Navigation:  Loans > Loan Screens > Account Information Screen Group > Signature Loan Details Screen >

CSO tab

Navigation:  Loans > Loan Screens > Account Information Screen Group > Signature Loan Details Screen >

CSO tab

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Information displayed on this tab is entered when a CSO loan is originated and transmitted through GOLDGateway. CSO loans are loans that are negotiated through a Credit Services Organization, sometimes also called Credit Access Businesses (CAB).

 

If your institution does not work with CSOs, this tab can be ignored. If your institution does work with CSOs to secure loans, mark the CSO Loan field to reveal any CSO information that was entered when the loan was opened.

 

For servicing a loan, CSOs require a guaranteed loan amount, as well as a monthly servicing fee. If the customer defaults on their loan and the loan is charged off, all remaining loan guarantee money is sent to the CSO, and the balance of the loan is paid by the CSO to the lender.

 

See the Setting Up CSO Payments help page for more information about how the system handles CSO accounts.

 

lsld_csotab

Loans > Account Information > Signature Loan Details Screen, CSO Tab

 

The Posted ACH Distributions list view at the bottom of this tab displays all ACH distributions made to the CSO. If a payment hasn’t been posted yet, you can right-click on the payment and select Cancel.

 

The fields on this tab are as follows:

 

Field

Description

CSO Loan

 

Mnemonic: LN16CL

If your institution works with CSOs to secure loans, mark this field to reveal any CSO information that was entered when the loan was originated. Generally, information in the fields on the CSO tab shouldn't be changed. CSOs provide low-credit customers options to help repair their credit and secure a loan. Marking this field makes the other fields on the CSO tab file maintainable.

CSO Payee Number

 

Mnemonic: LN16PY

This field displays the CSO payee number as it has been set up on the Loans > Payee Information screen. The CSO must be set up on the Payee Information screen before ACH distributions can be made to the CSO.

Loan Guarantee Amount

 

Mnemonic: LN16GA

When loans are originated using a CSO, the CSO requires a guaranteed amount that they receive if the loan defaults. In return, the CSO pays your institution the remaining amount of the loan.

 

This amount reflects the remaining amount due back to the CSO for originating the loan. This field is updated by the system each time a payment is made.

 

The Original Loan Guarantee Amount field below displays the original amount of the guarantee when the loan was originated.

 

See help for the CSO tab for more information.

Investor Service Fee Rate

 

Mnemonic: LNISVC

CSOs require a monthly servicing fee as long as a loan is open. This field displays the percentage rate charged by the CSO for the loan. This field is set up at loan origination and should not be changed. See below for more information.

 

Monthly service fees are calculated as original loan amount multiplied by the value in this field:

 

Monthly service fee = Original Loan Amount x Investor Service Fee Rate

 

If the loan is originated, charged off, or paid off in the month, then the monthly service fee is earned on a pro rata basis for the part of the month the loan was still open. This means that the monthly service fee is divided by 30 days and multiplied by the number of days the loan was opened (based on a 360-day base month).

 

The system calculates the servicing fee and distributes the amortized amount of those fees to the CSO’s ACH account on a monthly basis.

 

You can view the details of the CSO servicing fee on the Amortizing Fees tab.

 

The CSO must be set up on the Payee Information screen. You must include the CSO’s routing and account number where ACH funds will be distributed each month.

 

The service fee for the CSO is sent monthly using transaction log 251. The TORC for this is 17 (CSO Monthly Service Fee).

Investor Guaranteed Rate

 

Mnemonic: LNIGRT

This field displays the percentage rate used to calculate the amount of the payment sent to the CSO for the guaranteed amount. See below for more information.

 

When a customer makes a payment on a CSO-generated loan, a portion of that payment goes to the CSO for the guaranteed rate. The payment amount to be sent to the CSO is calculated as follows:

 

Amount of the payment to principal x Investor Guaranteed Rate = Amount sent to CSO

 

The system sends an ACH distribution to the CSO each time a payment is made. This transmission is not sent until five days after a payment is made, just in case the payment is rejected for any reason (non-sufficient funds, account closed, etc.). If the payment is rejected, you can cancel the ACH distribution scheduled to be sent to the CSO. See Canceling CSO Distributions for more information.

 

The CSO must be set up on the Payee Information screen. You must include the CSO’s routing and account number where ACH funds will be distributed each month.

 

The ACH distributions made to the CSO are recorded with transaction log 261 to record the movement of money to the appropriate General Ledger account. The Transaction Origination Code (TORC) for this transaction log is 15 (CSO payment distribution).

Original CSO ACH Fee

 

Mnemonic: OTPPF1

This field displays the original amount of the CSO fee calculated when the loan was originated. The servicing fee is calculated as a percentage of the original balance. The Investor Service Fee Rate field above displays the percentage used to calculate this amount.

Original Loan Guarantee Amount

 

Mnemonic: OTPPF2

This is the original guarantee amount on the loan that was set up when the loan was originated. This amount goes back to the CSO for negotiating the loan. This is the amount your institution guarantees to the CSO, and in return, if the loan defaults, the CSO pays the remaining amount due on the loan.

Total CSO Fee

 

Mnemonic: OTPPF1 + OTPPF2

This field displays the total CSO fee amount on the customer account. This value is calculated by adding the Original CSO ACH Fee to the Original Loan Guarantee Amount (see above).

 

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