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Loan Servicing Software Solutions  

Bottom Line Software, Inc.  

View Loan Data

LOANMASTER Lite Help

From the main menu, select Loan-> View Loan Data. Almost all the functions you will need to service your loans will be accessed from this dialog.

Customer Tab
Loan Tab
Dates Tab
Terms Tab
Status Tab
History Tab
Transactions Tab

 

Customer Tab

This is the first tab. It displays information about the customer ( borrower). This information relates to the individual customer not to this individual loan. This customer may have other loans. The customer information is the same for all loans issued to this borrower. Changing the customer data on this tab will change it for all loans issued to this borrower.

The customer number is a unique number assigned to each individual borrower. If a borrower has more than one loan, this number is used to identify the customer and to locate the customer's addresses, phone numbers, and other information.

This is an alpha field. It will accept almost any character on the keyboard but if you use punctuation, or spaces you will eventually wind up in a lot of trouble. The computer doesn't care but you cannot always tell the difference on the screen between a comma and a period or the difference between one space and two spaces.

The other  fields are self explanatory so they will not be described in detail.

 

Loan Tab

This is information that describes and identifies the loan.

Customer No

Required. The customer number is a unique number assigned to each individual borrower. If a borrower has more than one loan, this number is used to group the borrower's loans together.

This number is used to group different loans to the same borrower.

Loan No

Required. The loan number is a number assigned to uniquely identify each individual loan. This is different from the customer number. A customer can have several loan numbers but only one customer number.

Loan numbers must be unique. No two loans may have the same number. The program will work if they do, but locating accounts by loan number will be more difficult.

 

Loan Name

Required. You will find the reports hard to read if you leave it out. The customer name is printed on each report to make each loan easier to identify.

This name is used on all notices. The Statement (transaction history, uses the name and address from the Customer Information files.

Comments

These lines are optional and may contain any data you wish. They appear only on the screen.

Original Face Amount

Required. This is the face amount of the note. This is the amount the computer will use to compute the scheduled balance. The scheduled balance is used to determine if the loan is keeping pace, falling behind, or gaining on the original agreed payment schedule.

Balance

Required. Computed. This is the amount remaining unpaid. Each time a principal payment is paid, this amount is reduced by the principal amount paid. This amount should always be less than or equal to the scheduled balance. In real life, payments are made late, payments are made early, some months have more or less than 30 days, etc. It will not be uncommon to find the current balance slightly above the scheduled balance.

This balance should not exceed the scheduled balance by more that about five or six days interest accrual. If it exceeds the scheduled balance by more than fifteen days, and especially if the difference is growing from payment to payment, some collections efforts should be considered.

Date Note

Required. This is the date of the note. The date on the document. It is usually, but not always, the date the document was signed. It is the date at which interest will begin to accrue.

If you need the interest to begin accruing at a later date, see the field called Date No Interest Until. To begin the accrual at an earlier date, you must do it manually by using the earlier date as the setup date, or by computing the interest and adding it to accrued interest on the edit screen. (Do not do both.)

 

 

Dates Tab

Date Note

Required. This is the date of the note. The date on the document. It is usually, but not always, the date the document was signed. It is the date at which interest will begin to accrue.

If you need the interest to begin accruing at a later date, see the field called Date No Interest. To begin the accrual at an earlier date, you must do it manually by using the earlier date as the setup date, or by computing the interest and adding it to accrued interest on the edit screen. (Do not do both.)

Date First Payment Due

Required. This is the date the first payment, payment number one, is due. This will usually be one month after the date of the note. All future payment dates will be calculated from this date.

Date Maturity

Required. This is the maturity date of the loan. On this date, the final payment of all remaining interest and principal is due. If the loan is a balloon note, this date is the same as the balloon payment date. On this date, the entire balance and all accrued interest and late charges will be due.

Date Last Transaction

Computed. This is the date of the last transaction. If the last transaction was a payment, this date will be the same as the date last payment.

Date Next Payment Due

Required. Computed. This is the next scheduled maturity date. This date is updated every time a payment matures whether or not the payment is made. This date will always be a future date.

Even when the loan is past due and the payments are not being made, this date continues to increment to reflect the fact that a payment will be due although we know it will most likely not be made.

Date Insurance Expires

The date on which the insurance policy insuring the collateral pledged to this contract expires

Date - No Interest Until

Optional. In retail financing, it is common to offer a purchaser an initial interest free period. e.g. "90 days, no interest!"

Interest will not accrue until this date. If the date of the note is January 1, 1989 with monthly payments on the first of each month, and the no interest date is February 15, 1989, the loan will accrue no interest until February 15th, on that date, it will accrue the first days interest.

