Creating a Schedule |
  
|
Navigation: Loans > Loan Screens > Account Information Screen Group > Amortization Schedule Screen >
Creating a Schedule |
|
This help page explains basic fundamentals pertaining to creating a schedule using the Amortization Schedule screen. Remember that changes made on this screen do not permanently affect the loan. When a user exits this screen, all fields default to their values on the actual loan as indicated on other Loan screens.
Overview
Amortization schedules can be created for the following loan payment methods:
•Payment method 0 – Amortizing
•Payment method 3 – Rule of 78’s
•Payment method 6 - Daily simple interest
•Payment method 6 – Daily simple interest using the ARM fields (LNRTSN = yes)
•Payment method 7 – ARMs
|
Note: If creating a schedule for an account that uses ARM fields, the ARM Fields field group will appear on the right side of the Account Information tab. Otherwise, this field group will not be visible. These fields will be unavailable for file maintenance unless the indicated Payment Method is 7 (it can also be 6 if the account has the Use ARM Fields checkbox marked). |
|---|
There are limitations on what data is included on the schedule, such as the beginning and ending payments and interest rates.
The first payment defaults to the current loan due date. The last payment defaults to the earliest of the balloon date, maturity date, next rate change date, or the next P/I payment change date. If the maturity or balloon date is used, a message is displayed prior to that payment on the schedule. For example, if the maturity date is 5/1/2018 the message will appear after 4/1/2018. Even if the principal balance isn’t zero at that time, no more payments will be displayed.
Daily simple interest loans (payment method 6) always treat payments as though they will be posted on the due date. Since most customers don’t have their payments posted on the actual due date, the spread between principal and interest on the schedule won’t match what actually happens.
The borrower's name, address and loan number will automatically be printed on the schedule. However, that information can be removed by typing something in the Loan Title field. This allows you to create hypothetical schedules that may or may not be directly tied to the account from which you accessed the screen. For example, if non-customers request that you create a schedule for them, you could access this screen from any loan and create and print schedules.
Amortization schedules should not be given to a customer as a history statement because the system does not read loan history when creating them. The program simply calculates a schedule using the data entered on the screen. Changes to data parameters (future or past) such as P/I payments, interest rate changes, extra principal payments, etc., will affect the actual amortization of the loan and should be explained to the customer.
Working with ARM Loans (see Note box above)
Because of the complexity of adjustable rate loans, schedules cannot be created for all scenarios. However, there is some flexibility in creating different scenarios on a schedule. Before using these fields for ARM (payment method 7) loans, you should be familiar with how ARM loans function in general and with the fields on the Loans > Account Information > ARM Information screen.
The schedule uses the information on the ARM Rates & P/I Tables tab on the ARM Information screen if data affecting upcoming or graduated payments is available. However, it does not use prior interest rate or P/I change information. This means that you can only create a schedule for upcoming payments. A schedule cannot be created starting at the beginning of the loan if interest rates or P/I payments have been changed. The first payment on the schedule will begin with the loan due date; the last payment on the schedule will end at the earliest of the balloon date, maturity date next rate change date or the next P/I payment change date.
