The Road to Success Wednesday July 31, 2013 Operations Tune-up Part II Bankruptcy Modifications Insurance Filing Processes Lien Perfection Processes June Programmatic Processes Review Deferrals, Payments, ACH, and Communication protocols with loan servicing The Final Road to Institute Important dates to remember Winning Criteria / Institute Leaderboard Program Content / Steering Committee Efforts Yadda, Yadda, Lotta Pallotta (Dan that is)

Webinar Wednesday Operations “Tune Up”- Part II Bankruptcy Modifications, Insurance, & Lien Processes Is your Program on the Road to Success? Are you going to win an award in September?

Webinar Takeaways At the end of this webinar, you will know how to handle… Bankruptcy filings o What to do when national notifies you that a client has filed o How to initiate a conversation with the client as to their intentions o Steps on processing the modification Insurance Procedures o Closing Process- Ensuring your agency is identified as 2 nd loss payee o Handling “total loss” claims o Processing repair claim checks Liens & Titling o Closing process- Notice to Dealer document o Paid in full- Lien Release Process o Buyback- Titling procedures

Bankruptcy Filings  Chapter 13- Client includes partial debt in filing  Chapter 7- Client includes ALL debt in filing  Chapter 11- Client includes ALL debt in filing who operates a business as a sole proprietor  Three main bankruptcy filings by clients; Of the three, you will see Chapter 13 the majority of the time

Remembering the Ways to Work Mission Pros to being proactive o Assisting clients in retaining ownership of their vehicles by lowering their monthly payments o Fulfilling your case management obligations o Carrying out the mission of moving working families along the path to self-sufficiency Cons of not being proactive o The client’s loan eventually being in a buyback status from all of the partial bankruptcy trustee payments o You lose all contact with the client depending on how long the bankruptcy lasts o The client develops lack of trust that our program is designed to assist them in their path to self- sufficiency

When The Bankruptcy Notifications Are Received Depending on the state in which you conduct business, you are allowed to contact the client to begin a conversation about their intentions regarding their existing loan * You will receive this confirmation with the notification

Steps for determining a modification 1. Gain a clear understanding what payment is realistic based on client situation 2. Explain to them that the purpose of the modification is to extend the term of the loan to lower the monthly payment 3. Notify Internal Operations Manager of verbal agreement 4. Loan Processor will create loan new docs to establish restructured loan 5. Request a closing for client to sign updated loan documents Win/Win Situation

Insurance Filing Procedures o The closing process is your 1 st line of defense in maintaining up to date insurance policy records for all clients o Ensure that your agency is listed as 2 nd loss payee on all vehicles within 30 days of closing

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What To Do When Incidents Happen o Inquire as much about the incident that you can o Obtain the claim specialists contact information from the insurance company handling the claim o Once all information is obtained, refer the claim specialist to the national office administrative assistant

When the Vehicle Requires Repairs o The insurance company will cut the claim check in the amount of the estimated damages o The check will be made out to Pay to the Order of: Client name and Ways to Work or Agency Name o If the check is sent to your agency directly, have the client sign it, then forward it to the national office for VP endorsement if made out to Ways to Work o If the check is sent to the client directly, and made out to Ways to Work, instruct them mail it to the national office for VP endorsement

When the Vehicle is a Total Loss o The insurance company will cut the claim check in the amount of the estimated total loss o The check will be made to Pay to the Order of: Ways to Work o If there is a loan balance over $200 after the insurance proceeds post, the agency must pay the balance within 14 days of the funds posting o The agency will then seek the remaining balance from the client o This procedure will ensure that the client is not assessed doragatory marks on their credit history

Lien Procedures o The closing process is your 1 st line of defense in maintaining correct lienholder records for all clients o Ensure that your agency is listed as 2 nd lienholder on all vehicles at the time of closing

Loan Payoff- Lien Release Process o Obtain a ten-day payoff for your client via GreenLight o Advise to mail all payoffs to: Ways to Work Attn: Loan Servicing PO Box 5920 Madison, WI o The lien release and title disbursement will take place 10 business days from the day the payoff funds are posted

Agency Buyback- Lien Process o Obtain a ten-day payoff for the loan balance via GreenLight o Mail all buyback funds to: Ways to Work Attn: Carolyn Jelinski W. Lake Park Dr. Milwaukee, WI o The lien release and title disbursement will be overnighted next day to the agency from the day the payoff funds are posted via UPS  Depending on how your state files titles, you may not receive a physical title Win/Win Situation