Closed End Lending Vs Open End Lending Including

Closed End Lending Vs. Open End Lending (Including Reg Z Changes)

Closed End vs. Open End Lending Vy. Star Credit Union Who is Vy. Star? • • 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 Lending Vy. Star 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 Vy. Star 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 Lending Vy. Star Credit Union Originating, Underwriting & Disbursing Snapshot • • Origination accomplished in all front office areas & Internet Banking Centralized Underwriting since Feb. 2005 – 19 Underwriters • • • Centralized Disbursing since May 2005 – 15 Disbursers • • • 17 Branch/Call Center 2 Indirect 14 Branch/Call Center 1 Indirect 5 Quality Assurance Lending Analysts

Closed End vs. Open End Lending Vy. Star 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 Lending Vy. Star 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 Lending Vy. Star 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 Lending Vy. Star Credit Union Best Practices… You tell me… because it’s not July 1 st Yet! “Serenity Now!”

Closed End vs. Open End Lending Vy. Star Credit Union Contact Information Lisa Fulghum 904. 908. 2820 fulghuml@vystarcu. org

Closed End vs. Open End Lending Vy. Star Credit Union

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