Loans > Loan Screens > Payoff Screen

The Adjustments tab of the Loans > Payoff screen shows all adjustments to the final loan payoff amount, as shown below:

Loans > Payoff Screen > Adjustments Tab

For example, if the account is paid off and an insurance policy would be paid off early thereby leaving a rebate for the customer, the insurance rebate amount would be displayed on this tab. In the example above, "IN001 CREDIT LIFE DECRE," "IN-0002 PLATEAU A&H 7 DAY," and "IN-0005 INVOLUNTARY UNEMP" are insurance policies that all have rebate amounts due to early payoff. Those amounts are debited from the G/L Number pulled from the Unearned Interest (Payoff/Force Place Ins) on the G/L Account By Loan Type screen.

Additionally, any precomputed unearned interest due back to the customer at payoff will display "UNEARNED INTEREST" in the Description field, the amount of the unearned interest due back to the customer (including a negative sign to indicate subtracting that number from the amount needed to pay off the loan) in the Amount field (see below), and the appropriate General Ledger number in the G/L Number field (see below). Once the payoff is processed (on the Post Payoff tab), that amount is debited (or sometimes credited) to the G/L account set up for your institution.

Up to 16 adjustments can be described in the fields on this tab, which are as follows:

Field

Description

Mnemonic: POFLD1-POFLD12

These fields indicate basic descriptions of additional amounts that will be subtracted from the Payoff Amount automatically once the payoff is processed on the Post Payoff tab. See Description for more information.

Amount

Mnemonic: POAMT1-5, POAMTA-E

Use these fields to indicate additional amounts that will be added to (or subtracted from) the Payoff Amount automatically once the payoff is processed on the Post Payoff tab. Most payoff adjustments are automatically entered by the system, but additional adjustments can be added manually.

These amounts may be subtracted from or added to the Payoff Amount. If the amount is to be subtracted, it must be entered with a minus sign (-) in front of the amount.

G/L Number

Mnemonic: PO1PF1-2, PO2PF1-2, PO3PF1-2, PO4PF1-2, PO5PF1-2

These fields display the G/L number corresponding to each additional amount added to (or subtracted from) the Payoff Amount automatically once the payoff is processed on the Post Payoff tab. See below for more information.

When the payoff transaction is posted, the amount of the adjustment will be debited or credited into the affected G/L accounts set up on the GOLD Services > General Ledger > G/L Account By Loan Type.

Note: When a loan is paid off, fees, costs/discounts, premiums/losses, and mortgage servicing rights will be processed at monthend (not on the date of payoff). However, if any one or more of the following conditions exists, no processing will occur:

1.If the account is a non-performing loan.

2.If General Category is “80” or greater on the Loans > Account Information > Account Detail screen.

3.If the Asset Classification is 4 (doubtful) or 5 (loss).

4.Trading Indicator of 2 (held for resale), if there is no investor master or group number.

This G/L number is pulled from the G/L number on the GOLD Services > General Ledger > G/L Account By Loan Type screen.

For example, in entering a prepayment penalty adjustment owed by the customer, the G/L account used to deposit this penalty amount will be the same as the account set up for the Pre-Payment Penalty or Minimum Interest G/L account set up on the G/L Account By Loan Type screen.

Reference Number

Mnemonic: POREF#

This field indicates the reference number for the account payoff. This number also appears on the Customer Quote.