Tracking Recoveries on Written-off Loans

This recipe describes enhancements to the CU*BASE Write-off/Charge-off database and analysis tools. During December of 2020 we started re-energizing the project, and are hard at work on the specifications for the first couple of project segments.

Currently In Process

Project 1(a): Write a new program to calculate daily accruals on written-off loans

This will be a completely separate program from other loan accruals, but will calculate in much the same way. We’ll use the rate and current balance (CURBAL) from the loan account record, calculating a per diem using the 365 daily interest calc type for all written-off loans. The results of this daily calculation will be recorded in a new “bucket” stored along with the other write-off data (see project 1b below). This will be an informational figure only; these “accruals” will not interface with the credit union’s books.

Status of project 1(a): Project #55515 has been submitted; awaiting availability of programming resources.

Project 1(b): Expand the written off loans database table (LNWRTOFF)

To record the new daily accrual as well as other details, the existing database will be expanded to include additional fields. New data we’ll capture as of time of write off:

  • Rate as of write-off (informational only; this is also retained on the MEMBER5/6 record)
  • Interest due as of write-off (informational only; this is also retained on the MEMBER5/6 record)
  • Interest calc type as of write-off (informational only; not retained on MEMBER5/6)

New “bucket” fields which can be maintained by the CU at/after write-off:

  • Interest accrued since write-off (see project 1a)
  • Judgment amount (we already have a place for the date)
  • Total collection expenses
  • Total other fines/fees
  • Comments (free-form text to record things like judgment details, composition of the collection expenses or other fees, etc.)

Status of project 1(b): Project #55515 has been submitted; awaiting availability of programming resources.

Our Vision for Future Projects

  • Project 2(a): Create a payoff calculator, maybe something similar to the “prepare mortgage for payoff” tool.
  • Project 2(b): Change how payments are collected to automate collection of the interest accrued since write-off (once principle and interest due are paid down to zero).
  • Project 3: Create a new subsidiary activity history tied to the WO loan data to automate the detail behind the new buckets (collection expenses, other fees/fines, etc.).

Status: Will begin design after projects 1(a) and (b) are getting near to implementation.

Other Related Efforts

Starting in February we’ll also will be working on a training and documentation project to help CUs gather this data for 5300 reporting. We’ll analyze how we can use data we already have to calculate recoveries on written-off loans, and make recommendations on how CUs can analyze and assemble it in a way that fits their needs. What we learn will also inform what we might develop as far as dashboard enhancements, etc.

We will also work on documenting recommendations for reinstating loans after a judgment, with tips and ideas about methods that work well with existing CU*BASE tools.

We Want to Hear from You

Give us your feedback, ideas, and suggestions so we can consider them as we continue to shape the final design.  And if you’d like to talk to someone, reach out to the chefs for this recipe: Randy Karnes and Dawn Moore.

 

Updated
January 7, 2021

Leave a Comment

* denotes required fields
  • (will not be published)

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Check Out the New Recipes We’re Cooking in the Kitchen!

Check Out the New Recipes We’re Cooking in the Kitchen!

Have you visited the Kitchen lately?  If not, take a look at our newest projects: Card Activity Optics Credit Card Statement Enhancements Introducing Biz Watch for ACH: ACH Controls for Business Memberships Max Earnings Sweeps for Business Members Positive Pay Cashier Services (for Inhouse Checks) RDC Enrollment via CU*BASE Summary Statements for Business Credit Cards… Read more »

Sep 29, 2020

Check Out the New Recipes We’re Cooking in the Kitchen!

Check Out the New Recipes We’re Cooking in the Kitchen!

Have you visited the Kitchen lately?  If not, take a look at our newest projects: Accounts Payable Enhancements Creating an Engine for Predictive Retailing (aka “Nostradamus”) Deposit Hold Enhancements Escrow Analysis Enhancements Expanding Screen Sizes for CU*BASE GOLD Mobile First Transaction Limits for Express Tellers Each of these recipes includes a place to provide comments,… Read more »

Jul 14, 2020

Check Out the New Recipes We’re Cooking in the Kitchen!

Check Out the New Recipes We’re Cooking in the Kitchen!

Have you visited the Kitchen lately? If not, take a look at our newest projects: Authentication Enhancements for Online/Mobile Banking Enhancements to the Credit Card Cash Back (CCCB) Feature Tracking Recoveries on Written-off Loans Each of these recipes includes a place to provide comments, suggestions, and additional feedback. Visit the Kitchen today – we’d love… Read more »

Aug 16, 2019

Visit the Kitchen Today for New Information on ACH Exception Processing Enhancements

Visit the Kitchen Today for New Information on ACH Exception Processing Enhancements

On May 9, 2019, a CU*Answers design team met to brainstorm ideas for changes to CU*BASE tools and processing routines.  Our main goal is to make it clearer to end-users how the tools work, including warnings about what to watch out for and tips for avoiding potential pitfalls. As a result of these preliminary conversations,… Read more »

May 14, 2019

Have you checked out the NCUA’s proposed 5300 Call Report changes?

Have you checked out the NCUA’s proposed 5300 Call Report changes?

Have you checked out the NCUA’s proposed 5300 Call Report changes yet?  The changes are targeted for March 2019, and the NCUA wants your feedback! The overall theme is modernization and simplification in order to reduce the reporting burden for credit unions.  Check out the 5300 Call Report Tools kitchen page for a highlight of… Read more »

Feb 15, 2018