Action Code "LR" Creating/Editing a Loan Request

Screen ID: 

Screen Title: 

Panel Number:

images\kb_closed_shg.gif

PLNAP-01

Loan Request

5120


Click here to magnify

This screen will appear when the LR (Loan Request) action code is used on the initial Process Member Applications screen, or when "New Loan Request" (F10) is used on the Loan Request Maintenance screen.

Check out the video related to this topic: Editing a Loan Request (More videos below!)

Helpful Resources

Learn how to create a loan request.

I am a loan officer reviewing the application screens with a loan underwriter and the loan underwriter changes are not being saved. Why is this happening?

Pre-Membership Lending Overview

Screen Overview

Use this screen to begin the loan request process for both members and non-members. (All fields are described under “Field Descriptions” below.) If setting up a balloon or lease loan, be sure to choose the correct code from the Loan type drop-down list so that you will be able to see any additional fields you will need.

The system will automatically amortize the loan for you, using the data entered on this screen. There are two choices for this amortization process:

  1. Select a payment amount - Enter the total amount requested and the term, but leave the Payment field blank.

  2. Select a term amount - Enter the total amount requested and the desired payment amount, but leave the # of payments field blank.

If your Loan Product code was set up completely with all available amortization defaults, most of the data on this screen should already be filled in, and in many cases all you will need to do is type an amount and use Enter to proceed to the Loan Request Payment Selection screen where you will select whether to add insurance or debt protection or not.

Use Change Product (F10) to display a list of loan product codes and choose a different code for this loan request. The system will pull in all default settings from that loan product configuration, including risk-based pricing. CU*BASE will retain whatever you entered into the Amount requested field. NOTE: The original Product Code will still be used for filtering purposed on several dashboards.

Some Collateral Handling Tips

IMPORTANT NOTE: If you wish the value of the collateral to be included in the loan application financial summary, be sure to enter collateral now.

Using Default Loan Product Parameters

One of the advantages of the CU*BASE lending system is that it allows your credit union to configure each loan product with default parameters, including:

·     Interest rate or variable interest rate code

·     Security code

·     Risk-based pricing

·     ECOA code

·     Payment frequency

·     Delinquency code

·     Number of payments (term)

·     Collateral type

·     Purpose code

 

This makes it possible to set up default settings for up to 999 loan products. This can lead the loan officer through the interview, providing the majority of the loan information automatically.

While each individual loan can still be customized if necessary, setting up defaults in the loan product means your loan officers don't have to remember the settings your credit union policy dictates—the system will remember them for you. Not only does this save time and increase accuracy, it can also help make your loan portfolio more consistent and easier to manage.

Special Note regarding Online Credit Card Loan Products: For instructions on setting up loan accounts for your CU*BASE online credit card loan categories, refer to the Online Credit Card Processing User Guide.  (A PDF version of this booklet will open.)

Field Descriptions

Field Name

Description

Application #

A sequential number assigned to this loan request. This number is used to refer to this request throughout the loan request and application/underwriting process.

Account base

The member's account number and name (or the non-member's SSN and name).

Credit score
Paper grade

If a credit report was pulled for this member and the credit score and paper grade were recorded on the Open End Loan Contract screen, the score and grade will appear in these informational fields. If using risk-based pricing, the score will be used to automatically fill in the Interest rate field.

  • IMPORTANT: If your credit union uses risk-based pricing, be sure to activate the flag that prompts for a credit report to be pulled before this loan request screen is displayed. That will help ensure that the score used for pricing the loan will always be the most current score available. Click here for more information.

DBA Name

The DBA name for this membership, if any. (May also be used for a trust name or other purpose.)

Loan category

The loan category indicating the loan servicing parameters. This is determined by the Loan Product code that was selected to start this application.

  • Remember that the loan product code is used only to the point where the loan is approved and the account created, at which point the loan category takes over to control servicing parameters on the loan. This allows for maximum flexibility in configuring, changing, and removing loan product codes without affecting loan apps in process.

