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Options field group

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Options field group

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Use this field group to view and edit options on the customer loan account.

 

laipi_options

 

The fields in this field group are as follows:

 

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.

 

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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

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.

 

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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)

•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.

 

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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.

 

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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.

 

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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.

 

•If this field is marked and the Due Date is set to the first day of the month, you are given a choice of a 1-15-1-15 pattern or a 1-16-1-16 pattern. Institution option OPTN CH24 must also be set. When the institution option and this option are set, and a user changes an account's Due Date to the first day of a given month, the system displays a small dialog asking if the customer wants the next payment date going forward to be on the 15th or 16th day of the month. The user then selects the 1st and 15th or 1st and 16th radio button and that becomes the Next Due Date, as shown below.

 

instoptch24

 

•If this field is marked and the Due Date or Due Date Day value is "15," the due date of the loan will fall on the 15th and the last day of each month.

•If this field is marked and the Due Date or Due Date Day is "31," the due date of the loan will fall on the last day of the month, and then on the 15th of the next month.

 

If the Due Date or Due Date Day is any other value than "1," "15," or "31," the due date will be determined normally. See the Semi-monthly description on the Frequency field for more information. Note: The Due Date or Due Date Day field cannot be left blank.

 

If your institution wants to use this field but it is grayed out in CIM GOLD, contact GOLDPoint Systems.

Within Due Date Day

 

Mnemonic: LNWIDY

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

 

This option affects the number of times the system rolls the Due Date for payments. When this option is set, the Due Date should only roll once, even though more than one payment is made. Note: This option cannot be set to zero.

 

For example, the system processes an automatic payment on the same date as the Due Date. The value in this field is “2” (meaning two days before the Due Date). The customer makes a walk-in payment two days before the Due Date. Therefore, the system would roll the Due Date when the walk-in payment is made, but it would not roll the Due Date when the automatic payment is processed two days later.

 

Conversely, if a customer makes a payment five days before the Due Date (and the value in this field is “2,” meaning two days before the Due Date), the system will not roll the Due Date, because the payment was not made within the number of days indicated in this field. However, when the automatic payment is processed five days later on the Due Date, the Due Date is rolled to the next payment Frequency.

 

This field works best if it is set to "2" or "3" (meaning two or three days before the Due Date) and the Recurring days prior to Due Date Effective field is set to zero. This field determines when the system processes the automatic payment and rolls the Due Date.

 

In order to use this field, the account's Payment Method must be 3, 6, or 16. Use Spread Payments (above) must be marked for payment method 3 or 6 loans.

 

If your institution wants to use this field, contact GOLDPoint Systems.

 

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