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Loan Modification - Adding & Removing Debt Protection

Instructions on how to Add or Remove Debt Protection from a Current Loan 

Loan Modification – Adding/Removing DP

No Application Needed

Adding Debt Protection

LOAN OFFICER:

  1. Provide member with a Payment Quote including Debt Protection
    • Calculate a 3-day payoff on the loan
    • Open Relationship Tree and click on the loan to open the Update tab
      • Locate the Insurance section in the loan record and select the desired protection à Click Update
    • Go back to the Relationship Tree and click on the loan to open the Update tab
    • Click Project
    • Under Main Options, change the loan balance to the 3-day payoff amount
    • Click Project New to calculate new payment amount
    • Go back to the loan record and remove the debt protection from the insurance section (until we receive the signed Consumer Member Agreement)
  2. Discuss New Payment with member
  3. Insert Keyinsight: Loan Modification – Adding/Removing Debt Protection
    • Be sure to verify all email addresses before inserting Keyinsight
    • Notate in the Keyinsight
      • Loan Number
      • Adding or Removing?
      • New Payment Amount
      • New Loan Balance (3-day Payoff)

LOAN OPS:

  1. Create New Consumer Member Agreement form showing protection that is being added and the new loan payment amount
  2. Email form to member
  3. Once form is signed, perform maintenance in Keystone:
    • Open Relationship Tree and click on the loan to open the Update tab
      1. Locate the Insurance section in the loan record and select the desired protection à Click Update
    • Go back to the Relationship Tree and click on the loan to open the Update tab
    • Click Project
    • Under Main Options, change the loan balance to the 3-day payoff amount
    • Click Project New to calculate new payment amount
    • Click Modify Loan – make sure the only change is the payment amount
    • Click Post Modification

 

Removing Debt Protection

LOAN OFFICER:
  1. Inform member that removing the debt protection does not lower the monthly payment on the loan, but they will ultimately get their loan paid off sooner
  2. Insert Keyinsight: Loan Modification – Adding/Removing Debt Protection
    • Be sure to verify all email addresses before inserting Keyinsight
    • Notate in the Keyinsight:
      • Loan Number
      • Adding or Removing?
LOAN OPS:
  1. Create New Consumer Member Agreement form showing No Protection
  2. Once form is signed, perform maintenance in Keystone:
    • Open Relationship Tree and click on the loan to open the Update tab
      1. Locate the Insurance section in the loan record and clear out the current protection - Click Update