Loan Screens > Account Information Screen Group > Payment Information Screen > Loan Information tab

Field

Description

Reamortize P/I

Mnemonic: LNAMZ6

Check this box if you want to allow an interest-bearing loan tied to prime to calculate a payment which will amortize the loan. See below for more information.

For this field to be file maintainable, all the following conditions must be met:

•Loan must be interest-bearing (payment method 6).

•Loan cannot use ARM fields.

•Loan cannot use payment schedules.

•Loan must use Coupon/Bill Code 11 (free-format statement) on the Loans > Account Information > Additional Loan Fields screen.

•Loan must have a rate pointer of 1 to 254.

The effective date of the P/I payment will be the first due date greater than or equal to the rate change effective date. This will be true unless a bill has been sent out for that date. If a bill has been created, the new P/I payment will be effective for the next payment due.

If you have several rate changes within a month, the system will calculate the new P/I payment each time the rate changes. The new P/I payment will replace the value in the Next P/I Constant field until a billing for the current month has been created. Once the billing has been created, the newly calculated P/I will be placed in a table. This makes it so the payment doesn't change once the borrower has been notified as to the payment amount.

	WARNING: The above-mentioned requirements for the Reamortize P/I field must be set up for a loan prior to file maintaining the field. If the requirements are not set up first, the Reamortize P/I field is not file maintainable.

Also, if the loan is set up for auto pay, the Coupon/Bill Code must continue to be set to "11." If you do not want to send a bill/receipt, you do not need to have a coupon cycle set up. However, if you do want to send the bill/receipt, GOLDPoint Systems suggests that you use an advertising message to indicate that the payment will be automatically paid.

Stop Applied To

Mnemonic: LNAPLY

This option is only for interest-bearing (payment method 6) and precomputed (payment method 3) loans only. When this box is checked, if the payment being posted is more than than the actual payment amount, the extra amount will not be added to the Applied To Payment field; the extra amount will automatically be posted to reducing the Principal Balance instead of being credited toward the next payment due.

Partial payments (payments for less than the full amount) will update the Applied To Payment field. When a partial payment is made, the Applied To Payment field will be updated and will continue to do so until sufficient funds have been applied to roll the Due Date. If the amount paid plus the amount in the Applied To Payment field exceeds the payment due, the Due Date will roll and the Applied To Payment field will be cleared. But with this option set, the extra amount does not go towards the Applied To Payment, and instead, the extra amount goes directly to decreasing the Principal Balance.

Important Note: The Entire Payment Rolls Due Date option (LNEPMT) should not be used in conjunction with the Stop Applied To this option. These two options conflict on purpose.

Use ARM Fields

Mnemonic: LNRTSN

This field will only be file maintainable for interest-bearing loans (payment method 6). It is used for creating scheduled rate changes on interest-bearing loans. The default value is unchecked, which indicates that the ARM fields will not be used. If this box is checked, the system will act like this is an ARM loan (payment method 7). It is from these fields that scheduled rate changes are created. Even though you may access the ARM fields, the system will still use the simple interest calculations for the loan.

	Note: If you check this field, you cannot change the Frequency field.

Use Spread Payments

Mnemonic: LNSPRD

The Use Spread Payments option is an override indicator that tells the system to use the SPRDPMTS program for calculating payments and processing payments. See below for more information.

This option allows payments to be spread for precomputed (payment method 3), interest bearing (payment method 6), or signature (payment method 16) loans. These types of loans are forced to use SPRDPMTS if loan reserves are part of the payment, because the regular payment routine cannot handle these types of loans with reserves.

The SPRDPMTS routine may cause the system to roll the Due Date differently from how the system normally rolls the Due Date. The SPRDPMTS routine tracks the amount of the payment and rolls the Due Date each time a full payment has been satisfied. Usually the system uses the Next Payment Due plus the amount in Applied to Payments/Partial Payments (as it is applied based on the Payment Application and other options) to determine how many times the Due Date will roll. The spread payment option is not the same as the Spread Payment transaction (tran code 690).

It is also used when precomputed or interest-bearing loans have the Use Payment Schedules option (above) or Entire Payment Rolls Due Date options selected, unless the conditions below exist. Signature loans (payment method 16) always use the spread payment routine.

Loans that are not able to use this option:

•Payment methods other than 3, 6, and 16.

•Special Charge Off Payments (LNSCOP is selected)

•Rate Sensitive (see Use ARM Fields)

•Amortized Payments (see Reamortize P/I)

•Multiple Payments (seasonal payments)

•P/I Sensitive (LNPISN is selected)

•LIP Method Code is not 0

•Institution option ILF6 (Use Amount Paid) is on

•P/I Constant + Reserve 1 Constant + Reserve 2 Constant is less than Applied to Payments/Partial Payments

This option allows large payments to roll the Due Date each time the payment amount equals the Next Payment Due. If the payment amount equals the Next Payment Due amount of more than one payment, the system rolls the Due Date for each regular payment met.

Other options such as Entire Payment Rolls Due Date, Stop Applied To, and Roll Due Date Amount are considered. The other routine allows for large payments but does not consider any changes in the payment constants until all of the funds are spread. SPRDPMTS checks for these changes each time it rolls the due date as the funds are applied.

Example: A loan has a regular payment of $100. A customer makes a payment of $300. The system would apply the payment as directed by the Payment Application field, but the system would roll the Due Date three frequencies because the payment amount was equal to or more than three regular payments.

Example 2: A loan has a regular payment of $100, late charges of $50, and fees of $25. The Payment Application is set to pay late charges first, then fees, then principal and interest. The Use Spread Payment option is set. The customer pays $300, and the system would apply the payment as follows:

$50 to late charges

$25 to fees

$200 to principal and interest

$25 additional to principal

Roll the Due Date three times (if Entire Payment Rolls Due Date option is selected. Otherwise, the payment would need to be $375 to roll three times. Fees and late charges are not part of a regular payment.)

Guaranteed Payment

Mnemonic: LNGPMT

This box is selected when a loan is originated from GOLDTrak PC (using field TF_GUARANTEED_PMT_LN). The person originating the loan determines whether the payment is guaranteed. This is an information only field and manually updated. The mnemonic is LNGPMT and it can be included on GOLDWriter and GOLDMiner reports.

An example of a guaranteed payment is a third-party company offering to make loan payments on behalf of their customers. The payment is always made whether or not the customer actually pays their bill to the third-party company, making the payment guaranteed.

Entire Payment Rolls Due Date

Mnemonic: LNEPMT

Checkmark this box if you want the system to roll the due date when the amount of payment equals the Next Payment Due (see above) amount or more. See below for more information.

For example, if a payment due is $100 and late charges of $40 are also due, but the customer brings in a payment of $100, the due date will still roll, even though the full amount of $140 has not been paid. If the Entire Payment Rolls Due Date box is not checked, then the payment would not cause the due date to roll, because the loan payment of $100 plus the late charges of $40 would require the customer to pay $140 before rolling the due date. Instead, the system would place the $100 payment in the Applied To Payment field (above) and the due date would not roll until another payment was made in the amount of the Next Payment Due (see above), any Late Charges, minus the amount in the Applied To Payment.

	Note: Late charges, fees, etc. are only included as part of the payment if the Late Charges, Loan Fees, etc. boxes are checked in the Payment Application field above.

The system also determines whether a payment is counted as full and thereby rolls the due date based on the Next Payment Due (see above), as well as what is entered in the Roll Due Date Within field. For example, if the Next Payment Due (see above) amount is $200, and the Roll Due Date Within amount is $10, and a customer makes a payment for $190, the Due Date (see above) will roll to the next date, as $190 plus $10 equals the full payment.

	Note: Miscellaneous loan fees are not included in the full payment calculation.

If only a partial payment is made, the due date is not rolled and the amount of the partial payment is displayed in the Applied To Payment field.

	Note: The amount of late charges paid in one payment or cycle cannot exceed one P/I Constant (see above).

Use Payment Schedules

Mnemonic: LNPMSC

This checkbox indicates if there is an alternate payment schedule set up for this account. The default value is not checked (no). If checked, the system will look to the Payment Schedule list view, located on the Loans > Transactions > CP2 screen > Payment Schedule tab for the payment amount due and the corresponding payment effective date.

Optional Semi Monthly

Mnemonic: LNOO24

Check this option to indicate that your institution uses an alternate version of the regular semi-monthly payment Frequency. See below for more information.

Within Due Date Day

Mnemonic: LNWIDY

This option is available for customers who are set up to make automatic payments (see Setting Up Recurring Payments) but who also want to make additional payments within the same frequency. See below for more information.