The purpose of this module is to update bank and financing information. To access this module, click on 'Maintenance' in the horizontal tool bar and select Banks from the drop-down menu.
Bank Menu Dropdown
When entering bank information, only enter information on banks for which you will be printing loan paperwork.
If there is dealer financing (Buy-Here/Pay-Here), set up a bank with your dealership information and mark that bank as an in-house financing source.
Note: On occasion, a customer may obtain outside financing and present a cashier's check. In situations like this, do not enter the financing bank's information into this window. Since the customer has already obtained financing, there is no need to print any bank contracts on behalf of the lender. You may, however, want to list the lender as a lienholder on the vehicle. In this case, enter the lender's information into the Outside Lienholders section of the system.
Shown below is the Lender Maintenance screen. Within this screen you can add new lending institutions, delete lending institutions, or edit existing entries. Scroll down to find detailed information on how to fill in the fields in this section.
'Primary', 'Payment Address', and 'Correspondence' tabs
Notice in the window below, there are three tabs in the top center section labeled 'Primary', 'Payment Address', and 'Correspondence'.
These will only appear if 'Display Multiple Lien Addresses' is selected in the Deal Entry section of Dealership Maintenance, which can be found in the drop down menu under 'Maintenance' in the top horizontal tool bar.
'Primary' is where a bank's main name, address, and other information is entered.
'Payment Address' should be filled in if the bank wants the customer to mail payments to an address that differs from the one listed under 'Primary'.
'Correspondence' is the contact information that the bank provides for customer service if it differs from the Primary.
Be sure to click the 'SAVE EXIT' button after making entries and changes.
Bank Maintenance
Changing the List Order
On the left-hand side of the window is a listing of financial institutions which were previously entered. This list can be reordered by selecting and highlighting an institution name and clicking the 'move up' or 'move down arrows' shown above the listing.
Deleting an institution from the Listing
To delete an institution from the list, highlight and select an institution and click the Delete Bank button.
Adding an institution to the Listing
To add a new institution to the list, click the Add Bank button. The software will display a new window asking for a short name to describe the institution to be added. This short name will appear in the listing at the left-hand side of the window and will also be used in other pull-down menus within the program.
Add New Bank
Next, select the loan type this institution will provide. Loan Type is found in the top center of the window. Click the down arrow to view and make a selection.
The loan types available are:
•CASH: Select this option when the customer is paying cash or is financing the vehicle from an outside source.
•RETAIL: Conventional loan financing using a conventional bank through your dealership.
•BALLOON: Same as retail except there is a Balloon Payment due at the end of the loan.
•WEEKLY: Generally used for in-house financing (Buy-Here/Pay-Here) where a Weekly, Bi-Weekly, or Monthly payment is required.
•FIXED PAYMENT: Customer wishes to pay a set amount. The loan term is adjusted to accommodate the payment.
•Various Leases: Various lease calculations will be listed depending on what leases are available in your state. This option only applies to certain states, such as Pennsylvania, and my not show up on your list.
Completing Information in the Lender Maintenance Window
Is the lender being used for in-house financing (also known as Buy-Here/Pay-Here)?
If this institution is for in-house financing, click in the box marked In-House Financing (Buy-Here/Pay-Here) on the right side of the window. A check mark should appear. If the check mark is visible, the institution has been marked as an in-house lender. It is common for a dealership to enter their own information when setting up an institution for in-house financing since the dealership will be the lender. When this box is checked, a new box appears in the lower right corner. Use this feature to set up late payment fees. Scroll down to the bottom to see more information about this feature.
Does the final payment have to match all other payments in the loan?
Usually this is used for Buy-Here/Pay-Here loans with zero-percent financing. During many of these loan calculations, the final payment may be slightly less than the other payments. If you wish all payments to be the same, check the Final Payment Must Be Same as Others option.
Will the Federal calendar be used for calculations?
The Federal calendar option forces a loan to be calculated as if all months were 30 days long. Generally, the Use Federal Calendar option is left unchecked.
Should the lienholder name and address show in the lienholder section of forms when printing?
This is used primarily for leases. If you do not want to show the institution information, click in the box marked Don't Print in Lienholder Section. If the check mark is visible, the institution information is not printed on forms.
Enter the institution's full name, address, phone number, and financial institution number.
Reserve Calculations
Enter the reserve calculation in the Reserve Calculation box. Click the down arrow to display a pull-down menu listing the different methods banks use to calculate a dealer's reserve on a loan. Select the one appropriate for this institution. Reserve calculations are generally not used for a Buy-Here/Pay-Here bank, since the dealer is keeping all of the interest paid.
There are several types of reserve calculations available:
•Actuarial
•Fair Ratio
•% of Amt Fin
•Lease FIU
•Rate Spread
Enter the percentage of the reserve paid to the dealership. Enter this amount in the % of Reserve box.
If the dealership will receive a minimum reserve amount, enter it in the Min Reserve box.
Additional Charges
The Prepaid Fin Charge box is for the entry of a default prepaid finance charge. This value will be entered automatically in various screens within the system. It is possible to override this value on other screens if necessary.
Enter a bank fee into the Bank Fee box. This is a fee, application or otherwise, charged by the bank to the customer in order to process the loan.
VSI -- Vendor Single Insurance is insurance purchased by financial institutions that protects against financial loss from physical damage to property (collateral) on which loans have been made. Such coverage applies in the event the borrower does not have physical damage coverage in place. Vendors single interest insurance covers only the outstanding balance on the loan. Even though the borrower frequently pays the premium, he or she receives no insurance protection of his or her equity under such policies. This fee is added to the loan amount.
Setting Up Late Charges
When a Buy-Here/Pay-Here finance source is set up, late fees are usually collected on delinquent payments. Set up the delinquency charge amount in a special section that is only visible when you check the box marked In-House Financing (Buy-Here/Pay-Here). This section is located at the right-hand side of the window.
Late Fee Settings
Enter the desired amount for a late charge, the time period for which each charge is assessed, and the grace period for each payment. The data you enter here will be added to each Buy-Here/Pay-Here deal, but you may override this information directly on the deal screens.