Loan Screens > Account Information Screen Group > Payment Information Screen > Loan Information tab

Entry: User, alphanumeric

F/M: Yes

Mnemonic: LNFREQ

Screen: Loans > Account Information > Payment Information > Loan Information tab

If this is an interest-bearing loan (payment method 6) you can use this field to change the frequency of payments for the borrower.

When you change the frequency of a loan, you must first click before you can save changes. The principal and interest payment will change based on the payment frequency you select from the Frequency field.

Example è

A customer has a P/I payment of $200.00, with a loan frequency of one monthly payment. The customer wants to change the frequency to bi-weekly payments that are more in accordance with the customer's paycheck. When you select "Bi-Weekly Payment-26" from the Frequency field, and then click

, the P/I is recalculated at the bi-weekly payment of $100.00 for each bi-weekly payment.

When recalculating the principal and interest payment based on a new payment frequency, the system takes into account the number of days interest and the number of days in the payment period, as well as the remaining balance on the loan (Principal Balance) and the number of payments remaining until the loan reaches maturity.

Additionally, the Due Date will be affected accordingly when changing the loan frequency, as will the Total Amount Due and Monthly Payment fields on the Loans > Transactions > EZPay screen.

The Last Day checkbox is also important if using the Floating payment frequency (13).

Also, the Remaining Payments til Maturity field on the Loans > Transactions > CP2 screen will also change based on the Frequency you select. (For example, if a loan has 5 payments left and you change the Frequency from monthly to weekly, the Remaining Payments til Maturity will increase to 20.)

Note: Not all institutions allow users to change the frequency on loan accounts. The Frequency field has field-level security and you may need special security clearance to make changes. Additionally, you can limit which frequencies appear in the Frequency field. See the Loans > System Setup Screens > Client Code Setup > Loan Frequencies screen. The frequencies set up on that screen are displayed in this field. Frequencies are generally indicated at loan origination but can be changed using this field, if your institution allows it.

For more detailed information concerning each payment frequency, see the following table:

Code	Description
1	Monthly payment
2	Bi-monthly payment (payment every 2 months)
3	Quarterly payment (every 3 months)
4	Payment every 4 months
6	Semi-annual payment (every 6 months)
12	Annual payment
13	Floating: The day of the week of the Due Date and its occurrence in the month determines the floating recurrence. So if the Due Date was set for the third Wednesday of the month, each successive Due Date would be the third Wednesday of the month. However, if the Last Day box is checked, the system uses the last occurrence of that day instead of the 4th occurrence. For example, if the Due Date was set to 04-26-2013 (a Friday) and Last Day was checked, the Due Date for the last week in May would be 05-31-2013 instead of 05-24-13, even though 05-24-13 is the 4th occurrence of Friday (i.e., May has five Fridays, and the system would use the fifth Friday as the Due Date). Any day 22 or greater can potentially use the Last Day option. Loans using this frequency will be automatically charged off after 4 payments are missed.
24	Semi-Monthly: This frequency processes the Due Date of the loan on a 15-day cycle with the exception of when the month does not have at least 30 days. In those months, the end-of-month day is used. The cycle is based on the Due Date Day field. Due Date Day is: 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Next Due Date Day is: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 If the Due Date Day is 31, then the payment follows a cycle of the end-of-month to the 16th of the next month. EOM - 16 - EOM - 16 Example: January 31 February 16 February 28 March 16 March 31 April 16 April 30 Also, please note an option that affects this frequency type. It's called Optional Semi Monthly and it is found in the Options field group on this screen.
26	Bi-weekly (every 2 weeks)
52	Weekly: Seven days will be added to the previous Due Date to obtain the next due date. If the first payment is on a Wednesday, then every payment will be on Wednesday.