How to add construction billing terms in a loan?

To enter construction billing information:

Click on Loan Servicing in the left panel of The Mortgage Office®.
Click the Loans drop-down.
Click Construction below All Loans from the menu located on the left of the window.
From the grid, select the record you want to modify.

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 or double-click on the record to open it for editing.
Click Terms from the list located on the left of the window, select the Construction Tab, then select the Billing tab.
Add or Edit information in the following sections:

Billing Cycle:

Field:	Description:
Calculation Method	The method used to calculate and assess finance charges. The options are: Daily Balance Average (Daily) Balance Lowest (Daily) Balance Highest (Daily) Balance
Billing Frequency	The billing frequency determines how often finance charges are assess and billing statements generated. The options available are: None Monthly Quarterly Semi-Yearly Yearly
Billed Through	Enter the date finance charges have been assessed to (inclusive).
Start Day (1-31)	The day of the month in which the billing cycle starts. TIP: Values between 28 and 31 may not occur each month in which case the last day of the month is used instead.

Interest Charge Calculation:

Field:	Description:
Exclude Late Charges/NSFs	Select this option if you want to exclude late charges and NSFs from finance charge computation.
Exclude Reserve Balances	Select this option if you want to exclude reserve trust balances from finance charge computation. TIP: If this option is unchecked, the balance used to calculate finance charges will be reduced by the amount in the reserve trust account.
Exclude Impound Balances	Select this option if you want to exclude impound trust balances from finance charge computation. TIP: If this option is unchecked, the balance used to calculate finance charges will be reduced by the amount in the impound trust account.
Exclude Finance Charges	Select this option if you do not want to compound finance charges.

Funding Transaction Fee :

Field:	Description:
Percent of Amount Due	The transaction fee to be assessed as a percentage of the total amount of the funding.
Plus Flat Amount	The dollar amount to be assessed in addition to the calculated % of funding.
Minimum Fee	The minimum transaction fee to be assessed per funding.

TIP: If the box next to Funding Transaction Fee is unchecked, the fields will be greyed out and there will be no transaction fee charged for funding(s).

Interest on Available Funds :

Field:

Description:

Method

Select one of the following options to assess finance charges on available funds:

Note Rate - Use the note rate to calculate finance charges on available funds.
Fixed Rate - Select this option to manually enter a rate to use when calculating finance charges on available funds.
Modifier - Select this option to add or subtract an amount to arrive at the effective rate to use when calculating finance charges on available funds. For example: if the loan has a note rate of 12.00% and a rate modifier of -2.00%, then the effective rate is 10.00%.
- Use this rate option if the loan's note rate fluctuates (such as with an ARM or step-rate loan) and you want the effective rate to fluctuate as well.

Rate (%)

Enter the rate to use when Fixed Rate or Modifier is selected.

TIP: If the box next to Interest on Available Funds is unchecked, the fields will be greyed out and the available funds balance will not be included in interest calculations.

Account Maintenance Fee:

Field:	Description:
Maintenance Fee	The periodic amount charged as an account maintenance fee for servicing.
Next Charge Date	Enter the effective date when the next maintenance fee must be charged.
Frequency	The frequency determines how often the maintenance fee is charged and is used to automatically increment the next charge date field. The options available are: Monthly Quarterly Yearly
Assess Finance Charge	If this box is checked, the Account Maintenance fee will be included in the finance charge computation.

TIP: If the box next to Account Maintenance Fee is unchecked, the fields will be greyed out and the Account Maintenance Fee will not be charged.

Last Billing Statement:

Field:	Description:
Amount Billed	This is the amount that was on the previous billing statement and the amount that was due from the borrower, including any fees or charges.
Amount Paid	The amount that the borrower paid; not necessarily the amount billed.
Late Charges	Any outstanding late charges the borrower needs to pay will be listed here.
Amount Pending	This is the difference of the Amount Billed vs. Amount Paid. For example: if the Amount Billed is $1,000 ($900 in P&I and $100 in Late Charges) and the borrower only pays the $900 in P&I, the unpaid $100 will be listed in the Amount Pending.

Auto Payment from Reserve:

Field:	Description:
Percent of Amount Due	Enter the percentage of the billing statement's Minimum Payment Due to be automatically paid from the Reserve account.
Plus Flat Amount	Enter an additional flat dollar amount to be added to the amount calculated above.
If Insufficient Funds in Reserve	Select from the menu what to do if there are insufficient funds in the Reserve account (at the time of generating the billing statement): Do not pay. Ignore the Auto-Payment during this billing cycle. Pay full amount. Apply the full Auto-Payment amount even if there aren't sufficient funds in the Reserve account. Pay available amount. Apply as much as possible from the Reserve account without overdrawing it.

TIP: If the box next to Auto Payment from Reserve is unchecked, the fields will be greyed out and the payment will not be paid from the reserve account.

Click to save or to abort changes.