The Road to Success Wednesday July 31, 2013 Operations Tune-up Part II Bankruptcy Modifications...
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The Road to Success Wednesday July 31, 2013 Operations Tune-up Part II Bankruptcy Modifications Insurance Filing Processes Lien Perfection Processes June
The Road to Success Wednesday July 31, 2013 Operations Tune-up
Part II Bankruptcy Modifications Insurance Filing Processes Lien
Perfection Processes June Programmatic Processes Review Deferrals,
Payments, ACH, and Communication protocols with loan servicing The
Final Road to Institute Important dates to remember Winning
Criteria / Institute Leaderboard Program Content / Steering
Committee Efforts Yadda, Yadda, Lotta Pallotta (Dan that is)
Slide 2
Webinar Wednesday Operations Tune Up- Part II Bankruptcy
Modifications, Insurance, & Lien Processes Is your Program on
the Road to Success? Are you going to win an award in
September?
Slide 3
Webinar Takeaways At the end of this webinar, you will know how
to handle Bankruptcy filings o What to do when national notifies
you that a client has filed o How to initiate a conversation with
the client as to their intentions o Steps on processing the
modification Insurance Procedures o Closing Process- Ensuring your
agency is identified as 2 nd loss payee o Handling total loss
claims o Processing repair claim checks Liens & Titling o
Closing process- Notice to Dealer document o Paid in full- Lien
Release Process o Buyback- Titling procedures
Slide 4
Bankruptcy Filings Chapter 13- Client includes partial debt in
filing Chapter 7- Client includes ALL debt in filing Chapter 11-
Client includes ALL debt in filing who operates a business as a
sole proprietor Three main bankruptcy filings by clients; Of the
three, you will see Chapter 13 the majority of the time
Slide 5
Remembering the Ways to Work Mission Pros to being proactive o
Assisting clients in retaining ownership of their vehicles by
lowering their monthly payments o Fulfilling your case management
obligations o Carrying out the mission of moving working families
along the path to self-sufficiency Cons of not being proactive o
The clients loan eventually being in a buyback status from all of
the partial bankruptcy trustee payments o You lose all contact with
the client depending on how long the bankruptcy lasts o The client
develops lack of trust that our program is designed to assist them
in their path to self- sufficiency
Slide 6
When The Bankruptcy Notifications Are Received Depending on the
state in which you conduct business, you are allowed to contact the
client to begin a conversation about their intentions regarding
their existing loan * You will receive this confirmation with the
email notification
Slide 7
Steps for determining a modification 1. Gain a clear
understanding what payment is realistic based on client situation
2. Explain to them that the purpose of the modification is to
extend the term of the loan to lower the monthly payment 3. Notify
Internal Operations Manager of verbal agreement 4. Loan Processor
will create loan new docs to establish restructured loan 5. Request
a closing for client to sign updated loan documents Win/Win
Situation
Slide 8
Slide 9
Insurance Filing Procedures o The closing process is your 1 st
line of defense in maintaining up to date insurance policy records
for all clients o Ensure that your agency is listed as 2 nd loss
payee on all vehicles within 30 days of closing
Slide 10
****New Form ****
Slide 11
What To Do When Incidents Happen o Inquire as much about the
incident that you can o Obtain the claim specialists contact
information from the insurance company handling the claim o Once
all information is obtained, refer the claim specialist to the
national office administrative assistant
Slide 12
When the Vehicle Requires Repairs o The insurance company will
cut the claim check in the amount of the estimated damages o The
check will be made out to Pay to the Order of: Client name and Ways
to Work or Agency Name o If the check is sent to your agency
directly, have the client sign it, then forward it to the national
office for VP endorsement if made out to Ways to Work o If the
check is sent to the client directly, and made out to Ways to Work,
instruct them mail it to the national office for VP
endorsement
Slide 13
When the Vehicle is a Total Loss o The insurance company will
cut the claim check in the amount of the estimated total loss o The
check will be made to Pay to the Order of: Ways to Work o If there
is a loan balance over $200 after the insurance proceeds post, the
agency must pay the balance within 14 days of the funds posting o
The agency will then seek the remaining balance from the client o
This procedure will ensure that the client is not assessed
doragatory marks on their credit history
Slide 14
Slide 15
Lien Procedures o The closing process is your 1 st line of
defense in maintaining correct lienholder records for all clients o
Ensure that your agency is listed as 2 nd lienholder on all
vehicles at the time of closing
Slide 16
Slide 17
Loan Payoff- Lien Release Process o Obtain a ten-day payoff for
your client via GreenLight o Advise to mail all payoffs to: Ways to
Work Attn: Loan Servicing PO Box 5920 Madison, WI 53705 o The lien
release and title disbursement will take place 10 business days
from the day the payoff funds are posted
Slide 18
Agency Buyback- Lien Process o Obtain a ten-day payoff for the
loan balance via GreenLight o Mail all buyback funds to: Ways to
Work Attn: Carolyn Jelinski 11700 W. Lake Park Dr. Milwaukee, WI
53224 o The lien release and title disbursement will be overnighted
next day to the agency from the day the payoff funds are posted via
UPS Depending on how your state files titles, you may not receive a
physical title Win/Win Situation
