The funding process is an essential part of the initial loan setup and must be completed before any payments can be processed for a loan. The Mortgage Office® powerful and flexible funding engine allows for one or more lenders to participate in the loan with varying servicing fees. Loans can be funded all at once or incrementally during the life of the loan. Mid-period funding and sales/purchases are easily entered and accurately distributed.
Use the 
Add Funding assistant to account for initial and incremental funding, and also to transfer loan ownership between lenders.
TIP: Funding increases the loan's principal balance.
There are 3 ways to add funding to a conventional loan in The Mortgage Office®: from the All Loans grid, from the loan file, or through Tasks & Reports.
To add funding from the All Loans grid:
- Click on
Loan Servicing in the left panel of The Mortgage Office®. - Click the Loans drop-down.
- Click Conventional below All Loans from the menu located on the left of the window.
- From the grid, select the loan to add funding.
TIP: If the record you want to edit is not visible, use the grid's vertical scroll bar to scroll the contents of the grid up or down, or click 
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
from the options available on the top panel and select 
Add Funding from the list.
- Enter the following information:
TIP: When entering a funding directly from the All Loans grid, the Loan Account field and Current Principal Balance fields are disabled and automatically populated with the loan's account number and primary borrower's name, and principal balance.
| Field: | Description: | ||
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Loan Account |
Enter the loan's Account number. Click
 to open a lookup window that allows you to select a record from a list of existing records. For more details see How to use lookup windows. |
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Borrower Name |
The primary borrower's name and address is displayed when a valid loan account is entered. This is a read-only field. | ||
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Current Principal Bal. |
The loan's current principal balance is displayed when a valid loan account is entered. This is a read-only field. | ||
|
Funding Date |
Enter the date of the funding. The default is today's date. IMPORTANT: The funding date determines whether the borrower pays a full-period worth of interest or whether interest is prorated to account for a mid-period funding. This date also determines whether the lenders periodic ownership must be adjusted to account for funds received mid-period.
TIP: Funding dates less than or equal to the loan's Paid to Date are assumed full period. For example, a funding date of 3/1/2007 to a loan with a paid-to-date of 3/1/2007 will accrue a full period worth of interest (no proration of interest).
How Borrower’s Interest is Prorated with a Mid-Period Funding:
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Reference |
Enter a reference number. (Maximum of 10 characters) | ||
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Funding Amount |
Enter the total amount of the funding. TIP: Enter a zero-dollar amount to record a sale/purchase or transfer of ownership between two or more lenders.
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Select Trust Account |
Select a trust account from the drop-down list. |
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Notes |
You may enter up to 255 characters to describe the transaction. The notes are attached the loan's transaction and funding history. TIP: The notes entered are for internal use only and are not disclosed to the borrower or lenders.
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- Click Next.
TIP: The Next button is disabled until the following conditions are met:
- Valid loan account
- Valid funding date
- Funding amount is not blank (You can enter a zero to transfer funds between lenders)
- The Distribute Funding Amount step is used to distribute the amount of the draw between one or more lenders. Upon entry, the grid is populated with all the lenders currently funding this loan and it displays each lender's account, name and percentage of ownership. The table below contains a list of the grid's available options:
| Buttons: | Description: |
 |
If needed, click to add one or more new funding lenders. To learn more read How to add a funding lender. TIP: The total funding amount must be distributed before the TIP: Enter a negative number to account for a purchase/sale or transfer of ownership between lenders. For example, if lender A is selling $5,000 of his ownership to lender B, then enter -$5,000 for lender A and $5,000 for lender B. |
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Click to reset all amounts to zero. |
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Click to distribute the funding amount to all lenders, based on their ownership percentage. |
Next button is enabled.
TIP: Check the 
next to the lender to automatically withdraw the funding amount from the lender's designated bank account via ACH. You can Select All or Clear All lenders using the hyperlinks at the bottom of the form.
The lender ACH information must be setup prior to using this functionality. To learn more see Setting Up Lender ACH Information.
