How to add funding in a commercial loan?

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. The funding process for commercial, construction, lines of credit and conventional loans differs slightly.

Use the Add Funding assistant to account for initial and incremental funding, and to transfer loan ownership between lenders.

TIP: Funding increases the loan's principal balance.

There are 3 ways to add funding to a commercial loan in The Mortgage Office®: from the Commercial grid , from the loan file, or through Tasks & Reports.

To add funding from the Commercial grid:

Click on Loan Servicing in the left panel of The Mortgage Office®.
Click the Loans drop-down.
Click Commercial 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 is disabled and automatically populated with the loan's account number and primary borrower's name.

Field:	Description:
Loan Account	Enter the loan's Account number. TIP: 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. TIP: Fundings on the first day of the billing period are assumed full period. For example, a funding date of 7/1/2007 to a loan with a billed-through date of 6/30/2007 will accrue a full period worth of interest. TIP: Funding dates on or before the loan's billed-through date are not allowed. TIP: The funding starts accruing finance charges as of the funding date.
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 the fee amount to be charged for the funding.
Select Trust Account	Select a trust account from the drop-down list. TIP: The drop-down list is disabled until a numeric value is entered in the Funding Amount field.
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 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 to reset all amounts to zero.
	Click to distribute the funding amount to all lenders, based on their ownership percentage.

TIP: Check 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 hyperlink at the bottom of the form.

TIP: The lender ACH information must be setup prior to using this functionality. To learn more see Setting Up Lender ACH Information.

NOTE: You must distribute the amount of the draw fully between one or more lenders before you are allowed to continue to the next step.

Click Apply to enter the funding and update all files or click Cancel to abort.

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 Commercial below Conventional from the menu located on the left of the window.
From the grid, select the loan to add funding to.

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.

Field:	Description:
Loan Account	Enter the loan's Account number. TIP: 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. TIP: Fundings on the first day of the billing period are assumed full period. For example, a funding date of 7/1/2007 to a loan with a billed-through date of 6/30/2007 will accrue a full period worth of interest. TIP: Funding dates on or before the loan's billed-through date are not allowed. TIP: The funding starts accruing finance charges as of the funding date.
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 the fee amount to be charged for the funding.
Select Trust Account	Select a trust account from the drop-down list. TIP: The drop-down list is disabled until a numeric value is entered in the Funding Amount field.
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 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 to reset all amounts to zero.
	Click to distribute the funding amount to all lenders, based on their ownership percentage.

TIP: The lender ACH information must be setup prior to using this functionality. To learn more see Setting Up Lender ACH Information.

NOTE: You must distribute the amount of the draw fully between one or more lenders before you are allowed to continue to the next step.

Click Apply to enter the funding and update all files or click Cancel to abort.

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 (Commercial).
Enter the following information:

Field:	Description:
Loan Account	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. TIP: Fundings on the first day of the billing period are assumed full period. For example, a funding date of 7/1/2007 to a loan with a billed-through date of 6/30/2007 will accrue a full period worth of interest. TIP: Funding dates on or before the loan's billed-through date are not allowed. TIP: The funding starts accruing finance charges as of the funding date.
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 the fee amount to be charged for the funding.
Select Trust Account	Select a trust account from the drop-down list. TIP: The drop-down list is disabled until a numeric value is entered in the Funding Amount field.
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 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 to reset all amounts to zero.
	Click to distribute the funding amount to all lenders, based on their ownership percentage.

TIP: The lender ACH information must be setup prior to using this functionality. To learn more see Setting Up Lender ACH Information.

NOTE: You must distribute the amount of the draw fully between one or more lenders before you are allowed to continue to the next step.

Click Apply to enter the funding and update all files or click Cancel to abort.

How to add funding in a commercial loan?

This article discusses how to add funding in a commercial loan.

To add funding from the Commercial grid:

To add funding from the loan file:

To add funding from Tasks & Reports: