|
Tran Code 690, Spread Payment |
  
|
Navigation: Teller System > Transactions > Loan Transactions > Loan Transaction Codes >
Tran Code 690, Spread Payment
|
Tran Code 690, Spread Payment |
|
A Spread Payment transaction (tran code 690) is a special transaction that allows payments to be spread to specific parts of a loan payment. This transaction is also referred to as Optional Loan Payment.
Usually, payments are paid in the order established by the Payment Application (e.g., first to principal, then interest, then reserves, etc.). However, the Spread Payment transaction allows exact amounts to go toward principal, interest, or reserves (e.g., $50 to reserves, $25 to interest, $10 to principal).
This transaction should be used sparingly. This transaction requires a supervisor override before the transaction can be approved.
WARNING: This transaction could post less than the amount due and roll the loan due date. It is designed for institutions that have purchased loans that other institutions service for them. It allows the total principal and interest due to be placed in the P/I Constant field, but the purchasing institution posts the payment for a lower amount, which represents the payment less the service fee the servicing institution keeps. Use this tran code with care.
This transaction can be run from the Loans > Transactions > Make Loan Payment screen in CIM GOLD, or it can be run from CIM GOLDTeller, as shown below:
Once this transaction has run, the following fields are updated:
•Due Date is advanced accordingly (e.g., if the amount of the payment adds up to two P/I Constants, the Due Date will advance twice). This transaction will only roll the loan due date if the interest due amount is satisfied for the day the transaction is run. If the amount you spread to interest is less than the amount due for the day you are running the transaction, the due date will not advance.
•The transaction amount is applied to principal, interest, and reserves accordingly.
•Accrued Interest (if any) is subtracted by the amount of the transaction that was applied to interest (if any).
•The Installments Made is increased by 1, or in the case the Due Date is rolled more than once, the Installments Made goes up by the number of times the Due Date is rolled.
•The Due Date Last Rolled displays the date this transaction was processed.
•The Date Interest Paid To is updated to the date this transaction was processed.
•The Last Payment Date is updated to the date this transaction was processed.
•The Last Payment Amount field displays the amount of the transaction.
•The Last Transaction Date is updated to the date of this transaction.
•Any additional funds outside a full payment are applied to the Applied To Payment/Partial Payment field on the Account Detail screen.
This transaction allows a payment to be posted for any amount, regardless of the amount due. It allows the teller to define what dollar amounts are spread to the principal, interest, and reserves using a supervisor override (SOV). This transaction will roll the loan due date. The system will not allow a 690 transaction or a 698 correction on line-of-credit loans (payment method 5).
WARNING: This transaction could post less than the amount due and roll the loan due date. It is designed for institutions that have purchased loans that other institutions service for them. It allows the total principal and interest due to be placed in the P/I Constant field, but the purchasing institution posts the payment for a lower amount, which represents the payment less the service fee the servicing institution keeps. Use this tran code with care.
The system will allow a payment to be posted for any amount, regardless of the amount due. It requires the teller to define what dollar amounts are spread to the principal, interest, and reserves using a supervisor override (SOV). This transaction will only roll the loan due date if the interest due amount is satisfied for the day the transaction is run. If the amount you spread to interest is less than the amount due for the day you are running the transaction, the due date will not advance. If the payment is less than this, the payment will still be accepted and entered into the Applied to Payment field. Use the Loans > Payoff screen to determine how much interest is due for a particular day (Per Diem field). Remember to take into consideration whether your institution collects interest through the payoff date or to the payoff date.
If you want to make a payment and collect interest as of a date in the past and have the loan due date advance at the same time, you can use the backdating feature. (Institution Option OPT3 BKDT must be enabled).
WARNING: This transaction could post less than the amount due and roll the loan due date. It is designed for institutions that have purchased loans that other institutions service for them. It allows the total principal and interest due to be placed in the P/I Constant field, but the purchasing institution posts the payment for a lower amount, which represents the payment less the service fee the servicing institution keeps. Use this transaction with care.
A 690 tran is not allowed if a loan is an ARM in negative amortization (deferring interest). In this case, the following message will be displayed: "DEFERRING INT. – 690 TRAN NOT ALLOWED."
Also, if posting more than the P/I Constant, this transaction will roll the due date as many times as are divisible into the amount posted.
Be aware that the following institution options may affect whether or not the Spread Payment transaction can be processed on an account.
OP01 BKPM - Bankruptcy (Hold Code 4 and 5)
If this option is set, a Spread Payment transaction can be run on accounts in bankruptcy. If the option is not set for your institution, account in bankruptcy (have a Hold Code 4 or 5) will not be allowed Spread Payments.
OP02 APCO - Charge-offs (Hold Code 2)
If this option is set, a Spread Payment transaction can be run on charged-off accounts. If the option is not set for your institution, charged-off accounts (have Hold Code 2) will not be allowed Spread Payments.