Updating Account Information - Closed-End Loan

Description

The loan category code used when this loan was created. This code controls the servicing parameters of the loan.

If your credit union policy requires note numbers, this field shows the note number assigned to the loan.

The last date on which this account information was maintained.

The current balance of the account.

First Column

The G/L offset account for this account type.

NOTE: If this account number is changed on an existing account, the system will write an entry to GHIT in order to move the balance of the account to the other account as part of the nightly TR journal entry. (You will see the entry on your books the next day.) The GL entered here must match the GL that’s configured on the loan category code.  

This code indicates why the loan was taken. (For example, a “Home Improvement” loan category may use several different purposes, such as “Remodeling” or “Addition.”)

This code indicates what will be used to secure the loan.

Determined by the loan category configuration, this indicates whether or not funds can be distributed from this loan through the teller posting system. If checked, funds can be disbursed; if not, no disbursements are allowed using teller processing.

If insurance or debt protection codes have been added to this loan account, this flag will be checked. This field cannot be changed manually.

• Use F6-Pmt. protection to view or maintain insurance codes.

This code indicates how account information is reported to the Credit Bureau in keeping with the Equal Credit Opportunity Act. Click the lookup button to choose from a list of valid codes.

• Click here to see a list of codes.

The date the loan was created.

• NOTE:  When this field is edited, the date entered must be on or later that the open date of the membership.  If this date cannot be changed, then the open date of the membership must be changed to be on or earlier than the date you wish to use in this field.

The date the first payment is due.

The day of the month on which the next payment will come due (i.e., if 05, then the next payment will be due on the 5th of the month; if 31, the next payment will be due on the last day of the month).

The date the next payment is due.

The date through which interest has been accrued on this loan. For most loans, this will be the day of the month when the system last calculated interest during daily processing. For 360-day calculation types (mortgages), this will the last day of the month for which interest has been accrued.

This field indicates when the loan contract ends.

For current loans, this field shows the date on which this loan should be reassessed, and a decision made as to whether or not to renew the member's ability to continue borrowing. This date will generally be the same as the Amort/Maturity date.

For loans that have been written off using the Write Off Loans feature, this field will show the date on which the loan was written off. (This feature was implemented in June, 2003. For loans written off prior to this change, use this field to manually enter the date when the loan was originally charged off.)

SEE ALSO:Loan Review Dates: Overview

The payment to be made on the account each period.

The maximum disbursement amount for which the loan was approved.

The actual amount which was disbursed to the member.

This field shows what the account balance was the last time a disbursement was granted (including the disbursed amount). This may be different from the account balance, if a payment was made on the loan since the last disbursement.

This field shows the amount, if any, which has already been paid toward the next payment due. The system adds any amounts in this field to payment amounts being received to determine whether the member has paid enough to satisfy (fulfill) the complete required payment.

This field is reset to 0.00 automatically whenever enough money is received to satisfy a full regular payment amount. (Remember that whether or not the payment due date also moves forward is also dependent on the Delinquency control settings on the loan.)

• NOTE: This field is NOT used when processing payments for mortgage loans with the 360-day interest calculation type.  Also, for online credit cards, once the payment has been fulfilled for a period, additional funds will not accumulate in the partial pay bucket until a new calendar month begins.

Second Column

This code indicates whether this loan is an open-end (“O”) or closed-end loan (“C”).

A code indicating the frequency of scheduled payments.  Learn more about Payment Frequencies.

The total number of payments that have not yet been paid, out of the total number of payments to be made on the loan.

This field can be configured for use by your credit union specifications with one exception.  Your credit union may use this field in any way you wish. The exception: “E” represents a government unsubsidized student loan.

Credit unions will need to document their use of this code, should they decide to enter data in this field.

This code is determined in CU*BASE system configuration and cannot be changed here. The process type indicates how the loan behaves, and relates to both the General Ledger and various reports. Following are valid process types:

E Closed-end S Student loans in interim

O Open-end P Student loans in payout

C Construction M Mortgage

L Line of credit

The current interest rate on the account.

This code indicates whether or not the payment amount includes principal and interest, or principal only.

P  Quoted payment includes principal only.

I  Quoted payment includes interest only.

(blank) Quoted payment includes both principal and interest.

