How to add funding in a line of credit loan?

The Enter Draw Information multi-step assistant will guide you through the necessary steps to process borrower draws against line-of-credit type loans. The assistant will use the information located in the Line of Credit tab in the Terms page of the loan file to calculate transaction fees, and to ensure rules such as minimum and maximum draw amounts, credit limit and draw period are enforced.

TIP: Funding increases the loan's principal balance.

TIP: The terms Funding, Draws or Cash Advances are synonymous and commonly used for HELOCs and Lines of Credit.

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

To add funding from the Lines of Credit grid:

Click on Loan Servicing in the left panel of The Mortgage Office®.
Click the Loans drop-down.
Click Lines of Credit 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, and available credit.

Field:	Description:
Date of Draw	Enter the effective date of the draw. TIP: Draw dates on the first day of the billing period are assumed full period. For example, a draw 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: Draw dates on or before the loan's billed-through date are not allowed. TIP: The draw will start accruing finance charges as of this date.
Draw Fee	Enter the transaction fee or press Tab to accept the calculated amount. INFO: The amount of Draw/Transaction Fee field is automatically calculated each time you change the Amount of Draw. The calculation is based on the information entered in the loan's Line of Credit tab, in the loan Terms.
Reference	You may enter up to 10 arbitrary alpha-numeric characters in this field for identification.
Amount of Draw	Enter the total amount of the draw. TIP: The draw amount must be between the Draw Maximum and Draw Minimum limits. TIP: Enter a zero-dollar amount to record a sale/purchase between two or more lenders.
Trust Account	Use the drop-down menu and select a trust account from the list or select None. TIP: Select None if you do not want to update a trust account with the additional funds and/or the payee check.
Notes	You may enter up to 255 characters. The notes entered are not disclosed to the borrower.

INFO: Before you can proceed to the next step you must meet the following conditions:

You must enter a valid borrower account.
You must enter a valid date for the draw.
The amount of draw must not be zero.
The amount of the draw must not exceed the available credit.
The amount of the draw must be within the loan's minimum and maximum draw limits.

Click Next.

The Payee Information screen enables you to write a check to the borrower or a payee of your choice.
If you want to write a check, enter the following information:

TIP: If you do not want to write a check at this time, leave the amount blank or enter zero and click Next.

Field:	Description:
Pay to the Order of	If the check is being issued to the borrower, simply click the Pay Borrower hyperlink; otherwise, enter a payee account or click the New Payee hyperlink at the bottom of the form to enter a new payee. Click to open a lookup window that allows you to select a payee from a list of existing records. For more details see How to use lookup windows.
No	Enter the handwritten check number in this field. You may enter a maximum of 10 numeric characters.
Date	Enter the date of the check.
Amount	The amount displayed in this field is always the amount of the draw/cash advance and it cannot be changed.
Handwritten	Uncheck this box if you want to print a check; otherwise check this box and enter the handwritten check number in the No. field above.
Edit Stub	Click this hyperlink to enter or edit the check's stub information. CAUTION: The total amount entered in the check's stub will replace the amount of the draw and cause the draw/transaction fee to be re-calculated.

INFO: Before you can proceed to the next step you must meet the following conditions:

You must select a payee or select to pay the borrower.
You must enter a valid check date.
If you checked Handwritten, then you must enter a check number.

Click Next.
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.

TIP: You may, as many times as needed, use the Next and Back navigation buttons to retrace your steps and make changes.

Click Apply to enter the draw 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 Lines of Credit below All Loans 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 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:
Date of Draw	Enter the effective date of the draw. TIP: Draw dates on the first day of the billing period are assumed full period. For example, a draw 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: Draw dates on or before the loan's billed-through date are not allowed. TIP: The draw will start accruing finance charges as of this date.
Draw Fee	Enter the transaction fee or press Tab to accept the calculated amount. INFO: The amount of Draw/Transaction Fee field is automatically calculated each time you change the Amount of Draw. The calculation is based on the information entered in the loan's Line of Credit tab, in the loan Terms.
Reference	You may enter up to 10 arbitrary alpha-numeric characters in this field for identification.
Amount of Draw	Enter the total amount of the draw. TIP: The draw amount must be between the Draw Maximum and Draw Minimum limits. TIP: Enter a zero-dollar amount to record a sale/purchase between two or more lenders.
Trust Account	Use the drop-down menu and select a trust account from the list or select None. TIP: Select None if you do not want to update a trust account with the additional funds and/or the payee check.
Notes	You may enter up to 255 characters. The notes entered are not disclosed to the borrower.

