Overview: CD Secured Loans

CD-secured loan offers, you can offer members low-risk loans base on the member's available CD balance directly to members via It’s Me 247 online and mobile banking, with no underwriting, no credit check, and no need for your underwriters even to get involved.  Let's learn more about CD Secured loans "in a nutshell"

Related Resources

What is a Certificate Secured Loan?

With CD-secured loan offers, you can now give members the same YES online that you would in person.  These are low-risk loans you can offer directly to members via It’s Me 247 online and mobile banking, with no underwriting, no credit check, and no need for your underwriters even to get involved.  

Let’s say one of your members calls you on the phone and she has a $10,000 regular CD with four years to go on the term.  She needs the money now but doesn’t want to close out the CD and pay the penalty.  How long would it take you to say YES to that CD-secured loan?  Would you make the member fill out a lengthy app, run a credit check, wait for an underwriter’s approval...or would you just say YES and open the account right then?

Are you interested in learning more? Check out the store for more information about this https://store.cuanswers.com/product/cd-secured-offers/.  

The Member Experience

With CD-secured loans, when the CD falls within certain credit union parameters, the member logs in to It’s Me 247, chooses an amount and payment plan, and with a click, the loan account is automatically opened and the funds automatically disbursed into the member’s savings or checking accounts. A pledged share record is set up to secure the CD funds as collateral on the loan account.

Configuring a Certificate Secured Loan

In the configuration, you get to decide which CD types can be used as security and can even set up a processing fee that will be charged at the time the loan is opened. At this time, only closed-end loans are available with this method. 

Getting Loan Forms Ready

You can request a custom form, for example your promissory note be presented to the member when they submit their request.  When the last signature is added, the new loan is then created. This new presentation requires that you reprogram your promissory note for online presentation in the OL (online) format.  Reach out to the Lender*VP forms to get started at lendervpforms@cuanswers.com.

Working the LOS Loan Queue in CU*BASE

CD Secured loans appear in the booked loan section of the CU*BASE LOS loan queue (Tool #2).  All your team needs to do is handle any follow-up paperwork you want for your records.

If the member failed to complete the CD Secured loan process, for example, does not sign the form, then the member’s request will appear in the Pending section of the loan queue for follow-up.

Frequently Asked Questions (FAQ) About CD Secured Loans

 

 

Link to ID: https://help.cubase.org/cubase/cubase.htm#Overview_CD_Secured_Loans.htm