Lending 2 Test

Question 1

How often are military personnel paid?

Answer 1

Bi-Monthly: mid month and end of the month

Question 2

What needs to be on letters from employers?

Answer 2

Letterhead, current date, hours per week, wage, position, length of employment

Question 3

How is child support verified?

Answer 3

Letter from dept of recovery services, or copies of canceled checks if not DD

Question 4

Variable Pay Jobs

Answer 4

salesman, auto dealer floor manager, real estate agent, waitress, nurse, landscaper, MCLO, fireman, construction worker

Question 5

What constitutes risk for the credit union?

Answer 5

Amount and Term

Question 6

Auto Loan for Minors

Answer 6

Max: $7500 Term: 60 w/qualified co-maker

Question 7

Terms:

Answer 7

Auto: 84 mos, RV below 20K: 84 mos, RV over 20K: 144 mos

Question 8

What does UCC stand for?

Answer 8

Uniform Commercial Code

Question 9

Max personal loan

Answer 9

15K w/o waiver

Question 10

What amount can we lend on Electric Vehicles?

Answer 10

75% LTV

Question 11

What LTV will we lend on a “0” FICO?

Answer 11

90%

Question 12

What percent of FICO is determined by payment history?

Answer 12

35%

Question 13

What percent of FICO is determined by amounts owed?

Answer 13

30%

Question 14

what does NOT affect FICO?

Answer 14

Income, where you live, length of residence, length of employment, race, color, religion, blah blah blah

Question 15

not included in disposable income?

Answer 15

Housing Payment

Question 16

what type of bankruptcy is called personal liquidation?

Answer 16

Chapter 7

Question 17

What type of debt is not discharged in a bankruptcy?

Answer 17

Tax Liens, Student Loans, Child Support, Judgements

Question 18

What type of Bankruptcy is known as personal reorganization?

Answer 18

Chapter 13

Question 19

How long does chapter 7 bankruptcy stay on a credit report?

Answer 19

10 years

Question 20

How often can you file a chapter 7 bankruptcy?

Answer 20

Once every 8 years

Question 21

how long does a chapter 13 bankruptcy stay on the credit report?

Answer 21

7 years

Question 22

Indicators of Bankruptcy

Answer 22

escalation of debt, excessive unsecured debt, maxed out revolving trades

Question 23

UDR=

Answer 23

unsecured balances / Gross Annual Income

Question 24

When do we exercise caution on UDR?

Answer 24

20%

Question 25

Bankruptcy Waivers are required

Answer 25

up to 24 months since bankruptcy, or between 6-10 years after filing

Question 26

When can an application be marked Canceled?

Answer 26

Credit decision has been made; member rescinds or discontinues app

Question 27

When is an app marked Denied?

Answer 27

Denied with proper signing authority or credit is approved pending voi, resolve fraud, etc. or counter offer is not excepted by member

Question 28

Where do you find guidelines for loan waivers and authority?

Answer 28

Consumer Loan Procedures

Question 29

What is considered unusual collateral?

Answer 29

house boats, electric vehicles, farm equipment, trucks over 1 ton, trucks w/stake, dump, or flatbed

Question 30

Why does AFCU limit use on unusual collateral?

Answer 30

Higher Risk, hard to resell

Question 31

What is 900 note # used for?

Answer 31

combining AFCU debt w/ no new money

Question 32

What happens if lien is not perfected and member files bankruptcy?

Answer 32

We become an unsecured creditor?

Question 33

What factors may indicate FICO is going down?

Answer 33

FICO

Question 34

How long do unpaid/paid tax liens stay on credit report?

Answer 34

Paid: 7 years Unpaid: 15 years

Question 35

what should we look for on pay-stubs?

Answer 35

date, name, ss#

Question 36

Types of acceptable income verification

Answer 36

DD, pay-stubs, tax return, rental agreement, child support/alimony, letter from employer,

Question 37

When are denial letters sent?

Answer 37

7th day after denial

Question 38

What is needed for Member Processing?

Answer 38

Title App, Bill of Sale, Odometer Statement, Dealer Stamp, Title, title processing information, registration, insurance agreement

Question 39

What is needed for Clear Title Processing?

Answer 39

title, registration, dealer stamp, title application, insurance agreement, title fee

Question 40

Where is the "view previous apps" tab found?

Answer 40

Underwriting Screen