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How to assess interest charges and generate a borrower billing statement for a commercial loan?

This part of the documentation discusses how to assess interest charges and generate Borrower Billing Statements for commercial loans.

Unlike more conventional loans, with commercial type loans you must assess interest charges at regular intervals. The frequency and method of calculation is determined by the parameters entered in each loan’s Billing terms. 

NOTE: If you don't want to compound interest charges (default), you must check the box next to square-check-solid Exclude Finance Charges option located in the Loan>Terms>Interest Charge Calculation section. 

To assess interest charges & print Borrower Billing Statements:

  • Click on running Loan Servicing in the left panel of The Mortgage Office®.
  • Click Tasks & Reports from the menu located on the left of the window.
  • Click nicer looking printer icon Assess Interest & Print Billing Statements under the Commercial Loans section.
  • Select All Loans or Select Loans by Account from the drop-down list.

TIP: When you choose Select Loans by Account you must enter starting and ending account numbers in the From: and To: input fields. You can enter the same starting and ending account number to select a single loan, or you can enter a logical range to select multiple loans. For example, if you enter HBT as the starting and ending accounts, all loans with account numbers starting with HBT will be included.

TIP: Click the browse two dots lookup tool to open a lookup window that allows you to select a record from a list of existing records. Read more about the lookup tool here.

  • Statement Style. The only style supported at this time is Standard.
  • Envelope Size. This selection aligns the location of the borrower's address on the statement with several commonly available window envelops. The options are:
    • None (best for sending the statement via email or exporting it to PDF format)
    • DFS-771 (4-1/8 x 9)
    • Size 9 (3-7/8 x 8-7/8)
    • Size 10 (4-1/8 x 9-1/2)
  • Enter the Statement Closing Date. This date determines which loans are considered for assessment. For example, if you enter a statement closing date of 10/31, all loans with a Billed Through date of 9/30, Billing Start Day of 1 and monthly billing frequencies will be selected for assessment.

TIP: The Statement Closing Date is the final day of the billing cycle—it's the last date that charges can post and be counted in the statement balance calculation.

  • Check Exclude borrowers on hold square-check-solid to exclude all borrowers that have been placed on hold; otherwise, uncheck this box.
  • If necessary, use the Select Categories to Include or Exclude dialog to include or exclude loans based on their categories.

NOTE: Categories are keywords or phrases that help you create logical loan groups. To learn more read How to Use the Categories Window.

  • Click NEXT blue button without border Next to pull through a list of borrowers matching the criteria you entered on the previous screen.
    • If no borrowers match the criteria, you will receive an error message that says: "Warning! A total of 9 loans were excluded from billing. Click OK to view an exception report.". Click OK OK to review that report for the error to correct.

TIP: You may, as many times as needed, use the NEXT blue button without border Next and BACK blue button without borderBack navigation buttons to retrace your steps and make changes.

  • The Select Borrowers screen presents a list of loans based on the criteria and options you entered in the prior step. By default, all loans are selected, but you may individually uncheck loans you want to exclude.

TIPS:

  • You can use the Select All and Clear All hyperlinks near the bottom of the window to check or uncheck all borrowers on the list.
  • The Export to Excel hyperlink will download all square-check-solid checked borrowers to your computer's Downloads folder.

NOTE: You won't be able to proceed to the next and final step unless one or more loans are selected.

  • Click NEXT in blue boxto pull up the Print, Preview or Email Statements screen. Your options from here are the following:

    Field:

    Description:

    square-check-solid Override delivery options and print statements for all selected loans 

    Select this option if you want to ignore the borrower's delivery preference and print a statement.

    TIP: Documents that are email-enabled, will use each recipient's delivery preference to determine whether the document is e-mailed, printed and mailed or both. You can override this preference by selecting the option above. For example: even if many borrowers have elected to receive their monthly statements via electronic mail, you may want to print and send the year-end statements via regular U.S. mail.

    TIP: When you select to override the delivery options, the system will generate both, an e-mail and a printed statement for any recipients that selected e-mail as their delivery option.

    square-check-solid Create Attachments

    Select this option if you want to automatically attach a copy of this statement to the borrower's file. 

    TIP: You can use the Tabs drop-down menu to specify which attachment tab to store the document under.

    INFO: When this option is selected, the Preview Statements button is disabled. If you'd like to preview the statements before printing, uncheck this option, preview the statements, then check this option again and print and attach the statements.

    Tab

    Use this drop-down to specify what attachment tab you'd like to store the statement under. Learn more here. 

    Window Envelope Alignment 

    The hyperlink brings up the following options under Select Envelope Style:

    • DFS-771 (4-1/8 x 9)
    • Size 9 (3-7/8 x 8-7/8)
    • Size 10 (4-1/8 x 9-1/2) 

    Click to Print the statement.

    Click to Preview and optionally print the statement.

    TIP: To know more about how to use the print preview window, click here.
    image-png-Aug-02-2023-06-10-08-6336-PM

     

    Click to Email the statements. You can edit the email templates and tailor them to your specific needs in Options > Email templates. 

    TIP: You can use the User Defined Labels options to customize some of the statement labels.

    Click to Send Text Messages to the borrower.

    Click to Edit the message that is sent to the borrower. 

    NOTE: The default message is: "Please advise us immediately of any discrepancies in the transactions or investment activity on your billing statement or if you contemplate changing your address.  When making inquiries by telephone or in writing please give your account number.  We urge you to keep this statement with your investment records."

    Click to apply the interest charges. The button is disabled until the billing statements are printed or previewed.

    CAUTION: You must make sure the statements printed correctly before applying the interest charges. Once the interest charges are applied you won't be able to easily reprint the billing statements for this period. 

    • Click APPLY Apply Finance Charges once you've made sure all statement information is correct.

    • Click OK to apply the Finance Charges.
    • Click or the black X Exit in the corner of the assistant to exit.

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