Navigation:  Loans > Loan Screens > Investor Reporting Screen Group > Loan Investor Fields Screen > Bi-weekly Loans

This help page describes how to set up the correct calculation codes on the Loans > Investor Reporting > Loan Investor Fields screen to accurately calculate the amount of principal, interest, and service fee (when a bi-weekly payment is made) and simultaneously allow a different set of codes to be entered on the group level (on the Loans > Investor Reporting > Investor Group screen) to correctly calculate the amount of principal and interest to be remitted to the investor as of the cutoff date.

 

The following codes are suggested for bi-weekly fixed rate loan payments sold to Fannie Mae. If you have bi-weekly loans sold to investors other than Fannie Mae that require additional reports be changed, please submit a work order with GOLDPoint Systems.

 

Tell the System to Use Bi-Weekly Payments

On the Loans > Account Information > Account Detail screen, select “Bi-weekly” from the Payment Frequency field.

 

Normally, the Loan Investor Fields screen is used first on all reports and calculations. But in the case of bi-weekly loan payments, the system uses the calculation codes entered on the Investor Group screen to calculate the principal, interest, service fee, etc. remitted to the investor at cutoff time.

 

Select the Interest Calculation Method for Bi-Weekly Payments

On the Loan Classification and Payment Fields screen, select “365/365 (1)” or “365/365 (101)” from the Interest Calculation Method drop-down list.

 

According to Fannie Mae, the interest collected on scheduled/actual bi-weekly loans is calculated on a 365-day basis and the actual activity passed through to the custodial account. The interest calculated at cutoff time is calculated on a 360-day basis. This difference will be reflected between the Investor Collection and the Investor Remittance reports.

 

Calculate and Enter Service Fee Rate

On the Investor Group screen, enter the service fee, using the following formula, in the Service Fee Rate field.

 

LOAN INTEREST RATE - GUARANTEED RATE = SERVICE FEE RATE

 

The loan Interest Rate is found on the Account Detail screen and the Guaranteed Rate is found on the Rate Change Information tab on the Loan Investor Fields screen.

 

For example, if your interest rate is 9.625% and your investor guaranteed rate is 8.5%, then enter 1.125% in the Service Fee Rate field on the Investor Group screen.

 

 

Select Loan Level Codes

On the Investor Loan Basics tab on the Loan Investor Fields screen, select the following codes:

 

 

 

Select Group Level Codes

On the Investor Calculations tab on the Investor Group screen, select the following codes: