Loan Product Configuration (General Loan Information)

Description

Enter a description for this loan product. This description is used throughout CU*BASE wherever loan products are listed (Rate Inquiry, Loan Quoter, and Loan Request processing). It is not used for online banking (the next screen lets you define a description just for your online banking rate board).

• NOTE: If you wish to change the code number used for this product, return to the previous screen and use the Reassign option.

Enter the loan category code that is used to control the servicing parameters for this loan product. The category “takes over” once the loan request has been approved and the loan account created. Click the lookup button to see a list of your credit union's configured codes.

• For example, if this product represents your credit union's used car loan product, it may be associated with a general installment or consumer loan category. You may have many different loan products all tied to the same loan category.

CU*TIP: If you use the lookup button to select a category, the screen will automatically display the low and high rate from that category code as reference on this screen. Any rate variations entered on this or the next configuration screen will be verified to make sure the calculated rates fall within this range.

Enter the corporation number for this loan product.

Simplify and speed things up for your loan officers with workflow styles.

Use this field to indicate which loan app workflow style to use with this loan product.  This feature is configured on this screen and allows you to control the loan application screens presented to the loan officer.  Learn more about Loan Application Workflow Styles.

Use the lookup to select from available styles.

• Learn more in the Configuring Tools for Loan Teams booklet.

Enter the base rate for this loan product. All other rates will be calculated as a variant off this rate.

You could enter this as the lowest possible rate used by this product, then enter all your variants as + (plus). Or you could enter the highest possible rate as your base then enter all variants as - (minus). Or, most commonly, you could enter the most “typical” quoted rate as the base and then enter variants in either direction as appropriate.

• NOTE FOR CREDIT CARDS: The actual rate to be used is based on the finance charge rates from the charge type configuration.

This field is used only by the Loan Request processing system (accessed by Tool #2). Use it to define the default amount that should be entered into the Loan Request screen and used to calculate modified APR.

• The use of this field will depend on your credit union's policies and the way you calculate and disclose fees and their affect on loan rates. Confer with your designated compliance officer or appropriate consultant for advice.

Use this to enter a default Employee ID to be assigned as collections officer when new loans are created. (You can change the setting at the time the loan is created, if you wish.) Click the lookup button to choose from a list of IDs.

Place a checkmark in one or more of these fields to control where this product will be available for sale to your members. This lets you design products that are specifically for online banking, or just for the lobby, or used only by a third-party channel such as Prime Alliance or Dealertrack.

Loan processing- Check this if you want this product code to appear in the normal Loan Request processing system. This makes the product available in your lobby.

Loan quoter - Check this if you want this product code to appear on the Loan Quoter product list. This allows anyone on your staff to quote rates and payments for this type of loan.

External loan delivery channels - Check this if you want this product code to be available via an external channel such as Prime Alliance, Dealertrack or a credit union or SEG website. (This does not affect online banking - use the Display sequence field on the next configuration screen to control products on the online banking rate board.)

NOTE: Loan Quoter is currently available for credit card loan products.

If this checkbox is checked, the Miscellaneous Coverage screen will follow, allowing you to configure Miscellaneous Coverages on this loan product, such as gap insurance.

Check this to require that an Dealer/Indirect ID will be required on the loan request screen.

Check this to automatically run a series of evaluations based on specific “loan deal” settings, including minimum LTV, vehicle age and mileage, and monthly income.  These filters are run whenever you access the Summary page of the Loan Application.

Learn more about deal filters

IMPORTANT:  If activating this on an existing product, when you are done configuring general information and other related settings, be sure to select Loan deal filters from the configuration options window to set up your deal filter parameters.  Otherwise no evaluations will be done!  (If you are adding a brand-new product, the filters configuration screen will appear automatically as part of the configuration workflow.)  

Use the lookup to attach a CLR Path template.

Learn more about CLR Path Advisor

Overview: CLR Path Advisor

CLR Path booklet

Configuration screen for CLR Path template

Am I limited to one CLR Path score per day?

