It is the Policy of the Roanoke
Virginia Firemen Federal Credit Union to attempt to have 100% of available
Shares out in loans to members. We will loan to any member of the Roanoke
Virginia Firemen Federal Credit Union that is Creditworthy the following
amounts:
Up to $ 75,000.00 unless there is a 2nd
Mortgage loan involved. If there is a 2nd
Mortgage Loan involved, the maximum limit will be $ 100,000.00
Creditworthiness will be determined on an individual
basis by the Loan Officer assigned to each application.
A. All loans applied for in the Roanoke Virginia Firemen Federal
Credit Union must comply with the following rules.
Al) All Loans are considered as NEW loans, even if the loan is a
refinance, in order to promote fairness towards ALL members,
AlA. This is unless otherwise noted in the Loan Terms and Conditions
set forth by the Board of Directors.
A2) Loan applications MUST be completely filled out front and back,
including the purpose for a loan and the Applicant's income and expense
section.
A2A. The only exception to this rule is a 100 % Share Secured Loan. See
Section B. of this Document.
A2B. All income used in these applications, other than Fire Department
salary, MUST be verified. Verification is either with TWO (2) months of the
most recent paycheck stubs, current check stub showing Year to Date balance
income, W-2's, Tax Returns from the last calendar year or if the income is from
a self-employed Business the applicants Schedule "C" shall be used.
A2B1> If either a Tax return or a Schedule
"C" is used as proof of income, and it is the primary source of
income for a self employed applicant, then the last year is to be used and
averaged to figure the applicants income.
If the income is for a second job, then ONE (1) year’s tax return is
used.
A2B2> An applicant must have regular income,
with the exception of retirees. In the
case of retirees, their retirement income is acceptable as a Primary source of
income.
A2B3> If the Schedule "C" is used,
then the amount listed as the Gross Receipts ( Line 1) is to be used as the
applicant’s Additional GROSS (Before Taxes) income for the purpose of figuring
a Debt to Income Ratio.
A2B3B~ For Self Employed income, a
professionally prepared tax return is accepted as proof of income. The Credit Union shall verify and copy the 2
pages of the 1040 form as well as the 2 pages of the Schedule C, for proof of
preparer, as well as line 12 on the 1040 to show Net Profit or loss from the
business.
A2B3B~ For Self Employed applicants
that do not have their taxes professionally completed, then additional proof of
income, in the form of bank statements showing deposits to the Business account
may be used to verify the Schedule C amounts.
A2B4> For additional income, above and beyond the
primary source of income, the applicant must be on the job for at least ONE (1)
year in order for that income to be considered.
A2C. ANY INTENTIONAL FALSIFICATION of ANY information on a loan
application will cause the loan to be DENIED. If false information is given,
then the member will not be allowed credit for a period of ONE (1) Year.
A2C1> If false information is ever again
given, then the member is no longer granted the right to credit.
A3) The Applicant's credit history WILL be obtained from the Credit
Bureau, and the Applicant's past history WILL be a Factor in determining the
credit worthiness of the applicant.
A4) A Debt to Income ratio will be figured and the guidelines of the
FIRE Scale will be used to formulate a schedule to determine credit worthiness.
A4A. Debt to
Income maximums are as follows, unless superceded by an individual Loan
Program, such as 2nd Mortgages:
If the member has a Personal Loan of $ 5,000.00 or
more, or the current loan takes their personal limit to $ 5,000.00 or more,
then their maximum allowed Debt to Income Ratio is 50 %.
Otherwise, the Maximum allowable Debt to Income
Ratio is 60 %.
A5) Payroll Deduction is NOT a guarantee of repayment. It is however
a convenient means to do so. Therefore, Payroll deduction does not
automatically offset an applicant’s bad credit history or poor debt to asset
ratio.
A6) Loans may be denied for any applicable reason found on the
Adverse Action form (CUNA Service Group
form 11490-rev 7/97)
A7) Loans WILL be disbursed by check only, and will be made payable
to the member making the loan or withdrawing the shares.
A7A. The Only exception to this rule is in the case of loans where the
Applicant is paying off a debt held by another institution. In this case, at
the Discretion of the Credit Union, checks may be disbursed to the institutions
directly. A form listing the exact disbursements will be signed by the
applicant and attached to the loan papers, before the disbursements are made.
A8) A minimum of $ 300.00 is required for any loan advance, except in
the case of refinancing to lower the interest rate, see section A8A. This is
inclusive of new and refinanced loans. You must be eligible to borrow an
additional $300.00 in order to apply for a loan I. E. You owe 1,000.00 and want
to refinance your loan, the new loan HAS to be $ 1,300.00 or greater in order
to submit an application for the loan.
A8A. A minimum of $ 2,000.00 additional is required in order to
refinance a loan to lower the interest rate.
A8B. A loan may not be refinanced more than one single time unless at
least one agreed upon payment has been made to the loan. (I.E. to keep
refinancing to advance the due date.)
A9) Loan limits, interest rates and terms for each and every member,
unless otherwise noted in these documents, are as stated on the attached Loan
Terms and Conditions form.
A9A. Applicants that have been at their CURRENT job for less than ONE
(1) Year are limited to a Signature Loan Maximum total of $ 2,500.00, with an aggregate total in loans of $ 10,000.00. After the member has been
on for more than ONE (1) Year, the loan limit goes to the existing limits
unless other circumstances dictate differently.
