Navigation:  Loan Screens > Account Information Screen Group > Amortizing Fees And Costs Screen > Fee/Cost Information field group > Include in Penalty

Entry: User. checkbox

F/M: Yes

Mnemonic: F1PNTY

Screen: Loans > Account Information > Amortizing Fees And Costs screen

 

Check this box to include this fee in the 5% rule calculation for Georgia GILA loans.

 

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