Navigation:  Loan Screens > Account Information Screen Group > Precomputed Loans Screen > Options field group > Use Anniversary of 1st Due Date

Entry: User, checkbox

F/M: Yes

Mnemonic: LN78AF

Screen: Loans > Account Information > Precomputed Loans screen

 

This field changes the calculation of elapsed months from using the date opened to using the first due date. The period between the date opened and the first due date is counted as one month. The elapsed period is added from the first due date to the anniversary of the first due date until the payoff date is reached.

 

In addition, this field works in conjunction with refunding and/or rebating amortizing fees. If the amortizing fee is set to refund at payoff or has a rebate, the elapsed period is calculated from the first due date to the anniversary of the first due date.  When this field is checked, no amortizing (of fees) will occur until after the account has passed the first due date. The first month's amortizing will occur at the first monthend after the first due date has passed.

 

Rebate Rule Days can be used with this option. The only change would be to use the day portion of the first due date rather than the day portion of the date opened.

 

Note About Payoff Renewals

This option changes the renewal. If the payoff is before the first due date, the amount earned in the first period is divided by the number of days from the open date to the first due date and multiplied by the number of days from the open date to the payoff date. If the payoff date is after the first due date, the interest earned in the period of the payoff is divided by the number of days between the due date before and the due date after the payoff and multiplied by the number of days from the due date before the payoff to the payoff date.