closed end lending vs. open end lending (including reg z changes)
TRANSCRIPT
Closed End LendingVs.
Open End Lending
(Including Reg Z Changes)
Closed End vs. Open End LendingVyStar Credit Union
Who is VyStar?• Established April 1952• Total Assets over $4.8 Billion• Over 427,000 Members• 37 Branches*
– 30 Full Service Branches* - will be opening another Full Service Branch later this year– 2 Drive Thru Branches– 5 High School Branches
• Over 1100 Employees
Closed End vs. Open End LendingVyStar Credit Union
Who am I?• That’s a good question….• Lending Operations Analyst for 10 years
– Previous experience in the Call Center and Branches– SME with the MISER conversion– Strength in our Loan Origination System, APPRO (aka CRIF Solutions)
• Been with VyStar for over 20 years• Primarily responsible for understanding the business operations and how to work
with IT staff to accomplish system changes for efficiency and required changes.
Closed End vs. Open End LendingVyStar Credit Union
Originating, Underwriting & Disbursing Snapshot• Origination accomplished in all front office areas & Internet Banking• Centralized Underwriting since Feb. 2005
– 19 Underwriters• 17 Branch/Call Center• 2 Indirect
• Centralized Disbursing since May 2005– 15 Disbursers
• 14 Branch/Call Center• 1 Indirect
• 5 Quality Assurance Lending Analysts
Closed End vs. Open End LendingVyStar Credit Union
What’s happening today AND why…• Regulation Z changes in 2010 prompted some changes
– Separated New Requests from Advance Requests
• August 2012 – our national regulators, NCUA, provided an update concerning underwriting & the regulation
• Now…Converting from Open End Lending to Closed End Lending– July 1, 2013 Implementation Date – it’s not a target date, it’s a MUST!– Will have some OE products
• SV/CD Secured Loans• Line of Credit Products• Credit Cards
Closed End vs. Open End LendingVyStar Credit Union
What’s involved with the effort?• Documentation changes• Product Set up• Member Interview & Interactions• The “TIL” – totally new to our direct lending staff• Servicing – not so much; few changes• Florida Doc Stamps
Closed End vs. Open End LendingVyStar Credit Union
Still being offered to the member• Ancillary Products
– GAP– Extended Warranty– CUNA Payment Protection– Collateral Protection Insurance (when they don’t show proof)
No longer available• Add-ons to existing loans
Closed End vs. Open End LendingVyStar Credit Union
Best Practices…
You tell me… because it’s not July 1st Yet!“Serenity Now!”
I.D.K.
Closed End vs. Open End LendingVyStar Credit Union
Contact Information
Lisa Fulghum904.908.2820
Closed End vs. Open End LendingVyStar Credit Union
THANK YOU
Presenter NameContact information