Loans > Loan Screens > Transactions Screen Group > Mass Loan Payments Screen

Click this radio button on the Mass Loan Payments screen to process a Spread Payment transaction (tran code 690-00). When this transaction is selected, the Principal and Interest fields appear on this screen, where you can manually enter the amount of the transaction that should go toward paying down the principal or toward interest on the loan. See the main screen help for more information about processing transactions on this screen.

WARNING: These transactions could post less than the amount due and roll the loan due date. They are designed for institutions that have purchased loans that other institutions service for them. They allow the total principal and interest due to be placed in the P/I Constant field, but the purchasing institution posts the payment for a lower amount, which represents the payment less the service fee the servicing institution keeps. Use these tran codes with care.

Teller Spread Payment—For Conventional and ARM Loans:

This transaction allows a payment to be posted for any amount, regardless of the amount due. It allows the teller to define what dollar amounts are spread to the principal, interest, and reserves using a supervisor override (SOV). This transaction will roll the loan due date. The system will not allow a 690 transaction or a 698 correction on line-of-credit loans (payment method 5).

For Interest-Bearing Loans (payment method 6): The system will allow a payment to be posted for any amount, regardless of the amount due. It requires the teller to define what dollar amounts are spread to the principal, interest, and reserves using an SOV. This transaction will only roll the loan due date if the interest due amount is satisfied for the day the transaction is run. If the amount you spread to interest is less than the amount due for the day you are running the transaction, the due date will not advance. The payment will be accepted and instated into the Applied to Payment field. Use the Loans > Payoff screen to determine how much interest is due for a particular day. Remember to take into consideration whether your institution collects interest through the payoff date or to the payoff date.

If you want to make a payment and collect interest as of a date in the past and have the loan due date advance at the same time, you can use the backdating feature. (Institution option OPT3 BKDT must be set to "Y" for the backdating feature to be operational.)

A 690 tran is not allowed if a loan is an ARM in negative amortization (deferring interest). In this case, the following message will be displayed: "DEFERRING INT. – 690 TRAN NOT ALLOWED."

If posting more than the P/I constant, it will roll the due date as many times as the amount posted the P/I would be the number of payments.

See Regular Payment Options for information about institution options that pertain to loan payments.

Also, if posting more than the P/I constant, this transaction will roll the due date as many times as are divisible into the amount posted.