The interest calculation code is taken from the loan category configuration and indicates how interest is calculated on the loan:

0 365 - The standard daily interest calculation using a 365 or 366-day year. Not for mortgage-type loans. Interest is accrued each day using a per diem calculated as follows:

Rate ¸ 365 or 366 ´ Loan Balance = Per diem

2 None - Does not accrue interest.

3 360/post - Interest is based on twelve 30-day months, calculated once each month on the 20th for the current month (i.e., interest is paid in arrears).

• See the booklet, CU*BASE Mortgage Products: 360-Day Interest Calculation for details on how this calculation works.

4 360/365 - The standard daily interest calculation using a 360-day year (30-day month). Not for mortgage-type loans. Interest is accrued each day using a per diem calculated as follows:

Rate ¸ 360 ´ Loan Balance = Per diem

The code indicating the variable interest rate used by this loan type, if applicable.

This shows the next time (month and year) that interest will be calculated for this loan.  This field sometimes needs to be adjusted when applying prepaid interest on a mortgage loan.

• Remember that for 360-day calc. type mortgage loans, interest is calculated just once a month. Although the date is configurable, it is commonly on the 20th. That would mean that from the 1st through the 19th, this field will show the current month and year; on the 20th, this will show the coming month. (If you allow members to pay ahead, this might even show a date further into the future.)

(Appears on mortgage loans only.) This field is an informational code entered when a tax escrow account is created for mortgage loan.

This field indicates whether or not a loan can be paid ahead.

• IMPORTANT:This flag comes from the loan category configuration when the loan account is first created. However, changing the flag in the category config. will NOT affect existing loans. Therefore, if your category is changed, you will need to change the setting of this field on all existing loan accounts for that category, as well.

The system will consider a payment “satisfied” (meaning it moves the due date forward to the next period) according to the amount paid compared to the payment amount and frequency. 

For example, if a $200 payment is made on a loan with a normal monthly payment of $100, a setting of “1 Pmt/Period” would still require a payment on the next normal due date, while the “Pay Ahead” setting would mean the next due date would be pushed ahead an extra month.  Refer to Loan Category Configuration for a more detailed explanation of the “single payment per period” control.

Choose between these options:

Pay Ahead(field on MEMBER5/6 record will show as blank) – Can pay ahead

No Delinq Calc(field on MEMBER5/6 record will show “N”) – The system neither monitors nor controls the next payment date or delinquency on the loan. However, payments can be applied to the loan.

1 Pmt/Period(field on MEMBER5/6 record will show “P”) – Single payment per period

The number of times the loan has gone delinquent over the life of the loan.  This is incremented by 1 each time the member is delinquent 30 days.

This field shows the delinquency group code, which indicates how late charges are calculated and applied for delinquent payments.

• NOTE: Leave this field blank to indicate “no delinquency” (no delinquency fines are assessed). Zero is an available fine code. 

The number of extensions or refinances that have been granted on the loan.

The total amount paid year-to-date in delinquency fines.

The total amount owed in delinquent fines as of the current date. Once the fine has been paid, the amount is removed from this field and added to the DQ Fine YTD Amt field.

The total amount of interest paid on the loan year-to-date.

If the loan category allows tax escrow disbursements, this field shows the account to which the escrow fund portion of the payment should be transferred.

Third Column

To support CECL (Current Expected Credit Loss) analytics, the Loan to Value (LTV) and Debt to Income (DTI) at loan origination will be saved in tables MEMBER5 and 6 when the loan account is created.  Atpayoffthe ratios will be saved in tables ACHIST5 and 6. If the loan account be written or charged off the ratios will also move to the Lnwrtoff table.

• These new columns will be filled for new loans created after the release date (October 20, 2019 for online credit unions). 

• If there are multiple applicants, the Combined Debt to Income is the DTI, and is added to MEMBER5/6.   

• If there are multiple pieces of collateral the Total Collateral Value is used to calculate the LTV and added to MEMBER5/6.

• If the loan is a Junior Lien Real Estate Loan, the Combined Loan to Value is used to calculate the LTV added to MEMBER5/6

For more information on CECL and CU*BASE please contact Asterisk Intelligence at ai@cuanswers.com.

These fields should be used ONLY by credit unions which utilize the Rule of 78 for calculating insurance rebate amounts. Contact a CU*BASE representative for additional information. These fields show the original number of payments and the remaining number of payments, the original amount of insurance, and a calculated field showing the Rule of 78 rebate for early payoff.

• BE CAREFUL: If an amount is entered into these fields by mistake, it may result in incorrect loan payoff information.

