Loans > Loan Screens > Account Information Screen Group > Account Detail Screen > Late/NSF tab > Late Charges field group

The Late Code determines how much the system will assess in late charges to an account that has not made a full payment by the Due Date + Grace Days. This amount could be based on a flat fee or a percentage rate, as found in the Late Charge Rate Fee field.

	Note: If the late code is a percentage, the rate is stored in the Late Charge Rate Fee field. It can be entered manually or automatically when loans are boarded from origination. Late codes can also be set up in loan patterns. The Late Charge Rate Fee field must contain a value for late codes that are calculated based on a percentage.

Note: For loans that have been purchased, an Institution Option LTCB is available for late charges. This option allows your institution to determine the number of days after a loan has been purchased before a late charge will be assessed.

The system first looks at the Originated or Purchased field (Loans > Account Information > Additional Loan Fields). If Purchased is selected, the system subtracts the purchase date from the late charge assessment date. If this is less than or equal to the number of days in the institution option, a late charge is not assessed. (The actual number of days is used, so if a month has 28 or 31 days, those actual days are counted in determining whether to assess or not.)

The Real Estate Settlement & Procedures Act (RESPA) specifically states that, under certain circumstances, a late fee cannot be imposed during a 60-day period from the "date of transfer." If you purchase loans, be sure to refer to RESPA and any applicable state regulations to be sure you are in compliance.

	WARNING: If the Late Code and the Late Charge Rate Fee fields are completed and the Notice Type and Notice Days fields are not, late charges will be assessed, but the late notice will not be generated.

	Note: Late charges will not be assessed on loans with a General Category of 80-89 (foreclosures/repossessions). However, Institution Option LC82 will allow late charges to be assessed for loans with a General Category of 82 (charge off non-real estate property), unless the loan has reached maturity. Late charges will not be assessed on loans with a Hold Code 90 (judgment awarded).

	Note: Institution Option LTBK will stop the assessment of late charges on Chapter 13 Bankruptcy accounts (hold code 5).

	Note: For institution 360, a late charge will not be assessed on the first due date on any account.

The following codes are valid entries in this field.

CODE

Late Charge Calculation

No late charge assessment

1*+

Percentage of total payment

2*+

Percentage of P/I constant

No late charge assessment

Percentage of 1/12 of the principal balance

Percentage of total payment ($10.00 maximum as dictated by a GOLDPoint Systems IMAC Table, see Charge Minimum/Maximum for more information)

Percentage of total payment ($5.00 maximum as dictated by a GOLDPoint Systems IMAC Table, see Charge Minimum/Maximum for more information)

Percentage of P/I constant ($14.0 maximum as dictated by a GOLDPoint Systems IMAC Table, see Charge Minimum/Maximum for more information)

Percentage of P/I constant ($5.00 maximum as dictated by a GOLDPoint Systems IMAC Table, see Charge Minimum/Maximum for more information)

Percentage of P/I constant ($15.00 maximum as dictated by a GOLDPoint Systems IMAC Table, see Charge Minimum/Maximum for more information)

10*

Percentage of P/I constant ($11.00 maximum as dictated by a GOLDPoint Systems IMAC Table, see Charge Minimum/Maximum for more information)

11*

Percentage of P/I constant ($99,999.99 maximum as dictated by a GOLDPoint Systems IMAC Table, see Charge Minimum/Maximum for more information)

12+

Percentage of loan principal balance

13*

Percentage of P/I ($5.00 minimum)

14*

Percentage of P/I ($15.00 minimum)

15**

Charge a flat fee

16*

Percentage of payment amount ($15.00 maximum as dictated by a GOLDPoint Systems IMAC Table, see Charge Minimum/Maximum for more information)

17*

Percentage of P/I constant ($25.00 maximum as dictated by a GOLDPoint Systems IMAC Table, see Charge Minimum/Maximum for more information)

18*

Percentage of total payment ($10.00 minimum as dictated by a GOLDPoint Systems IMAC Table, see Charge Minimum/Maximum for more information)

Percentage of P/I constant ($10.00 maximum as dictated by a GOLDPoint Systems IMAC Table, see Charge Minimum/Maximum for more information)

Flat Fee...Pay One Per Payment. This late charge code is designed to assess only one flat fee late charge per P/I Constant in compliance with North Carolina state law.

The following fields and settings must be in use at your institution in order to use this late code. See the linked help for each field for more information:

•Use Spread Payments must be enabled.

•Entire Payment Rolls Due Date must be enabled.

•The Grace period must be set to 10 days or more.

•A Flat Fee amount must be indicated. This indicated amount will be the amount assessed as well as the amount used for collection of the payment. If a payment amount is enough to satisfy the payment and roll the Due Date one time, any assessed Flat Fee late charge amount will be collected with that payment.

Example: An account using this late code has a P/I Constant of 100.00 and a Flat Fee amount of 10.00. The account’s Payment Application order has been designated as late charges first, interest second, principal third. This account has accumulated $20.00 in late charges.