Amortization/External Loan Delivery Channel Defaults

This section controls both the amortization defaults for new loan requests as well as loans through an external delivery channel such as Prime Alliance, Dealertrack, or an external Retailer Direct website. (Online banking settings are on the next screen.) Defaults make it easier and faster for loan officers to complete loan requests, and help promote consistency among all your loan accounts.

Remember that these settings can still be adjusted on a case-by-case basis for an individual loan request, if appropriate. These simply set a default so that a loan officer does not need to complete all fields manually when setting up a new loan.

Use these fields to enter a variant (+ or -, then an amount xx.xxx%). This is used when calculating the interest rate that will be used for this product when creating a new loan request in Loan Application processing.

To see what the calculated rate will be, click the Recalc button next to the Rate field.

To use the base rate as the interest rate for new loan requests, leave these fields blank (i.e., a variant of 0.000). (If you enter a + or -, a variant amount is required.)

• For Credit Cards: Enter 0.000 as the rate. (Actual rates are controlled by the configuration for each charge type.) Risk Based Pricing is not valid for credit card products.

Check this flag to enable risk-based pricing features for this loan. The Variant and Rate fields will be cleared automatically. When you use Enter to proceed after completing all other fields on this screen, the first risk-based pricing configuration screen will appear automatically.

• For Credit Cards: Risk-based pricing is not valid for credit card products.

Use this to enter a default payment frequency code. Click the lookup button to choose from a list of your credit union's configured codes.

• For Credit Cards: Always set this default to M (Monthly) for credit card loan products.

Use this to enter a default purpose code. Click the lookup button to choose from a list of your credit union's configured codes.

Use this to calculate the initial payment for credit card and optionally for line of credit loans (Process Type V and L). If a value is entered in this filed, the payment amount is calculated using this % times the amount requested.

• Other process types will not use this field and you will receive an error is you try to use it for them.

• For credit card loan products, you must enter the percentage in this field in order for CU*BASE to calculate a maximum payment amount when working a credit card loan application in CU*BASE. You will want this amount to match the ‘Pay ##.### % of the balance’ field in the loan category configuration.

• For line of credit (LOC) loan products, it is optional to use this field to calculate the LOC loan payment using the percentage you entered when working an application in CU*BASE. Otherwise, the payment is presented when working the loan application in CU*BASE. At that time, the payment is calculated using the frequency, number of payments, and interest rate.

• This percent will also appear in this 1Click configuration screen and on the Loan Request screen.

IMPORTANT: If a % is entered here, the system will still be required to run the loan through the normal amortization steps in order to establish the payment and related data points to populate the loan record. This means that the maturity and review date will NOT be set according to your “# of payments” setting in the loan product configuration. Instead, the system will record what the maturity date had to be in order for your desired payment amount to be calculated, which may be further into the future than you expect. (If the loan had insurance/debt protection, that maturity date may be even further out.) For credit cards this is generally not a concern unless your CU has the “Use review date for disbursements” flag activated in the loan category. For LOCs, however, you may need to adjust the maturity and review dates on these loans manually, if you want them to reflect your standard “term.”

Use this to enter a default delinquency fine code. Click the lookup button to choose from a list of your credit union's configured codes.

Use this to enter a default term. If this is used, it is recommended that a default Frequency also be set to match this term. (For example, if a number of months is entered here, than a Frequency of M for Monthly should also be set.)

• For Credit Cards: Enter the number of months to control the Review date that appears on the loan account record. This date is simply for information only and is required in order to process the loan request. It has no affect on the credit card renewal process, which is currently handled by your vendor.

Use this to enter a default security code. Click the lookup button to choose from a list of your credit union's configured codes.

Use this to enter a default collateral type code. Click the lookup button to choose from a list of your credit union's configured codes.

This not only instructs CU*BASE to automatically display the collateral screen immediately after the initial loan request screen is filled in, but also chooses the collateral type automatically to save the user time.

