Navigation:  Loan Screens > Account Information Screen Group > Account Detail Screen > Account tab > Payment and Classification field group > Date Interest Paid To

Entry: User, date

F/M: Yes

Mnemonic: LNPDTO

Screen: Loans > Account Information > Account Detail > Account tab

 

This is the date, calculated with each payment, up to which interest has been paid on the loan. This date is not used for interest calculation purposes anywhere in the GOLDPoint System, but is provided on this screen for loan servicing convenience. When charging interest on LIP loans, this date will appear in history.

 

The system enters this information, but the field can also be file maintained. For amortizing loans (payment methods 0 and 7), if this doesn't stay one cycle behind the due date, the PI Constant field could be incorrect.

 

For daily simple interest loans (payment method 6), this field is calculated in the following way.

 

When a payment is posted, the Date Last Accrued the date the payment was posted. The system then takes the amount in the Principal Balance field and multiplies it by the loan rate and divides it by the interest calculation code base (this determines the per diem). It then divides the Accrued Interest by the per diem and calculates the number of days. The number of days is subtracted from the Date Last Accrued and that becomes the Date Interest Paid To. When calculating the number of days, the system rounds up. For example, if the number of days is 14.9, then 15 days will be used.

 

Line-of-credit loans (payment methods 5, 9, and 10) are the same as payment method 6 except as follows:

 

For periodic loans, the Date Interest Paid To does not change until the full payment is paid. At that time, the Date Interest Paid To will be the date of the finance charge connected to the loan due date.

 

For example, the loan has a due date of 8-1 and the finance charging is done 15 days prior (7-16). When the 8-1 payment is posted, the Date Interest Paid To would become 7-16. On 8-16, the finance charging would be done for the 9-1 payment. When the 9-1 payment is posted, the Date Interest Paid To would become 9-16. (Regardless of what day a payment is posted, the Date Interest Paid To is the date the finance charge was processed.)

 

For daily loans (payment method 5), the current and previous finance charges are added to the amount in Accrued Interest. The above-mentioned calculation for daily simple interest is then performed.

 

Note: This field is only an interest estimate for payment methods 5, 6, 9, and 10 and LIP loans. Interest rate changes or large adjustments to the principal balance will make the calculated paid-to date slightly inaccurate for the month of the adjustment. The following month the Date Interest Paid To will be recalculated using the above-mentioned calculation.

 

For payment method 0 and 7 loans only, if a loan has been sold to an investor, any time a principal decrease (tran code 510) or correction (tran code 518) is processed, the system will write to history the "date interest is paid to." This date is not changed but is written to history so that for scheduled/scheduled reporting, the system can use this date as the payment date for the curtailment.

 

Institution Option PIWD is available for daily simple interest (payment method 6) loans. If this option is set, when a payment is posted (600 transaction code only), interest will only be paid in full-day increments. For example, if the per diem is $5.50, only multiples of $5.50 would be paid to interest ($5.50, $11.00, $16.50, etc.), up to the full amount of interest owed. Any remaining amount will be applied to principal. If the amount paid is less than the per diem, no interest will be paid.

 

The result of this option will be a more accurate interest paid to date.

 

Example:

 

Given:

 

A payment of $100.00 divided by the per diem of $3.14 will be 31. The per diem multiplied by 31 is $97.34. The remainder of the payment ($2.66) will be applied to the principal.