Navigation:  Loans > Loan Screens > Account Information Screen Group > Additional Loan Fields Screen > Daily Statistics & Fees tab > Maintenance Fee field group > Setting Up Maintenance Fees

Maintenance fees (or PI Fees) are different from amortizing fees. Your institution does not collect interest on maintenance fees. Additionally, they are not amortized over the life of the loan. Instead, they work like a monthly charge that is incurred on the loan. The maintenance fee is part of the regular payment (must have "8 - PI Fees" in the Payment Application). In the event the loan is charged off or the customer files bankruptcy, outstanding maintenance fees are generally not collected. However, during payoff, maintenance fees may still be included, but on a calculated basis. See Maintenance Fees at Payoff for more information.

 

Maintenance fees are set up on accounts during loan origination as part of the loan type. Maintenance fees can be added as part of the Loan Pattern Setup, then applied to your loan origination setup in GOLDTrak PC. However, you may also use third-party loan origination software, in which case, these fields would be boarded into the system when loans are boarded via field mapping such as GOLDAcquire Plus or GOLD Loan Gateway. You will need assistance from GOLDPoint Systems to make sure loan patterns and field mapping are correctly applied to loan applications.

 

This topic describes:

 

1.How to first set up the Autopost and the correct General Ledger numbers to use when maintenance fees are collected.

 

2.Explain how to set up maintenance fees during Loan Pattern Setup.

 

3.Explain how to setup maintenance fees after a loan has already been originated, but maintenance fees were not established during loan origination. You should use caution if setting up maintenance fees after a loan is opened. State regulations may require your institution to notify customers when maintenance fees are applied.

 

 

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1. Setting Up the Autopost

 

Before you can create maintenance fees on accounts, you must first set up the appropriate General Ledger account number. When customers make a payment, this will be the account where the fee amounts are collected. Enter the G/L number in the Maintenance Fee Receivable field on the GOLD Services > General Ledger > GL Account By Loan Type screen for the applicable loan type, as shown below:

 

 

For certain Maintenance Fee Codes, in the afterhours of the Earnings Date (which should be the First Due Date day) of each month, transaction 919 runs and updates the Earnings Date field on the Additional Loan Fields screen > Daily Statistics & Fees tab with today's date. This is the date this account last earned the fee amount for this month.

 

This transaction uses posting field number L-27 (PI fee) and L-3 (maintenance fee income). Amount field 27 is posted to the Maintenance Fee Receivable G/L account. Amount field L-3 is posted to income when this fee is assessed. This information is useful when setting up your Autopost to handle the funds coming in and out of the G/L account.

 

When the customer makes a payment, the Collection Date field is updated.

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2. Setting Up Maintenance Fees in Loan Patterns

 

Once you have the Autopost and the GOLD Services > General Ledger > GL Account By Loan Type screen set up correctly, then you need to set up the account with the maintenance fee, as described in the following steps. Note: These steps describe setting up maintenance fees through the Loans > System Setups Screens > Loan Pattern Setup screen, then applied to your loan origination setup in GOLDTrak PC. However, you may also use third-party loan origination software, in which case, these fields would be entered by the system when loans are boarded via field mapping such as GOLDAcquire Plus. You will need assistance from GOLDPoint Systems to make sure loan patterns and field mapping are correctly applied to loan applications.

 

1.Access the Loans > System Setup Screens > Loan Pattern Setup screen.

 

2.Select an already created loan pattern for which you want to set up maintenance fees, or create a new pattern. For information on setting up loan patterns, see Loan Pattern Setup. Make sure that the Loans > Account Information > Additional Loan Fields screen is selected in your pattern, as shown below:

 

 

3.Click <Initialize Pattern> at the bottom of the screen (see example above). The screens you selected in step 2 will be displayed in the left tree.

 

4.Click the Additional Loan Fields screen, then the Daily Statistics & Fees tab, as shown below.

 

 

5.Check the Use Fee box.

 

6.Enter one of the applicable maintenance fee codes. There are only six possible fee codes, as described in the Code topic.

 

7.Enter the amount of the maintenance fee in the Fee Amount field. This amount will be collected each month (or loan frequency) with the loan payment.

 

8.The Earnings Date will be defaulted with the First Due Date when loans are opened. Leave this field blank. The system will update this field, when applicable. Code 00 does not use the Earnings Date.

 

9.The Collection Date will be defaulted with the First Due Date when loans are opened. Leave this field blank. The system will update this field when payments are made.

 

10.Click <Save Changes>.

 

Now your GOLDTrak PC account manager will help implement this loan pattern into the applicable loan programs, so when loans are boarded using this loan pattern, the maintenance fee will be applied.

 

 

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3. Setting Up Maintenance Fees After Origination

 

Maintenance fees can be set up after a loan has been originated and boarded into the loan servicing system. However, use caution when doing this. It is best to do it just after the loan has been boarded or within the first month. If you attempt to set up maintenance fees many months after a loan has been opened, the system will "catch up" on all past maintenance fees since the loan was opened.

 

Remember: Only interest-bearing loans (payment method 6) can have maintenance fees. Precomputed loans (payment method 3) use amortizing fees.

 

To set up maintenance fees after a loan has been opened:

 

1.Make sure the G/L account is set up correctly, as described in Step 1 above.

 

2.Communicate with GOLDPoint Systems to ensure Afterhours Update function 90 is set to run daily. This causes the afterhours to move the Earnings Date ahead by one month for specific Fee Codes.

 

3.In the Payment Application field (found on the Loans > Account Information > Account Detail screen > Payment Detail tab) for the account for which you want to set up maintenance fees, be sure to select "PI Fees" and move it into the first position. (Once you check the PI Fee box, the system automatically moves it to the top.) This will establish that maintenance fees are collected first when a loan payment is made.

 

4.Access the Loans > Account Information > Additional Loan Fields screen > Daily Statistics & Fees tab.

 

5.Check the Use Fee box in the Maintenance Fee field group.

 

6.Enter one of the applicable maintenance fee codes in the Code field. There are only six possible fee codes, as described in the Maintenance Fee Codes topic.

 

7.Enter the amount of the maintenance fee in the Fee Amount field. This amount will be collected each month (or loan frequency) with the loan payment. Maintenance fees usually amount to less than $3.50.

 

8.The Earnings Date should be the First Due Date when loans are opened. The system will update this field when the maintenance fee is earned. Code 00 does not use the Earnings Date. If you are establishing maintenance fees many months after a loan has been opened, you can still enter the First Due Date here, but be aware that the system will "catch up" on past maintenance fees. If you do not want to charge for past fees, use the day portion of the First Due Date, but use today's month and year. For example, if the First Due Date is 08-10-18, and today is 12-02-18, you would enter "12-10-18" in this field. Then when the next payment is made, the system will only collect one month of maintenance fees.

 

9.The Collection Date should be the First Due Date when loans are opened. However, if many frequencies have occurred since the loan was opened and you are now setting up a maintenance fee, be aware that the system will require back maintenance fees. For example, if the loan was opened three months ago on 06-01-2018, and today is 09-01-2018, but you enter "06-01-2018" in this field, the system will require three months of back maintenance fees. So if the maintenance fee is $3.00, when the payment is made, the system will credit $9.00 of the payment to the Maintenance Fee Receivable G/L account on the GOLD Services > General Ledger > GL Account By Loan Type screen. If you do not want to require maintenance fees in arrears to be paid, then enter the First Due Date day of this month in this field.

 

10.Click <Save Changes>.