Loan product

The loan product code selected at the start of this application.

  • Remember that the loan product code is used only to the point where the loan is approved and the account created, at which point the loan category takes over to control servicing parameters on the loan. This allows for maximum flexibility in configuring, changing, and removing loan product codes without affecting loan apps in process.

Delivery channel

A code indicating where the loan application originated. Click for a list of common codes.

Loan type

Choose one of the following:

Balloon Loan (B) - use this when setting up a balloon loan. Four additional fields will appear on the screen under a heading “Info for Balloon Loans ONLY” (see below).

Lease Loan (L) - use this when setting up a lease loan. The Residual value field is required for these loan types.

General Loan (G) - use this for all other loans.

This field can be configured to be hidden or protected on the Loan Product Default screen.  To override the protection and make it input-capable, use the Unlock Fields (F11) button.

Approved to

If your credit union uses a Decision Model, and a credit report has been pulled for this member, this will show the pre-approved amount for this loan category from your credit union's configured Approval Matrix.

Interviewer

This field shows the employee ID and name of the person entering the initial loan request information. This field can be changed to another employee ID if desired, and can be used to record either the loan officer who conducted the interview with the member, or the employee who actually processed the loan paperwork on the system.

Account open reason code

Use the lookup to select an open account reason code from the listing.  This feature will assist your credit union with relationship management (how the member heard about your credit union) or to record the reason the member opened the loan (for example a special loan promotion). 

This field can be configured to be shown, hidden or protected on the Loan Product Default screen.  To override the protection and make it input-capable, use the Unlock Fields (F11) button.  A default account open reason code appear on this screen (by loan product) can also be configured on this screen.

Loan Information

These are the basic fields that must be completed to amortize the loan. If all available defaults have been specified in the Loan Product code, the only field in this area that will remain to be filled in is the loan amount requested.

Amount requested

Enter the total amount requested by the member.

  • If your credit union has set up Decision modeling with your credit bureau, you may see an “Approved to $xx,xxx” notation in the upper-right corner of the screen showing the maximum amount approved for this member.

For credit cards enter the credit limit for the credit card account.

# of payments

The total number of payments to be made on the loan. Common increments are shown, or you may enter any increment desired. This can be a term of up to 40 years.

  • NOTE: If using a term of over 30 years, do not use a payment frequency of weekly.

If you wish the system to calculate this for you, leave this field blank and be sure to complete the Payment field.

  • For balloon loans, this number must be lower than the Amortization term figure.

This field can be configured to be shown, protected on the Loan Product Default screen.  To override the protection and make it input-capable, use the Unlock Fields (F11) button.

Interest rate

Use this field to enter the interest rate to be charged on this loan, using three digits past the decimal point. A range of Low and High rates is provided as a reference. If a rate outside of this range is entered, the system will display an error message.

  • NOTE: If using the Var int code field to enter a variable interest rate code, leave this field blank to use the default rate assigned to that code.

If this loan product is configured for risk-based pricing, this field will be filled in automatically according to the member's credit score. (Risk-based pricing is set up as part of the Loan Product Code configuration.)

For credit cards, the rate must be zero.  If an interest rate appears on this screen, you must remove the rate to proceed.  Credit card rates come from the loan category configuration.

Frequency

Use this field to indicate the increment used for quoting loan rates. Click the lookup button images\magnifyingglasslookup_shg.gif to see a list of your credit union's configured frequency codes.

  • HINT: The setting in this field does not limit the number or size of payments that can be made by the member. For example, this field could be set to Monthly, but the member might choose to make payments each week through payroll deduction. The monthly payment quoted here would be divided when the payroll deduction process was set up.

  • To make it easier and less confusing for front-line personnel using the Inquiry screens, you may choose to make all loans using a Monthly frequency, and then make any adjustments to automated transfers or payroll deduction as desired by the member.

This field can be configured to be shown, hidden or protected on the Loan Product Default screen.  To override the protection and make it input-capable, use the Unlock Fields (F11) button.