INFO: Before you can proceed to the next step you must meet the following conditions:

You must enter a valid borrower account.
You must enter a valid date for the draw.
The amount of draw must not be zero.
The amount of the draw must not exceed the available credit.
The amount of the draw must be within the loan's minimum and maximum draw limits.

Click Next.

The Payee Information screen enables you to write a check to the borrower or a payee of your choice.
If you want to write a check, enter the following information:

TIP: If you do not want to write a check at this time, leave the amount blank or enter zero and click Next.

Field:	Description:
Pay to the Order of	If the check is being issued to the borrower, simply click the Pay Borrower hyperlink; otherwise, enter a payee account or click the New Payee hyperlink at the bottom of the form to enter a new payee. Click to open a lookup window that allows you to select a payee from a list of existing records. For more details see How to use lookup windows.
No	Enter the handwritten check number in this field. You may enter a maximum of 10 numeric characters.
Date	Enter the date of the check.
Amount	The amount displayed in this field is always the amount of the draw/cash advance and it cannot be changed.
Handwritten	Uncheck this box if you want to print a check; otherwise check this box and enter the handwritten check number in the No. field above.
Edit Stub	Click this hyperlink to enter or edit the check's stub information. CAUTION: The total amount entered in the check's stub will replace the amount of the draw and cause the draw/transaction fee to be re-calculated.

INFO: Before you can proceed to the next step you must meet the following conditions:

You must select a payee or select to pay the borrower.
You must enter a valid check date.
If you checked Handwritten, then you must enter a check number.

Click Next.
The Enter Draw Information 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.

TIP: You may, as many times as needed, use the Next and Back navigation buttons to retrace your steps and make changes.

Click Apply to enter the draw 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 (Line of Credit).

Enter the following information:

Field:	Description:
Date of Draw	Enter the effective date of the draw. TIP: Draw dates on the first day of the billing period are assumed full period. For example, a draw 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: Draw dates on or before the loan's billed-through date are not allowed. TIP: The draw will start accruing finance charges as of this date.
Draw Fee	Enter the transaction fee or press Tab to accept the calculated amount. INFO: The amount of Draw/Transaction Fee field is automatically calculated each time you change the Amount of Draw. The calculation is based on the information entered in the loan's Line of Credit tab, in the loan Terms.
Reference	You may enter up to 10 arbitrary alpha-numeric characters in this field for identification.
Amount of Draw	Enter the total amount of the draw. TIP: The draw amount must be between the Draw Maximum and Draw Minimum limits. TIP: Enter a zero-dollar amount to record a sale/purchase between two or more lenders.
Trust Account	Use the drop-down menu and select a trust account from the list or select None. TIP: Select None if you do not want to update a trust account with the additional funds and/or the payee check.
Notes	You may enter up to 255 characters. The notes entered are not disclosed to the borrower.

INFO: Before you can proceed to the next step you must meet the following conditions:

You must enter a valid borrower account.
You must enter a valid date for the draw.
The amount of draw must not be zero.
The amount of the draw must not exceed the available credit.
The amount of the draw must be within the loan's minimum and maximum draw limits.

Click Next.

The Payee Information screen enables you to write a check to the borrower or a payee of your choice.
If you want to write a check, enter the following information:

TIP: If you do not want to write a check at this time, leave the amount blank or enter zero and click Next.

Field:	Description:
Pay to the Order of	If the check is being issued to the borrower, simply click the Pay Borrower hyperlink; otherwise, enter a payee account or click the New Payee hyperlink at the bottom of the form to enter a new payee. Click to open a lookup window that allows you to select a payee from a list of existing records. For more details see How to use lookup windows.
No	Enter the handwritten check number in this field. You may enter a maximum of 10 numeric characters.
Date	Enter the date of the check.
Amount	The amount displayed in this field is always the amount of the draw/cash advance and it cannot be changed.
Handwritten	Uncheck this box if you want to print a check; otherwise check this box and enter the handwritten check number in the No. field above.
Edit Stub	Click this hyperlink to enter or edit the check's stub information. CAUTION: The total amount entered in the check's stub will replace the amount of the draw and cause the draw/transaction fee to be re-calculated.

INFO: Before you can proceed to the next step you must meet the following conditions:

You must select a payee or select to pay the borrower.
You must enter a valid check date.
If you checked Handwritten, then you must enter a check number.

Click Next.
The Enter Draw Information 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.

TIP: You may, as many times as needed, use the Next and Back navigation buttons to retrace your steps and make changes.

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

How to add funding in a line of credit loan?

This article discusses how to add funding in a line of credit loan.

To add funding from the Lines of Credit grid:

To add funding from the loan file:

To add funding from Tasks & Reports: