Loan Screens > Account Information Screen Group > Precomputed Loans Screen > Options field group

Entry: User, numeric

F/M: Yes

Mnemonic: MRMNEI

Screen: Loans > Account Information > Precomputed Loans screen

This field is used along with the Minimum Earned Days field. Information for this field is usually brought over during loan origination. However, if you have proper security, you can make changes to this field.

This optional field displays the minimum amount of interest your institution is allowed to keep (earn) if the loan is paid off early or cancelled. For example, if the borrower opens a loan and pays it off the very next month, the amount of interest earned by your institution would be relatively small. However, if your institution uses the Minimum Earned Interest field, your institution would be able to keep a designated minimum amount displayed in this field if it is greater than the Rebated Interest amount at early payoff or cancellation.

The Minimum Earned Days field determines how long the Minimum Earned Interest amount is valid on the loan. Once the loan has been opened longer than the days in the Minimum Earned Days field, the Minimum Earned Interest amount no longer applies. Instead, the rebated amount is based on the other options involved with your institution’s precomputed loans. If the borrower pays off early and is due back some interest, it will be displayed on the Adjustments tab of the Payoff screen. Once the loan is paid off and closed, the amount that was rebated back to the borrower is displayed in the Rebated Interest field on the Precomputed Loans screen.

To calculate the Minimum Earned Interest at Payoff (if the loan is paid off before the Minimum Earned Days), the system subtracts the amount in this field from the Original Unearned Interest plus any extension interest (OTXINT) and compares it to the Rebated Interest amount.

•If the Original Unearned Interest plus the extension interest minus the Minimum Earned Interest is less than the Unearned Interest at Last Accrued amount calculated at payoff, then the Original Unearned Interest plus the extension interest minus the Minimum Earned Interest is the amount refunded.

•If the Original Unearned Interest plus the extension interest minus the Minimum Earned Interest is more than the Unearned Interest at Last Accrued amount, then the refund is based on the regular calculation (Int Rebate Method) of the Rebated Interest at payoff.