Navigation:  Loans > Loan Screens > Account Information Screen Group > Amortizing Fees And Costs Screen >

Fee/Cost Information field group

Navigation:  Loans > Loan Screens > Account Information Screen Group > Amortizing Fees And Costs Screen >

Fee/Cost Information field group

 Previous pageReturn to chapter overviewNext page  Print this Topic

Show/Hide Hidden Text

The name of this field group on the Amortizing Fees and Costs screen changes according to whether a fee or cost is selected in the list view (or whether the Deferred Cost field is marked, see below). These fields contain information about the amortization cost or fee.

 

laiafc_feecostinfo

 

The fields in this field group are as follows:

 

Field

Description

Code

 

Mnemonic: F1FEEC, F2DSCR

This is the code for the amortization fee or cost set up for the account, as selected in the list view above. You cannot make changes to this field once it has been set up on an account. This information is usually pulled over when the loan is originated. On rare occasions, you may have need to set up amortizing fees or costs after a loan is opened. For those instances, see the Amortizing Fees/Costs Transactions topic.

 

paperclipnote

Note: You can skip certain amortizing fees from being included when converting precomputed loans to interest-bearing loans. This option (F1CIBS) is set during loan origination (either through GOLDTrak PC, GOLDTrak Express, or eGOLDTrak) for each fee you do not want included and is only available for precomputed loans (payment method 3).

 

You can convert precomputed loans to interest-bearing loans through the Convert Precomputed to Simple tab.

 

paperclipnote

Note: If you have the proper security, you can set up additional costs and fees to appear in this list by using the Loans > System Setup Screens > Amortization Descriptions screen.

Original

 

Mnemonic: F1FORG

This field displays the original amount of the fee or cost applied to this loan. This would be the total amount of the fee or cost, not the monthly amortized amount. This field is file maintainable. This field must have an amount entered before the G/L Earned amount can be updated.

Remaining

 

Mnemonic: N/A

This field is calculated. It displays the remaining amount of the Original fee/cost (see above) that has yet to be paid by the borrowers as of today's date. This field is calculated according to the Amortization Method set up for this fee or cost code (see below). This field is not file maintainable.

Earned

 

Mnemonic: N/A

This field is calculated. This field displays the amount of the fee that has been earned by your institution when borrowers pay their monthly loan payment including any amortized fees or costs included in the loan payment.

This field is calculated as follows:

Original fee or cost amount (see above) - Remaining (see above) = Earned

Amortization Method

 

Mnemonic: F1FMET

This field is used to select the amortization method for fee returns in the event the loan is paid off early or the loan/fee is cancelled. The amortization method of how to refund fees or costs upon early payoff or cancellation is usually applied when the loan is originated; however, you can make changes to this field.

 

The Refund Rule and Refund Days fields (see below) may affect whether or not borrowers are eligible for any refund of the fee amount. Additionally, in order for the refund to be included on the Adjustments tab on the Loans > Payoff screen, the Include in Payoff box below must be checked.

 

The system generally amortizes fees and costs to the applicable General Ledger at monthend. The amortization method for the General Ledger is selected in the General Ledger Information field group. See Amortization Methods for detailed descriptions of each of the possible amortization methods.

 

See also:

Amortizing Fees And Costs Screen

Amortizing Fees/Costs Transactions

Amortization Options

Refund Rule

 

Mnemonic: F1RULE

This is the refund method used to determine whether the borrower is eligible for any refund of fees or costs incurred when the loan was opened. This field usually determines when a refund is no longer available, or if the borrower is within the refund period. See Refund Rule Codes for a list of available refund methods.

Term

 

Mnemonic: F1TERM

This field displays the term, in months, that the Original fee or cost amount (see above) will be amortized on this loan. In most instances, the number of months in this field will match the Term (in Months) of the loan. This field is file maintainable.

