2024 Core Exec Training.pptx

Credit Responsibilities

Credit Responsibilities

Credit Builders, Loan Underwriting, and Due Diligence

OAM Credit Builders

– Sponsored by the university partnership. Includes free $10 to cover minimum savings account balance

– All undergraduate AND graduate newly opened accounts are eligible!

– $25 Interest Fee – posted to 804.00 G/L (@finance!)

– $10 Minimum Savings Balance — posted to 803.00 G/L

Traditional Credit Builders

– Standard: $1000, $30 fee

– Preferred: $2000, $60 fee

– Plus: $3000, $90 fee

Loan Underwriting and Due Diligence

▪ Analyze credit reports, do due diligence on application by calling loan applicants to talk through their applications

▪ Required Docs: 2 Paystubs, 3 Bank Statements, and Rent Verification

Who is eligible for an OAM Credit Builder

Current Students (18+), who indicate they want a credit builder on their open account paperwork. If they don’t indicate it they can still get one if they request it later.

Secured Credit

Loan that is backed by collateral (assets that you own like house or car) that can be used as payment to the lender if you don’t pay back the loan. Includes auto loans, share secured loans (bank account is the collateral), credit builders (2 share is collateral). Less APR since less risk is involved.

Unsecured Loans

Loans are not backed by collateral so they have a higher APR. Include personal loans, graduation loans, internship loans, and 3L loans.

Risk Based Pricing

Interest rates depend on credit scores (higher is better), length of loans (lower is better), principal amount(lower is better), and if they’re secured.

Lending Guidlines

Maximum combined secured loan limit is 100,000. Maximum combined unsecured consumer loan limit is 28,000. Maximum combined aggregate loan limit per member is 120,000 with ALCO approval.

Internship, Graduation, and 3L Loans

Deferred loan products (max is 12 months); needs proof of offer letter that verifies future income; starting APR is 8.99%

Personal Loan

Used for large purchase; Starting APR is 8.99%

Auto Loans

Starting APR is 5.99% for new and 6.24% used; Used auto is more than 2 model years old but less than 8; New auto must have never been titled and less than 10,000.

Student Loans

Direct them to student choice (CUSO)

Underwriting Process

Application applies, First process (credit report pulled and initial look at applicant), Second Process (loan officer calls applicant with questions), and then Execs, CLO, and loan officers vote and give the application a decision. Paperwork is Drawn up if approved

Three loan decision timelines

Standard (5-7 Business Days) Free; Rush (1-3 days) $20; Overnight (1 day) $30.

Credit Vs Risk

Credit is anything before a loan is disbursed; Risk is anything after the loan is disbursed. Certificate of title is a shared responsibility between them.

Risk Shifts

Dallies, Returned ACH, Negs, and Loans

Enfact boundaries

If score is above 830 a case is created and if it is above 930 then transaction automatically denied.

Certificate of titles

Members have 60 days to send their title after auto loan disbursal and if they don’t then we have the right to increase their rate to the corresponding unsecured rate

Physical Branch Transactions

Cash, Checks, Money Orders, Cashier’s Checks

Electronic Funds Transfer

Point of Sale, Wires, Remote Deposits, ACH

Physical Transactions

Currency, Checks, Money Orders (not offering MO’s right now), and Cashier’s Checks

Change Fund G/L

739.00

Main Vault G/L

740.00

Money Orders

Not offered right now, hard limit of 1000, less secure than cashier’s check, and include less identifying characteristics

Cashier’s Checls

Prepaid checked with certified value, no limit on value, processed by ops exec except when it is for a closed account, less identifying characteristics, and requires a 24 hr request to be processed

Checkbook vs. Convenience Checks

1001 vs. 0001

Clearing Checks

Share draft processing through Vizo; Checks written from GUASFCU accounts are sent to us daily by the FED (these are checks deposited by non-members at other Financial Institutions).; Transaction codes are SR, initials S/D

Returned Deposit Items

Checks returned to us by the FED, typically 2-3 days after the deposit, high risk for fraud, and no fee.

POS Transactions

Debit Cards, Cash Advances, and Client Central

Characteristics of our Cards

1500 daily limit on card swipes with 510 limit for ATM withdrawals; Only automatically approved for the US (for international transactions get tranblocker), Expires after 3 years

Wire Ins

Processed by ops execs, derived by External Financial Institution; processed 2 to 3 times daily, and used in place of a quick transfer when the person sending the money is not the primary owner of the external account (or international transfers)

Wire Ins

Processed by Finance Specialists (international is by finance controllers); Derived by our members; Processed once a day; used in place of quick transfer when person sending money is not the primary owner of the account or if they exceed the $1000 daily limit.

Remote Deposit Checks

Deposits through the Guasfcu app, stored in external site called RDC Select Check Review, File created each business day at 6:03 PM and then posted to a member’s account right after; Manual approval for being checks (checks over the 1000 dollar auto approval limit, illegible amount, or duplicate deposit item).

