Share secured loans are available with the 22.05 release.

The same risks apply to Certification and Share Secured loans with the exception listed in the final bullet which only applies to Share Secured Loans.

Certain controls that may be used by a lender, or even by It’s Me 247 when a member submits a loan application, are not evaluated by the system-generated CD/Share Secured loans. 

As long as a member has access to online banking, a PIB profile that allows loan applications, and has a certificate of a Certificate Type/Dividend Application that allows CD/Share Secured loans, that member has the ability to open a CD/Share Secured loan online, up to the available funds on that CD/savings account.
  • Secured loans do not evaluate against membership level settings, such as the age of the member, the date the membership was opened, the Membership Designation, etc. 
  • Secured loans do not evaluate the age of the account, or the source of funds used to create the certificate/share account.  Without controls it is possible that a member could borrow against a certificate/share account where the opening deposit has not yet cleared.
  • Membership Comments, that may be available to a lender evaluating a loan application, are not evaluated by the system to determine whether a loan should be given to a member.
  • Since no credit score is pulled for the member, this also is not used to evaluate whether the member should be able to open the loan.
  • There is no validation that the member receives any monthly income if monthly payments are a repayment choice.  The member simply needs to have the certificate funds or savings funds available.
  • For Share Secured loans, the credit union will need to consider whether to make their base share apply to this feature. Additionally, there is the additional risk of recurring transaction on ATM or Debit cards.