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#2242580 - 09/16/20 09:43 PM Employee Loan for Hurricane damage
Lele Offline
Platinum Poster
Joined: Feb 2007
Posts: 825
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]
Faith is seeing light with your heart when all your eyes see is darkness...

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Lending Compliance
#2242598 - 09/17/20 11:42 AM Re: Employee Loan for Hurricane damage Lele
rlcarey Offline
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Joined: Jul 2001
Posts: 77,277
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.
The opinions expressed here should not be construed to be those of my employer:

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#2242627 - 09/17/20 04:56 PM Re: Employee Loan for Hurricane damage 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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