TIP: The total funding amount must be distributed before the 
Next button is enabled.
TIP: Enter a negative number to account for a purchase/sale or transfer of ownership between lenders. For example, if lender A is selling $5,000 of his ownership to lender B, then enter -$5,000 for lender A and $5,000 for lender B.
- Click Apply to enter the funding and update all files or Cancel to abort.
- Click Next.
- Click Apply to update the loan or Cancel to abort.
TIP: You may use the Next and Back buttons as needed to retrace your steps and make corrections.
To add funding from the loan file:
- Click on Loan Servicing in the left panel of The Mortgage Office®.
- Click the Loans drop-down.
- Click Conventional below All Loans from the menu located on the left of the window.
- From the grid, select the loan to add funding to.
TIP: If the record you want to edit is not visible, use the grid's vertical scroll bar to scroll the contents of the grid up or down, or click 
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
from the options available on the top panel or double-click on the loan. - Click
Funding in the navigation panel on the left. - Click Add Funding to open the Add Funding assistant.
- Enter the following information:
TIP: When entering a funding directly from a loan file, the Loan Account field is disabled and automatically populated with the loan's account number and primary borrower's name, and principal balance.
| Field: | Description: | ||
|
Loan Account |
Enter the loan's Account number. Click
to open a lookup window that allows you to select a record from a list of existing records. For more details see How to use lookup windows. |
||
|
Borrower Name |
The primary borrower's name and address is displayed when a valid loan account is entered. This is a read-only field. | ||
|
Current Principal Bal. |
The loan's current principal balance is displayed when a valid loan account is entered. This is a read-only field. | ||
|
Funding Date |
Enter the date of the funding. The default is today's date. IMPORTANT: The funding date determines whether the borrower pays a full-period worth of interest or whether interest is prorated to account for a mid-period funding. This date also determines whether the lenders periodic ownership must be adjusted to account for funds received mid-period.
TIP: Funding dates less than or equal to the loan's Paid to Date are assumed full period. For example, a funding date of 3/1/2007 to a loan with a paid-to-date of 3/1/2007 will accrue a full period worth of interest (no proration of interest).
How Borrower’s Interest is Prorated with a Mid-Period Funding:
|
||
|
Reference |
Enter a reference number. (Maximum of 10 characters) | ||
|
Funding Amount |
Enter the total amount of the funding. TIP: Enter a zero-dollar amount to record a sale/purchase or transfer of ownership between two or more lenders.
|
||
|
Select Trust Account |
Select a trust account from the drop-down list. |
||
|
Notes |
You may enter up to 255 characters to describe the transaction. The notes are attached to the loan's transaction and funding history. TIP: The notes entered are for internal use only and are not disclosed to the borrower or lenders.
|
- Click
Next.
TIP: The Next button is disabled until the following conditions are met:
- Valid loan account
- Valid funding date
- Funding amount is not blank (You can enter a zero to transfer funds between lenders)
- The Distribute Funding Amount step is used to distribute the amount of the draw between one or more lenders. Upon entry, the grid is populated with all the lenders currently funding this loan and it displays each lender's account, name and percentage of ownership. The table below contains a list of the grid's available options:
| Buttons: | Description: |
|
If needed, click to add one or more new funding lenders. To learn more read How to add a funding lender. TIP: The total funding amount must be distributed before the TIP: Enter a negative number to account for a purchase/sale or transfer of ownership between lenders. For example, if lender A is selling $5,000 of his ownership to lender B, then enter -$5,000 for lender A and $5,000 for lender B. |
|
|
Click to reset all amounts to zero. |
|
|
Click to distribute the funding amount to all lenders, based on their ownership percentage. |
TIP: Check the next to the lender to automatically withdraw the funding amount from the lender's designated bank account via ACH. You can Select All or Clear All lenders using the hyperlinks at the bottom of the form.
The lender ACH information must be setup prior to using this functionality. To learn more see Setting Up Lender ACH Information.
TIP: The total funding amount must be distributed before the Next button is enabled.
