Loan Screens > Account Information Screen Group > Reserves Screen Group > Account Reserve Detail Screen > Reserve Disbursements tab > Disbursement Information field group

Entry: User, checkbox

F/M: Yes

Mnemonic: RDHCSH

Screen: Loans > Account Information > Reserves > Account Reserve Detail > Reserve Disbursements tab

Two fields appear here. The first is a checkbox that indicates whether your institution wants to use a specific number of months for the cushion for a specific disbursement type when performing the analysis. The default is unchecked. The second field works only if there is a checkmark in the first field. The second field indicates the number of months to be used as the cushion. The number of months can be 0, 1, or 2, with a default of “0” when a checkmark is made. These fields function for both online and the afterhours analysis processing. Information entered in these fields will override your institution analysis option and the state or document exceptions set up on the Options, Limits, and Loan Fields tab of the Reserve Analysis screen in CIM GOLD.

Example: If the Cushion field on the Options, Limits, and Loan Fields tab of the Loans > Account Information > Reserves > Reserve Analysis screen is set to two months and you have a checkmark in this field and “1” for disbursement code 30 (life insurance), then the analysis will hold two months cushion for all disbursement items except life insurance, for which it will hold only one month.

The hierarchy of all cushion options are:

1.The system looks at the Account Reserve Detail screen. If any reserve disbursement type has a checkmark in the Analysis Cushion field, that is the cushion used for that item only. It does not check further.

2.For any reserve disbursement types with no checkmark in this field, the system looks at the State or Cushion Exceptions field on the Options, Limits, and Loan Fields tab of the Reserve Analysis screen. If an exception is indicated, that number is used for the cushion. It does not check further.

3.If a loan does not have a checkmark in this field nor does it indicate a State or Cushion Exceptions on the Options, Limits, and Loan Fields tab of the Reserve Analysis screen, then the system uses the designated number of months next to the Cushion field on the Options, Limits, and Loan Fields tab of the Reserve Analysis screen for analysis.

Another example of when this might be used is if your institution wants to hold two months cushion for all loans, but you service loans in a specific state that only allows you to withhold one month for taxes.

Note: For FHA loans, no cushion is allowed on the mortgage insurance premium (FHA letter 95-20). The system does not include disbursement type 50 (FHA insurance premium) or type 58 (FHA risk-based insurance) in the cushion calculation.