The Principals tab appears for business applications. Your financial institution determines whether this tab is required, optional, or not applicable on a product by product basis.

Generating a Principal/Guarantor Form

To generate a principal/guarantor 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.

Here are notes about some of the fields in this section:

• You have the option of using the Action menu , found on the principal header bar, to search Baker Hill Origination and CIF for additional information on this applicant, similar to the Similar Application Check. The dialog consists of two sections, Search Criteria and Search Results. You can use the available fields (First Name, Last Name, and Social Security Number) to narrow your search; note that it is not required to use all fields, but your search results will be narrower the more you use. Also, you must use either the first and last name or the Social Security Number to get any results. If search results are returned, you have the option of copying the applicant data to the current application by right-clicking the application in the Search Results area and choosing Copy Data.

• Baker Hill Bank2Business allows you to create joint principals for situations in which the principals in a business have shared accounts. See the About Joint Principals for full details.

• Principal Name will be used for the "Principal -" heading. What you enter for this field will be used for the subsection heading so that when you collapse the principal subsections, you’ll know which form (subsection) belongs to which principal.

• The Maternal Surname field is intended for use with credit bureaus that take this field. If your credit bureau does not use this field, leave it blank.

• Net Worth is a system-calculated field.

• Use the Other fields to roll up what doesn't fit in the other fields on the form.

• The Yes/No fields at the bottom of the section are required. If you choose Yes, a text field appears, allowing you to enter explanatory comments.

• In order to help your financial institution comply with the Patriot Act (requirement of positive identification of new customers), the personal identification fields (Existing Customer, Primary/Secondary Identification, Description) appear for all applications. Note that if you mark the Existing Customer field as Yes, meaning that you have a reasonable belief as to the identity of the person, the other identification fields are not required.

• If the application is submitted without any principal/guarantor entries, no credit report will be retrieved, and no commitment/decline letters will be available.

• The Do you want to generate an approval/decline letter... option allows you to choose which principal/ guarantor(s) will receive a letter when the commitment or decline letter is generated. This option applies regardless of whether the letter is generated manually or via the batch option. When the commitment or decline letter is generated (using whichever method of generating letters you choose), a letter will be created for each principal marked as Yes. If No is selected for every principal on the application, then the letter will be addressed to the business, using the name and address entered in the General Business Information section.

• If your institution is using the Laser Pro Document Preparation Interface, please note the following:

• • You must select at least one Signer or Signer & Guarantor as the type.

  • The Capacity of Signer field appears in the Principals/Guarantors section and in the Signers/Co-Signers section of the Bank2Business Application page. This field is a drop-down list consisting of the signer capacity types defined in Laser Pro.

  • This field is applicable to signers and guarantors only. In the Principals/Guarantors section, the field is enabled only when the Signer & Guarantor option is selected in the Principal Type field. (Otherwise, the drop-down list box is grayed out.)

  • When you import the application data into Laser Pro, the signer capacity will be included in the import.

    Note:  This field appears regardless of whether your institution uses the Baker Hill Origination Laser Pro Document Preparation Interface. However, it is applicable only to Laser Pro imports.

Additional information about principals in Bank2Business:

• Although you can enter as many principals as you'd like, consumer credit reports are retrieved for only up to six principals with the largest percentage of ownership in the business on scored applications. For judgmental applications, credit bureau reports are pulled for all principals.

• Note than if this application is reprocessed and new reports are retrieved, the new reports will be retrieved for all principals for whom reports were retrieved during initial processing, unless one or more of the principals are deleted when reprocessing.

• Scores rely heavily on the predictive power of the data presented within the credit histories of the principals/guarantors. The credit history cannot be retrieved and therefore analyzed unless at least one principal/guarantor is included.

• Submitting an application without principals/guarantors will generate a Scoring Exception, and only a non-predictive score will be available.

• In all cases were you need to include signers only or co-signers only, you must use the Signers/Co-Signers Only section.

About Joint Principals

For small business applications, you are allowed to create joint principals for situations in which the principals in a business have shared accounts.

Note: This feature does not pull a joint credit report. A separate credit report is still retrieved for each of the top two principals.

Here are the basic steps for using this section:

1. Fill out the Principals/Guarantors form for the primary joint principal (the principal with the higher percentage of ownership, if the percentages are different). Note the following:

   • Use total amounts for the financial statement fields in the form. In other words, treat the financial statement fields as a single, joint statement for both principals.

   • Make sure that the yes/no option for joint personal financial statements is marked as no for the primary principal.

2. Create a second form for the secondary joint principal. For this principal, select the yes option for joint personal financial statements. Note that when the yes option is selected, the following fields in that secondary principal’s form are no longer editable:

   • Total Assets

   • Total Liabilities

   • Equity in Home

   • Value in Business

   • Revolving Credit Payments

   • Mortgage/Rent Payments

   • Other Loan/Note Payments

3. In the Principal Summary section of the decision page, fields related to financial statements will be blank for the secondary principal. The underwriter should refer to the primary principal’s Principal Summary, where these fields apply to both of the joint principals.