Loan Origination and Servicing

Our loan origination, accounting and servicing software solutions automate and streamline Association lending activities.

Loan Origination

Our loan origination tools provide integrated solutions to help Associations efficiently lend to agricultural borrowers across all lines of business, including commercial, consumer, mortgage, home equity LOCs and point of sale.

These tools help Associations manage, track and stay up to date with lending activity throughout the lending process. Automated workflows guide loan origination, modification and ongoing portfolio management tasks, enabling Associations to:

• Easily process loan applications for all eligible commercial and consumer credits.
• Price loans and lock rates through the AgFirst Pricing System.
• Perform comprehensive underwriting, including credit analysis.
• Use scoring and rescoring to determine creditworthiness and support automatic decisions.
• Generate credit presentations.
• Perform due diligence tracking.
• Request appraisals.
• Track and monitor pre-and post-closing tasks.
• Manage approvals.
• Generate disclosures and loan documents, including all applicable state, federal and Farm Credit requirements.
• Automatically upload loans to our loan accounting systems.
• Facilitate portfolio management.

Commercial and consumer compliance is a core competency of AgFirst. Our loan origination solution provides a fully integrated document solution that automatically generates documents for most types of commercial and consumer transactions, including the Consumer Financial Protection Bureau’s Integrated Disclosure requirements (TILA-RESPA). AgFirst’s Legal and Operations teams collaborate with Associations, outside counsel and industry advisors to ensure our disclosures, loan documents, system triggers and related processes are accurate and timely. Our documentation complies with all state, federal and Farm Credit requirements. In addition to standard disclosures, our extensive library of mortgages, deeds, notes and Association custom documents offers an expansive portfolio of loan documents to support Association lending.

Credit Analysis

AgFirst offers advanced credit analysis and decisioning capabilities for loan portfolios of all complexities. Solutions provide a wide range of features, including relationship exposure compilation, manual and automated underwriting, financial statement spreading, risk rating models, and a streamlined credit memo documentation and approval process.

AgFirst offers several software solutions to support credit analysis and lending processes:

FIS’ Credit Assessment and Moody’s CreditLens: These solutions provide financial statement spreading and risk rating models, allowing Associations to establish uniform processes and conduct consistent analysis of credit requests. Credit Assessment allows for extensive financial analysis and offers probability of default and loss given default calculators. It also enables lenders to create and print custom reports.

AgVUE Credit Request: This workflow solution includes:

• The ability to connect relationships and organize them into exposure structures for automated calculations.
• Scoring backed by FICO’s SBSS model.
• Automated underwriting and recommendations.
• The ability to capture and consolidate multiple credit requests into a single package for approvals.

Loan Servicing

AgFirst maintains a full complement of loan accounting and servicing software solutions to automate and streamline Association lending activities. Our loan servicing solutions handle a wide range of duties and processes, including:

• Uploading loans to loan accounting systems.
• Disbursing funds to borrowers.
• Recording payments.
• Managing patronage payments.
• Meeting regulatory requirements.

AgFirst’s solutions handle the details involved in loan servicing and maintain accurate and timely loan accounting and operations for Associations.

New loans and loan modifications are automatically uploaded to loan accounting systems from our loan origination solution. Our systems handle loans of all types and sizes, from home equity lines of credit to large participation loans. AgFirst staff oversees system controls and administration and provides loan accounting support to Associations. AgFirst is responsible for the integrity of the loan systems, as well as loan data on Association general ledgers. We also reconcile key regulatory reports and support required loan data reporting to the Funding Corporation and Farm Credit Administration.

Loan Accounting

AgFirst’s loan accounting and servicing solutions support a broad range of loan products, including term loans, revolving and non-revolving commitment loans, as well as home equity lines of credit, adjustable rate mortgages, and letters of credit. These solutions offer actual balance and scheduled balance accounting and handle loans with one or multiple payment schedules. AgFirst supports Funds Held (Voluntary Advance Conditional Payment Accounts), as well as traditional escrow functionality. Our systems also manage high risk accounting, where the financial record is independent of the contractual record.

AgFirst’s loan systems have been configured to meet the unique challenges of agricultural lending and support Farm Credit customized products. Our systems support both direct loans and participation/syndication assets, including Rural America Bonds, investment instruments, other property owned portfolios, and direct note processing. Our systems offer extensive reports to support portfolio analysis, board review and risk and regulatory reporting. AgFirst has configured our Advanced Commercial Banking System (ACBS) to support the automated purchase and sale of loan assets among AgFirst and affiliated Associations. This enables purchases, sales and ongoing loan actions and servicing to be facilitated by the seller, allowing purchasers to monitor activity in ACBS rather than requiring them to process transactions in the system.

Receipts and Disbursements

AgFirst’s loan receipts and disbursement solution, FrontEnd, streamlines teller processing. It brings together data from multiple loan and equity systems and automatically creates and posts general ledger data for ease of use. This simple, intuitive system eliminates the need for detailed knowledge of the processing rules for different systems, reducing training time for Association staff. With FrontEnd, most new processers can be fully trained within a day. FrontEnd also captures the data needed for 1099-MISC reporting and reports on disbursements. Furthermore, FrontEnd tracks cash payments for potential reporting, simplifying an otherwise laborious task.

Loan Checks

Loan Checks provides an easy and efficient solution for Associations to print checks for customers. The solution interfaces with AgFirst’s loan origination and receipts and disbursements systems. Positive Pay files, including payee match, are produced and transmitted several times a day. A reconciliation feature allows the import of paid checks, which will mark items paid and identify any exceptions.

Wire Transfer

AgFirst initiates Fedwires through a third-party solution, Global Funds Exchange (GFX). This solution automates secure wire transfers in real time and provides an intuitive user interface to process advances and payments. GFX provides automated reviews for possible duplication, Office of Foreign Asset Control (OFAC) security screenings, and other audit and security controls. Our GFX system generates all necessary general ledger transactions and eliminates the need for Associations to make manual entries.

IRS Reporting

AgFirst coordinates IRS reporting for Associations, including validation of the initial load of information, support of Association updates, and production of the physical forms for customers. We also file submission to the IRS. Our solution captures and reports 1098 and 1099 information to the borrower and the IRS, and users are able to add, delete and update amounts as needed. AgFirst also facilitates a validation of customer names and tax identification numbers with the IRS. This validation is performed multiple times each year to ensure accuracy and allow for updates prior to reporting to the IRS.

Equity Management and Patronage

AgFirst provides a turnkey solution for member equity refunds. Our staff coordinates the preparation and calculation of refunds, update of member records, and production and distribution of checks and notices in a timely manner. If an Association wants to subsequently revolve any qualified or nonqualified surplus back to their members, they simply provide the parameters and AgFirst handles it on their behalf.

Billing

AgFirst generates all billing statements for our Associations. Billing statements are available electronically, via Digital Banking, and hard copies can be generated and mailed as well. Statements display detailed information regarding the amount due and other pertinent information about the loan, including balance, rate and interest paid. Association operations staff can view statements in the system, as needed, to support any customer questions or service requests. The coupon portion of the billing statement is used to remit payment to our lockbox or the Association. Additionally, Associations can display custom messages on the statements.

Collateral Vault

AgFirst provides a centralized Collateral Vault for Associations, offering a secure, fireproof environment that meets industry standards for retaining and securing collateral documents. This service also includes document administrative functions, including verification of key record fields, timely document research, copies and returns as requested.

Regulatory Borrower Notices

AgFirst’s loan systems automatically generate notices required by Regulation Z and Borrowers Rights. Notices are processed and mailed directly to borrowers and copies of notices are stored and available to Associations.