Loan Modification - Removing a Borrower

Loan Modification – Removing a Borrower

New Loan Application Required – Pull Credit

This job aid is for when we are handling as a loan modification. This will sometimes be handled as a new loan if multiple changes occur. Underwriting will advise.

Loan Officer 

• Submit a New Loan Application in Meridian Link for the borrower who will remain on the loan to get the loan approved in their name only
  • Funding page:
    • Approved Amount: Bal + Interest Due (if Including Interest in loan)
    • Include DP if included on current loan
    • Loan Fee: Add if including in Loan
    • Due Date: Enter due date on current loan
• Discuss new loan terms with member
• Make sure Keystone has the correct email address for both original borrowers
• If member wants to move forward, send Application to Processing Queue with the following comments for Loan Ops:
  • Sub Action Docs:
    • Signing Method –
    • New Rate –
    • New Term –
    • New Payment –
    • How Loan Fee & Unpaid Interest will be paid –

Loan Ops 

• Create Sub Action Form and email to both original borrowers
• Once Sub Action Form is signed, remove borrower in Keystone
  • In Relationship Tree – Left Click on the existing Person Link listed under the loan
    • At the bottom of the Person Link record, click Delete
  • Go back to the Relationship Tree – Left Click on the Loan to Update the Loan Record
    • Find the Credit Reporting Section in the Loan Record
      • Credit Reporting ECOA Code: “1” Individual
      • Update