The Collateral tab of the Application page is used to record pieces of collateral and tie them to one or more products on the application.
Generating a Collateral Form
To generate a collateral form, you first need
to click the icon. Clicking
the icon again generates a second form, and so on, for as many forms
as you need.
Notes about some of the common fields on this tab:
Name of Collateral is intended as a title or heading for this form. What you enter will be used for the subsection heading so that when you collapse the collateral subsections, you’ll know which form (subsection) is for which collateral. Use Brief Description/Comment for further details about the collateral.
After you choose an item from the Type of Collateral list, the Advance Percent field fills in automatically with the applicable percentage figure from your setup.
Net Advance Amount is a system-calculated field (Market Value x Advance Percent – Existing Lien Amount). Net Advance Amount is not used in calculating the score or credit risk for the application.
Will Existing Liens be paid off by this loan? This Yes/No field is not required. Clicking Yes causes any Existing Lien Amount entered with the collateral that is to be paid off by the loan proceeds to be ignored by the system when the Loan to Value ratio is calculated.
The Will Existing Lien Amount be paid off by this loan? field will display at the end of the Collateral section.
Note that if an application contains only one product, the product is automatically tied to all collateral on the application (you will not have to manually collaterize for a single-product application).
Click the Collateralize button at the bottom of the Application page to bring up the Collateralize dialog box, which shows all collateral entered in the application, along with all the products requiring collateral. (If a product in the application has been defined in your financial institution's setup to not require collateral, that product is not shown.)
If you try to submit or validate the application without having every piece of collateral tied to a product, the Collateralize button will turn red. If you do not want this question to display or you want it to display in a different location in your template, contact Baker Hill Client Support.
Existing Lien Amount can be an aggregate amount.
The Yes/No field at the bottom of the section is required. If you choose Yes, a text field displays, allowing you to enter explanatory comments.
You need to tie each piece of collateral to a product before submitting the application. A single piece of collateral can be tied to multiple products, and a single product can be tied to multiple pieces of collateral.
Note: You can also import collateral from your CIF (Customer Information File). For information, see Import Collateral Dialog Box.
Dealer Collateral Section
On dealer applications, this section is divided into three subsections: Collateral Description, Collateral Value, and Other Information. Notes about some of the dealer-specific fields in these sections follow.
Note: Each collateral item you selected on the New Application page has its own subsection. For valuation purposes, this section also contains a link to N.A.D.A. Values Online.
Collateral Type is automatically filled in from information provided on the New Application page.
Is the Collateral New? is not required information; you can leave this blank if you want to.
Use the Description of Options and Add-Ons text box to enter further details about the collateral.
Click the link for N.A.D.A. Values Online to perform online valuations.
Collateral Section of the Decision Page
The Collateral section is only presented on the Decision page when collateral items exist on the application. The content here is identical to the content presented on the Business Application Page. If your institution uses the configurable application feature to customize the look and feel of the Collateral section on the Application page, the same field layout will display in this section on the Decision page.
When any fields on the Decision page that affect calculations are changed, the floating Calculate button appears. The fields that will trigger this button are:
Market Value
Existing Lien Amount
User Adjustment
Will Existing Lien Amount be paid off by this loan?
Note: You can not add or delete any Collateral from the Decision page.
Net Advance Amount is updated automatically. Your change also triggers the floating window with the Calculate button to display to remind you that a calculation is needed to update other fields on the Decision page. Click the Calculate button to update the Total Collateral Net Advance in the Application Request Summary tab at the top of the page.
This topic was last updated February 8, 2019.