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Credit Unions and Multi-Featured LendingWhat you need to know

“Use of a blended approach that combines both open-end and closed-end credit is consistent with Regulation Z, provided the credit union complies with the requirements under 12 C.F.R. part 1026 subpart B for open-end credit and 12 C.F.R. part 1026, subpart C, for each closed-end transaction under the master plan.”

- NCUA Letter To Federal Credit Unions, July 2012

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What is Multi-Featured Lending?Master Plan for All Consumer loans

Replenishing Loan Types: Line-of-Credit, OverdraftProtection, Loan Types that may have Add-Ons

Non-Replenishing Loan Types: Typically Vehicle Loans, Single Advance

The benefit of a multi-featured lending forms solution is consistent with credit union culture of not having members start from square one for each and every loan.

The forms are not “open-end” in the traditional sense. Instead the simplified forms include a master loan agreement that defines the covenants between borrower and credit union plus a disbursement voucher for both replenishing and non-replenishing loans.

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Why?Credit Union Lending Culture for Consumer Loans

Used Open-End Prior to July 2010

Reg Z Change Eliminated Ability to Underwrite a Car Loan at Time ofAdvance under Open-EndCredit Unions Want and Need the Open-End Method so that Members Do Not Start from Scratch for Each and Every Loan.

With Reg Change Could No Longer Use Open-End as Before July, 2010

Simplified Loan Agreement Gives Credit Unions Back the Ability to Underwrite (Debt Ratio, Credit Report) at Time of Loan Under the Master Plan.

“Switching to the Conmar forms solution was a very smart move for Carter Federal CU.

The technical and compliance support we received from Conmar was top notch. The process was simple and we now have less forms to juggle around….which makes our members as well as employees happy.

Our team was equally excited about using Conmar’s sight draft instead of a pre-approval letter. I can honestly say I have never seen our team more excited to come to work and help our members…which is what it's all about!

Thank you Conmar for your training and partnership!”

Cindy YoungbloodVP of LendingCarter FCU

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Support and TrainingViable, Compliant and NCUA Approved Forms and Process---Customized for Your Credit Union

Training for Loan Staff

ComplianceBacked by Legal OpinionBacked by Surety Bond

Assistance with Loan Policy Revision (this is not complicated)

For Underwriting and Verification Per the Regulation

Forms are compatible for all data processors.

Surety bond up to $5,000,000.

How to manuals for staff.

Consummation for non-replenishing loans occurs when borrower accepts funds after receipt of TIL disclosure.

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Key BenefitsNCUA Approved Process

Conmar Developed the Right Process and Forms, not the Matrix Approach to Open-End That is Confusing and Not Usage Compliant in Many Situations for verification

Borrower Does Not Start from Square One for Every Loan

No Signature at Time of Loan Advance

Don’t Need to “Resell” Credit Insurance or Debt Protection at Time of Each Loan Advance

Permanent loan agreement for all consumer loans.

One time loan application – updates thereafter

Sight drafts supported

Each sub-account under the plan is separate for purpose of interest rate and terms.

Cross collateral provision

Things to Think AboutIf Credit Union Converted to Closed-End Because They Were Made to Believe There Was No Other Option…Change to Conmar

If Credit Union Was Convinced Into Using a Complicated Matrix System for Open-End…Change to Conmar

If Credit Union Would Like to Do Business with Way They Want to and Always have…Change to Conmar

If Credit Union Has Become Frustrated with the Confusions that has Been Created…Change to Conmar

If Credit Union Attended Compliant Webinars and Were Told Something Different in the Beginning When the Regulation Changed…Change to Conmar

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Forms and Insurance Go TogetherCompare Our Forms Pricing and Value Received with the Competition

Talk to Your Credit Insurance Agent About Using Conmar Loan Forms

We Make It EasyConmar Will Turn Key the Entire Process for Your Credit Union

Conmar was Proactive and Right with Their Forms Solution in the Beginning. Conmar is Not Having to Play Catch Up.

Conmar MFL forms have a proven track record

Contact Conmar:

800 227 4931 or 770 487 3366Orsales@conmarsystems.com