Payment

The periodic payment amount. If you wish the system to calculate this for you, leave this field blank and be sure to complete the # of payments field.

Additional Loan Details

These fields are miscellaneous details used for amortization or to record additional information about the loan. In many cases, if the Loan Product code was set up completely, you will not usually need to alter any of these fields.

Refinanced amount

This field is only used when a new loan application will take the place of another closed-end loan already in place. This field is used to indicate the payoff amount of the other loan.

  • For example, say a member already has a closed-end loan at your credit union with a payoff of $3,000. They wish to increase that loan by $1,500, thus taking out a $4,500 loan. A new application is made using $4,500 as the Amount requested and $3,000 as the Refinanced amount.

  • Funds from the new $4,500 loan are used to pay off the existing loan. The net result of the entire process is that $1,500 new dollars are being loaned to the member.

The data compiled by this field becomes very important later when analyzing loan activity. Therefore, it is necessary that it be used properly.

Dealer/Indirect ID

If this loan should be linked to one of your credit union's configured Dealer/Indirect Lender IDs, enter the Dealer ID here. Click the lookup button images\magnifyingglasslookup_shg.gif to see a list of your credit union's configured codes. (A loan that came in through an external delivery channel such as Dealertrack may fill this code in for you automatically.)

When this loan is created, the system will automatically check the Link to dealer flag on the Loan Creation screen to allow you to complete the link in the Dealer/Indirect software.

SEE ALSO: Indirect Lending/Dealer Processing

Loan fees to include in modified APR

This optional field lets you record an amount that could then be printed on a custom form to indicate fees that are included in the Modified APR calculation. (CU*BASE will calculate modified APR using this amount and display it on the Loan Recap screen.)

  • This amount is in addition to any miscellaneous loan coverage added to the loan that should be included in the modified APR calculation.

This field can be configured to be shown, hidden or protected on the Loan Product Default screen.  To override the protection and make it input-capable, use the Unlock Fields (F11) button.

Variable int code

If this is a variable rate loan, enter a valid variable interest rate code. Clear the Interest rate field, and when Enter is pressed, the system will fill automatically fill in the appropriate rate from the code. Variable rates are supported for credit card loans; the Variable Interest code must be a Group Type code.

  • Click the lookup button images\magnifyingglasslookup_shg.gif to see a list of your credit union's configured codes.

This field can be configured to be shown, hidden or protected on the Loan Product Default screen.  To override the protection and make it input-capable, use the Unlock Fields (F11) button.

Purpose

Enter a code to indicate why the loan was taken. These are configured by your credit union. For example, a “Home Improvement” loan category may use several different purposes, such as “Remodeling” or “Addition.” Click the lookup button images\magnifyingglasslookup_shg.gif to see a list of your credit union's configured codes.

 

This field can be configured to be hidden or protected on the Loan Product Default screen.  To override the protection and make it input-capable, use the Unlock Fields (F11) button.

Security

Enter a security code to indicate what is being used to secure the loan. These are configured by your credit union. Click the lookup button images\magnifyingglasslookup_shg.gif to see a list of your credit union's configured codes.

 

This field can be configured to be shown, hidden or protected on the Loan Product Default screen.  To override the protection and make it input-capable, use the Unlock Fields (F11) button.

Delq fine

This code indicates the type of delinquency fine, if any, to be charged should this loan become delinquent. These are configured by your credit union. Click the lookup button images\magnifyingglasslookup_shg.gif to see a list of your credit union's configured codes.

 

This field can be configured to be shown, hidden or protected on the Loan Product Default screen.  To override the protection and make it input-capable, use the Unlock Fields (F11) button.

Maturity date

The date on which the final loan payment to pay off the loan will come due. If editing an existing loan request, it may be necessary to clear this field after making other changes in order for the system to re-amortize the loan with the new parameters.

 

This field can be configured to be shown, hidden or protected on the Loan Product Default screen.  To override the protection and make it input-capable, use the Unlock Fields (F11) button.

