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Business Math - Lending and Credit course (print)

Business Math - Lending and Credit course (print)

Product Code:
S1306M

This course will familiarize you with calculations that are part of the lending and credit functions of a credit union.

Includes:
  • One CPD Online Complimentary Exam

  • $110.00
    Non Member Price
  • $55.00
    CUNA Member Price
 
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Good math skills are an important core competency for most credit union employees. This course will familiarize you with calculations that are part of the lending and credit functions of a credit union. This course features interactive online activities as a part of the print-based course. See them for yourself.

This is a CUNA STAR course.

Topics include:

Basic Lending Concepts and Calculations:

  • List four reasons math skills are important for credit union employees
  • Compare and contrast key features of open-end credit and closed-end credit
  • Define finance charge and annual percentage rate (APR) according to the Truth-in-Lending Act
  • Describe techniques for converting percentages to decimals, rounding numbers, and counting days when calculating interest
  • Explain techniques for helping members understand calculations

Closed-End Loans:

  • State the formula and calculate a simple interest payment for a closed-end loan
  • Define amortization
  • Define balloon loan and describe how payments differ from a fully amortized loan
  • Describe the process for calculating APR and the finance charge on a closed-end loan
  • Explain how two loans with the same annual rate of interest can have different APRs
  • Describe types of nonregular payments and how your credit union handles them

Helping Members Compare Rates and Loans:

  • Explain how to analyze the full cost of balance transfers on credit cards
  • Calculate add-on interest and loan payments and explain when a higher-rate credit union loan costs less
  • Describe how to compare rent-to-own payment plans to a credit union loan
  • Calculate the annual rate of interest on a short-term payday loan
  • Explain how to help members compare the offer of a rebate or car dealer financing to a credit union car loan

Loan Ratios:

  • Describe the purpose of a ratio and the calculation method
  • Calculate debt-to-income ratios and explain how credit unions evaluate them according to loan policies
  • Calculate disposable income for underwriting purposes
  • Calculate monthly housing expense ratios
  • Calculate total-obligations-to-income ratios
  • Calculate loan-to-value ratios

Mortgage Loans:

  • Calculate mortgage loan interest by using a 360-day year and 30-day month
  • Explain how a biweekly mortgage payment reduces total interest paid and loan term
  • Describe what loan costs members need to consider beyond APR when comparing mortgage loan programs
  • Explain how a shorter loan term affects interest paid and payment amounts on amortized loans and balloon loans
  • Define key features of adjustable-rate mortgage (ARM) loans and how they affect monthly payments
  • Describe special issues regarding principal-only payments and early payoffs on mortgage loans

Open-End Credit:

  • Define and calculate the average daily balance on an open-end credit account
  • Define and calculate a daily periodic rate and monthly periodic rate from a given annual interest rate
  • Calculate the interest for a billing period on an open-end credit account using the daily periodic rate or monthly periodic rate
  • Explain how grace periods affect interest calculation on open-end credit accounts
  • Calculate the amount of a minimum payment on a given open-end credit account
  • Explain how to disclose the APR on a given open-end credit account with no charges other than interest

A comprehensive exam for all 6 courses is included through CUNA Professional Development Online (CPD Online). Additional exams can be purchased for $24.50 each.

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Have a question? Email or call 800-356-8010 ext. 3.