eWinLoan
As of October 1, 2002, Home Ownership Equity Protection Act (HOEPA) regulations (§ 226.32 of Regulation Z) determining which loans are "High Cost" have been expanded. A loan now falls into the "High Cost" category under HOEPA if either of the two following thresholds are exceeded:
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The Points and Fees Test - If the loan points and fees (including Single Premium Credit Insurance) paid in conjunction with the loan exceed the greater of $579 (as of Jan. 1, 2010) or 8% of the total loan amount, the loan is "High Cost".
Note that the fixed dollar amount changes on the 1st of January each year. Consult Supplement I - Official Staff Interpretations, Comment on § 226.32(a)(1)(ii) for the most current year's adjusted figure.
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The APR Test - If the APR on a first-lien closed-end home equity loan exceeds the yield of a Treasury security with comparable maturity by more than 8 percentage points (10 percentage points on Subordinate-lien), the loan is "High Cost".
Maintaining compliance for the "APR Test" requires that the Treasury security rates be updated in the WinLoan-32 oe eWinLoan setup files on a monthly basis. Current Treasury rates for various terms rates may be found here.
These two HOEPA tests are implemented and available in all three of our products: WinLoan-32, eWinLoan, and the SCEX. If your product does not currently implement the HOEPA tests and your organization wishes to, please contact our technical support team for further information.
If you have the WinLoan-32 and would like to configure the HOEPA tests yourself, then follow these steps:
- On the WinLoan-32 menu bar, click on Setup Files -> Loan Setup.
- Enter the password required to access the setup files.
- Once the Loan Setup screen is displayed, click on the Mortgage tab.
- Check the "Allow HOEPA Prompts" checkbox to enable all of the relevant HOEPA settings.
- Make sure that the value in the "Points and Fees Trigger" prompt is correct.
- Enter the Treasury rates for all terms.
- The "HOEPA Disclosure" setting dictates what the WinLoan-32 will do if a loan falls under the HOEPA regulation:
- Disallow - prevents the user from continuing with the loan and displays an error message detailing the tests/amounts that exceeded HOEPA thresholds. The user is then returned to the Loan Input Screen.
- Show Message - offers the user a choice of continuing with the loan as it is or returning to the input screen to modify the loan entry prompts. Should the user decide to continue on with the loan disclosure, a new HOEPA section will be visible on the Full Disclosure. The HOEPA Disclosure section will detail the tests/amounts that caused the loan to be flagged.
- Allow - completes the loan disclosure while displaying a message that either or both of the thresholds have been exceeded.
- Click on the "Save / Exit" button to commit your changes.
This credit insurance tutorial is provided with our WinLoan-32 and eWinLoan products. Although the tutorial specifically addresses insurance products, the same ideas apply to debt protection products as well. If desired, Sherman and Associates can customize this tutorial with the specific verbiage your organization requires. Please contact our sales team for further information.
Sherman and Associates provides the following documentation to help you are your sales force sell more payment protection products. We realize that the sale of credit insurance can be complex and requires additional time during the sales process to explain the features and benefits. That's why we've provided an online credit insurance tutorial with tips on how to effectively sell credit insurance. Based on our experience with credit insurance over many years and working with lending organizations of all sizes, we've compiled information that will help you and your sellers increase your sales of credit insurance.
The tutorial is included with our WinLoan-32 and eWinLoan products, and makes sales training a quick and effective process. Sellers don't have to attend special training sessions away from their offices - now they have their own training manual right at their desktop as a part of the software!
We also provide a section on how to overcome objections that may arise during the sales process. We list the most common objections and provide scripting on the most effective statements that can be used to overcome the objection. Your sellers won't fumble for the right words any longer.
Many of our customers use these online resources to increase their sales - it just may be what you need as well! Note that although these documents are specifically worded for insurance products, the information provided is equally applicable to debt protection products.
Why do companies choose to partner with Sherman? There are two fundamental answers to that question: the unsurpassed quality of our products and the excellence of our team’s service.
Our team of analysts, programmers, and technical support staff are known to provide the best service in the industry. For details, check out the services area of our site.
Sherman products are all built upon the foundation of the most powerful calculation engine for consumer/commercial lending on the market today. It contains virtually all loan types, ranging from equal payment loans to skipped and irregular payment schedules, multiple disbursement loans for the student loan market, mixtures of different loan structures within the same loan, all the interest accrual methods and fee structures, Truth in Lending elements, including actuarial and U.S. Rule APRs, and all credit insurance and debt protection methods.
Some SCEX Partner Advantages
Over the past few years, Sherman and the SCEX has become the preferred choice of the largest Loan Origination Software (LOS) providers in the industry. Here are five reasons why:
- Our LOS partners can promise their clients that their origination system will match the clients' document and servicing systems to the penny. The SCEX's extraordinary functionality, combined with its extensive setup files, provide this phenomenal capability.
- Partners choosing our setup option never worry about the time-consuming, detailed setup work with their clients and their clients’ insurance companies. We handle all of that for them.
- Our partners have our guarantee to match whatever credit insurance and/or debt protection methods are needed. If modifications are required, they are done at no charge.
- Partners receive free quarterly updates to the SCEX, incorporating both client-specific and general enhancements.
- Partners consistently report that our superb documentation makes the integration process flow easily and smoothly.
In addition to LOS providers relying on the SCEX for the calculation portion of their systems, individual banks developing their own platform systems often choose our calculation engines to cover their needs. By choosing Sherman they eliminate detailed and time consuming lending and compliance development work.
Some WinLoan Partner Advantages
Our desktop (WinLoan-32) and internet/intranet (eWinLoan) solutions are considered the finest of their breed. In the following, we'll refer to them collectively as “WinLoan”. Some of the key WinLoan advantages are:
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Because it is built upon the comprehensive foundation of our SCEX, WinLoan offers unmatched functionality in loan types, interest accrual methods, fee structures, and ancilliary programs such as Dealer Reserve calculations, refunds, IRA/CD calculations, and much more.
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WinLoan has been described as “Custom software at an off-the shelf price.” Only those prompts that apply to a particular lender appear. Even the names given to entries such as fees and insurances are customized to the user's particular wording for those items. The product delivered to our users appears to have been designed just for them. We are able to achieve this customization through our extensive setup files.
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WinLoan is quite simply the finest loan quotation sales tool for credit insurance and debt protection ever developed. Some features include:
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What if Scenarios enable the loan officer to focus on the borrower's payment needs and to arrive at a loan structured to fit those needs. The loan officer becomes a consultant, working with the borrower to structure a loan, rather than just a payment quoter.
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Menu Selling enables the presentation of all payment protection scenarios at once, each with the cost per payment and per day of the given plan, giving the borrow the choice of the protection plan that best fits his needs and budget.
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Sales Scripts containing information including product cards, tutorials on presentation techniques, and checklists are all availabe at the user's fingertips. WinLoan is the complete calculation presentation tool that the loan officer can rely upon and have full confidence in using.
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Please visit our Partner Directory, or contact us if you are interested in partnering with Sherman and Associates.
Sherman and Associates is confident that you will find eWinLoan to be the polished web-based sales tool that others have told us it is. However, don't take our word for it! We are happy to provide you with a no-obligation demonstration of the latest version of eWinLoan, hosted on one of our servers. Since this is a demonstration version, it does limit the user to a fixed interest rate of 10.123%.
As usual, our technical support staff is ready and able to help you with any questions, so please feel free to contact us any time.