This shows the last payment date for which a fine was assessed.

• For example, if the member's November payment was past due and the system assessed a fine for that payment, this field would show the November due date. If the member is delinquent yet another period, this field would update to the next due date.

Remember, this is the payment date for which this fine applies, not the date on which the fine was actually assessed by the system. For example, if the fine is configured so that it is assessed after the member has been delinquent 15 days, then the fine would actually be assessed after that period was ended. This field, however, would show the original payment due date for which the fine was assessed.

This field makes it easy to communicate to the member that they are being fined for missing their November payment, or their March payment, or their third quarter payment, etc.

This field records the date on which this loan first became one day delinquent. This date is retained until the loan is brought completely current. The purpose of this field is to accurately reflect how long a loan has actually been delinquent, even if the member makes a few “catch up” payments but does not actually bring the loan up to date.

Check this checkbox to prevent delinquency notices from being generated for this account. Uncheck the checkbox for normal delinquency notices as appropriate.

Use one of the freeze codes to define transaction restrictions for this account. The system indicates whether or not an account is frozen in the teller posting system.

Click here for a list of freeze codes.

• If you make any change to this screen (not just a change to the freeze level), and press Enter, an additional screen will appear allowing you to select whether to place a manual freeze and remove this sub account's freeze code level (1-3) from being changed by delinquency monitoring (this suffix only.  Learn more about this feature.

If the selected sub account is frozen due to delinquency monitoring, this box will be checked.  

• If you make any change to this screen (not just a change to the freeze level), and press Enter, an additional screen will appear allowing you to select whether to prevent this sub account from being changed by delinquency monitoring (this suffix only).  Learn more about this feature.

Not currently used.

This field indicates whether or not the account is a Passbook printer account (0=No, 1=Yes).

This code indicates whether or not the loan has been written off (0=No, 1=Yes).

(Appears only if this category is set up to allow stock-type collateral.) If this loan is secured by a stock-type collateral record, and the loan should be updated when the associated stock price is changed, enter S here. If not, leave the field blank.

This field is used by the automated stock adjustment feature to control whether this loan's disbursement limit and collateral pledged amount should be updated when a stock price change is entered. SEE ALSO: Using Stock as Collateral for LOC Loans

Indicates the number of times the Skip Pay for Consumer Loans feature was used to skip a payment on this loan for this calendar year.  Learn more about consumer skip-pay programs.

Indicates the number of times the Skip Pay for Consumer Loans feature was used to skip a payment on this loan for the life of the loan.  Learn more about consumer skip-pay programs.

Description

Use this to view and/or update information unique to lease and balloon loans, including Residualvalue (for lease loans) and Amortization term and Estimated final payment (for balloon loans).

• This will appear highlighted for loans that are marked as a balloon or lease loan.

Use this to display a screen allowing you to select to add debt protection or insurance.

Use this to view a history of payment changes made to this loan.

(Appears only if the loan has had a CPI force-placed insurance policy placed on it, for credit unions who use the "posting and payment adjustment" method only.)  Use this to view a history of the CPI premium, refund and expiration history posted to this loan. 

Learn more about CPI Force Placed Insurance (posting and payment change method.

(Appears only for student loans.) Use this to place a student loan into deferment, or change the deferment start and end dates.

(Appears only for loans that have the 360-day mortgage interest calculation type.) Use this to maintain the Delinquent Interest Due amount on the loan account record.

Because of the unique way in which mortgage loans are calculated and serviced, this feature is helpful if a member has become more than two months delinquent, or in situations where partial payments or other non-routine activity has taken place.

• SEE ALSO: CU*BASE Mortgage Products: 360-Day Interest Calculation

Use this to display a screen containing all credit bureau-related codes. Use this to view/modify all credit bureau reporting flags on this account, including Report to credit bureau, Credit Bureau Comments, Status, and Consumer Information Indicator.

Using custom fields your credit union can create and maintain unlimited custom fields that are unique to your credit union. You define the field name as well as the rules that control what data can be entered:  dollar amounts, quantity, percentage, text, yes/no checkbox, date, or a defined list (the selections of which you will also define) on the configuration screen, then input the data on this screen and view it in the Account Inquiry screens.  Use the "Custom Fields" button to access a screen to input or view custom field data.  Learn more about Custom Data Fields.

• An exclamation point indicates that custom data has already been input for this membership.  Click the button to access a screen and view the data or input additional data.