ACH

(Automated Clearing House) Network of over 10,000 FIs that agree to transact with each other; Governed by NACHA; ODFI vs RDFI. Ex. Direct Deposit, Bills, FinTech Transactions, Tax Payments, Venmo, and Quick Transfer

POS vs ACH

POS transfers through your debit card and is instant but with fees; ACH is through Fed network and uses your bank account and routing number (is free but takes 2-3 days)

ACH Processing

M-F twice a day (3 files during ACH and 3 files during Same Day (Quick Transfer is processed with Same Day)). Every transaction is printed to 92 which posts it to AMS image viewer.

Member Statement Processing

Monthly Statements (just a print out of their draft history in each share) are run by COO and are required to be stored for 5 years. Annual 1099 forms are only given if a member makes over $10 in interest on their savings over a single year (our savings rate is .1% so they must have a consistent balance of 10,000 in savings). Mailed to members but we have a zip file too.

Bank Secrecy Act

Meant to prevent money laundering and other financial crimes from occurring. Must keep record of all monetary instrument purchases, wires, and closed accounts for a minimum of 5 years.

Transaction Monitoring

Conducted biweekly and monthly; 2 separate reports that show cumulative cash transactions over 3000 for a month and cumulative transactions over 10,000. SARs are filed and correct measures are pursued in the event of these.

Office of Foreign Asset Control - OFAC

List of entities who cannot transact in the US ▪ All new members, all wires, all IAT, transactions over $1,000, all checks over $10,000, and non-member transactions ▪ A ‘hit’ must be investigated by the BSA Officer

Currency Transaction Reports - CTRs

For aggregate cash deposits over $10,000 ▪ Must be filed with FinCEN within 15 days of the transaction ▪ Records must be kept for 5 years ▪ Necessary Information – Account Information – Profession of Member – Scan of Govt ID if possible

Financial Crimes Enforcement Network - FinCEN

List of individuals being investigated by the Federal Government ▪ Biweekly checks of our member base against the FinCEN 314(a) list ▪ Now enrolled in FinCEN 314(b), which allows us to share member information with other FIs to note money laundering and potential terrorist activities

Suspicious Activity Reports - SARs

Submitted to FinCEN with no deadline ▪ These are strictly confidential and members cannot be informed of our filing of them ▪ Records must be kept for 5 years ▪ Safe Harbor Regulations allow us to submit without fear of penalty ▪ Any transaction that is a cause for suspicion can be filed – Structuring to avoid a CTR – Refusal of identifying info – Repeated bounced checks

Finance Jobs

Daily (Close + Treasury for Specialists and Fed Recs for CFO)

Monthly (Billing - Billing Specialist; Bank Reconciliation - CFO/Controllers; EOM close - Controllers)

Quarterly (Formal Financial Performance Report - CFO; Variance Report - CFO; 5300 Call Report for NCUA - CFO)

Annually (Budget - CFO; EOY + Clear and Close - Incoming and Outgoing CFO)

Other (Financial Statement Audits - CFO)

Finance Close

Saving Menus, Journal Entries, System Backup, Post all transactions from the day to the general ledger, and setting up cusa for the next day

Treasury

Outgoing domestic wires (verify info, ofac search, save and creat documentation, transact on CUS and send funds through the FED); Closing Accounts; Intern Reimbursements; One-Time Fee Reversals.

G/L Overview

100s - Revenues

200s and 300s - Expenses

700s - Assets

800s - Liabilities (Rare)

900s - Equity

Transfer Account

G/L Account 700; Funds must go in and out (nothing should be left here)

Categories and Number of Account/Recs

Operating Accounts (11 - Vizo accounts and Corporate Cards); Suspense accounts (6 - SD and ACH Settlement); Treasury/CD’s (3 - Principal accounts and Interest Accruals/Receivables)

Where is GUASFCU’s Money

Physical Cash - In branch - 119,437

Other Bank Accounts - Federal Reserve - 1756183 + Vizo - 260412

Loans - 7612454 - (Lendkey, Loanstreet, and Student Choice)

Investments - 5547433

Our Bank Accounts

FED - Primary Financial Institution; Routing Number is our account number with the fed; Used for ACH, Wires, LendKey and Student Choice, and some CD payments

Vizo - PCC (Perpetual Contributed Capital); PSA (Premium Share Account); OSL (Overnight Loan Settlement); ATM Settlement (Inflows: Overdraft from PSA/Settlement, Outflows: POS transactions from members); Settlement (Inflows: Principal and interest from investments, RDC and physical checks (daily deposit), Outflows: Sharedraft (members writing checks)) Charge Cards (Inflows: LoanStreet principal and interest payments, Outflows: Vendor payments)

Excel Macro Fix

Search Internet Options, add file://10.206

Transfer Account (G/L Account 700)

A suspense account where CUSA transactions flow through, ensuring a net zero effect on the account.

Transfer Account

An account that is used to correct unbalanced transactions in the financial records, typically managed by Controllers to rectify mistakes.