACU has had to turn over money/ property to the state