Modify Loan Information

Modify Loan Information allows you to set up and edit loans. Information for each loan must be established before you post invoices or process payments.

At least one Account Type must be entered before setting up loans (More Information). Each loan created is associated with one of these types.

 

Filters

The options available in the Filters area are:

  1. Account #: Type all or part of the account number.
  2. Account Name: Type all or part of the account name.
  3. Person Name: Type all or part of the person's name.
  4. City:
  5. State:
  6. Account Type: Select the account type from which you wish to display loans.

Click the Search button to display the results, or the Clear Filters link to reset all filters.

 

Loan Information Grid

The grid displays loans that match your selection with the following columns:

  1. Double-click on a loan or click the Edit icon to edit a loan in the grid.
  2. Click the Add New Loan Account link to add a new loan (More Information).
  3. Click the Delete icon by any loan in the grid to be prompted to remove it. You can only delete loans with no activity.

 

Loan Information > Update

Loan Information > Update allows you to add or edit your Loan Processing loan. If this is a new loan, the Person Search window displays.

  1. By default, the Name field searches for last names and organizations. To search for first and last names, enter your search in the "lastname, firstname" format. You can also search by City and State.
  2. Select the Loanee and click the Select button. Alternatively, click the Close link to return to the previous page without selecting a Loanee.
  3. Type an Account # for reference. The Account Name defaults to the selected Loanee's name, but you can enter a different name if desired.

Note: Search for just a first name by starting your search with a comma (e.g., ", James"). Display a complete list of individuals by searching for just a comma.

There are nine available tabs: Loan Information, General Ledger, Loan Status, Attachments, Note, Phones, Emails, Addresses, and Demographics. You can also print the Amortization and the Scheduled Audit and Actual Audit reports.

 

Loan Information Tab

  1. Select the Account Type from the drop-down list, then select the Type of Loan:
    • Conventional: When invoices are posted, the interest due is calculated based on the chosen Type of Interest. The remaining portion of the payment amount is invoiced to the principal.
    • Balloon: This type of loan requires entering a balloon date (the date on which the entire purchase price plus interest is due, usually 5 or 10 years). When that month is reached, the remaining loan balance is invoiced along with the additional interest for that period.
    • Interest Only: When invoices are posted, the program only calculates and invoices the interest due.
  2. Select the Type of Interest:
    • Traditional (360): Unless the loan is set up as Interest Only, the program invoices the interest and the principal due for that period. Interest is calculated by multiplying the present loan balance by the Interest Rate, then dividing by the number of Payments Per Year.
    • Traditional (Actual Days): Unless the loan is set up as Interest Only, the program invoices the interest and the principal due for that period. Interest is calculated by taking the loan balance as of the last interest date (from the last posting). The program then performs a daily calculation, reviewing the daily activity within the period (draws, adjustments, and payments) and summing the daily interest charges through the date of posting (Invoice Date). The remainder is invoiced to the principal.
    • Simple Daily Interest: The program only invoices interest. Interest is calculated by taking the loan balance as of the last posting (last payment or invoice posting), then looking at the daily activity within the period (draws, adjustments, principal write-offs, and payments), calculating interest due on a daily basis, and summing up the daily interest through the date of posting (Invoice Date). The resulting interest amount is then invoiced for the loan.
  3. Select if you want to print 1098.
  4. Specify the rest of the loan information:
    • First Payment Date: Select the date the first payment is due.
    • Inception Date: Select the date the loan originated.
    • Balloon Date: Select the date the balloon payment is due (only active if the Type of Loan is set to Balloon).
    • Total Amount: Type the total amount of the loan.
    • Down Payment %: (Optional) Type the percentage if a dollar amount is not entered.
    • Down Payment $: (Optional) Type the dollar amount if a percentage is not entered.
    • # Payments/Year: Select the number of payments per year. Loan processing runs all loans on a monthly-type basis (e.g., a loan with 4 payments per year is invoiced every three months/90 days).
    • Interest Rate: Type the interest rate (e.g., 7.5 for 7.5%).
    • # Payments: Type the number of payments (e.g., 120 for 10 years if there are 4 payments per year). Leave this field blank to have Loan Processing calculate the number of payments after the Payment amount is entered.
    • Payment: Type the Payment amount. This field is calculated for you if you have specified the # Payments.
  5. The Activity Since Inception section allows you to enter or change information about the loan. This is usually used when you first start using Loan Processing and enter existing loans that have already had activity. You can change the following information:
    • Paid Principal: Type the total amount paid in principal prior to entering the loan into your Financials.
    • Invoiced Principal: Type the total amount invoiced for principal prior to entering the loan into your Financials.
    • Paid Interest: Type the total amount paid in interest prior to entering the loan into your Financials.
    • Invoiced Interest: Type the total amount invoiced for interest prior to entering the loan into your Financials.
    • Interest Thru: Select the date through which interest was last invoiced.