If the interest computation basis is 12, the loan will not accrue interest until the next payment date after the no interest date. The loan mentioned would accrue one month interest on March 1, 1989.

If you use interest basis 12, all interest free periods should expire one month before a payment date.

Date Payment Due ( For )

Required. Computed. This is the most recent date for which a payment was due but not yet made.

This is the date that keeps up with the past due or prepaid status of the loan. If this date is in the future, the loan is current or prepaid. If this date is in the past, the loan is past due.

Today is June 20. A payment was due on April 15, May 15, and June 15. The April payment was made on time. The May and June payments have not yet been made. The date due (date of payment due) is May 15. We say "The loan is due for may 15th." It is 36 days past due. (May 15th to June 20.) The date next due is July 15. Another payment is due on that date whether or not the prior payments have been made.

Today is September 5. A payment was due June, July, August, and September first. They were all made on time. The loan is "Due for Oct. 1". The date payment due is 10-01-xx. the date next due is also 10-01-xx.

Date Previous Maturity

Required. Computed. This is the most recent date on which a payment matured. It may or may not be the date on which the last payment was paid. This date is used to keep up with late charges due on past due loans.

Date Last Update

Required. Computed. This is the date of the last update. It is the date the operator entered as the date of the last update. It may or may not be the same as the actual calendar date the update was done.

It is the latest date through which interest has been calculated and for which past due status has been checked.

It is very important to update the file before posting payments or printing past due notices or past due reports.

Date Default

The loan has been in default continuously since this date.

Date Next Past Due Notice

If a loan is past due and has already received a past due notice, this field will contain the date the next past due notice will be generated. It is determined by adding the past due notice frequency to the date of the prior past due notice.

 

 

Terms Tab

Original Face Amount

Required. This is the face amount of the note. This is the amount the computer will use to compute the scheduled balance. The scheduled balance is used to determine if the loan is keeping pace, falling behind, or gaining on the original agreed payment schedule.

Original Advance

The amount of the original advance if different from the loan amount

Regular Payment Amount

Required. Entered. This is the amount of the regularly scheduled payment. If there is a balloon payment, see the next field.

Final Payment Amount

Required. Entered. This is the total amount including interest of the final payment. If there is no balloon payment, this field should contain the same amount as the Payment Amount Regular.

Payment Frequency

Required. This is self descriptive. If payments are due monthly, this is 12. If the payments are due quarterly, this is 4. Etc.

NOTE: Only commonly used schedules are supported. The data entry screen will display a pick list if an invalid number is entered.

Valid options are:

1, 2, 4, 12

Payment Type

The payment type is a numeric code that gives the program information about how the payment amount is processed. Valid payment codes are:

1 Normal amortization. take all interest first, apply remainder of payment amount to principle.

4 Interest Only.

Late Charge Due at Day

Charge a late charge if this loan becomes this many days past due. This may be changed at any time. To eliminate the late charge, set the late charge rate to 0.00.

Late Charge Rate

Required. Entered. The late charge rate is used to assess late charges when due. The late charge routine allows the late charge rate to be used to specify either a dollar amount for the late charge, or a percentage of the payment amount.

If the late charge rate is less than 1.00, it is interpreted as a percentage and computes the late charge as that percent of the regular payment amount.

If the late charge rate is equal to or greater than 1.00, it is interpreted as a dollar amount and assesses that exact amount for the late charge.

Late Charge Examples: Payment amount = 100.00 Late charge rate Late charge amount 0.05 5.00 7.50 7.50

Interest Rate Original

Required. This is the original interest rate on the loan. If the rate is fixed, this rate will be used throughout the life of the loan.

This rate is for information only, it is not used to calculate the interest accrual. See: rate, current.

If the loan is a variable rate loan, this field IS NOT CHANGED. If the rate is variable, change the current rate field.

Interest Rate Current

Required. This is the rate used to do the actual interest computation during the update. When the loan is new, this rate will be the same as the rate, original. If the rate is changed after the loan begins to accrue interest, this is the rate to change.

Interest Basis

Required. This is the basis by which the interest is computed. The update always computes interest every calendar day during the life of the loan, one day at a time.

Each day the interest formula is computed for every loan. This is the formula:

(Current balance) x (rate, current) Daily accrual = ----------------------------------------------------- (Basis)

The basis can be either 360 or 365. Most banks use 360. This practice increases your interest income by 1.3889%.

Basis 12: For monthly amortizing loans. Interest on these loans is calculated as if every payment was made on time regardless of when the payments are actually made. Requires TRACKAM. When using basis 12, late payments will not increase the interest accrual and early payments will not reduce it. Loans that are prepaid enough to warrant credit for early payment must be manually adjusted.