Review date

Enter the date on which this loan should be reassessed, and a decision made as to whether or not to renew the member's ability to continue borrowing.

For closed-end loans, this date will generally be the same as the Maturity date. However, for line-of-credit and open-end loans, this date should allow time for the loan to be reviewed prior to extending additional credit.

To prevent disbursements from the loan account after the review date has passed, the loan category can be configured to use the review date for disbursements.

 

This field can be configured to be shown, hidden or protected on the Loan Product Default screen.  To override the protection and make it input-capable, use the Unlock Fields (F11) button.  A default # of days (before maturity) can also be configured on this screen.

Co-borrower birthdate

If this loan will have a co-borrower, use this field to enter the co-borrower's birthdate, so that the system can automatically quote joint insurance or debt protection options on the next screen.

  • CU*TIP: If you forget to enter the birthdate here, this same field appears on the Loan Request Payment Selection screen so you can enter it then if needed.

This is used for the amortization calculations only and will not be retained on the loan application. Once you have added a co-borrower to the loan application, that birthdate will be used instead for premium posting or any future amortization calculations performed.

ECOA

Choose the appropriate Equal Credit Opportunity Act code for this loan. Click the lookup button images\magnifyingglasslookup_shg.gif to choose from a list of valid codes.

Dealer/Indirect ID

If this loan should be linked to one of your credit union's configured Dealer/Indirect Lender IDs, enter the Dealer ID here. Click the lookup button images\magnifyingglasslookup_shg.gif to see a list of your credit union's configured codes. (A loan that came in through an external delivery channel such as Dealertrack may fill this code in for you automatically.)

When this loan is created, the system will automatically check the Link to dealer flag on the Loan Creation screen to allow you to complete the link in the Dealer/Indirect software.

SEE ALSO: Indirect Lending/Dealer Processing

Add collateral type

If a new collateral item should be added to this loan, enter a collateral type code here (lick the lookup button images\magnifyingglasslookup_shg.gif to see a list of your credit union's configured codes). On a new loan request, the system will automatically create a new collateral record with this type. Otherwise, if the Edit collateral flag is checked, the system will ignore this and display a list of existing collateral items so they can be edited.

  • CU*TIP: If you want to copy the collateral from a different loan, leave the Create new collateral type field blank and check the Edit collateral flag. The Collateral Selection screen will appear and you can use Copy from Loan (F14) to pull data from a collateral record on a different loan account.

This field can be configured to be shown, hidden or protected on the Loan Product Default screen.  To override the protection and make it input-capable, use the Unlock Fields (F11) button.

Edit collateral

This flag is used to indicate whether or not you wish to proceed to the collateral screens and either add or modify collateral information tied to this loan.

If checked, either a new collateral item will be created using the code in the Create new collateral type field, or, if collateral already exists, the Collateral Selection screen will be displayed to allow you to update existing data.

  • IMPORTANT: If you want the value of the collateral to be included in the loan application financial summary, collateral must be entered at this time, rather than after the loan is created.

Info for Balloon Loans ONLY

The following four fields will appear only if Loan type is set to Balloon for a balloon loan.

  • IMPORTANT NOTE: For a balloon loan, the payment frequency must be set to Monthly.

Amortization term

Enter the number of payments to be used when calculating the amortization for this loan. This number must be higher than the Number of payments figure.

  • Example: A member has a balloon loan for a 48-month term, but will be making 24 payments. The Number of payments field would read “24” and the Amortization term field would read “48.”

Amort term date

This field shows the date that the final payment would be due if the loan were not paid off on the Maturity date. Because balloon loans are due on the Maturity date, this field is shown primarily as a reference as to how the amortization was calculated. The system will automatically compute this date using the term entered in the Amortization term field.

  • Example: A member has a balloon loan for a 48-month term, but will be making 24 payments. The Maturity date field shows the date the final payment is due, 24 months out. The Amort term date field shows the date at the end of the 48-month term used to calculate the amortization.

