Navigation:  Loan Screens > Account Information Screen Group > Payment Information Screen > Loan Information tab > Options field group > Reamortize P/I

Entry: User, checkbox

F/M: Yes

Mnemonic: LNAMZ6

Screen: Loans > Account Information > Payment Information > Loan Information tab

 

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