Note: The Activity Since Inception section only displays until the first invoices for the loan are posted. At that time, an invoice and/or payment is generated and added to the loan record as historical data. This information is not posted to the General Ledger.

 

General Ledger Tab

  1. Use the drop-down list to select the Bank Account to use for the loan, then specify the General Ledger levels and account information:
    • Principal Account: Asset account where principal loan payments are to be credited.
    • Interest Account: An income account where the interest payments are to be credited.

These default to the accounts selected in Preferences (More Information).

 

Loan Status Tab

This tab displays the payment history, invoiced summary history, unposted interest (if using simple daily interest), and the last date of interest calculation. One row is displayed per invoice/payment with the following columns: Check #, Date, Principal, Interest, Addtl. Principal, Addtl. Draw, Adjustment, Late Fee, Note, and Setup.

Click the Void Payment button to void a payment. This makes the necessary adjustment to the loan and sends the appropriate entry to the General Ledger. This also removes the payment from the loan history.

 

Attachments Tab

The Attachments tab allows you to attach files from your device or scan images using the Scanner.Client.exe program. See the Attachments Help Page for detailed information regarding the attachments feature.

 

Note Tab

Type a note for the account if desired.

 

Phones Tab

The Phones tab displays the phone numbers assigned to a loanee and provides options to modify them. The following options are available:

  1. Click the link to add a new phone number.
  2. Click the Edit icon to modify an existing phone number.
  3. Click the Delete icon to remove a phone number from the system.
  4. Click on the Phone Type, Phone Number, or Extension header to sort the list of phone numbers by that header.

Add or Edit a Phone Number

The following fields are available when selecting to add or edit a phone number:

  1. Phone Type: Select the phone type from the drop-down list. (Phone types and their order can be modified on the Lookups page. To navigate there, click the Applications option from the Top menu, then select Utilities > Lookups.)
  2. Phone Number: Enter the phone number. The phone number is automatically formatted when your cursor leaves the Phone Number field (e.g., entering "9015551234" displays as "(901) 555-1234").
  3. ext.: Enter the phone number extension (optional).
  4. Unlisted: This check box is informational. Selecting this option does not prevent the phone number from printing on reports.
  5. SMS: This check box is informational.

Note: All phone numbers must have an Area Code. If a phone number is entered without an area code (7 digits), the default area code is added automatically. The default area code is specified on the Utilities > Organization page. To navigate there, click the Applications option from the Top menu, then select Utilities > Organization.

Click the button to save your changes and return to the Phones tab, or the Close link to return without saving your changes.

 

Emails Tab

The Emails tab displays the email addresses assigned to a loanee and provides options to modify them. The following options are available:

  1. Click the link to add a new email address.
  2. Click the Edit icon to modify an existing email address.
  3. Click the Delete icon to remove an email address from the system.
  4. Hover over the Note icon to display the text stored in the Note field.

Add or Edit an Email Address

The following fields are available when selecting to add or edit an email address:

  1. Email: Enter an email address. The email address must be formatted correctly using the "@" symbol and a period.
  2. Note: Enter a Note (optional). Entering a note causes the Note icon to display on the Emails tab.
  3. Active: Only Active email addresses are used for contacting the loanee and for reporting purposes.
  4. Preferred: Only one email address can be designated as the Preferred email address. The Preferred email address displays at the top of the List of Emails grid. It is used by the system to contact the loanee and to report.

Note: If the Preferred email address is not marked Active, the system defaults to the next available Active email address in the List of Emails grid.

Click the button to save your changes and return to the Emails tab, or the Close link to return without saving your changes.

 

Addresses Tab

The Addresses tab displays the addresses assigned to a loanee and provides options to modify them. The following options are available:

  1. Click the link to add a new address.
  2. Click the Edit icon to modify an existing address.
  3. Click the Delete icon to remove an address from the system.
  4. Click on the Address Type or Address header to sort the list of addresses by that header.

Add or Edit an Address

The following fields are available when selecting to add or edit an address:

  1. Address Type: Select the address type from the drop-down list.
  2. Address Line 1: Enter the first line of the address.
  3. Address Line 2: Enter the second line of the address (optional).
  4. Postal Code: Enter the Postal Code/Zip Code.
  5. City: Enter the name of the City.
  6. State: Select the State from the drop-down list using your mouse, or type the first letter of the state. (You can continue to press the first letter of the state to scroll through the states that start with that letter.)
  7. Country: Select the Country from the drop-down list.
  8. Primary: Only one address can be designated as the Primary address. The Primary address displays on grids and is used by the system to contact the loanee and for reporting purposes.

Note: The Address Types and the Country drop-down options (and their order) can be modified on the Lookups page. To navigate there, click the Applications option from the Top menu, then select Utilities > Lookups.

Click the Save button to save your changes and return to the Addresses tab, or the Close link to return without saving.

 

Demographics Tab

  1. Enter the Birth Date, Social Security Number, Salutation, Gender, Employer, and Position in the fields provided.
  2. If the account belongs to an organization, the following fields display: Date Created, Federal Tax ID Number, and Salutation.

 

Print Amortization

  1. Click the Print Amortization button to bring up the Amortization Parameters window. The Principal, Interest, and Total of payments display.
  2. The Beginning payment # and Ending payment # fields reflect the total number of payments by default. Type in different values if you want to print only a range of payments.
  3. Click the OK button to display a preview of your Amortization Schedule, or the Cancel link to return to the previous page.
  4. Once the preview displays, navigate the pages, export to several formats (e.g., PDF, Excel, Word), and Print.
  5. Click the Close Report button to return to the previous page.

 

Scheduled Audit

  1. Click the Scheduled Audit button to bring up the Scheduled Audit Report. This is similar to an amortization schedule. The difference is that each period is built using anticipated amounts that should have been invoiced for principal and interest based on the actual payment activity found prior to that period. The report displays the amounts that would have been invoiced for principal and interest if paid on schedule, including the actual payment summary with running totals for the invoiced principal and interest balances. The invoiced information is calculated in the period before the payment is applied.
  2. Once the preview displays, navigate the pages, export to several formats (e.g., PDF, Excel, Word), and Print.
  3. Click the Close Report button to return to the previous page.

Note: The Scheduled Audit Report displays every scheduled invoice from the start of the loan through the current date.

 

Actual Audit

  1. Click the Actual Audit button to bring up the Actual Audit Report. This has the same formatting as the scheduled report and displays the same scheduled invoice dates, except that each period is built using the actual activity in that period (invoiced and paid), showing the amount paid within the period, the ending balance, and running totals for invoiced principal and invoiced interest.
  2. Once the preview displays, navigate the pages, export to several formats (e.g., PDF, Excel, Word), and Print.
  3. Click the Close Report button to return to the previous page.

Note: The Actual Audit Report displays every scheduled invoice from the start of the loan through the current date. If you have already invoiced a future date, it does not appear on the report.

  1. When finished, click the Update button to save your changes and return to the Loan Information page, the Reset link to undo all changes since the last time the loan was updated, or the Cancel link to discard all changes and return to the Loan Information page.

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