LoanMaster Lite System Overview
What is this thing?
First let's describe what it is not. It is not a calculator but it has one
built in. It is not an amortization schedule but it will print one. It is not an
Excel spread sheet, but Excel can extract the data into a spread sheet.
What it IS, is a database. It is designed like a bank or savings and loan
system but it is very much smaller. It includes programs and procedures to
perform all the calculations and date checks needed to for loan servicing.
The LOANMASTER(tm) Lite Loan Accounting system is written for the
Microsoft operating systems. This is a 32 bit system and will work only on
Microsoft Windows 95 or later. This includes 95, 98, NT 2000, ME, and XP ( or
later ).It is a general loan accounting package. Its design is similar to the loan
accounting systems used by most banks.
The program stores data about each loan in a file called the loan file. Data for
all loans is stored in the same loan file. The loan file holds most, but not
all, data about the loans. Transaction data is stored in a second file called
the transaction file. Other information is stored in other files.
For each loan, there is a borrower. Information about the borrower is stored in
a separate set of files and managed by a separate series of screens, Each
borrower may have multiple loans.
From this store of information, the system is able to calculate the interest for
each loan as it becomes due. It calculates each payment date and determines if
the payment has been made. If the payment has not been made, it marks the loan
as past due. If late charges are specified, it assesses the late charge.
When payments or late charges are paid, it determines if the amounts paid were
less than, equal to, or greater than the amounts due. If the amounts paid are
greater of less than the amounts due, it keeps up with the past due or prepaid
amounts.
Every day, the program checks every loan in the file to see if interest has
accrued or if a payment is due. If you prefer not to use the program on a daily
basis, it will catch up. Most small loan companies update the files weekly. Some
individuals update the files monthly. Regardless of the frequency of the
updates, it on a daily basis and updates every loan one day at a time.
It allows many user defined options. All these options have default values.
The default values are representative values for many types of lenders making
fairly normal types of loans. You do not have to set any of these user defined
system options to use the system.
You may control the way the system operates by setting these user options. User
options are set from the System menu.
The system keeps up with borrowers ( customers ) and their loans. The borrower
is the foundation of the system. Each borrower may have one or more loans but
each loan may have only one borrower.
All functions related to servicing individual loans are found on the Loan
Menu. This includes creation of new or existing loans and posting of any
transactions.
All functions related to customers are found on the Customers Menu. This
includes creation of customer records, changing of customer information,
addresses, telephone numbers, collections or other memos or comments.
Customers and loans are separate but related objects. They are related to each
other by the customer number. Each loan contains a field called customer number
that contains the customer number of its related borrower. Customer records do
not contain loan numbers. The relation is a one way street. Customers have
loans. Loans are “had” by customers.
Limited access to the customer data editing functions are available from the
View Loan Data Screen.
The operator updates the loan portfolio(s) every day. Updating means that the
program reviews the data for each loan and does the following:
Calculate interest accrued
Calculate interest due and payable
Calculate principal due and payable
Determine if the loan is past due or prepaid
Calculate late charge due (if any)
Calculate origination fees earned
Calculate purchase discount earned
Calculate escrow due and payable
Calculate date next payment is due
(And much more...)
These calculations are done for every calendar day of the year including Sundays
and holidays. You do not have to run the program every day to accomplish this
result. When the update cycle is run, it detects if days have been skipped. If
they have, it catches up automatically. The daily update is a manual process.
The System Administrator must run this process manually from the menu.
The operator must run the system update procedure on a schedule determined by
your individual needs, but not less often than monthly.
o Exit the program, use the normal windows convention. Select File then Exit.
NEVER shut down the computer with the system running.
NEVER turn off the power without executing the shutdown function from the
Windows Start Menu.
Either action can result in damaged data. This warning applies equally to
LOANMASTER Lite and to any Windows Program.