Date Opened

 

Mnemonic: F1OPND

This is the date the fee or cost code was set up on this loan. Usually, this is the same date the loan was opened. However, if you are creating a new amortizing fee, you would enter today's date in this field. For more information on creating new amortizing fees, see section 36.3, Transactions, in the Loan manual on DocsOnWeb.

Amortization Rate

 

Mnemonic: F1DART

Enter a new amortization rate for the loan. This rate is only used with amortization method 002–Level Yield. It is the difference between the original loan APR and the loan rate.

Refund Days

 

Mnemonic: F1RDYS

This is the number of days within which a refund of the fee or cost (Remaining field above) will be given to the borrower in the event of an early payoff or cancellation. This field is used in conjunction with the Refund Rule field. See below for more information.

 

For example, your company has a an origination fee of $50 with the Refund Rule field is set to "2 - No Refund After Refund Days," and the Refund Days field is set to 90. A borrower pays off their loan early at 100 days. The borrower is not entitled to a refund of the origination fee, because the loan was held longer than 90 days.

 

In this same scenario, let's say the borrower pays off the loan in 89 days. The borrower would be entitled to the Remaining amount (see above) of the fee at payoff, and that amount would be displayed on the Adjustments tab on the Loans > Payoff screen, as shown below.

 

lafcs_remaining

ò

lafcs_payoff

Pro Rata Days

 

Mnemonic: F1PRDY

If this loan uses a pro rata daily amount in calculating the amortization of the fee or cost, the number of days used in the pro rata calculation is entered in this field. This field only works if the Amortization Method field is set to "8-Pro Rata Daily."

 

For example, if your institution has set up a fee that will only be amortized for the first 180 days after the loan is opened, you would enter "180" in this field. Then, if the loan is paid off before 180 days has passed, a portion of the fee or cost will be returned to the customer (Remaining field above) according to when the loan was paid off and the amount entered in this field. If the loan is paid off after 180 days, none of the remaining fees or costs will be returned.

Rebated

 

Mnemonic: F1FRBT

This is a calculated field that displays the amount that was refunded to the borrower at payoff, if any.

Include in Penalty/Payoff

 

Mnemonic: F1PNTY, F1PYOF

Mark the Include In Penalty checkbox field to include this fee in the 5% rule calculation for Georgia GILA loans. See below for more information.

 

5 % GILA Refund

 

Based on Georgia GILA regulations, there is no refund of the 8%/4% fee unless earnings exceed 5% per month. The maximum allowable earnings are 5% per month (calculated on total of payments minus finance charge) based on months elapsed from date of loan. Monthly maintenance fees are also excluded when calculating the 5% maximum earned.

 

Requirements

 

The following criteria need to be met in order for the 5% refund to calculate:

 

•Checkmark the following fields: LN78GA (GOLDTrak PC field that signifies the loan is a GILA loan), F1PYOF (Include in Payoff), and F1PNTY (Include in Penalty).

 

•Set Payment Method field to "3."

 

•The following fields cannot be equal to 0.00; however, they can be greater than or equal to 0.00:

 

OTPC8A (Fee at 8%), OTPC4A (Fee at 4%), OTPC8D (8% Difference), and OTPC4D (4% Difference). These fields are found on the Original Loans Disclosure screen or the Purchase Disclosure screen, depending on whether the loan was originated with your institution or purchased from another institution.

 

Formulas

 

Below are the formulas to calculate the refund:

 

Same Day

If LNOPND (Date Opened) = LNCLDT (Payoff Date), then refund entire amount of 8%/4% fee.

