How to add a funding lender?

To add a funding lender:

Click on Loan Servicing in the left panel of The Mortgage Office®.
Click the Loans drop-down.
Click on All Loans.
From the grid, select the loan to add a funding lender.

TIP: If the record you want to delete is not visible, use the grid's vertical scroll bar to scroll the contents of the grid up or down, or use Find to search for the record by entering your own search criteria. For additional information see How to Use Find and How to Use the Data Grids.

Click Edit from the options available on the top panel, or double-click on the record to open it for editing.
Click Funding from the vertical menu on the left.
Click Add Lender from the top panel.
Enter the following information:

TIP: You can add the same lender more than once to the same loan to account for different servicing fee arrangements per fundings.

Field:	Description:
Lender Account	Enter the lender's Account number or click to open a lookup window that allows you to select a lender from a list of existing records. For more details see How to use lookup windows.
Lender Name & Address	The lender's name and address are displayed when a valid lender account is entered. This is a read-only field.
Rounding Adjustment	Select to adjust this lender if a rounding adjustment is necessary during payment distribution. TIPS: When loans are funded by more than one lender, there may come a time when the amount of the payment cannot be distributed completely due to rounding errors. For example, if you have a $9,000.00 loan which is funded equally by three lenders ($3,000.00 each), then each lender owns a third of the loan. The problem arises, if the borrower makes a $100.00 payment. Two lenders will receive $33.33, and the one with this option selected will receive $33.34. Only one lender at a time can have this option selected.

Click the Lender Rate tab and enter the information below:

Field:	Description:
Note Rate	This is the loan's note rate. This is a read-only field.
Sold Rate	This is the loan's sold rate (or note rate if a sold rate was not selected). This is a read-only field. TIP: The use of the loans sold rate in combination with the lender rate enables you to handle many investment situations which would otherwise be very cumbersome to implement. For example, you can easily setup a loan with a fixed or varying rate to the borrower, and each individual funding lender with effective rate which is fixed, varying in synch with the borrowers note rate or varying independently with an arbitrary step-rate schedule.
Rate Modifier	Select this option to add or subtract an amount to arrive at the lender's effective rate. For example: if the loan has a sold rate of 12.00% and a rate modifier of -2.00%, then lender's effective rate is 10.00%. Use this rate if the loan's sold rate fluctuates (such as with an ARM or step-rate loan) and you want the lender's effective rate to fluctuate as well.
Fixed Rate	Select this option to enter a fixed interest rate for this lender.
Lender Rate	This is the resulting interest rate used to calculate accrued interest for this lender in this investment. Note that the same lender may have one or more funding records in the same loan, each having different effective rates and servicing fee options. Click the Servicing Fees tab and enter the information below:

Click Servicing Fee tab and enter the information below:

Field:

Description:

Broker Servicing Fee

Select this option and enter the information below if you are charging a servicing fee to this lender which is payable to the broker:

Field:	Description:
% of Principal Bal	Enter the annualized rate to use against the lender's portion of the loan's principal balance. EXAMPLE: For example, 1.000% fee for a lender owning a $10,000 investment on a monthly loan is calculated as follows: Servicing Fee = $10,000 x .01 / 12 = $8.33
Plus Amount	Enter an additional flat dollar amount to be charge as a servicing fee.
or Minimum	Enter a dollar amount as the minimum servicing fee this lender will pay. TIP: To charge a flat servicing fee of $5.00, enter zero for the two previous fields and $5.00 as a minimum fee.

Vendor Servicing Fee

Select this option and enter the information below if you are charging a servicing fee to this lender which is payable to a third party (vendor):

Field	Description
% of Principal Bal	Enter the annualized rate to use against the lender's portion of the loan's principal balance. EXAMPLE: 1.000% fee for a lender owning a $10,000 investment on a monthly loan is calculated as follows: Servicing Fee = $10,000 x .01 / 12 = $8.33
Plus Amount	Enter an additional flat dollar amount to be charge as a servicing fee.
or Minimum	Enter a dollar amount as the minimum servicing fee this lender will pay. TIP: To charge a flat servicing fee of $5.00, enter zero for the two previous fields and $5.00 as a minimum fee.
Vendor Account	Enter the vendor's Account number. TIP: Click to open a lookup window that allows you to select a vendor from a list of existing records. For more details see How to Use Lookup Windows.

Goods and Services Tax (GST)

Select this option to charge goods and services tax (GST) on the total servicing fees paid by this lender.

TIPS:

This option is only available if you have selected Canada or Australia in Options, User Preferences, Regional.
You must also enter the GST rate and GST vendor account in Options, Loan Servicing, General.

The Disbursements tab is read-only until you save the record.
Once the record is saved, add the disbursement information below:

Field:	Description:
Account	Enter the payee's Account number. TIP: Click to open a lookup window that allows you to select a lender from a list of existing records. For more details see How to Use Lookup Windows.
Name & Address	The payee's name and address is displayed when a valid lender account is entered. This is a read-only field.
Active	Check this box to activate the disbursement. Leave the box unchecked to leave the disbursement unactive.
Percentage	Notate the percentage of the payment being disbursed.
of	Notate what element the disbursement is being disbursed from. The options are: Principal Paid Principal Balance Interest (Gross) Interest (Less Serv. Fees) Interest (Less Other Pmts) P&I Paid (Gross) P&I Paid (Less Serv. Fees)
Plus Amount	Enter a flat amount to be disbursed, added to the percentage entered above.
or Minimum	Enter a minimum amount to be disbursed. NOTE: If the percentage or flat amount you notated above is less than the minimum amount, the amount entered here will be disbursed.
Transaction Type	Enter to classify this transaction as a Servicing Fee or as a Disbursement.
Description	Enter a Description for this transaction.
Applies To	Check the box next to each type of transaction the disbursement should be applied to.

Click to save or to abort.

How to add a funding lender?

Use Add Funding Lender to account for initial and incremental funding, and to transfer funding between lenders.

To add a funding lender: