How to Use the Funded Amount Field in Loan Origination?
This article explains the new Funded Amount field on the Loan Terms page and how it drives prepaid interest, monthly payment, and amortization schedule calculations.
The Funded Amount field allows a loan originator to enter the initial amount funded on a loan, when it differs from the Loan Amount. This mirrors the calculation logic already used in Loan Servicing, so prepaid interest, the monthly payment, and the amortization schedule now calculate correctly from the start — both in Loan Origination and after the loan transfers to Loan Servicing.
By default, Funded Amount automatically matches the Loan Amount. A loan originator only needs to enter a different Funded Amount when the loan is being funded for less than the full Loan Amount.
To enter a Funded Amount on the Loan Terms page:
- Open the loan file and go to the Loan Terms page.
- Set up the terms as you normally would.
- Enter the Loan Amount.
- Uncheck the Funded amount matches loan amount box.
- Enter the Funded Amount, then click or tab out of the field.
- NOTE: Prepaid Interest, the Monthly Payment Amount, and the Amortization Schedule will recalculate automatically using the Funded Amount once you tab out of the field. The Payment Schedule grid will update to reflect the new values.
- The Loan Amount from Origination will populate into the Original Amount field in Servicing.
- The Funded Amount from Origination will reflect in the Principal Balance field in Servicing.
- For Construction loans, the Funded Amount from Origination will reflect in the Amount Funded field in the Construction > Project tabs.
- For Commercial loans, the Funded Amount from Origination will reflect in the Available Credit field in the Commercial tab, under the Credit Limit & Repayment section.
Below are the fields available for the Funded Amount setting:
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Field: |
Description: |
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Funded amount matches loan amount |
Checkbox: -When unchecked, the field becomes enabled for manual entry. -When checked, the Funded Amount field is disabled and auto-fills with the Loan Amount. |
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Funded Amount |
The dollar amount that was initially funded on the loan. This drives the calculation of Prepaid Interest, the Monthly Payment Amount, and the Amortization Schedule — in place of Loan Amount. |
When the loan is transferred to Servicing:
- The Loan Amount from Origination will populate into the Original Amount field in Servicing.
- The Funded Amount from Origination will reflect in the Principal Balance field in Servicing.
- For Construction loans, the Funded Amount from Origination will reflect in the Amount Funded field in the Construction > Project tabs.
- For Commercial loans, the Funded Amount from Origination will reflect in the Available Credit field in the Commercial tab, under the Credit Limit & Repayment section.