We've been discussing options to try to reduce the number loans we have that are to be secured by vehicles, but we never receive the title with the lien. Do other banks have the customer sign a separate acknowledgment at closing that they will provide the title? Could we add a covenant on the note that if the title isn't received within a certain time frame that a fee will be assessed? Or, is there any way to disclose that the interest rate will go to a higher rate in line with an unsecured note?
Any suggestions, or input on what others are doing, would be appreciated!