Loan Screens > Payoff Screen > Balances tab > Payoff Fields field group

Entry: System, numeric

F/M: No

Mnemonic: LNLMTH

Screen: Loans > Payoff > Balances tab

This field displays a code which determines what interest rate is used to calculate interest and what other rules are followed in processing the payoff on an LIP customer account. In order for an LIP loan to be considered when interest is calculated, this field must contain a number. Possible codes in this field are:

CODE	DESCRIPTION OF LIP METHOD CODES

000

LIP is no longer in process. All interest is accrued through the regular loan fields. The undisbursed balance 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 and interest fields on this screen. Interest is calculated by the LIP Interest Rate field on the Loans > Account Information > Account Detail screen. The formula for calculating this interest is:

(Principal Balance - LIP Customer Balance) 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 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.

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 on the Account Detail screen. 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 found on the Interest Detail tab of the Account Detail screen. When this code is used, some loan payment methods do not allow for a daily interest accrual. Payment methods 5 (line-of-credit) or 6 (interest bearing) are recommended with this code.

100	This is the same as 000 except 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.

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.

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.

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.