Navigation:  Teller System > Transactions > Loan Transactions > Loan Transaction Codes > Deferment Transactions > Tran Code 2600-50, Fee Reg Deferment or Balboa Deferment

The Fee Reg Deferment transaction can be run using the Deferment Inquiry (tran code 2270-01) first or on its own. When run with the inquiry, this transaction will automatically come up with the amount of the deferment calculated for the selected loan. Note: GOLDPoint Systems programmers will need to set up the Deferment Inquiry to be chained to this transaction.

 

The calculation is based on the Deferment Code on the account. This transaction posts the deferment fee/charge collected as a fee to the general ledger number specified in Deferment Fee on the GOLD Services > General Ledger > G/L Account By Loan Type screen. It can be set to run on any account using deferment code 26 or 28.

 

See the following example of this transaction in CIM GOLDTeller:

 

 

When you first download this transaction, the name of the transaction is Balboa Deferment. You can change the name of this transaction to something more understandable for your tellers (e.g., Fee Reg Deferment). See the Transaction Entry Options topic in the CIM GOLDTeller User's Guide for more information on how to change the name of a transaction.

 

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 "Deferment Reason," 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 "Deferment Reason") 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.

 

 

Results of this Transaction

 

Once this transaction is run, the following takes place on the account:

 

•The amount entered in the Tran Amount field (the deferment charge amount) is applied to the Applied To Payment field (LNPRTL). That amount is also 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.

 

•If the Deferment Code is 26, the transaction does not waive late charges. If the Deferment Code is 28, the transaction does waive late charges.

 

•The Due Date is rolled to the next Due Date. If the Applied To Payment field has enough funds for an additional payment, then the Due Date will be rolled another frequency.

 

•The Term in Months field advances by one (or the number of deferments processed).

 

•The Current Installment Number field advances by one (or the number of deferments processed).

 

•The Date Interest Paid To is changed to the Effective Date entered on the Deferment by Code transaction.

 

•The Last Payment Date is changed to the Effective Date entered on the Deferment by Code transaction.

 

•The Loans > Deferments screen is updated accordingly, with the amount, type of deferment, deferred due date, next due date, and the number of deferments made.

 

•If the Deferment Code used by your institution is 28, a Deferment Notice form (tran code 2270-02) will be generated after the transaction is run. Contact your GOLDPoint Systems account manager if you want this set up.

 

Criteria for this Deferment

 

This deferment uses Deferment Code 26 or 28. See the details for those Deferment Codes as to how the charge for this deferment is calculated. Additionally, this transaction requires the following:

 

1.This deferment code can be run manually with other deferment transactions.

2.Can be run on delinquent accounts.

3.Uses calendar year (January 1 – December 31).

4.Must have made four payments on the account before a deferment is allowed. (Installments Made (LNINNO) is greater than or equal to 4.)

5.Can only be run on an account with a payment method code of 3 (precomputed), 6 (interest-bearing), or 16 (signature loan).

 

This deferment is disallowed if any of the following exist on the loan:

1.The account has a Hold Code 2, 4, 5, or 90.

2.The account has an Action Code of 99.

3.The account has a General Category of 80, 82, 85, or 87.

4.The account is closed, released, unopened, has multiple payment applications, or payment schedules.

5.The account cannot have reached the maximum number of deferments for the contract year (Institution Option DFRM).

6.The account cannot have reached the maximum number of deferments over the life of the loan (Institution Option DFRL).

 

History

 

You can view the results of the Deferments transaction on the Loans > History screen or on the Loans > Deferments screen. The Deferment Inquiry field group is also on this screen. It will display the number eligible and can also calculate more than one deferment amount.

 

Credit Reporting

 

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.

 

Corrections

 

This transaction is correctable. However, you cannot correct it by pressing <F8> in the usual manner. You can correct it by completing the following steps:

 

1.Select "Journal/Forwarding" from the GOLDTeller Functions menu (or press <Ctrl> + J on your keyboard). Run a report listing all the transactions run on the particular date for the teller who ran the deferment.

 

2.In the report, find the journal transaction for 2600-50 (or any other Deferment transaction) that you want to correct and right-click it and select "Correct Transaction" from the pop-up menu, as shown below:

 

 

3.The Reg Fee Deferment transaction will appear with the fields automatically entered, and the Correction box checked.

 

4.Click .

 

5.An Override Required box will be displayed. If you have the security clearance to do corrections, enter your password and click <OK> and the transaction will finish processing. If you do not have security clearance, your manager will need to enter their security clearance and click <OK> to finish processing the correction.

 

The system will reverse all the information from the account that was originally established when the Deferment transaction was run.