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#2242580 - 09/16/20 09:43 PM Employee Loan for Hurricane damage
Lele Offline
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Lele
Joined: Feb 2007
Posts: 817
In the Sun
We are considering an employee Hurricane Relief loan up to $2,500- unsecured to employees that have suffered damage caused by the hurricane to assist with deductibles and what ever else. Would this be consumer purpose? Can we do automatic approval? Considering a 24 month loan with first three payments deferred, amortizing over remaining 21 months. Priced at Prime-0.5% fixed.

What do I need to make sure that we are handling correctly?[/i][/color]
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Lending Compliance
#2242598 - 09/17/20 11:42 AM Re: Employee Loan for Hurricane damage [Re: Lele]
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 74,792
Galveston, TX
Definitely consumer purpose and subject to Regulation Z. Underwriting is a bank decision. I am not sure how to answer your last question. You will need a loan agreement/note that supports this product and it will have to be properly loaded onto your loan system.
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#2242627 - 09/17/20 04:56 PM Re: Employee Loan for Hurricane damage [Re: rlcarey]
'Lil Freak! Offline
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'Lil Freak!
Joined: Sep 2005
Posts: 10,595
The psych ward
Another consideration: We provide employees a disclosure on what may happen to their preferential employee loan rate rate should they leave employment with us.
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