Overview: Deposit Secured Loans

With CD Secured, Share Draft Secured or Share 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 banking, with no underwriting, no credit check, and no need for your underwriters even to get involved. Let's learn more about Deposit Secured loans "in a nutshell"

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What is a Deposit Secured Loan?

With Deposit 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. This is a great time to talk about CD Secured Loans with the member.

Or with Share Secured loans or Share Draft Secured Loans, the member has a higher balance on their savings or checking account, and they want a loan (lower than that balance) that they can pay off with monthly payments. This is a great time to talk to them about a Share or Share Draft Secured loan.

Are you interested in learning more? Check out the store for more information. https://store.cuanswers.com/product/diy-secured-loans/.

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. With a click, the loan account is automatically opened, and the funds are 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.

With Share or Share Draft Secured loans, the member needs to have a savings or checking account that falls within the parameters, and the member experience is nearly the same, only this time, the access is from the savings or checking account. A pledged share record is set up to secure the savings or checking account fund as collateral for the loan account.

Configuring a Certificate Secured Loan

For CD Secured loans, you get to decide which CD types in the configuration that can be used as security, and can even set up a processing fee that will be charged at the time the loan is opened.

With Share or Share Draft Secured loans, you get to decide which dividend types in the configuration can be used as security and also get to 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 and Share 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 Deposit 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.