Loan Screens > Account Information Screen Group > Dealer Information Screen > Dealer Information field group

Entry: User, checkbox

F/M: Yes

Mnemonic: LNDLAM

Screen: Loans > Account Information > Dealer Information screen

This field provides your institution the option to amortize the Dealer Prepaid Interest / Premium. If this box is checked, the Dealer Prepaid Interest/Premium and the Dealer Interest/Premium Earned fields will no longer be file maintainable. However, the Dealer Interest/Premium Earned field will change if a Dealer Interest Increase (tran code 210/01) or a Dealer Interest Decrease (tran code 200/01) transaction is run. The default is unchecked (a blank checkbox).

Amortize Dealer Premiums Option
An update function (#81) is available to amortize dealer premiums or interest automatically. By checking the Amortize Dealer Interest field and specifying an Amortization Code, the system will automatically amortize the dealer premiums each month. Transaction code 350 is used to do the work for you. The update function looks for the same condition on the loan as the other amortization functions, so an amortization will not happen if any of the following conditions exists on the loan:

1.If this 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 field is "Doubtful" or "Loss" on the Loans > Account Information > Additional Loan Fields screen, Valuation/Billing tab.

4.If the Trading Indicator field is "Held for Resale" on the Additional Loan Fields screen, Valuation/Billing tab.

5.Action code 39 stops fees and premiums from amortizing. On or after the action date, the fees/premiums will amortize. This action code would generally be used if you have loans that have not been sold, but you are planning to sell.

6.In addition, Institution Option DFAM forces a delinquent loan to amortize to the due date, as long as the due date is less than the current month and year and not less than the date last amortized (LNDLAD).

If you want this update function set up for your institution, please submit a work order.