Final payment

The amount of the final balloon payment. This field is automatically calculated.

Schedule payment in final

This flag indicates that the balloon payment should be considered as the final payment on the loan. (This setting cannot be changed.)

In other words, if the member is making 24 payments, the amortization program assumes the balloon payment is being made on the 24th payment.

Info for Lease Loans ONLY

This section appears only if the Loan type flag is set to L for a lease loan.

Residual value

Use this field to enter the residual value of the leased item outlined in the contract.

When viewing Inquiry screens, this amount can be shown differently depending on whether the principal value of the lease includes the Residual Value or if the Residual Value has already been subtracted from the balance when the loan amount is entered.

This is accomplished by using the Lease residual in payoff flag in the Loan Category configuration. The setting for this loan category may determine what amount is entered as the Residual Value for this loan.

Miscellaneous Dates

Application date

The date on which the original loan request was created.

 

This field can be configured to be hidden or protected on the Loan Product Default screen.  To override the protection and make it input-capable, use the Unlock Fields (F11) button.

Disbursement date

Enter the date on which the funds would be disbursed to the member. The default for this field is the current date. This is used primarily for calculating amortization data.

 

This field can be configured to be shown, hidden or protected on the Loan Product Default screen.  To override the protection and make it input-capable, use the Unlock Fields (F11) button.  A default # of days can also be configured on this screen.

First payment date

The first date on which a payment will be made. This can be set to any date desired, but is usually no more than 45 days from the date of application. The main purpose of this field is to provide a starting point for the amortization schedule.

For credit cards, you can view the first payment date here, but take care not to change the date to anything other than your configured credit card payment schedule. The system will automatically set a 1st payment date according to the loan category configuration. For example, if credit card payments are normally due on the 25th, the first payment would be set to the 25th day of the month following the Disbursement date.

This field can be configured to be shown, hidden or protected on the Loan Product Default screen.  To override the protection and make it input-capable, use the Unlock Fields (F11) button.  A default minimum # of days can also be configured on this screen.

Payment day

For loans with a payment frequency of monthly, bi-monthly, quarterly, annually, or semi-annually, enter the day of the month on which payments will be due. If this field is left blank, the system will use the same day of the month as shown in the First payment date field. (However, if the First payment date was changed to a value different then the initial defaulted value, you must also update the Payment day field accordingly.)

For loans with a frequency other than those mentioned above, this field should be set to “00” or blank.

The purpose of this field is to allow you to specify which day of the month payments are due, should the member wish a specific day. In addition, you can specify that payments come due on the last day of the month, and the system will compensate for months which end on the 28th, 29th, 30th, or 31st.

  • For example, enter “31” and the system will calculate a due date on the 31st day of the month. For months with only 30 days, the payment will be due on the 30th, and so on.

This field can be configured to be shown, hidden or protected on the Loan Product Default screen.  To override the protection and make it input-capable, use the Unlock Fields (F11) button.  A default # of days can also be configured on this screen.

Buttons

Buttons

Description

Back arrow (F3)

Use this to return to the previous screen.

Skip (F8)

Use this to cancel all changes and return to the initial Process Member Applications screen.

Change Product (F10)

Use this to display a list of loan product codes and choose a different code for this loan request. The system will pull in all default settings from that loan product configuration, including risk-based pricing. CU*BASE will retain whatever you entered into the Amt. requested field.

  • NOTE: The original Product Code will still be used for filtering purposed on several dashboards.

Unlock (F11)

Use this to unlock protected areas of the screen so that they can be input capable.  This overrides protection that is configured on the Loan Product Default screen.

Delete (F16)

Use this to delete the entire loan request. There will be one confirmation message.

Additional Video Resources

Creating a Loan Request for a Non-Member

Loan Request with Collateral

Loan Request with Insurance

Simple Loan Request

Special Loan Request Features

View more lending videos.

Visit the Show Me the Steps video library to view more videos!

 

 

Link to ID: https://help.cubase.org/cubase/cubase.htm#PLNAP-01.htm