WARNING: If you do not know what you are doing, using the 360 day basis can cause you to run afoul of regulation z and some state usury laws.

We recommend you always use the 365 day basis.

Number of Payments

Required. Entered. This is the number of regular payments. If all payments are the same amount, this is simply the total number of payments. If the final payment is a balloon, the number of regular payments will be one less than the total number of payments.

Number of Payments Interest Only

The number of interest only payments remaining on this loan. No principal will be matured or allocated to a payment at posting time unless this has reached zero. Set this to the number of interest only payments when the loan is new. It will be reduced by one each time a payment is posted.

This is affected by partial payments. Partial interest payments may not reduce this number.

Certain payment allocation codes may override this setting.

This function will change the regular payment amount each payment date to be the same as the interest due on that payment date.

Interest only loans are handled much better by the interest only payment codes

Collateral

User defined code identifying the collateral

Payment Allocation Option

The payment allocation option is used to tell the posting screen how to allocate the total payment amount received to the individual components of principal, interest, late charge and escrow. For more information see the section on user options.

Status Tab

Balance

Computed. This is the amount remaining unpaid. Each time a principal payment is paid, this amount is reduced by the principal amount paid. This amount should always be less than or equal to the scheduled balance. In real life, payments are made late, payments are made early, some months have more or less than 30 days, etc. It will not be uncommon to find the current balance slightly above the scheduled balance.

This balance should not exceed the scheduled balance by more that about five or six days interest accrual. If it exceeds the scheduled balance by more than fifteen days, and especially if the difference is growing from payment to payment, some collections efforts should be considered

Interest Accrued

Computed. This is the amount of interest which has accrued on the loan and which has not yet been paid. This amount may or may not be due.

Every update computes the interest due since the date of the last update and adds it to this amount. This happens every day. When an interest payment is posted, this amount is reduced by the amount of the interest payment.

Interest Due

Required. Computed. This is the amount of interest due and unpaid. Every payment date, the entire amount of interest in the accrued interest field is moved into this field. Note that it is moved, not added.

The program assumes that at each payment date, all interest is due.

Each time an interest payment is posted, the payment amount is subtracted from this field.

Interest YTD

Computed. This is the total interest paid on this loan since the end of last year. Note that this is PAID, not ACCRUED. This amount is reset to zero at year end.

Interest Paid (Life of Loan)

Computed. This is the total of all interest payments on this loan since it started. This amount is kept for reference only.

Late Charge Due

Computed When a loan is new, this field is zero. Each time a late charge is assessed, it is added to this field. When late charge payments are posted, they are subtracted from this field.

Late Charge Paid ( Life of Loan)

Computed When a loan is new, this field is zero. Each time a late charge is assessed, it is added to this field. When late charge payments are posted, they are subtracted from this field.

Late Charge YTD

Computed. This field maintains the total of all late charges actually paid since the end of the previous year.

Interest Due

Computed. This is the amount of interest due and unpaid. Every payment date, the entire amount of interest in the accrued interest field is moved into this field. Note that it is moved, not added.

The program assumes that at each payment date, all interest is due.

Principal Due

Required. Computed. This is the amount of principal required to bring the current balance in line with the originally scheduled repayment plan. A negative number indicates the loan is prepaid.

If this amount is positive, a payment has matured and not yet been paid. A positive amount will also occur if interest is calculated on the actual day basis using a 360 divisor. This system accrues 1.39% more interest than the monthly interest method. This extra interest will cause each principal payment to be slightly less then the scheduled principal payment.

Date Last Update

Required. Computed. This is the date of the last update. It is the date the operator entered as the date of the last update. It may or may not be the same as the actual calendar date the update was done.

It is the latest date through which interest has been calculated and for which past due status has been checked.

It is very important to update the file before posting payments or printing past due notices or past due reports.

Scheduled Balance

Each time a payment is due, the program computes the interest due and the "scheduled" balance assuming the payment was made on the date due. This calculation is done and the results stored so the program can compare the real current status of the loan with what it should be if all payments had been made on time. The results of this comparison are used to calculate the amount of interest and principal required to bring the loan current. If the loan is past due, both these numbers will be positive. If the loan is prepaid, the principal figure calculated will be negative, indicating that more principal has been paid than was required.

Date Payment Due ( For )

Required. Computed. This is the most recent date for which a payment was due but not yet made.

This is the date that keeps up with the past due or prepaid status of the loan. If this date is in the future, the loan is current or prepaid. If this date is in the past, the loan is past due.

