Lender Frequently Asked Questions
Q: Do you need a membership for E22 services?
A: No, you do not need a membership, nor do we offer them at this time. All of our services are A La Carte, designed for maximum flexibility for your credit union.
Q: Our Credit Union would like E22 to underwrite a business loan, but am unsure what rate, reporting requirements, etc. to use. How do I go about this?
A: Our underwriters can recommend a rate or reporting requirements based on each borrower’s unique lending needs. When filling out the Lender Submission Form for underwriting, just note ‘E22 to recommend’ in the corresponding areas.
Q: Does Element 22 contact the borrowers for information or does the Credit Union?
A: Either! For some of our clients, we handle all communication with the borrower from the application to closing. Other times, we funnel all questions through the loan officer, who keeps in touch with the borrower.
Q: When are operating agreements & bylaws needed in commercial lending?
A: Operating Agreements and Bylaws are organizational legal documents that outline the internal procedures related to a business’s financial and operational decisions and ownership. An operating agreement is specific to an LLC with more than one member. A sole member LLC does not require an operating agreement in Michigan. Bylaws are for corporations only. Corporations would generally be governed by a board with elected officers. Element 22 will ask for Bylaws and Operating Agreements for Documentation Requests, so we know who is able to sign on behalf of the business entity. We may also request either of these items in underwriting to help determine ownership. This is not legal advice. You should direct your borrower to consult their legal counsel with any questions or when creating either of these documents.
Q: Our Credit Union has a business loan, but we do not want to fund the whole thing. Can Element 22 assist?
A: Element 22 is happy to assist in the participation process, and we have lots of experience doing so. Let us know how much your Credit Union is comfortable taking, and we can reach out to our network of Lenders to participate your loan out.
Q: Can our Credit Union use Element 22's services for loans to individuals?
A: While we do not do personal loans to individuals, we are able to do loans to individuals for business purposes. In other words, if there is no business entity present but the purpose is for commercial/business use, we are able to assist with this loan.