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Service Fee |
  
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Navigation: Loans > Loan Screens > Investor Reporting Screen Group > Loan Investor Fields Screen > Investor Loan Basics tab > Calculation Codes field group >
Service Fee
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Service Fee |
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Mnemonic: LNISCL
Use this field in the Calculation Codes field group to indicate the calculation method for service fees charged to the investor from the customer loan account.
This information is copied from from the Investor Calculations tab on the Investor Group screen (if valid information is entered in the Investor fields). The value entered in this field group overrides any value entered in the Investor Calculations tab on the Investor Group screen for the customer loan.
In every method except code 10, the amount calculated is subtracted from the amount of investor interest calculated. Possible selections in this field are as follows:
| CODE | DEFINITION |
| 0 | No Calculation to be Performed |
| 1 | Interest Collected x Service Fee Factor |
This code can be used on a collection basis only. Note: Service fee factor = service fee rate ÷ loan interest rate. Enter the service fee factor in the Service Fee Rate field.
| 2 | Balance x Service Fee Rate |
| 3 | Balance x Service Fee Rate ÷ 12 |
| 4 | Interest Collected this Month x the Service Fee Rate ÷ Loan Interest Rate |
| This code can only be used on a collection basis. |
| 5 | Portion Sold x Current Loan Balance after Payment x Service Fee Rate |
| This code will seldom be used. |
| 6 | Balance x Investor Yield x Service Fee Rate ÷ 12 |
| In this calculation, the service fee rate will be a percentage of one month's interest only. |
| 7 | Interest Collected this Month ÷ (Loan Interest Rate x 2) |
| This code can only be used on a collection basis. |
| 8 | Balance x Service Fee Rate x Portion Sold ÷ 12 |
| 9 | Balance x Portion Sold x (Loan Interest Rate - Investor's Interest Rate Yield) ÷ 12 |
| 10 | Investor's Interest - (BAL x Yield x Portion Sold ÷ 12) |
| 11 | Interest Collected x Portion Sold x Service Fee Rate ÷ Loan Interest Rate |
| 12 | Balance x Service Fee Rate x Portion Sold ÷ 12 (This code is the same as code 8, except a service fee will be calculated on report 47 even when there is no activity.) |
| 13 | Interest Collected x Portion Sold x Service Fee Rate ÷ Effective Interest Rate x Number of Days the Rate is Effective for ÷ Total Number of Days Interest Paid (Repeat this formula until the total number of days interest paid is covered). WARNING: If the Loan Rate Table is set up incorrectly, this code may calculate the fee using the loan rate. |
In these selections, "Balance" means the balance on the loan. For loans on collection basis, the loan balance is the amount prior to payment. For loans on yield basis, the loan balance is that shown at the beginning of the cutoff (cycle) period.