Loan Modification - Extending Term to Add Product 

Loan Modification – Extending Term to Add Product

Max 6 Months

Payment Cannot Decrease

New Loan Application Required – No Credit Pull

Loan Officer 

• Submit a New Loan Application in Meridian Link with comments that member is Requesting to add GAP/Warranty to their loan and want to extend the term to keep their payment about the same
  • Use the payment calculator to make sure the term you are selecting does not cause the payment to decrease
  • Funding Page:
    • Approved Amount: 3 Day Payoff Balance
    • Include DP if included on current loan
    • Loan Fee: $0.00
    • Due Date: Enter due date on current loan
    • GAP/Warranty: Quote and Issue GAP/Warranty & Retrieve Documents
• If member wants to move forward, send Application to Processing Queue with the following comments for Loan Ops:
  • Sub Action Docs to add GAP/Warranty:
    • Signing Method –
    • New Payment Amount –
    • New Term –

• Discuss new loan payment/term with member

Loan Ops 

• Send Subsequent Action Form & GAP/Warranty Contract in Meridian Link showing new payment & term and notate what the modification is for

• Once form is signed, perform maintenance in Keystone:
  • Open Relationship Tree and click on the loan to open the Update tab
  • Click Project
  • Under Main Options:
    • Change the Method to Maturity Date
    • Change the Balance to the Approved Amount in Meridian Link + GAP/Warranty Price
    • Change the Payment Amount to Payment in Meridian Link
  • Under Additional Interest Options:
    • Clear out the Interest Unpaid and Interest Calculations Date Fields
   
  • Click Project New
  • Click Modify Loan - make sure the only change is the payment amount & payment count scheduled (should increase by the # of months we are adding to the term) by comparing the “Loan Before Modification” and “Loan After Modification”
  • Click Post Modification

• Insert the Loan Collateral Record in the Relationship Tree
  • Right Click the Loan Collateral > Insert > Insert Loan Collateral Insurance > Insert New

• Advance funds from the loan to cover the amount of the warranty/GAP
  • Credit GL – 809410.0000.0000 – Auto Warranty
  • Credit GL – 809500.0000.0000 – Gap Supplemental Auto Insurance
    • Comment: Member # and Branch #