1. Which loan terms require Underwriting review

2. How to edit loan terms

3. How to request loan terms from the Underwriting team

4. Frequently Asked Questions

The loan terms that can be adjusted include:

• Number of installments

• Interest Rate

• Downpayment

The following options are available for the agent to choose the number of installments the insured would like to set up for loan repayment:

• 10-pay

• 9-pay

• 6-pay

• 4-pay (quarterly)

• 2-pay (semi-annual)

⚠️ Note: APR and downpayment may increase due to choosing a lower number of installments. ⚠️

The interest rate on a finance agreement can sometimes be adjusted within 2 percent of the program's base rate.

If your agency has a take rate included in the financing option, it will be removed first when the interest rate is lowered. This means that your agency may not receive any take rate or may receive a lower take rate if the interest rate is reduced on a program.

For more information about the difference between APR and interest rate, see the article here.

Downpayment can be both increased and decreased on a program. Outside of a few coverage types that require higher downpayments, our standard downpayment is 20% of premium + unearned fees.

Lowering the downpayment on a program will always require review by our Underwriting Team. Reviews are typically completed within one business day unless additional information is required to complete the review if our Underwriting Team has more questions about the policy or insured.

⚠️ To request a reduced downpayment, the program must have at least $10,000 in gross premium. Programs lower than this amount will not be eligible for modification. ⚠️

Please see the step-by-step instructions on how to send a request through.

To request a reduced downpayment, the program must have at least $10,000 in gross premium. Programs lower the this amount will not be eligible for modification.

• A request to change the payment schedule is allowed on a loan that is greater than $250.00. This does not require an underwriting review.

To best accommodate your customers, we have expanded payment plans to include:

Down Payment and Interest Rate Adjustments

• Down payments and interest rates can only be increased

• Requests for a decreased downpayment or interest rate can be made via the chat

Payment Schedules

• 10-pay, 9-pay, and 6-pay (monthly)

• 4-pay (quarterly)

• 2-pay (semi-annual)

1. From the program page, click the Request loan terms button under the Payment options section

   

2. Make the desired updates on the fields you want to change:

3. DOWNPAYMENT: Lowering the downpayment on a program will always require review by our Underwriting Team.

   1. Downpayment can only be lowered on programs with over $10,000 in gross premium.

   2. You'll receive an email from our system when the request is sent and when the request is completed. Please ensure the quote and/or invoice docs are attached when requesting a lowered downpayment.

4. APR: The APR on a finance agreement can, at times, be adjusted within 2 percent of the program's base rate.

5. PAYMENT TERMS: Select from the drop-down.

   1. PLEASE NOTE: Quarterly and semi-annual payment plans require a higher down payment, which will automatically be updated.

How long does it take for an Underwriting Request to be reviewed for lowered downpayment?

• Requests are typically processed within one business day, and you will receive an email once the review has been completed.

Can I change the payment schedule for an Active Program?

• If the insured has already purchased their program, the monthly payment schedule cannot be changed. The payment schedule can only be changed before the customer purchases the policies.

Why does changing the number of payments increase downpayment?

• For quarterly and semiannual payment plans, the downpayment will be increased to 35% and 45%, respectively, to meet underwriting requirements. Due to the longer periods of time in between receiving payment from the insured, the risk on the loan is increased, which requires a higher downpayment.

Need more help? Contact us at support@useascend.com for more help.