How to add or edit general terms of a loan?

Original Amount

Enter the original amount of the loan.

Note Rate

Enter the loan's annual interest rate. This is the interest rate used to calculate borrower's interest due.

Sold Rate

Enter the annual interest rate to pay participating lenders.

TIP: To enter a Sold Rate you must first select the checkbox (). Once selected, the Sold Rate is a hyperlink which can be clicked to open the Interest Differential Distribution window.

The Interest Differential is the difference between the Note Rate and the Sold Rate of the loan. This differential can be shared between one or more vendors and lenders, in addition to the broker. In many cases, one of these entities is the originating vendor. Some brokers share the interest differential with loan officers or investment counselors. Any part of the interest differential that remains undistributed is paid to the BROKER.

TIP: Often times, loans are offered to participating lenders at a lower rate, allowing the servicer and originating vendor to share in the interest differential.

NOTE: If this is a fractionalized loan (funded by more than one lender), all lenders are paid the same Sold Rate. You can use the Sold Rate in conjunction with lender servicing fees to arrive at different interest rates per lender.

Leave the Sold Rate unchecked if the interest rate to the lenders will always be the same of the note rate. This is absolutely critical for loans that will have changes in the note rate (e.g., ARMs and GTMs).

Priority

Select the loan priority from the drop-down list.

Current Balance

Enter the amount of the unearned the discount. This amount will be updated automatically as payments are entered according to the Accrual Method selected below.

Accrual Method

Select the methodology used to calculate the discount earned. The available options are listed below:

Closing

Enter the date the loan closed/funds were disbursed to the borrower. Generally, this is the date interest begins to accrue.

First Payment

Enter the date of the first payment.

TIP: When setting up the loan for the first time, the First Payment and Next Payment dates are equal.

TIP: This date is required to calculate the 15-year Amortized Payment amount for Option ARMs.

Purchase

If applicable, enter the date the loan was purchased, otherwise leave it blank.

Booking

Enter the date in which this loan was booked or entered into the system. This date is used to generate several statistical and management reports. For example, if you are a servicer, enter the date in which you started servicing this loan.

Interest Paid to

Enter the date interest is paid to. This date is always in arrears and a period earlier than the Next Payment Due date. For example: the paid to date for a loan with a monthly frequency and a next payment due date of 5/1/2007 is 4/1/2007.

NOTE: This field does not apply to Lines of Credit or Construction loans.

TIP: When entering regular payments, the system automatically calculates odd-days interest if the period between the Interest Paid To and Next Payment is not a regular period, even if the loans Interest Accrual Method is set to Regular Period.

Initial Long Period: Loan is closed on 5/10/2007 with the first payment due on 7/1/2007. Enter 5/10/2007 in the Interest Paid To field and 7/1/2007 in the Next Payment field. When the first payment is entered, the system will accrue interest correctly from 5/10 to 7/1 and advance the Next Payment date to 8/1.

This is the date finance charges have been assessed through (inclusive). This field is read-only and only applies to Lines of Credit or Construction loans.

TIP: Changes to this field must be made from the loan file, in the Construction or Line of Credit tabs on the Terms page. 

Next Payment

Enter the date of the next scheduled payment.

Next Revision

Enter the date of the next scheduled revision. The system will alert you when the revision date expires on a loan.

TIP: We recommend you use Reminders instead since they provide you with much more functionality.

Maturity

Enter the maturity date for the loan. This is the date on which the loan must be paid in full.

Paid Off

If entering a paid loan, enter the date the loan was paid off. For active loans, leave this field empty. The system will automatically enter the date when the loan is eventually paid off.

Principal Balance

This is the current principal amount due. This is a read-only field and can only be updated through Funding or transaction processing.

Trust Balance

This is the loan's current balance in the Loan Servicing Trust Account. This is a read-only field and can only be updated through transaction processing and adjustments.

TIP: Click to enter an adjustment or when setting up a loan with a trust balance. Adjustments are posted to both the loan history and the client trust ledger.

