Defining the Processing Rules

Turning on the Indirect Lending Option

The Indirect Loan Options section on the Credit Union Profile – Loans tab indicates if your credit union supports indirect lending and the dealer general ledger accounts.

The Supported check box must be selected to participate in indirect lending.

The Amortization Method field indicates the amortization method the credit union uses for amortizing the upfront reserve fee. The valid values are:

• N - The credit union does not amortize the upfront reserve fee.
• E - The credit union amortizes the fee using the effective rate method. System Default.
• S - The credit union amortizes the fee using the straight line method.
• T - The credit union amortizes the fee using the straight line method - term option. The Straight Line Number of Months field must be 00.

The Straight Line Number of Months field indicates the number of months to use in the straight line method of amortization, when amortizing the upfront reserve fee. The calculation for straight line is: Upfront Reserve Fee / Straight Line Number of Months.

The Dealer Pay GL Account field indicates the dealer payable general ledger number and the Dealer Hold GL Account field specifies the dealer holdback general ledger number.

Setting Up the Indirect Loan Type

The Loan Profiles tabs maintain define the loan processing rules for a specific loan type within the credit union. In addition to the standard loan fields, the Indirect Lending check box must be selected to indicate that the loan type is indirect. The Deferred Fee/PC fields must specify the deferred fee general ledger account or product code for posting upfront reserves and upfront reserve amortization.