• NOTE: This does not require that a user enter a collateral item; it simply displays the collateral entry screen automatically, functioning more as a reminder to record collateral details.

• For Credit Cards: Leave this field blank so that collateral is not required on new credit card loan requests.

If this loan category is designed to be used primarily as a variable rate product, use this to define the variable rate code that should be used for all new loan requests. Click the lookup button to choose from a list of your credit union's configured codes.

• For Credit Cards: Credit card loans will use group type variable rate codes only. Codes are 3 digits and drive the rate change according to a scheduled date.

Use this to define a default Equal Credit Opportunity Act (ECOA) code to be used for all new loan requests. Click the lookup button to choose from a list of your credit union's configured codes.

Loan Quoter Defaults

This section controls how the CU*BASE Loan Quoter will behave for this product. This is particularly important to make speed up the quote process so that anyone can quickly quote loan payments for members. To use these settings in Loan Quoter, you must use F2-Edit.

These settings are different from amortization defaults because they let you define a range of rates as well as a range of terms. For example, to quote your used auto product, you can set up three common terms and three rates to be calculated and quoted automatically. Along with all possible combinations of loan insurance. (Debt protection cannot be quoted using Loan Quoter. Loan Quoter can show up to 81 different payments at the same time.

• NOTE on Credit Cards: Loan Quoter is currently not available for credit card loan products.

Check this checkbox if you want CU*BASE in Loan Quoter where you can enter your information to use for the calculation. Using this data, Loan Quoter will then quote multiple payments for different combinations of terms, rates, and insurance options. If this is checked, all remaining fields in this section must be filled in to provide the Quoter with all the default necessary for the quote calculations. Checking this box will cause the original screen showing 81 payments to be circumvented and instead you will view the Edit screen first.

If this flag is left unchecked, instead of proceeding directly to the payment quote screen in Loan Quoter, the user will first be required to enter all loan parameters manually on the Loan Quoter edit screen, similar to creating a new loan request.

If Loan type is set to balloon, check this flag to indicate that the balloon payment should be considered as the final payment on the loan.

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

Choose one of the following:

Balloon Loan (B) - Use this when setting up a balloon loan product code.

Lease Loan (L) - Use this when setting up a lease loan product code.

General Loan (G) - Use this for all other loan products.

Use this to define the initial rate to be quoted for this product. Enter a variant (+ or -, then an amount xx.xxx%). The calculated rate is used only by Loan Quoter.

To see what the calculated rate will be, click the Recalc button next to the Rate field.

To use the base rate as the interest rate for Loan Quoter, leave these fields blank (i.e., a variant of 0.000). (If you enter a + or -, a variant amount is required.)

In addition to the initial rate, Loan Quoter can calculate payments for two other rates for each term. Enter a variance amount to be added (+) and subtracted (-) from the Loan Quoter initial rate. (This is the rate immediately to the left of these fields; not the base rate from the top of the screen.)

For example, say you typically quote your auto loans at a rate of 6%. You could set the Quoter to quote 5%, 6%, and 7% by entering a variance plus and minus of 1%.

•  These fields are optional; leave them blank to quote only a single rate.

Enter up to three combinations of terms and payment frequency codes (click the lookup button to see a list of frequency codes). For example, for an auto loan product you could quote typical terms of 36 months, 48 months, and 60 months.

• You can mix and match frequencies (for example, quote monthly payments, quarterly payments, and annual payments), but remember that the payments are listed side by side on the loan quote screen and showing different frequencies together may be confusing for the user.

If the Loan type is set to Balloon, use this to define up to three terms to be used for amortizing the loan. These are used in order to calculate the payment amount.

Description

Use this to recalculate all rates on this screen by adding or subtracting the variant amounts from the Product code base rate at the top of the screen.

Great for auditors, this screen shows a historical listing of all the rate changes on the selected loan product. View a listing of the new rate, the effective date, the old rate and the ID of the employee who made the rate change.