•If a Partial Payment of 50.00 is made on the account, 10.00 will go toward late charges and the rest toward Principal and Interest. (The entire late charge amount of $20 will not be paid off, because this late code only allows one late charge payment per Due Date roll.)

•If another payment of $50.00 is made that month, the entire amount will go toward Principal and Interest. This payment will then roll the Due Date (since the full payment amount has been satisfied).

•The next regular payment on the account will go first toward the remaining $10.00 of late charges, and the rest of the payment will go toward Principal and Interest.

21***+

Percentage of unpaid portion (payment method 5)

.0025 x Loan Principal Balance ($25.00 minimum as dictated by a GOLDPoint Systems IMAC Table, see Charge Minimum/Maximum for more information)

23+

Calculates the late charge based on the percentage of unpaid portion (payment methods 3 and 6). (The unpaid portion is the payment minus the Applied to Payment amount)

Percentage of original P/I

25+

Percentage of unpaid portion of P/I. When this code is used, the system calculates the late charge based on a percentage of the unpaid portion of the PI Constant (payment methods 3 and 6). The percentage is entered in the Late Charge Rate Fee field.

The unpaid portion is the payment (PI Constant) minus the Applied to Payment amount minus the Maintenance Fee (if one exists on the loan). The system uses the Next PI Constant instead of the PI Constant if the current date (today) is greater than or equal to the Next PI Effective (LNPIEF).

Exceptions to this calculation:

•When the loan is only one frequency delinquent, it subtracts the amount in Applied to Payment. When more than one frequency delinquent, it does not subtract.

•If institution option LMPL (Leave Maint. Fee in P/I for late charge?) is set to "Y," the Maintenance Fee will not be subtracted from the unpaid portion.

Examples:

PI Constant = $250.00

Applied to Payment = $100.00

Maintenance Fee = $5.00

Late Charge Rate Fee = .05

(250.00 - 100.00 - 5) * .05 = $7.25 for the late charge.

Same example but the loan is more than 90 days late (with a monthly loan frequency):

(250.00 - 5) * .05 = $12.25

Same example but with institution option LMPL set to "Y" and only one frequency late:

(250.00 - 100.00) * .05 = $7.50

Same example but with institution option LMPL set to "Y" and two frequencies late:

250.00 * .05 = $12.50

Same example but with institution option LMPL set to "N," the loan is one frequency late, but the payment is made on the same date as the Next PI Effective (and the Next PI Constant is 230.00).

(230.00 - 100.00) * .05 = $6.50

26+

Charge a flat fee. Must set Minimum and Maximum values.

Bring current between late charges — Flat

Bring current between charges — % of P&I

5% of payment ($15 minimum as dictated by a GOLDPoint Systems IMAC Table, see Charge Minimum/Maximum for more information): Applied to Payment less than or equal to half of payment amount

Percentage of Current Payment. This late charge code is calculated as follows:

Unpaid Portion Due x Late Charge Rate Fee or Maximum fee of 10.00 (as dictated by a GOLDPoint Systems IMAC Table, see Charge Minimum/Maximum for more information).

This code affects the function of the Interim Paid Amount field (as indicated on that field's help page). The Unpaid Portion Due value used in the above equation is calculated as follows:

•If the account is assessing for the current due date, either the Partial Payments (LNPRTL) or Interim Paid Amount (MRAMPA), whichever is greater, will be subtracted from the PI Constant (LNPICN) to calculate the unpaid portion due.

•If the account is not assessing for the current due date, the Interim Paid Amount (MRAMPA) will be subtracted from the PI Constant (LNPICN) to calculate the unpaid portion due.

	Note: If the Next PI Effective date (LNPIEF) falls before the assessment date, the Next PI Constant (LNPINX) will be used in the calculations above instead of the PI Constant (LNPICN).

Deferments

A late charge will not be assessed if a deferment was made on an account during the late charge grace period (between the Due Date and the Due Date plus Grace Days). If the Last Deferment Posted Date (MRDFDT) is greater than or equal to the Due Date for the late charge assessment period, a late charge will not assess.

Payoffs

In determining the unpaid portion due for Late Charge Code 30, any future late charges calculated at payoff will be calculated as of the payoff quote date (usually the current date), not the payoff date. Future late charges are only assessed on accounts if institution option OP06 AFLC (Assess Future Late Charges at Payoff) is set.

Daily Portion of P/I: This late code is different from most late codes, as the system assesses late charges in the afterhours of Due Date + 30 days, not Due Date + Grace Days. This late code is calculated as follows:

(P/I Constant / 30) x Late Charge Rate x Number of Days Past Due (only up to 30) = Late Charges Due

However, if the account has a partial payment (as indicated in the Applied To Payment field), the late charge will be affected as follows:

•If the partial payment was made before the Due Date + Grace Days, it is subtracted from the P/I Constant in the following calculation:

(P/I Constant – Partial Payments / 30) x Late Charge Rate x Number of Days Past Due = Late Charges Due

•If the partial payment was made after the Due Date + Grace Days, the late charge is calculated as follows:

1.First, the system calculates the late charge based on the regular P/I Constant up to the date the partial payment was made:

(P/I Constant / 30) x Late Charge Rate x number of days from Due Date to date of Partial Payments = Late Charges Due up to the Partial Payment Amount

2.Next, the system calculates the late charge based on the P/I Constant minus the partial payment amount from the date the payment was made to Due Date + 30 days:

(P/I Constant – Partial Payments / 30) x Late Charge Rate x number of days from the date Partial Payments was made to Due Date + 30 = Late Charges Due from Partial Payments

3.The system then adds the amounts from step 1 and step 2. The result is the amount the system will assess in the afterhours of Due Date + 30.

