Loans > Loan Screens > Account Information Screen Group > Account Detail Screen > Account tab

The LIP Information field group displays information concerning LIP loans (AKA, construction loans). The following fields are found in this field group on the Account tab of the Loans > Account Information > Account Detail screen.

The fields in this field group are as follows:

Field

Description

LIP Disbursed Balance

Mnemonic: LNLBAL

In this field, you will find the amount of money deposited by the borrower to be disbursed according to the method code entered in the LIP Method Code field below. This field is originally entered by a teller transaction. As disbursements are made, this field will be reduced.

Undisbursed Balance

Mnemonic: LNUNDISB

This field contains the amount of funds not yet disbursed from the LIP account. It is increased by a 510 credit transaction and decreased by a 500 debit transaction, an interest charged transaction, or construction disbursement 430 or 431 transactions from within the GOLDTeller system. See below for more information.

When Report Writer mnemonic LNUNDISB is used, it will display the undisbursed balance for either LIP or payment method 5 loans. This mnemonic gives you the ability to display the undisbursed amounts for both LIP or line-of-credit loans (payment method 5) in the same column.

•For LIP loans, the mnemonic will display the LIP undisbursed balance by reading this field. The LIP Method Code field below must be greater than 0.

•For payment method 5 loans, the undisbursed amount is calculated as follows: Credit Limit - Principal Balance = Undisbursed Balance.

	WARNING: If a loan has been set up to be both a payment method 5 and an LIP, the payment method 5 calculations will be displayed.

LIP Interest Rate

Mnemonic: LNLRAT

In this field, enter the rate by which the interest will be calculated on the funds disbursed from the LIP account when the LIP Method Code field below is 001 or 101. Rates are entered as a seven decimal number. For example, 12% would be entered as "12.00000," 12.75% would be entered as "12.75000." See below for more information.

Any time the interest rate is file maintained (online or afterhours), the accrued interest is calculated up to the date of file maintenance at the old rate and then interest begins to accrue at the new rate on the date of file maintenance. The LIP charge amount is also increased by the same amount as the accrued interest is adjusted.

Example:

Accrued interest is $100

Amount disbursed is $5,000

Date last accrued is 9-15

Interest rate is 9%

LIP charge amount is $100

On 9-20 you file maintain the rate to 10%. Interest of 6.16 will accrue at 9% from 9-15 to 9-20, the accrued interest will be increased to 106.16, and the LIP charge amount will also be increased to 106.16.

Note: If you attempt to file maintain the LIP interest rate and there are errors on the loan that would cause the accrued interest to not equal the LIP charge amount and the LIP prior, the system will not allow the file maintenance. You will get the error message, "ACCRUED INT NE LIP CHG AMT + PRIOR UNPAID." You must correct the loan before file maintaining the rate. Some items to check for are that the billing date and bill/charge code are correct in comparison to the date last accrued. Also, the accrued interest may not be equal to the total of the LIP charge amount plus prior unpaid amount, etc.

When the LIP Interest Rate changes, either by the system or from file maintenance, the Date Last Accrued is changed to today's date. Also, the Accrued Interest is recalculated to the current date using the old rate. The LIP Charge Amount field is also updated. In all cases, whether the rate is fixed or rolling, this rate is the current rate on the LIP and must be entered at the initial LIP setup. See the Interest Calculation Method field description for additional details on how the rate works.

	WARNING: When this field is updated during the afterhours, the loan rate is also updated. This keeps the LIP interest rate and the loan rate the same.

LIP Method Code

Mnemonic: LNLMTH

You must make an entry in this field for the LIP to be considered when interest is calculated. This code determines what interest rate is used to calculate interest and what other rules are followed in processing the LIP account. This field must be entered for interest to be calculated on the loan balance net of the LIP. Also, many reports determine if the loan is an LIP by whether there is an LIP method code or not. See below for a list of available method codes.

Code

Descriptions of LIP Method Codes

000

LIP is no longer in process. All interest is accrued through the regular loan fields. The Undisbursed Balance (see above) is never considered in interest calculations. If LIP disbursements are made, funds will first be disbursed from the customer balance and then from the LIP undisbursed balance. No LIP interest accrual will occur.

001

The loan is in process. All interest accrual uses the LIP interest rate (see above) and interest fields on this screen. Interest is calculated by the Interest Calculation Method field. The formula for calculating this interest is:

(PRIN-LIPBAL) X Number of Days ÷ Base X LIP Interest Rate

A principal credit can be made to the loan balance but regular payments (tran 600) with a teller override (TOV) should be used to make LIP interest payments. However, the interest will continue to accrue using the LIP fields. As disbursements are made from this account, funds will be disbursed first from the customer balance and then from the LIP Undisbursed Balance (see above).

	WARNING: If correction tran code 598 is run, the money will be credited to the LIP undisbursed balance and not the customer balance.

002

The loan is both in process and payment. All interest accrual is done using the regular loan interest rate fields or the LIP fields. However, all calculations will assume the principal balance to be the loan principal balance on file less the LIP undisbursed balance on file for interest accrual purposes. When LIP disbursements are made, funds will be disbursed first from the customer balance and then the LIP undisbursed balance. You cannot charge the LIP for interest. All interest is billed to the borrower through the loan fields on the Interest Detail tab. When this code is used, some loan payment methods do not allow for a daily interest accrual. Line-of-credit or interest-bearing loans (payment methods 5 or 6) are recommended with this code.

100

This is the same as 000 except funds are first disbursed from the LIP Undisbursed Balance (see above) until it is reduced to the retention limit, at which time funds will be disbursed from the customer balance.

101

This is the same as 001 except that funds are first disbursed from the LIP undisbursed balance until it is reduced to the retention limit; at which time funds will be disbursed from the customer balance.

102

This is the same as 002 except that funds are first disbursed from the LIP undisbursed balance until it is reduced to the retention limit; at which time funds will be disbursed from the customer balance. You cannot charge the LIP for interest.

	WARNING: If correction tran code 598 is run, the money will be credited to the LIP undisbursed balance regardless of where the funds were debited from.