Loan Origination Systems (LOS) Projects: Engines for the Future

Chefs for this project:  Pete Winninger and Geoff Johnson


In 2016 CU*Answers committed to the idea that we would accept a lending opportunity from any outlet in the credit union industry.  Since then we have built both a ready-to-look system (using our native LOS) and a ready-to-book solution (partnering with third party origination systems).  We continued that commitment in 2018 as we completed our first third party LOS integration engine that credit union employees will use directly via Sync1 and MeridianLink.

CU*BASE Native LOS Solutions

Native is the launchpad for everything lending.  The CU*BASE LOS includes interactive and complex messaging designed for every eventuality.

New Process to Open CD-secured Loans via Online and Mobile Banking

The member is presented in It’s Me 247 with the allowed loan terms based upon the current amount and term of the CD.  The term cannot exceed the maturity date on the loan and the dollar amount cannot exceed the current balance of the CD.  Assuming those funds have not already been secured by another loan, the member is pre-approved up to a certain dollar amount and term.  When the loan is created, funds are disbursed automatically to the member’s choice of other savings accounts and a pledged share record is placed on the CD to secure the funds as collateral on the loan.  The credit union can charge a fee as desired.

This project will include a brand-new integrated e-signing experience so you can attach a new custom form to be generated and presented to the member as part of the setup process.  Once the member signs, the money is immediately transferred to the sub-account the member selects.

Status update as of March 2020:  Project #50926 is in testing and is targeted for the 20.11 release. Project #50748 for Imaging Solutions forms creation piece (e-signing) is also in testing.

1Click Credit Card Offers via Online and Mobile Banking

This project creates a new tool that allows CUs to offer pre-approved, guaranteed credit card accounts to members via It’s Me 247, where all the member needs to do is click to accept the offer in order for the account to be opened and funds to be available.  No application, no credit report pull, no underwriting, just make an offer to the member in online and mobile banking and the member clicks to open the account. Your CU defines a list of eligible accounts and uses it to populate a list of offers that members can accept with a click the next time they log in.  We’re starting with credit cards but will eventually expand to other loan types as well. This project does not include any e-signing component.

Status update as of March 2020:  Project #50603 will be implemented with the 20.07 release.  

Loan Modifications via Online and Mobile Banking

Members will be able to use a simple tool in online and mobile banking to request a modification to an existing loan to either lower their monthly payment or to pay off the loan more quickly.  Rates remain the same; only the term is changed.  Parameters are defined by loan category, including minimum/maximum term allowed, payment change minimums and maximums, as well as the fee to be charged.  CUs can either review all requests and manually approve them via the Loan Queue, or define parameters for auto-approval of requests, with CU-defined exclusions such as delinquency, over-limit, credit score, etc.  This project does not include any e-signing component, although this likely will be added in a future phase.

Status update as of March 2020:  Project #44093 will be implemented with the 20.07 release.

CLR Path Non-Credit Bureau Decision Model

Develop a new in-house decision model (CLR Path is pronounced “clear” and stands for Consumer Lending on Reputation”) that takes a look at the status of an individual member to determine a loan approval decision.  See the separate Kitchen page for details and current status.

Sync1 Credit Report Interface

Develop a new credit report interface in partnership with Sync1 that is compatible with all three bureaus similar to the interface recently created for Experian per PS#41622.  The project includes a new API on the Integrations platform that will allow CU*BASE to launch directly to the Sync1 website when requesting a credit report.

Status as of March 2020: Project #50416 for Sync1 credit pulls will be implemented in the 20.07 release.  Project #51821 for Sync1 automated decisions is in development and currently targeted for the 20.11 release.

Debit and Credit Card Payments via Online and Mobile Banking

Develop a new tool for It’s Me 247 online and mobile banking that pulls funds from a debit or credit card account and posts them as a deposit/payment to a member’s account.  There will be the ability to charge a fee.  We will be working with Magic-Wrighter to develop this interface. This is a 2019 DHD Boot Camp Project championed by Kelli Hall at TBA Credit Union.

Status as of March 2020: In the design phase, working with representatives from Magic-Wrighter.  

Collateral Valuation via Kelley Blue Book (KBB)

This project expands the automated collateral valuation feature introduced in the 16.10 release, so that a CU can elect to pull values either from NADA, as now, or from Kelley Blue Book instead.  Similar interface techniques will be used, to be determined by UCI developers.

Status: Project #45574 was implemented in the 19.10 release

VantageScore via Online Credit Bureau

This project allows for a VantageScore to be recognized and pulled from the online credit bureau through Zoot similar to how FICO scores are pulled today.  The CU agreement is with the respective bureau and they just buy the VantageScore from the bureau not directly from VantageScore.  The score is then available in the human readable file from Zoot.

Status as of March 2020: Project #49886 is in development and is being targeted for the 20.11 release

CU*BASE Integrations for Ready-to-Look (R2L) LOS Solutions

Loan applications come into CU*BASE from indirect lending vendors like DealerTrack, Route One, etc.  The applications are then reviewed and approved or denied by the credit union in the loan queue (along with other CU*BASE loans) just as an underwriter would do if the member applied in the office.

Status as of June 2019: 9 vendors, 95 R2L integrations

2019 plan: Continue to evolve solutions with our 9 vendors

Future plans: Drive aggressively to make sure CUs are multiplying their chances to harvest loan applications from anywhere

Strategies, tactics, and drivers: Extend your lending outlets; use the tools where your members are.  Step 1: One-way message to give an opportunity to the CU; Step 2: Engage CU*BASE for the close

CU*BASE Integrations for Ready-to-Book (R2B) LOS Solutions

Loan applications look identical to the R2L applications when they come into the CU*BASE loan queue but they have already been reviewed and approved in an outside LOS, i.e. Meridian Link, Sync1, etc.   The loan processor simply hits the “Create Loan” button to book the loan in CU*BASE.

Status as of June 2019: 2 vendors live as of June 1, 2019 – 3 credit union teams

2019 plan: Two new vendors scheduled to go live in 2019, launch network-wide in 2020

Future plans: Choice generates revenue for the CUSO; maximize the revenue and build a new foundation for investment

Strategies, tactics, and drivers: Specialty LOS and options for your staff’s toolkit.  Step 1: One-way message to get the info about the member; Step 2: One-way message to give an opportunity to the CU; Step 3: Engage CU*BASE to create the loan

March 31, 2020

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