How to add line of credit billing terms in a loan?

HELOC (Home Equity Line of Credit), or simply "home equity line" or "line of credit", is a loan, usually in a subordinate position, that allows the borrower to obtain advances, or "draws" up to a maximum credit limit. Commonly, borrowers can draw on the line by writing a check, using a special credit card, or in other ways. HELOCs have a "draw" and "repayment" period, each specified in number of months. Draws can take place any time prior to the draw period expiring. Once the draw period has expired, the HELOC is now in the "repayment" phase, at which time no more draws can take place and the borrower must begin to pay down the credit line.

NOTES: The APR on a HELOC is the interest rate and unlike conventional loans, it does not reflect points or other up-front costs.

To enter line of credit terms:

Click on the Loan Servicing drop-down menu in the left panel of The Mortgage Office®.
Click the Loans drop-down menu.
Click Lines of Credit from the list that drops down.
From the Lines of Credit grid, select the loan 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 item.
Click Terms from the list located on the left of the window, and select the Line of Credit Tab.
Enter the following information in the following sections:

Credit Limit & Repayment:

Field:	Description:
Available Credit	The available credit is the Credit Limit amount less all outstanding balances.
Credit Limit	The maximum amount the borrower can have outstanding at any one time.
Draw Minimum	The smallest amount of money that can be advanced when recording a draw.
Draw Maximum	If checked, this is the largest amount of money that can be advanced when recording a draw.
Draw Period	The period of time in months during which advances can be made.
Repayment Period	The period of time in months in which the outstanding balance, accrued interest and any unpaid charges must be paid. The repayment period begins at the end of the draw period and ends on the loan's maturity date.

Finance Charge Calculation:

Field:	Description:
Exclude Late Charges/NSFs	Select this option if you want to exclude late charges and NSFs from interest charge computation.
Exclude Reserve Balances	Select this option if you want to exclude reserve trust balances from interest charge computation. TIP: If this option is unchecked, the balance used to calculate interest 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 interest charge computation. TIP: If this option is unchecked, the balance used to calculate interest charges will be reduced by the amount in the impound trust account.
Exclude Finance Charges	Select this option if you do not want to assess interest on unpaid interest balances. If this option is unchecked, you have the following additional options: Note Rate. Default. Interest is assessed at the loan's note rate. Fixed Rate. Interest is assessed at a fixed rate. Modifier. Interest is assessed at the note rate plus (or minus) a rate modifier.

Draw/Transaction Fee:

Field:	Description:
% of Draw	The transaction fee to be assessed as a percentage of the total amount of the draw.
Plus	The dollar amount to be assessed in addition to the calculated % of draw.
Minimum	The minimum transaction fee to be assessed per draw.

Account Maintenance Fee:

Field:	Description:
Fee Amount	The periodic amount charged as a maintenance fee for servicing the line of credit. This fee is charged regardless of whether or not the credit line has been used.
Next Due 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 due date field. The options available are: Monthly Quarterly Semi-Yearly Yearly

Billing Cycle:

Field:	Description:
Calculation	The method used to calculate and assess finance charges. The options are: Daily Balance Average (Daily) Balance Lowest (Daily) Balance Highest (Daily) Balance
Frequency	The billing frequency determines how often finance charges are assessed and billing statements generated. The options available are: None Monthly Quarterly Semi-Yearly Yearly
Billed Through	Enter the date finance charges have been assessed through (inclusive).
Start Day (1-31)	The day of the month in which the billing cycle starts. NOTE: Values between 28 and 31 may not occur each month in which case the last day of the month will be used instead.
Billing History	Click this hyperlink to view a chronological listing of all billings for this loan. The last billing can be deleted from the billing history.

Pay Amount Calculation:

TIP: The selections found here determines the payment amount the borrower must remit.

TIP: These options do not affect the interest calculations.

Field:

Description:

Default

The calculated payment amount equals the interest due for the period.

Fixed P&I

Select this option and enter the amount of the payment.

TIP: Selecting this option may cause the borrower to pay less than the interest due causing the principal (or unpaid interest) balance to increase.

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.

Click to save or to abort changes.