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How to edit a funding lender?

This article discusses how to edit a funding lender.

To edit a funding lender: 

  • Click on running Loan Servicing in the left panel of The Mortgage Office®.
  • Click the Loans drop-down menu.
  • Click All Loans. 
  • From the grid, select the loan record you want to modify.

TIP: If the record you want to edit is not visible, go to the bottom-right-hand side of the screen and use the page-scroll bar to find the record, or click the Find box FindSearch icon box at the top-right-hand side of the screen 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 edit from the options available on the top panel or double-click on the item.
  • Click dollar-sign-solidFunding in the left-hand panel. 
  • From the grid, select the funding lender you want to modify.
  • Click edit from the options available on the top panel or double-click on the item.
  • Change the following information below. 
  • In the Lender Information section: 
Field: Description:

Rounding Adjustment square-check-solid

Select to adjust this lender if a rounding adjustment is necessary during payment distribution.

TIPS:

  • When loans are funded by more than one lender, there may come a time when the amount of the payment cannot be distributed completely due to rounding errors. For example, if you have a $9,000.00 loan which is funded equally by three lenders ($3,000.00 each), then each lender owns a third of the loan. The problem arises, if the borrower makes a $100.00 payment. Two lenders will receive $33.33, and the one with this option selected will receive $33.34.
  • Only one lender at a time can have this option selected.
  • In the Lender Rate tab:
Field: Description:

Note Rate

This is the loan's note rate. This is a read-only field.

Sold Rate

This is the loan's sold rate (or note rate, if a sold rate was not selected). This is a read-only field.

TIP: The use of the loans sold rate in combination with the lender rate enables you to handle many investment situations which would otherwise be very cumbersome to implement. For example, you can easily setup a loan with a fixed or varying rate to the borrower, and each individual funding lender with effective rate which is fixed, varying in synch with the borrowers note rate or varying independently with an arbitrary step-rate schedule.

Rate Modifier square-check-solid

 

Select this option to add or subtract an amount to arrive at the lender's effective rate. For example: if the loan has a sold rate of 12.00% and a rate modifier of -2.00%, then lender's effective rate is 10.00%. Use this rate if the loan's sold rate fluctuates (such as with an ARM or step-rate loan) and you want the lender's effective rate to fluctuate as well.

Fixed Rate square-check-solid

Select this option to enter a fixed interest rate for this lender.

Lender Rate

 This is the resulting interest rate used to calculate accrued interest for this lender in this investment. Note that the same lender may have one or more funding records in the same loan, each having different effective rates and servicing fee options.
    • In the Servicing Fee tab:
    Field: Description:

    Broker Servicing Fee square-check-solid

     

    		 Select this option and enter the information below if you are charging a servicing fee to this lender which is payable to the broker:
    Field: Description:

    % of Principal Bal

    Enter the annualized rate to use against the lender's portion of the loan's principal balance.

    EXAMPLE: For example, 1.000% fee for a lender owning a $10,000 investment on a monthly loan is calculated as follows: Servicing Fee = $10,000 x .01 / 12 = $8.33

    Plus Amount

    Enter an additional flat dollar amount to be charge as a servicing fee.

    or Minimum

    		 Enter a dollar amount as the minimum servicing fee this lender will pay.
     

    TIP: To charge a flat servicing fee of $5.00, enter zero for the two previous fields and $5.00 as a minimum fee.

    Vendor Servicing Fee square-check-solid

     

    Select this option and enter the information below if you are charging a servicing fee to this lender which is payable to a third party (vendor):

    Field: Description:

    % of Principal Bal

    		 Enter the annualized rate to use against the lender's portion of the loan's principal balance.
    EXAMPLE: 1.000% fee for a lender owning a $10,000 investment on a monthly loan is calculated as follows: Servicing Fee = $10,000 x .01 / 12 = $8.33

    Plus Amount

    Enter an additional flat dollar amount to be charge as a servicing fee.

    or Minimum

    Enter a dollar amount as the minimum servicing fee this lender will pay.

    TIP: To charge a flat servicing fee of $5.00, enter zero for the two previous fields and $5.00 as a minimum fee.

    Vendor Account

    Enter the vendor's Account number or click image-png-Jun-28-2023-05-15-38-5051-PM to open a lookup window that allows you to select a vendor from a list of existing records.

    For more details see How to use lookup windows.

    Goods and Services Tax (GST) square-check-solid

     

    Select this option to charge goods and services tax (GST) on the total servicing fees paid by this lender.

    TIPS:

    • This option is only available if you have selected Canada or Australia in white cog blue background Options, User Preferences man with cog User Preferences, Regional.
    • You must also enter the GST rate and GST vendor account in white cog blue background Options, loan servicing tripod Loan Servicing, General.
    • In the Disbursements tab: 
    Field: Description:
    Account

    Enter the payee's Account number.

    TIP: Click browse two dots to open a lookup window that allows you to select a lender from a list of existing records. For more details see How to Use Lookup Windows.
    Name & Address

    The payee's name and address is displayed when a valid lender account is entered. This is a read-only field. 
    Blue Check Box_r Active

    Check this box to activate the disbursement. Leave the box unchecked to leave the disbursement unactive. 
    Percentage

    Notate the percentage of the payment being disbursed. 
    of

    Notate what element the disbursement is being disbursed from. The options are: 

    • Principal Paid
    • Principal Balance
    • Interest (Gross)
    • Interest (Less Serv. Fees)
    • Interest (Less Other Pmts)
    • P&I Paid (Gross)
    • P&I Paid (Less Serv. Fees)
    Plus Amount Enter a flat amount to be disbursed, added to the percentage entered above. 
    or Minimum

    Enter a minimum amount to be disbursed. 

    NOTE: If the percentage or flat amount you notated above is less than the minimum amount, the amount entered here will be disbursed.
    Transaction Type

    Enter to classify this transaction as a Servicing Fee or as a Disbursement. 
    Description

    Enter a Description for this transaction. 
    Applies To

    Check the box next to each type of transaction the disbursement should be applied to.  

    • Click OK OK to save or Cancel to abort.

       

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