Today is June 20. A payment was due on April 15, May 15, and June 15. The April payment was made on time. The May and June payments have not yet been made. The date due (date of payment due) is May 15. We say "The loan is due for may 15th." It is 36 days past due. (May 15th to June 20.) The date next due is July 15. Another payment is due on that date whether or not the prior payments have been made.

Today is September 5. A payment was due June, July, August, and September first. They were all made on time. The loan is "Due for Oct. 1". The date payment due is 10-01-xx. the date next due is also 10-01-xx.

Date Last Transaction

Computed. This is the date of the last transaction. If the last transaction was a payment, this date will be the same as the date last payment.

Date last Statement

The date on which a statement was last printed. The next statement will print only transactions occurring after this date.

Rate Current

Required. This is the rate used to do the actual interest computation during the update. When the loan is new, this rate will be the same as the rate, original. If the rate is changed after the loan begins to accrue interest, this is the rate to change.

No Payments Paid

How many payments have actually been paid since the loan was placed on this system. This counter is increased each time a payment is paid. It is increased by the actual number of payments made. Fractional payments are recorded to two decimal places, (+/- 1%).

If the actual payment due is $100.00, and the customer pays $155.75, this indicator will be increased by 1.55.

This indicator, when compared to the payments matured counter, gives another indication of the status of the loan. It does not really indicate the true status because if the number of payments made equals the number of payments matured, and the loan was six months past due and recently caught up, the balance will still be larger than the scheduled balance because more interest was charged than would have been charged if all payments were made on time.

No Payments Matured

How many payments have matured since the loan was placed on this system. This counter is increased by one each time a payment matures

 

 

History Tab

Interest Due

Computed. This is the amount of interest due and unpaid. Every payment date, the entire amount of interest in the accrued interest field is moved into this field. Note that it is moved, not added.

The program assumes that at each payment date, all interest is due.

Each time an interest payment is posted, the payment amount is subtracted from this field.

Principal Due

Required. Computed. This is the amount of principal required to bring the current balance in line with the originally scheduled repayment plan. A negative number indicates the loan is prepaid.

If this amount is positive, a payment has matured and not yet been paid. A positive amount will also occur if interest is calculated on the actual day basis using a 360 divisor. This system accrues 1.39% more interest than the monthly interest method. This extra interest will cause each principal payment to be slightly less then the scheduled principal payment.

Collection Expenses

The total of all expenses paid and expensed. (Not added to the loan balance). Does not include legal expenses

The system provides transaction codes for posting expenses. See Utilities, View Transaction Codes, for the current transaction codes.

Scheduled Balance

Each time a payment is due, the program computes the interest due and the "scheduled" balance assuming the payment was made on the date due. This calculation is done and the results stored so the program can compare the real current status of the loan with what it should be if all payments had been made on time. The results of this comparison are used to calculate the amount of interest and principal required to bring the loan current. If the loan is past due, both these numbers will be positive. If the loan is prepaid, the principal figure calculated will be negative, indicating that more principal has been paid than was required.

Balance

Computed. This is the amount remaining unpaid. Each time a principal payment is paid, this amount is reduced by the principal amount paid. This amount should always be less than or equal to the scheduled balance. In real life, payments are made late, payments are made early, some months have more or less than 30 days, etc. It will not be uncommon to find the current balance slightly above the scheduled balance.

This balance should not exceed the scheduled balance by more that about five or six days interest accrual. If it exceeds the scheduled balance by more than fifteen days, and especially if the difference is growing from payment to payment, some collections efforts should be considered

Date Default

The loan has been in default continuously since this date.

Days Past Due 10, 30, 60, 90 Days

Number of times past due for each ageing category.

Late Charge Due

Computed When a loan is new, this field is zero. Each time a late charge is assessed, it is added to this field. When late charge payments are posted, they are subtracted from this field.

Late Charge Paid ( Life of Loan)

Computed When a loan is new, this field is zero. Each time a late charge is assessed, it is added to this field. When late charge payments are posted, they are subtracted from this field.

Late Charge YTD

Computed. This field maintains the total of all late charges actually paid since the end of the previous year.

 

 

Transaction Tab

This screen is read only. You cannot manually edit transactions.

Transaction Date

this is the “as of” date for this transaction. It defaults to date last update but you can change it when you post it.

Tcode

Transaction Code. The transaction code identifies the type of transaction.

Amount

The dollar amount of the transaction.

Comment

Text comment entered on posting screen

Post Date

This is the actual system date from your computer’s built in clock when the payment was posted.

Reversing Payments

You can click on any transaction in this screen and the “Reverse Payment” button will activate. It will allow you to automatically reverse the selected transaction and all transactions related to the same payment.

Calculate Periodic Installment Loan Payment

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