Loans > Loan Screens > Account Information Screen Group > Reserves Screen Group > Reserve Analysis Screen > Options, Limits & Loan Fields tab

The fields in this field gruop affect how reserve analysis is calculated for this particular loan. Use the Loans > Account Information > Reserves > Reserve Analysis Options screen to set up institution-wide reserve analysis options.

lairra_analysisoptionsfg

The fields in this field group are as follows:

Field

Description

Skip Analysis

Mnemonic: LNSKPA

This field is a checkbox with a default value of unchecked. This field applies only to the afterhours batch processing and excludes this loan from all afterhours analysis processing. In addition, another way to eliminate a loan from being analyzed is to not set up a Reserve Effective date in the Analysis Fields field group.

	Note: There are no hold codes to stop analysis.

	WARNING: If the Reserve Effective field is blank and you use payment coupons, the system treats this date as 02-01 and uses that date to stop/start coupons.

Exclude Reserve 2 From Analysis

Mnemonic: LNSKR2

This field is a checkbox with a default value of unchecked. If you do not want to include Reserve 2 in the analysis (both online and the afterhours batch analysis), then checkmark this field. This will exclude Reserve 2 from all calculations on the Disbursement Types and Dates list view and the Online Analysis Projection tab. If there is a Reserve 2 payment amount on the Loans > Account Information > Reserves > Account Reserve Detail screen, that amount will be included in the New Loan Payment amount. All Reserve 2 disbursements will be displayed in history regardless of whether this field is checked.

If Reserve Deficiency Exists Automatically Add Hold Code 14

Mnemonic: ABHC14

If this field is checkmarked, a hold code 14 will be placed in the first Hold Code field of the loan record indicating to the Loan system that a deficiency was found on this account. The default is a blank box. Hold code 14 indicates that a reserve deficiency exists on this account and requires a teller override to process transactions.

	Note: If Hold Code 1 already contains a hold code, then hold code 14 will replace it.

Shortage Option

Mnemonic: ABSHTB

This is where you choose which shortage option to use. See below for more information.

The three options are as follows:

A	Allow Shortage (default)

B	Repayment within 30 days (only if it is less than one month's reserve payment)

C	Repayment over 12 months (requires repayment of shortage in equal monthly payments over a 12-month period)

	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.

	Note: If you select option B requiring repayment within 30 days, and the calculated shortage is equal to or greater than one month's escrow payment, the system will default to option C and divide the shortage by 12.

	Note: A deficiency is different than a shortage. A deficiency is any amount the lender has advanced from its own funds (the amount the reserve balance is below zero). A shortage is a calculated amount needed in the reserve by the time disbursements become due. You could have both a shortage and a deficiency on the same account.

Deficiency Option

Mnemonic: ABDEFB

This field is where you choose which deficiency option to use. See below for more information.

The three options are as follows:

A	Allow Deficiency (default)

B	Repayment within 30 days (only if the deficiency is less than one month's reserve payment

C	Repayment over 12 months

	WARNING: If you select option B requiring repayment within 30 days and the calculated deficiency is equal to or greater than one month's escrow payment, the system will default to option C and uses the Number of Payments to Repay Deficiencies (2-12) below to determine how many months to collect the deficiency.

	Note: A deficiency is different than a shortage. A deficiency is any amount the lender has advanced from its own funds (the amount the escrow balance is below zero). A shortage is a calculated amount needed in the reserve by the time disbursements become due. You could have both a shortage and a deficiency on the same account.