A lien is a legal claim to property. Members who have Navy Federal loans secured by collateral (e.g., autos, boats, motorcycles, or other leisure vehicles) must ensure their Proof of Ownership, or title, is registered at their state Department of Motor Vehicles (DMV) with Navy Federal listed on the title as first lien holder. If a member defaults on a collateral loan, Navy Federal can exercise its legal claim to the property.
Collateral Purchased from a Private Seller
Take the title, bill of sale, and promissory note to the DMV, register the vehicle in your name, and record Navy Federal as the first lien holder. In most cases, the DMV will send the title to Navy Federal.
Collateral Purchased from a Dealer
In general, the dealer will complete the DMV registration and lien placement, and the DMV will forward the title to Navy Federal. If the dealer is not completing the registration and lien placement, take the title, bill of sale, and promissory note to your local DMV and record Navy Federal as the first lien holder.
Navy Federal accepts a copy of the military registration, foreign registration, notarized copy of the bill of sale, or copy of the Manufacturer's Statement of Origin (MSO) only if the member is not titling the vehicle overseas. Navy Federal will hold the copy until the member returns stateside, registers the vehicle at the DMV, and records Navy Federal as first lien holder on the title.
Members are required to submit the identification number(s) for the collateral secured on a loan to Navy Federal. These include vehicle identification numbers (VINs), serial numbers, hull numbers, or N-numbers as applicable.
In any situation, should you receive the title after registration and lien placement, simply forward it to Navy Federal using the envelope provided in your loan package or mail it to:
Navy Federal Credit Union
PO Box 25109
Lehigh Valley, PA 18002