TIP: Enter a negative number to account for a purchase/sale or transfer of ownership between lenders. For example, if lender A is selling $5,000 of his ownership to lender B, then enter -$5,000 for lender A and $5,000 for lender B.
-
- Click Apply to enter the funding and update all files or Cancel to abort.
- Click Next.
- Click Apply to update the loan or Cancel to abort.
TIP: You may use the Next and Back buttons as needed to retrace your steps and make corrections.
To add funding from Tasks & Reports:
- Click on Loan Servicing in the left panel of The Mortgage Office®.
- Click on Tasks & Reports.
- In the Loan Transactions section, click Add Funding (Conventional).
- Enter the following information:
| Field: | Description: | ||
|
Loan Account |
Enter the loan's Account number. Click
to open a lookup window that allows you to select a record from a list of existing records. For more details see How to use lookup windows. |
||
|
Borrower Name |
The primary borrower's name and address is displayed when a valid loan account is entered. This is a read-only field. | ||
|
Principal Balance |
The loan's current principal balance is displayed when a valid loan account is entered. This is a read-only field. | ||
|
Funding Date |
Enter the date of the funding. The default is today's date. IMPORTANT: The funding date determines whether the borrower pays a full-period worth of interest or whether interest is prorated to account for a mid-period funding. This date also determines whether the lenders periodic ownership must be adjusted to account for funds received mid-period.
TIP: Funding dates less than or equal to the loan's Paid to Date are assumed full period. For example, a funding date of 3/1/2007 to a loan with a paid-to-date of 3/1/2007 will accrue a full period worth of interest (no proration of interest).
How Borrower’s Interest is Prorated with a Mid-Period Funding
|
||
|
Reference |
Enter a reference number. (Maximum of 10 characters) | ||
|
Funding Amount |
Enter the total amount of the funding. TIP: Enter a zero-dollar amount to record a sale/purchase or transfer of ownership between two or more lenders.
|
||
|
Funding Fee |
Enter a fee to charge for adding funding. Enter $0.00 if you are not charging a fee. |
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Select Trust Account |
Select a trust account from the drop-down list. |
||
|
Notes |
You may enter up to 255 characters to describe the transaction. The notes are attached the loan's transaction and funding history. TIP: The notes entered are for internal use only and are not disclosed to the borrower or lenders.
|
- Click Next.
TIP: The Next button is disabled until the following conditions are met:
- Valid loan account
- Valid funding date
- Funding amount is not blank (You can enter a zero to transfer funds between lenders)
- The Distribute Funding Amount step is used to distribute the amount of the draw between one or more lenders. Upon entry, the grid is populated with all the lenders currently funding this loan and it displays each lender's account, name and percentage of ownership. The table below contains a list of the grid's available options:
| Buttons: | Description: |
|
If needed, click to add one or more new funding lenders. To learn more read How to add a funding lender. TIP: The total funding amount must be distributed before the TIP: Enter a negative number to account for a purchase/sale or transfer of ownership between lenders. For example, if lender A is selling $5,000 of his ownership to lender B, then enter -$5,000 for lender A and $5,000 for lender B. |
|
|
Click to reset all amounts to zero. |
|
|
Click to distribute the funding amount to all lenders, based on their ownership percentage. |
TIP: Check the next to the lender to automatically withdraw the funding amount from the lender's designated bank account via ACH. You can Select All or Clear All lenders using the hyperlinks at the bottom of the form.
The lender ACH information must be setup prior to using this functionality. To learn more see Setting Up Lender ACH Information.
TIP: The total funding amount must be distributed before the Next button is enabled.
TIP: Enter a negative number to account for a purchase/sale or transfer of ownership between lenders. For example, if lender A is selling $5,000 of his ownership to lender B, then enter -$5,000 for lender A and $5,000 for lender B.
-
- Click Apply to enter the funding and update all files or Cancel to abort.
- Click Next.
- Click Apply to update the loan or Cancel to abort.
TIP: You may use the Next and Back buttons as needed to retrace your steps and make corrections.
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