A few considerations for using this late charge code:

•For each day the customer is late making a full payment, the system accrues 1/30th of the full payment amount at the indicated late charge rate.

•No late charge will be assessed if a full payment is made during the grace period. However, if a payment has not been made by the time the grace period ends, the system will begin accruing the late charge as of the Due Date (see calculation above). The accrual of the late charge will not show on any screens in CIM GOLD. You will only see the late charge assessed to the account when the 30 days have passed since the Due Date.

•If a payment is made after the grace period but before 30 days have passed, the late charge amount is accrued from the Due Date to the date of the payment.

•If the calculated late charge amount is less than the indicated minimum fee amount, the assessed late charge amount will be the minimum fee amount instead.

•If the calculated late charge amount is greater than the indicated maximum fee amount, the assessed late charge amount will be the maximum fee amount instead.

•If a loan pays off with a backdate before the late charge assessed, the borrower is returned back a portion of the late charge according to the above calculations. The Adjustment tab on the Payoff screen will show the amount of Late Charge Adjustment.

Scenarios:

Example 1:

A borrower makes a full $100 P/I Constant payment five days after the Grace Days. After 30 days from the Due Date, the system calculates the amount of late charges to assess. Since the payment was five days after Grace Days of 10, it would use 15 in the following calculation and display it in the Late Charges Due field:

(P/I Constant – Partial Payments / 30) x Late Charge Rate x 15 = Late Charges Due

100 / 30 X.35 X 15 = $17.50

If the borrower makes a timely payment of $100 the following month, $17.50 of that payment amount will go toward the late charge, leaving $82.50 to Principal and Interest (assuming the Payment Application is designated to pay late charges first).

Example 2:

A borrower makes a $50 payment. The P/I Constant requires $100. The payment is made three days before the Due Date + Grace Days. That payment amount goes into the Applied to Payment field (Partial Payment). No other payments are made that month. In the afterhours of Due Date + 30 days, the system assesses the late charge as follows.

First, the system subtracts 50 from the P/I Constant of 100. Then, the system inserts the result into this calculation:

50 / 30 X.35 X 30 = $17.50

If the borrower makes a timely full payment of $100 the following month, $17.50 of that payment amount will go toward the late charge, leaving $82.50 to Principal and Interest (assuming the Payment Application is designated to pay late charges first).

Example 3:

This is a repeat of Example 2 except the borrower brings in a partial payment of $50 seven days after the Due Date + Grace Days. The Due Date is May 5, 2019, Grace Days is 10, and the date the Partial Payment was made is May 22, 2019. First, the system calculates the number of days from the Due Date to the date of the Partial Payment, which is 17. The system inserts 17 into the following calculation:

100/30 X .35 X 17 = 19.83

Since no further payments were made this month, the remaining amount owed from Partial Payments is calculated as follows:

50/30 X .35 X 13 = 7.58 (“50” is the amount of P/I Constant minus Partial Payment amount, and “13” is the number of days between the date the Partial Payment was made to Due Date + 30 days)

In the afterhours of Due Date + 30 days, the system assesses the late charge by adding 19.83 + 7.58 = $27.41 (Late Charges Due)

Note: If your institution chooses to use this new Late Code and run a special init to change current accounts using this new Late Code, special programming is in place where the system will not assess another late charge if the account has already been assessed a late charge at Due Date + Grace Days. However, if the account has not been assessed a late charge during that calculation period, the account will be assessed a late charge at Due Date + 30 days.

We suggest you first set up this late code using a small test set of 20 or so accounts to see how accounts are affected before converting large number of accounts over to using this new late code.

*	For all line-of-credit loans (payment method 5), except those with a Late Code of 21, the system calculates the late charge using the most recent billing amount in the Billed Principal and Interest fields located on the Loans > Line-of-Credit Loans screens.
**	Code 15 will charge a flat fee on the loan up to $99.99. If "15" appears in the Late Code field and you click <Enter>, the Late Charge Rate Fee field will become the Late Charge Flat Fee field.
***	Code 21 is only for line-of-credit loans (payment method 5). The system calculates the late charge using the data in the Amount Unpaid field on the Loans > Line-of-Credit Loans screen.
+	The Charge Minimum Fee of and Charge Maximum Fee of fields are only valid when these late charge codes are used.

For institution 360, a late charge will not be assessed on the first due date on any account.

Note: See help for the Collect Late Charges When Current field for detailed information about collecting late charges for the current month when payments are more than one month past due.

See Special Late Charge Assessment and Grading for information about about an option that affects late charge assessing on delinquent accounts.