TIP: Click the hyperlink to open the client trust ledger.

This is the total amount of late charges that have been assessed but not yet paid. This is a read-only field. Generally late charges are assessed and paid through payment processing.

TIP: Click to enter an adjustment or to enter unpaid late charges when setting up a loan.

NOTE: For Lines of Credit and Construction loans, an adjustment to unpaid late charges also adjusts the current payment amount due.

Unpaid Charges

This is total amount of charges owed. This is a read-only field. Generally, loan charges are paid through payment processing.

TIP: Click to open the Loan Charges window and add, edit or delete charges.

Unpaid Interest

This is the total amount of unpaid interest due on the loan. Generally, unpaid interest results when the amount of the borrower's payment is insufficient to cover the amount of interest due, and you checked Add Negative Amortization to Unpaid Interest option in the Loan Terms Options section. Generally, this field is updated through payment processing.

TIP: Click to enter an adjustment.

NOTE: For Lines of Credit and Construction loans, the finance charges that are assessed during billing are added to the loan's unpaid interest balance and reduced when the payment is received.

NOTE: For Lines of Credit and Construction loans, an adjustment to unpaid interest also adjusts the current payment amount due.

Frequency

Select the payment frequency from the drop-down list. The available options are:

Day Due

Enter the day of the month on which payments are due.

TIP: If you enter 29, 30 or 31, the system automatically adjusts the Next Payment date (after a regular payment is applied) to the Day Due if possible, otherwise to the earliest valid date.  For example, if you set the Day Due to the 30th, then after applying a payment, the system will adjust the Next Payment date to January 30th, February 28th (or 29th if a leap year), and the 30th of every other month.

TIP: If you set Day Due to the 31st, then all payments will be due at the end of each month.

P & I

Enter the amount of the total payment to be applied towards principal and interest.

NOTE: For Lines of Credit and Construction loans, this amount represents the amount of the last billing, plus past due payments, less payments made this period. This amount may vary during the month as finance charges are assessed and payments are made. A zero value indicates the borrower paid the billed amount in full.

TIP: Click to open the Calculate P & I window that displays the following options:

• Current P & I. This is the current amount in the field.
• Fully Amortized (To Term). This is the amount necessary to pay both the principal and interest in full at the maturity date in substantially equal payments. It is calculated on the assumption that the current interest rate will remain in effect for the remaining term of the loan.
• Fully Amortized (30 years). This is the amount necessary to pay both the principal and interest in full within a 30 year term from the first payment due date in substantially equal payments. It is calculated on the assumption that the current interest rate will remain in effect for the remaining term of the loan.
• Fully Amortized (15 years). This is the amount necessary to pay both the principal and interest in full within a 15 year term from the first payment due date in substantially equal payments. It is calculated on the assumption that the current interest rate will remain in effect for the remaining term of the loan.
• Interest Only. This payment option pays only the interest due on the loan.
• Constant Amortization. Enter a fixed amount to be applied to principal.

To fill a value into the P & I field, select the radio next to the option and click OK.

TIP: The CAM loan, in a nutshell, is a loan in which the borrower pays interest on the remaining principal, plus a fixed amount to principal each period.

Enter the amount of the total regular payment to be applied towards Reserve.

TIP: This text box is set to read-only if RESPA is selected under the loan Details tab.

Impound

Enter the amount of the total regular payment to be applied towards Impound. The Escrow Administration module automatically updates this amount with the loan's new escrow payment when the escrow analysis is performed.

Other Payments

This is the amount of the regular payment to be applied towards other payments. Other Payments are recurring, regular, "pass-through" payments included in the regular payment. Other Payments can be used to pay things like HOA dues, borrower servicing fees, or payments to senior liens, etc. The system allows for an unlimited number of Other Payments.  This is a read-only field.

TIP: Click to open the Other Payments window and add, edit or delete other payments.

Total Payment

This is a calculated field displaying the sum of the P&I, both Trust, and Other Payments fields.