1Click Unfunded Loan Offers
This project creates another new type of 1Click Offer that will allow CUs to present pre-approved loans to members via online and mobile banking. The main difference between these and our existing 1Click offers would be in how the funding and loan creation works. Instead of automatically opening a loan account and making the funds available for immediate withdrawal, the offer would give the member documentation that would show they had been pre-approved for a particular loan, pending confirmation of the purchase and exact dollar amount.
For example, a member could be pre-approved for an auto loan up to a maximum of $50,000. Included would be a list of CU approved dealers from which the member can choose. If the member accepts the offer, one or more custom forms would be presented for e-signature, with the selected dealer’s name and appropriate instructions. The member would present the form to the dealership, enabling them to negotiate the purchase.
Meanwhile, an app will be sitting in the CU*BASE LOS queue as a pending 1Click offer, set up with the maximum approved amount as configured by the CU. Once the CU receives the completed paperwork from the dealer, the CU employee edits the app to match the exact dollar amount being financed, and the CU proceeds to book the loan and send funds to the dealer as usual.
- CU will still be responsible for creating the list of approved memberships using whatever criteria they wish, just like other 1Click Offers.
- CU will configure a batch of offers to be presented to members via a member message (banner ad) in online banking.
- Config will mirror existing Tool #1340 and include:
- Loan product code (likely a special auto loan product created just for these offers)
- Disbursement limit/loan amount
- Optional processing fee/GL/trans description
- Underwriter code (this will be a unique code defined for these unfunded offers)
- List of approved dealer IDs from the CU’s configured list of indirect dealers (dealer details will be pulled from that database to print on the form/s)
- Up to 4 custom forms, which can include instructions as well as legal language related to the member promising to provide proof of lien within a specified period after loan closing
- The CU is responsible for adjusting the loan app to match the final amount financed, as well as making any other adjustments needed should the member not follow through with the appropriate lien verification, etc.
- Offers that are accepted but where no vehicle is purchased will remain in the loan queue until deleted by the employee (or purged through the normal process).
- While this is primarily intended for auto- and other collateral-secured loan offers, the structure will allow for any product type to be used (other than mortgages), secured or not. (Perfect for secured loans, but also for CUs who want to present LOC and credit card offers via online banking but want to have a final approval before the loan is actually booked and funds released.)
- In this phase there will be no tie-in to the CU*BASE indirect/dealer tracking system other than providing the list of dealers who can be selected and included on the offer paperwork that the member signs when accepting the offer.
- In this phase there will be no mechanism to ask the member additional questions during the offer presentation (i.e., income verification, etc.) and feed that data back into the app record in CU*BASE. However, the custom forms could include those types of questions if desired.
Status as of May 2023: Project #60647 is awaiting availability of programmer resources.