Loan Screens > Account Information Screen Group > Account Detail Screen > Interest Detail tab > Interest Information field group

Entry: System, drop-down list

F/M: No

Mnemonic: LNIBAS

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

This field indicates what basis to use in calculating loan interest. This code is used for all payment methods except "3," Precomputed. The possible methods are as follows:

001	365/365 days per year

002	360/360 days per year

003	365/360 days per year

004	360/365 days per year

005*	366/366 days in a leap year

*	Note that for a leap year, if the interest period includes two years, such as 12/15/04 to 01/15/05, the period from 12/15/04 (the leap year) to 01/01/05 will use the 366-day basis and the period from 01/01/05 to 01/15/06 will use the 365-day basis.

The following codes are used to allow the loan's Date Interest Paid to and Date Last Accrued to be other than one frequency behind the Due Date. As payments are made, the loan will simultaneously advance each of these dates one full frequency, and will not require them to stay synchronized. If these codes are not used the system will force the Date Last Accrued and Date Interest Paid to to be one full frequency behind the Due Date for loans that pay over a frequency period.

101	365/365 days per year

102	360/360 days per year

103	365/360 days per year

104	360/365 days per year

105	366/366 days in a leap year

For bi-weekly loans, use 01 or 101, 14 days and a 365-day year. The interest is calculated by the system as follows:

Principal Balance X Interest Rate / 365 X 14

The payment is always due on the same day of the week, such as Monday, Tuesday, etc., and not on the calendar day, such as the 1st, 2nd, etc.

The following criteria explain the interest calculations in the loan accrued interest report.

The total accrued interest for each loan is calculated using the following rules. However, if the loan is payment method 0, the system begins by taking the amount in interest due less interest for one full frequency plus the appropriate following calculation.

If the payment frequency is "01" and the date last accrued is exactly one frequency prior to the end of current month, then:

Accrued Interest = Loan Balance X Interest Rate / 12

If the payment frequency is "01" and the date last accrued is less than one month, then:

Accrued Interest = (Loan Balance X Interest Rate / 12) X Days Accrued / Days In Month

If the payment frequency is "01" and the date last accrued is greater than one month prior to the end of current month, then:

Accrued Interest = (Loan Balance X Interest Rate X # of Full Months Due / 12) + {(Loan Balance X Interest Rate / 12) X # of Days Less Than One Month / # of Days in Current Month}

If the payment frequency is not equal to "01" then:

Accrued Interest = (Loan Balance X Interest Rate X Payment Frequency / 12) X # of Full Payment Frequencies in Accrual Period + {(Loan Balance X Interest Rate X Payment Frequency / 12) X # of Days Short of One Full Frequency} / No. of Days in the Current Frequency.

If this is an ARM loan (payment method 7), the interest calculation will look at the rate change frequency and date. If the loan is in the middle of a rate change, the system will perform the interest accrual based on the old rate up to the rate change date and then use the new rate for the remaining days, in addition to the four criteria listed above for payment method 0 loans.