Teller System > Transactions > Loan Transactions > Loan Transaction Codes > Deferment Transactions

The No Rules deferment (tran code 2600-17) overrides any rules for deferments established by the Deferment Code and institution options. For example, limits on number of deferments per year, number of deferments per lifetime of loan, deferment charges: all of these can be overruled by the No Rules deferment transaction.

When users first bring up the No Rules deferment for an account, the system will default the regular payment amount in the Tran Amount field. Users can waive or reduce this charge by deleting or reducing the amount in the Tran Amount and Cash In or Check In fields. You should train front-end tellers what should be entered or whether or not charges can be waived for running this transaction.

This deferment transaction can be used with all loans except the following:

•Closed Loans (LNCLSD)

•Released Loans (LNRLSD)

•Unopened Loans (LNUNOP)

•Frozen Loans (Hold Code (LNHLD1 through LNHLD4) = 60)

•Loans Locked for Payoff (LNACCD, LNA2CD-LNA9CD, LNA10C = 23)

•Loans that have been charged off (LNHLD1 - LNHLD4 = 2)

After this transaction is run, it will affect the loan as follows:

•Advances the Due Date (LNDUDT) by one frequency (weekly, monthly, etc.)

•Increases Installments Made (LININNO) by one.

•For interest-bearing loans (payment method 6), the Date Last Accrued (LNDLAC) is updated to the Effective Date entered on the No Rules transaction.

•For precomputed loans (payment method 3), the Date Interest Paid To (LNPDTO) field is updated to the Effective Date entered on the No Rules transaction.

•Current Installment Number (LNCINO) is increased by one.

•The Last Payment Amount (LNLPMA) is updated with the date the transaction is run.

•The Deferred Due Date (D0DUDT) is updated with the date the transaction is run.

•If an amount was included with the deferment, the Deferment Amount (D0DFAM) is reflected on the Deferments screen.

•The Effective Date (D0DTEF) of the deferment is updated with the date the deferment is run.

•The Loan Term (LNTERM) advances by one

•The Maturity Date (LNMATD) will advance forward based on the loan frequency. (Note: Only if institution option RMTD is set to “Y.”)

•If an amount was entered in the Tran Amount field (the deferment charge amount), it will be credited to the G/L account indicated in the Deferment Charge Rebate/Extension Fee field on the GOLD Services > General Ledger > G/L Account By Loan Type screen for that loan type.

•Updates credit reporting fields, as described in the Credit Reporting section below.

If you want to use this transaction, you must add it to your menu in CIM GOLDTeller. For more information on how to add transactions to the menu see the Menu Design topic in the CIM GOLDTeller User’s Guide.

Note:

When you first download this transaction, it may have a different name, such as "Loan-Pmt-Jnl-Bap." We strongly suggest you change the name of this transaction to "No Rules Deferment." For more information on how to change transaction names, see Transaction Entry Options.

The No Rules transaction box in CIM GOLDTeller is shown below:

No Rules Deferment (tran code 2600-17)
(click to expand)

If your institution wants to use this transaction, the following setup is required:

1.Add the transaction to the Transactions menu, as described in the Menu Design topic in CIM GOLDTeller.

2.Design the transaction according to how your front-end tellers should use the transaction, as described in the Transaction Design topic in CIM GOLDTeller.

3.Add all deferment reasons to the Loans > System Setup Screens > Deferment Reasons screen. See Note below about reserving Reason Code 2 for hardship deferments and Reason Code 6 for natural and declared disasters.

4.You'll notice a Code 1 field. The name of that field should be changed to "Reason for Deferment," as described in the Field Properties topic in CIM GOLDTeller. If you do not want to establish a reason when this transaction is run, you can hide the field from tellers and skip requirement 5 below. See Field Properties topic in CIM GOLDTeller for information on hiding fields.

5.You need to make the Code 1 (now renamed "Reason for Deferment") field a drop-list that includes the same entries as those you entered in step 3 above. It is very important that those reasons are added to the System Field Dictionary. Creating a drop-list is a three-part process, as described in the following topics:

a.Creating drop-list items in the System Field Dictionary.

b.Create the drop-list in the View/Modify Droplists.

c.Assigning a field to that drop-list.

Note

Deferment Reason Code 2 is reserved for Hardship Deferments made from the Loans > Transactions > EZPay screen. Any Hardship deferments run from there will be given Deferment Reason Code 2, as shown below:

Click to expand.

Deferment Reason Code 6 is reserved for Natural or Declared Disasters. If a deferment is run using Deferment Reason Code 6, the account will be flagged with Special Comment Code "AW" (Affected by declared or natural disaster) during monthend Credit Reporting. See Credit Reporting below for more information.

If a Regular Deferment is run on a transaction using Deferment Reason Code 6, the deferred account will be flagged as a natural/declared disaster. Two institution options are available that will automatically update the Special Comment Code and Account Status accordingly:

1.If institution option K402 is set, the Account Status will be reported with “11” (current account) and Special Comment Code “AW.”

2.If institution option K403 is set, the account will be reported with the same information as regular deferments (see above), but with Special Comment Code “AW" only. The Account Status will be "11" if the account was current before the deferment was run; or the Account Status as it was reported the previous month (if in delinquency).

Additionally, the account will be reported as follows:

•The Terms Duration (Base field 13) field will be blank.

•The Terms Frequency (Base field 14) field will be “D” (deferred).

•The Scheduled Monthly Payment Amount (Base field 15) will be zero.

•The current Payment History Profile (Base field 18) will reflect a “B” if deferring the first payment; “D” if previously in repayment.

•Amount Past Due (Base field 22) will be zero.

•The K4 Segment for Specialized Payment Information will be included in the transmission. It will be populated as follows:

oThe Segment Identifier (Field 1) will be “K4” (default).

oThe Specialized Payment Indicator (Field 2) will be “02” (deferred payment).

oThe Deferred Payment Start Date (Field 3) will be the date when the deferment period starts (uses mnemonic BUSTRP). The Deferred Due Date (D0DUDT) on the Loans > Deferments screen will be the date reported for the Deferred Payment Start Date for Credit Reporting.

oThe Payment Due Date (Field 4) will be the date when the deferment period ends and the next payment is due (uses mnemonic BUSTDF). The Next Due Date (D0DUNX) on the Loans > Deferments screen will be the date reported for the Payment Due Date for Credit Reporting.

oThe balloon Payment Amount (Field 5) will be blank.

Deferments run with Deferment Reason Code 6 can only be included with the following transactions:

•Deferment Payment Transaction (tran code 2600-11)

•Deferment By Code Transaction (tran code 2600-13)

•No Rules Deferment (tran code 2600-17)

•Deferment with Reason (tran code 2600-35)

•Fee Reg Deferment (tran code 2600-50)

Note: If you are using a regular deferment transaction (2600-11, 2600-13, 2600-17, 2600-35, or 2600-50) and you use Deferment Reason Code 2 (instead of using the actual Hardship Deferment transaction), be aware that it does not update the D0MOD field, and Special Comment Code “CP” will not be automatically applied to the account during monthend Credit Reporting. You would need to manually update the Special Comment Code field if you want the account to be reported with “CP” and you used Deferment Reason Code 2 with a regular deferment. See the Hardship Deferment for more information.