Loan Policy (Effective May 6, 2004)

  1. Each application for a loan must provide total disclosure of all debts in order to be considered.

  2. A credit check will be obtained on each borrower and co-signer prior to the completion of the loan approval process unless one has been obtained within the previous two months.

  3. Members who do not have established credit must have a co-maker on all loans until positive credit is established.

  4. Any member who has been delinquent in making loan payments must have timely payments (no delinquencies) for the previous six months before any loans will be made unless an exception is approved by the Credit Committee.

  5. Any member whose share draft account (checking account) has had checks presented for insufficient funds in the previous two months prior to applying for a loan will be ineligible for such loan unless approved by the Credit Committee.

  6. Loans where a debt ratio of the borrower’s income used for repayment of a loan exceeds 40% of monthly payments to gross income will only be processed if approved by the Credit Committee. Proof of income must be provided by members NOT employed by one of WEE Federal Credit Union’s sponsoring organizations (boards of education).

  7. Loan amounts and maximum terms:

    1. Vehicles - an item that can be titled and licensed for a lien.
      1. New - with loan amounts up to $35000.00 Six years (72 months).
      2. New - with a loan amount of $35000.00 Seven years (84 months) or greater.
      3. Factory/Program Five and one half years (66 months).
      4. Used Less than three years old Five years (60 months).
      5. Used Three to five years old Four and one half years (54 months).
      6. Used More than five years old Four years (48 months).
      7. Used High mileage (according to NADA Guidelines) add .50 to the current interest rate.
      8. Used More than 100,000 miles Three years (36 mos.) (Exceptions as approved by the Credit Committee).
      9. A valid title showing the WEE Federal Credit Union as lien holder must be on file for each vehicle for which there is a loan.

    An insurance certificate noting both the comprehensive and liability insurance coverage and naming the WEE Federal Credit Union as the lien holder must be sent to the credit union for each vehicle for which there is a loan.

    Members may refinance vehicle loans at the applicable vehicle rates with the WEE Federal Credit Union within 60 days of the purchase date.

    1. Co-Made - where the purpose of the co-signer is to improve the stability and security of the loan.

      Applicants who appear to be unable or unwilling to repay a loan are not eligible to have a co-signer. Co-signers must qualify for the loan they are co-signing for in the same manner as if the loan were their own. Debt ratio guidelines must be met and credit history must be completely positive. A co-signer shares the responsibility of repaying the loan along with the loan borrower and agrees to assume responsibility for the entire loan balance in case of default.

      A co-signer is a person who has an independent source of income and/or owns property. Proof of income and/or a notarized statement of property ownership will be required from co-signers.

    2. Signature - maximum of $10000.00 or 10% of gross annual salary, whichever is greater.

    3. Home Equity - the difference between the mortgage balance and 90% of the appraised value.

    4. Home Mortgage - 80% of the appraised value of the home - maximum term 15 years.

    5. Special limited time only 10% annual percentage rate for funding a vacation, appliances or a computer.

  8. All loans to WEE Federal Credit Union employees and volunteers serving on the Board of Directors or any established committee must have loans approved by the Board of Directors.

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