Trade/Collateral Tab

The Trade/Collateral tab manages information about collateral securing a loan and any trade-in vehicles or assets. This tab is essential for secured lending products like auto loans, recreational vehicle loans, and secured personal loans.

Tab Overview

The Trade/Collateral tab includes:

Section	Description
Collateral Information	Details about the securing asset
Vehicle Valuation	Value lookup and assessment
Trade-In	Trade-in vehicle details
Lien Information	Existing liens and payoffs
Title Status	Title and ownership tracking

Collateral Information

Vehicle Collateral

For auto and recreational vehicle loans:

Field	Description	Example
Year	Model year	2024
Make	Manufacturer	Toyota
Model	Vehicle model	Camry
Trim	Trim level	SE
VIN	Vehicle ID Number	1HGBH41JXMN109186
Mileage	Current odometer	15,234
Condition	Vehicle condition	Excellent
Color	Exterior color	Silver

Property Collateral

For home equity and secured loans:

Field	Description
Property Type	Single family, Condo, etc.
Address	Property address
Estimated Value	Property value
Owner	Property owner
Occupancy	Primary, Secondary, Investment

Other Collateral

For other secured loans:

Field	Description
Collateral Type	Type of asset
Description	Detailed description
Value	Assessed value
Serial Number	Identifying number
Location	Where asset is located

Vehicle Valuation

Valuation Sources

Source	Description	Use Case
NADA	National Automobile Dealers Association	Standard retail/trade values
Kelley Blue Book	KBB valuations	Consumer-focused values
Black Book	Wholesale values	Dealer and lender use
J.D. Power	PIN valuations	Detailed vehicle data

Value Types

Value Type	Description
Retail	Dealer selling price
Trade-In	Dealer purchase price
Private Party	Individual sale price
Wholesale	Auction/dealer-to-dealer
Loan Value	Typical lending value

Running Valuation

Enter vehicle information (Year, Make, Model, Trim)
Enter VIN for exact match
Select condition and mileage
Click Get Values
Review valuation results

Valuation Results

┌─────────────────────────────────────────────────────┐
│  2024 Toyota Camry SE                              │
│  VIN: 1HGBH41JXMN109186 | 15,234 miles            │
├─────────────────────────────────────────────────────┤
│  NADA Values (Excellent Condition):               │
│  • Clean Retail:      $28,450                     │
│  • Clean Trade-In:    $25,200                     │
│  • Clean Loan:        $26,825                     │
├─────────────────────────────────────────────────────┤
│  Recommended Max LTV: 120%                         │
│  Max Advance:         $32,190                     │
└─────────────────────────────────────────────────────┘

Loan-to-Value (LTV)

LTV Calculation

LTV = (Loan Amount ÷ Collateral Value) × 100

Example:
Loan Amount: $25,000
Collateral Value: $28,450
LTV = ($25,000 ÷ $28,450) × 100 = 87.9%

LTV Guidelines

LTV Range	Risk Level	Notes
Less than 80%	Low	Well-secured
80-100%	Moderate	Adequately secured
100-120%	Higher	May require GAP insurance
Over 120%	High	Additional collateral needed

Combined LTV (CLTV)

For refinance with payoff:

CLTV = (New Loan + Existing Payoff) ÷ Value × 100

Trade-In

Trade-In Information

Field	Description
Year/Make/Model	Trade vehicle details
VIN	Trade vehicle VIN
Mileage	Current odometer
Condition	Vehicle condition
Trade Value	Agreed trade value
Payoff Amount	If loan exists
Net Trade	Value minus payoff

Trade-In Calculation

Trade-In Value:      $12,500
Existing Payoff:   - $8,200
──────────────────────────────
Net Trade Equity:    $4,300 (Positive)

OR

Trade-In Value:      $10,000
Existing Payoff:   - $14,500
──────────────────────────────
Negative Equity:     -$4,500 (Rolled into new loan)

Handling Negative Equity

When trade-in has negative equity:

Negative equity added to new loan
Increases LTV ratio
May affect approval or rate
GAP insurance often recommended

Lien Information

Current Liens

For payoffs on trade-ins or refinances:

Field	Description
Lienholder	Current lender name
Account Number	Loan account number
Payoff Amount	Amount to pay off
Per Diem	Daily interest accrual
Good Through Date	Payoff valid until
Phone	Payoff department phone

Obtaining Payoffs

Click Request Payoff
Enter lienholder information
System retrieves payoff (if integrated)
Or manually enter payoff details
Document payoff source

Payoff Calculation

Base Payoff:         $15,234.56
+ Per Diem (10 days):    $52.30
──────────────────────────────
Total Payoff:        $15,286.86

Title Status

Title Tracking

Status	Description
Pending	Title not yet received
Received	Title in possession
Sent for Lien	Sent to add lien
Perfected	Lien recorded
Released	Lien released (paid off)

Title Information

Field	Description
Title Number	State title number
Title State	State of issuance
Owner Name	Name(s) on title
Lien Holder	Current lienholder
Lien Date	When lien recorded

Title Documents

Track title-related documents:

Title application
Power of Attorney
Bill of Sale
Lien release (payoffs)
Title assignment

Insurance

Required Insurance

For collateral protection:

Coverage	Requirement
Collision	Required for vehicles
Comprehensive	Required for vehicles
Minimum Coverage	Based on loan amount
Deductible Max	Typically $500-$1,000

Insurance Verification

Field	Description
Insurance Company	Name of insurer
Policy Number	Policy number
Effective Date	When coverage starts
Expiration Date	When coverage ends
Coverage Amounts	Liability limits
Deductible	Out-of-pocket amount

Adding Lender as Lienholder

Insurance must list lender:

Verify insurance coverage
Provide lienholder information
Request loss payee clause
Obtain insurance binder
File in documents

Dealer Information

For Indirect Loans

Field	Description
Dealer Name	Dealership name
Dealer Code	Internal dealer ID
Contact	Dealer contact person
Phone	Dealer phone number
Address	Dealer address

Dealer Documentation

Required dealer documents:

Buyer's Order
Purchase Agreement
Invoice
Trade-in documents (if applicable)
Warranty information

Best Practices

Collateral Verification

Verify VIN matches documents
Confirm mileage is reasonable
Check for title issues
Validate insurance coverage
Document condition assessment

Valuation Tips

Use multiple valuation sources
Adjust for condition accurately
Consider local market factors
Document unusual circumstances
Get manager approval for exceptions

Title Processing

Track title receipt dates
Follow up on delayed titles
Verify lien perfection
Maintain title document copies
Handle out-of-state titles properly

Continue to Credit Analysis Tab to learn about underwriting analysis.

Tab Overview​

Collateral Information​

Vehicle Collateral​

Property Collateral​

Other Collateral​

Vehicle Valuation​

Valuation Sources​

Value Types​

Running Valuation​

Valuation Results​

Loan-to-Value (LTV)​

LTV Calculation​

LTV Guidelines​

Combined LTV (CLTV)​

Trade-In​

Trade-In Information​

Trade-In Calculation​

Handling Negative Equity​

Lien Information​

Current Liens​

Obtaining Payoffs​

Payoff Calculation​

Title Status​

Title Tracking​

Title Information​

Title Documents​

Insurance​

Required Insurance​

Insurance Verification​

Adding Lender as Lienholder​

Dealer Information​

For Indirect Loans​

Dealer Documentation​

Best Practices​

Collateral Verification​

Valuation Tips​

Title Processing​