B. NO loan, except a 100 % Share Secured loan, shall be considered
automatic. A 100 % Share Secured Loan only needs to have the front section of
the Application filled out and a Loan Officer's Signature. No other information
is needed and no other considerations are used.
C. Loans to Employees of the Credit Union, Board of Directors,
members of any Committees and any member of the above's families are treated as
any other member application with the following exceptions.
C1) Any of the Committee Members or the Official Family applying for
a loan that will put their Loan Total over $20,000.00 must have the loan
approved by the Board of Directors. This approval MUST be noted in the Board of
Director's minutes.
C2) Any of the people mentioned in Part “C” of this document may not
have their loan application approved by a Loan officer that is related either
by Blood or Marriage.
C3) Any of the people mentioned in Part “C” of this document may not
have their loan application approved by a Loan Officer that works directly or
indirectly under the applicant.
D. Loan terms and conditions approved by the Loan Officer or the
Board of Directors are not to be changed without the consent of all parties
involved, and made in writing on a loan application.
Dl) Members leaving the employment of the City and therefore the
ability to pay loans through payroll deduction MUST change the terms of their
loans to reflect monthly payments. This may be done without an additional $
300.00 advance refinancing minimum.
D2) Loans that are delinquent, may, at the discretion of the Credit
Union Collections Officer, be refinanced in order to correct the delinquency.
E. Members who leave the Employment of the Roanoke Fire
Department, or are transferred to a location or job position outside the
Roanoke Virginia Firemen Federal Credit Union field of membership may borrow
under the same conditions as when they were within the Roanoke Virginia Firemen
Federal Credit Union primary field of membership.
F. Any Co-Maker or Guarantor of a loan must qualify for the loan
as if he or she were making the loan himself or herself.
F1) Co-Maker is considered anyone who applies Jointly on a loan. All
Co-Makers will be jointly and severally liable on the obligation.
F2) A Guarantor is someone that signs onto the loan with the primary
borrower and guarantees that if the loan is not paid when due, then the Roanoke
Virginia Firemen Federal Credit Union has the right to seek payment from them,
the Guarantor, without first attempting to collect from the primary borrower.
This is in regards to payments as well as calling the loan due and payable in
full.
F3) Any loan that is secured by a Share account other than their own
MUST have the member who's shares is being held as collateral sign the Collateral
hold agreement form.
F4) A Co-Maker or Guarantor does not eliminate the Debt to Income
Ratio limitations.
G. For loans that are secured with collateral other than the
applicants Shares. The following MUST apply.
G1) Proof of insurance coverage, with the Roanoke Virginia Firemen
Federal Credit Union listed as loss payee, MUST be provided prior to or at the
closing of the loan. This insurance MUST include comprehensive and collision
policies with a deductible not to exceed $ 500.00. This may be done in one of
two ways.
G1A. By written documentation from the Applicants insurance company.
GIB. By telephone verification with the applicant's insurance company,
with written confirmation subsequently provided by borrower within 30 days of
the loan.
G2) If the insurance coverage lapses or is cancelled, the loan is
considered delinquent and the Credit Union may declare the Loan in Default, or
secure insurance coverage at the expense of the borrower or borrowers, pursuant
to the terms of the Note and Security Agreement.
G3) If the Collateral has a title of any sort, EVERYONE that is named
on the Title as Owner, Co-Owner or Joint Owner MUST sign a security agreement
allowing the Title to be used as collateral for the loan.
G3A. If there is a name on the Title that has not signed a security
agreement, then the Primary borrower has SEVEN (7) Days from the date of
notification to have the proper security Agreements signed or the loan will be
called due and payable in full.
G3B. The member has 30 days from the date the loan is disbursed to
provide the title to the Credit Union with a Lien attached or the loan is to be
considered in default.
G4) Collateral shall be valued using the strictest applicable of the
following methods:
G4A. Employee with less than one year of service at current employment –
80 % of NADA Average Retail Value
G4B. Vehicles with a “Salvage” title or history – 75 % of NADA Average
Retail Value once the vehicle repairs have been completed and the vehicle has
been re-titled by the State Police.
G4C. All Others – 100 % of NADA Average Retail Value
G4D. In the event of a special item that is known to have values
exceeding NADA Value, an independent appraisal may be obtained from a dealer
not selling the vehicle. We will loan
90 % of the appraisal value.
G4D1> This does not include “antique” type
vehicles or other collateral whose value is based on collectibility.
G5) If collateral is used for any purpose other than purchase money
for the collateral, the Manager or his/her designee MUST inspect the proposed
collateral prior to making the loan.
G6) Collateral
for a loan may be released on the following terms:
G6A. Loan paid in full
G6B. Additional Collateral or New Collateral equal to the current Loan
Amount is used and approved by a Loan Officer.
G6C. Vehicle to be sold immediately and Title is needed to complete
transaction.
G6C1> The Member MUST pay the Loan in full
within FIVE (5) days from the date the Title is released or the loan is
considered in default and a Warrant in Debt will immediately be issued.
G7) If a member has filed bankruptcy within the past three years, he
or she MUST complete a Credit Union approved financial counseling class prior
to making another loan.