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Force Place LPD Insurance

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Force Place LPD Insurance

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This transaction is similar to the Force VSI transaction (tran code 2870-00), except this transaction deals with LPD (limited property damage) insurance instead of VSI insurance. Other differences include:

 

When you run this transaction, certain fields will be affected by the State Code and Loan Type applied to the loan. The following paragraphs explain these differences. If the State Code is anything besides 17, 18, 21, 29, or 47, then the transaction will be rejected.

 

If the State Code is 17, then the Refund Rule will be "2–15/16-day rule (365 base)" and the Amortization Method will be "09–MS Short Rate."

If the State Code is 18 (Indiana) and the Loan Type is 18 or 19, then the Refund Rule will be "2–15/16-day rule (365 base)" and the Amortization Method will be "12–Pro Rata Daily."

If the State Code is 18 (Indiana) and the Loan Type is not 18 or 19, then the Refund Rule will be "2–15/16-day rule (365 base)" and the Amortization Method will be "02–Rule of 78s."

If the State Code is 21 (Kentucky), then the Refund Rule will be "2–15/16-day rule (365 base)" and the Amortization Method will be "02–Rule of 78s."

If the State Code is 29 (Missouri), then the Refund Rule will be "2–15/16-day rule (365 base)" and the Amortization Method will be "12–Pro Rata Daily."

If the State Code is 47 (Tennessee), then the Refund Rule will be "2–15/16-day rule (365 base)" and the Amortization Method will be "01–Pro Rate/Straight Line."

 

When this transaction is run, it does several things. It sets up an insurance record on the Loans > Insurance > Policy Detail screen and fills in many of the fields on that screen (as described below).

 

Institution Option AMVP allows more than one insurance type 71 (LPD insurance) on a loan without checking to see if other type 90s have expired.

 

The Force Place LPD Insurance transaction box is displayed in GOLDTeller after entering information for a general insurance type and clicking addinsurancebutton on the Force Place screen. GOLDTeller must be open before clicking addinsurancebutton.

 

The transaction will also update fields on the Loans > Account Information > Account Detail screen. The following are the fields on the Account Detail screen that are updated when this transaction is run:

Principal Balance

Increased by the transaction. For precomputed loans, the principal balance is also increased by the amount of the finance charge. For loans based in Kentucky, the principal balance is also increased by the amount of municipal and surcharge.

Principal/Interest Constant

Increased by original premium divided by the remaining term of the insurance.

Next P/I Constant

The next P/I amount that reflects the increase of the insurance premium divided by the remaining term of the insurance.

Constant Change Date

Policy effective date + insurance term

LNPNX 1-12

LNPEF 1-12

At the end of the force-placed insurance policy term, the P/I will be changed back to the original P/I.

 

The following are the fields on the Policy Detail screen that are updated when this transaction is run:

 

Insurance Type

INTYPE: defaulted to type 71

Policy Description

INDESC: defaults to "LPD Insurance"

Original Premium

INOBAL: amount entered during transaction

Policy Number

Pulled from the Force Place LPD Insurance transaction box. If left blank, it defaults to the loan number.

Amortization Method

INAMOR: 12–Pro Rata Daily

Policy Term

INTERM: term entered with transaction

Policy Effective Date

INOPND: policy date entered with transaction

Refund Rule

Defaults to "0-1 day rule (365 base)"

Amortization Start Date

INDLAC: same as policy effective date

State Code

INSTCD: the state code, as defined by GOLDPoint Systems.

Producer Number (INPRDN)

Defaults to 1717 bbbb (bbbb = 4-digit branch)

Agent/Sub Number (INAGNO)

Defaults to 1717

Coverage Code

INCOV: Defaults to 0801.

Individual or Joint

Defaults to Individual

 

Institution Option IHGL will assess a finance charge according to the following formula if the loan is a precomputed loan (payment method 3):

 

Finance charge = INOBAL * ((LNPICN * LNTRMO) - (LNPICN * (1 - ((1 + ((LNOAPR / 100) / 12)) ^ (- (LNTRMO))) * (12 / (LNOAPR / 100))) / (LNPICN * LNTRMO) - (LNPICN * LNTRMO) - (LNPICN * (1 - ((1 + ((LNOAPR / 100) / 12)) ^ (- (LNTRMO)))) * (12 / (LNOAPR / 100))) / (LNTRMO / 12)) / 12 * LNTRMO

 

For payment interest-bearing loans (payment method 6), Institution Option IHGL will assess a finance charge according to the following formula:

 

Finance charge = INOBAL * ((LNPICN * INTERM) - (LNPICN * (1 - ((1 + ((LNRATE / 100) / 12)) ^ (- (INTERM))) * (12 / (LNRATE / 100))) / (LNPICN * INTERM) - (LNPICN * INTERM) - (LNPICN * (1 - ((1 + ((LNRATE / 100) / 12)) ^ (- (INTERM)))) * (12 / (LNRATE / 100))) / (INTERM / 12)) / 12 * (INTERM - Months already passed)

 

Loans that have a Kentucky state code will have municipal tax and surcharge amounts calculated for them. These amounts will be added to the principal and, if a finance charge is calculated, it will be included in the finance charge amount. The rate used will be the rate set up in the TD detail record that matches the state, county code, and city code. If no TD record is set up, there will be no municipal tax or surcharge amount. The TD record is user-defined and found on the Miscellaneous > Tables > Tax Rate Detail screen in CIM GOLD.

 

The following fields are pulled from the GOLD Services > General Ledger > Setup G/L and Commissions screen.

 

Tran

TORC

Field

Description

110

124

Company Number

Fills in INOORG, INOREM

110

128

Branch Percentage

Fills in INCORG, INCREM

 

 

Corporate Percentage

INOAMD receives policy effective date

 

For precomputed loans (payment method 3), the following fields on the Finance Charge Information tab of the Policy Detail screen are set up:

 

Finance Charge Original Amount

INNORG: finance charge amount from transaction

Finance Charge Remaining Amount

INNREM: same as original amount

Finance Charge Date Last Amortized

INNAMD: finance charge effective date from transaction

Finance Charge Effective Date

INNEFF: finance charge effective date from transaction

Finance Charge Amortization Method

INIMET: defaults to 2 if institution option IHGL is set to "Y;" otherwise, default is blank (none).

 

The following fields on the Tax & Surcharge tab of the Policy Detail screen are also set up:

 

Original Municipal Tax

INMORG: Calculated original municipal tax

Municipal Tax Rate

INMUTR: Municipal tax rate

Original Surcharge

INSURG: Calculated original surcharge amount

Surcharge Rate

INSCRT: Surcharge rate

City Code

INCITC: Code for city loan is based in

County Code

INCNTY: Code for county loan is based in

 

This transaction also processes the following General Ledger transactions:

 

1810

G/L transaction to Unearned Interest account listed on the GOLD Services > General Ledger > G/L Account By Loan Type screen.

1810

G/L transaction to municipal (Tax) account listed on the GOLD Services > General Ledger > Setup G/L and Commissions screen.

1810

G/L transaction to Surcharge account listed on the GOLD Services > General Ledger > Setup G/L and Commissions screen.

1811

G/L transaction to corporate and/or branch G/L number in the Commission field group on the GOLD Services > General Ledger > Setup G/L and Commissions screen.

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