 

1st Month (Greater than 1 day up to 1st Anniversary of Date Opened)

LN78OI – Interest Rebate + Original 8%/4% Fee (F1FORG for F1FEEC 1 on 1FFC) = AMT1

LN78OP * 5% = AMT2

AMT1 – AMT2 = 1st Month Refund

 

2nd Month (Greater than 1st Anniversary of Date Opened)

LNPICN – Original Maintenance Fee (F1FORG for F1FEEC = 2/LNTRMO) – AMT2 = AMT3

LN78OP – AMT3 = AMT4

AMT4 * 5% = AMT5

AMT1 – AMT2 - AMT5 = 2nd Month Refund

 

3rd Month (Greater than 2nd Anniversary of Date Opened)

LNPICN – Original Maintenance Fee (F1FORG for F1FEEC = 2/LNTRMO) – AMT5 = AMT6

AMT4 – AMT6 = AMT7

AMT7 * 5% = AMT8

AMT1 – AMT2 - AMT5 - AMT8 = 3rd Month Refund

 

If the refund amount is less than 0.00, then the refund amount is 0.00.

 

Examples:

 

Example 1:

 

8%/4% Fee        LNOPND        LNCLDT

36.00                5/10/2007        05/10/2007        

 

LNCLDT = 05/10/07        (LNCLDT = LNOPND)

Interest Rebate = 33.75

Refund = 36.00

 

 

Example 2:

 

LN78OP          LN78OI         8%/4% Fee            Maintenance Fee        

380.25              33.75              36.00                  27.00                              

 

LNTRMO        LNOPND          LNOPIC                   LNCLDT

9                      5/10/2007           53.00              05/11/07

 

Interest Rebate = 27.00

33.75 – 27.00 + 36.00 = 42.75 (AMT1)

380.25 * 5% = 19.01 (AMT2)

42.75 (AMT1) – 19.01 (AMT2) = 23.74 Refund

 

Example 3:

 

LN78OP          LN78OI           8%/4% Fee        Maintenance Fee        

380.25               33.75               36.00                     27.00                

 

LNTRMO         LNOPND          LNOPIC           LNCLDT

9                    5/10/2007            53.00            06/12/07

 

Interest Rebate = 27.00

53.00 – (27.00/9) – 19.01 (AMT2) = 30.99 (AMT3)

380.25 – 30.99 (AMT3) = 349.26 (AMT4)

349.26 (AMT4) * 5% = 17.46 (AMT5)

42.75 (AMT1) – 19.01 (AMT2) - 17.46 (AMT5) = 6.28 Refund

 

Example 4:

 

LN78OP          LN78OI        8%/4% Fee         Maintenance Fee

380.25              33.75              36.00                     27.00

 

LNTRMO         LNOPND             LNOPIC           LNCLDT

9                    5/10/2007              53.00                07/11/07

 

Interest Rebate = 15.75

53.00 – (27.00/9) – 17.46 (AMT5) = 32.54 (AMT6)

349.26 (AMT4) – 32.54 (AMT6) = 316.72 (AMT7)

316.72 (AMT7) * 5% = 15.84 (AMT8)

54.00 (AMT1) – 19.01 (AMT2) - 17.46 (AMT5) – 15.84 (AMT8) = 1.69 Refund

 

Mark the Include in Payoff checkbox field to include this fee in the payoff to rebate funds to the borrower. If this box is not checked, no calculations are made to the Earned and Remaining amounts (see above). Additionally, the Refund Rule and Refund Days fields (see above) may affect whether or not the borrower is eligible for a refund of fees or costs at payoff.

Deferred Cost

 

Mnemonic: F1KOST

Use this field to indicate whether the item selected in the list view is a deferred cost (rather than a fee). For more information about how deferred costs are amortized, see information for Amortization Method 11.

Skip CIB Processing

 

Mnemonic: F1CIBS

Select this checkbox if you want this fee or cost to be excluded from being refunded when a loan is converted from a precomputed loan to an interest-bearing loan (through the Convert Precomputed to Simple tab). Customers will still be responsible for paying amortizing fees and costs if this box is selected. If this checkbox is not selected, the fees and/or costs will be refunded to the borrower after the loan is converted from a precomputed loan to an interest-bearing loan.

©2020 GOLDPoint Systems. All rights reserved.