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What are the automated payment options?

This article discusses what the Automated Payment options are and how to change them.

The options below provide you with some control over how automated borrower payments are applied. 

To edit the Automated Payment options:

  • Click white cog blue background Options located on the right top of the window.
  • Select tax forms management blue folded paper with lines on it Loan Servicing from the navigation panel in the white cog blue background Options window.
  • Click Automated Payments.
  • The following options are available:
  • blank check box Consolidate Payments in Trust Accounting. Check this option if you want the system to consolidate automated (ACH & Lockbox) borrower payments with the same Effective date into a single bank deposit in the Trust Fund Accounting module. 

TIP: The consolidating of automated borrower payments into a single bank deposit allows you to easily identify each deposit when reconciling your bank statement.

  • blank check box Include Positive, Reserve Balance as Amount Received. Check this box to take any reserve balances and will apply those balances as a credit to the regular payment amount. 
  • blank check box Apply Short Payment to Trust (Reserve). Select this option to if you want "short" payments to be deposited to the Reserve trust account.

TIP: By default, a short payment is defined as any amount less than the Regular Payment as defined in the loan's Terms window. You may define a short payment differently by using the Short Payment Definition hyperlink.

NOTE: The custom short payment definition does not apply to Lines of Credit, Construction, or Commercial loan types.

  • blank check box Pay Late Charges. Select this option to pay any late charges due.
  • blank check box Pay Unpaid Charges. Select this option to pay any unpaid charges due. If selected, the following three options are also available.
    • blank check box Pay All or None. Select this option to only pay charges if there is sufficient monies to pay all outstanding charges.
    • blank check box Pay Partial. Select this option to pay as many charges as possible in FIFO order.
      • blank check box Pay Charges Owed to Company First. Select this option to pay the charges owed to the company first, regardless of the date of the charge.
  • Apply Any Excess Monies To:
    • blank check box Principal. Select this option to apply any excess to principal. 
    • blank check box Trust (Reserve). Select this option to apply any excess to reserve.
  • Apply Monies in Excess of Principal Balance To: 
    • blank check box Principal. Select this option to apply any excess to principal.

TIP: This will create a negative principal balance on the loan.

    • blank check box Trust (Reserve). Select this option to apply any excess to reserve.
    • blank check box Refund to Borrower. A check payable to the borrower for the excess amount will be created in the Loan Servicing trust account.
  • Click image-png-Jul-20-2023-04-31-03-9041-PM OK to save the changes made or click image-png-Jul-26-2023-04-29-08-2466-PM
    Cancel or the black X Exit in the top right corner to exit without saving.


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