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#1939637 - 07/10/14 09:48 PM product no longer available
Trees Offline
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Joined: Apr 2005
Posts: 4,013
We have our HELOCS set up a certain way that is unique and was our product for years. Worked fine. no regulatory issues. Bought a new core system that can't support this product as it is designed. lets say we have 200 of these loans. legal docs. don't allow us to unilaterally change the document/product (the change would ). For those of you that changed core systems how did you handle these types of situations? We don't want to continue with two systems so we can support this portfolio of loans. Is there no way out? Help.

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#1939661 - 07/11/14 12:14 AM Re: product no longer available Trees
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 10,180
Toano, VA
Originally Posted By: Trees
Bought a new core system that can't support this product as it is designed.
Mistake.
_________________________
...gone fishing.

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#1939968 - 07/11/14 06:14 PM Re: product no longer available Trees
fmissle Online
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Joined: Jul 2007
Posts: 1,016
Pac NW
I ran into a similar issue on a core conversion once. The product was a very weird one that we didn't anticipate ever offering again. The portfolio of that product was relatively small.

We went ahead and made the purchase and conversion knowing that each one of these loans would require some specialized handling each month until they paid off. Most of them were maturing within 4 years.

Once the conversion was made, we had officers reach out to each borrower and offer a better deal with a lower rate to refinance into a standard product the core would support.

We had a couple of customers that we had to sweet talk even further with some additional incentives and one who wouldn't respond to our calls or letters at all.

In the end, after a few months, only one was left on the books and it still required special handling every single month.

My advice, find some way to work with the customers to refinance or change the documents so it will work on your system.

Originally Posted By: Trees
Bought a new core system that can't support this product as it is designed.

And tell them not to do this again.

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#1940034 - 07/11/14 07:03 PM Re: product no longer available fmissle
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 10,180
Toano, VA
Originally Posted By: doyoucanoe
In the end, after a few months, only one was left on the books and it still required special handling every single month...tell them not to do this again.
If you stood at the door and handed your customers hundred dollar bills, there would be at least one who would refuse to cooperate.
_________________________
...gone fishing.

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#1940223 - 07/11/14 09:23 PM Re: product no longer available Richard Insley
fmissle Online
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Joined: Jul 2007
Posts: 1,016
Pac NW
Originally Posted By: Richard Insley
Originally Posted By: doyoucanoe
In the end, after a few months, only one was left on the books and it still required special handling every single month...tell them not to do this again.
If you stood at the door and handed your customers hundred dollar bills, there would be at least one who would refuse to cooperate.


"What's the catch?"

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#1940757 - 07/14/14 09:15 PM Re: product no longer available Trees
Trees Offline
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Joined: Apr 2005
Posts: 4,013
thanks for the comments. We are considering coming up with some kind of incentive....if we still can't get the new system to work for us. We were worried about UDAAP, etc now as we would have to incent these people to take the new terms. Not sure if one would get a lawyer to say that the new terms are not a benefit and we are inadvertently harming this pool of borrowers.

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