The irregular payment schedule is available in the following transactions:
n Commercial/Business/Agricultural Loans (Both variable and fixed rate are supported.)
– Single advance term loans, Construction of building option not selected, secured by real estate collateral
– Single advance term loan, Construction of building option not selected, secured by non real estate collateral
– Line of credit, closed end, Construction of building option not selected
– Line of credit, closed end, Construction of building option is selected, Without permanent financing option selected
n Consumer (Only fixed rate is supported. Variable rate is only available for Commercial loans.)
– Single advance term loan, Construction of building option not selected, secured by real estate collateral
– Single advance term loan, Construction of building option not selected, secured by non real estate collateral.
1. In the Calculations area, select Irregular as the payment structure.
2. Click the Proceeds and Fees button.
3. Complete the Amount Requested option.
4. Complete the information needed to fully disburse the funds. Click the Forward Arrow button.
5. Complete the table except for the final payment stream..
n Enter the number of payments.
n Choose an option in the Frequency drop-down list. Complete the date for the first payment date of the payment stream.
n Choose Fixed or Variable from the drop-down list. Variable rate is only available for commercial loans.
n Enter the interest rate and margin if applicable. The rate is the initial interest rate of the note for fixed rates and the interest rate plus margin (commonly referred to as the Market Rate) for variable rates. The margin that prints on the note will default from the variable rate product setup in administration. If the margin for the variable rate product is not current, update the product in adminsitration. To update the margin:
– Exit lending.
– Select Variable Rate on the Lending tab in administration.
– Open the variable rate product.
– Change the margin in the Policy Definition section.
– Publish the change.
– Log into lending and recall the transaction.
– Select Loan Definitions, change the loan to Fixed Rate, and continue through the remaining Loan Definition windows.
– Select Calculations and continue through the calculations windows.
– Revisit Loan Definitions. Change the loan back to Variable and choose your variable rate product.
– Select Calculations. Revisit the VR Edit area and verify the margin has correctly defaulted from Administration. Your documents should now reflect the applicable margin.
6. Enter the final payment stream.
n Select Final Pmt in the Frequency drop-down list for the final payment.
n Select Both in the P/I/B drop-down list.
n Select the Payment that will Fully Amortize the remaining balance option in the Select Payment Option box that appears. The balance will be set to zero and the Balance box will display empty and grayed.
n When you click the field in the Payment Amount column, the amount is calculated and displays in the field.
n If you select Principal or Both in the P/I/B drop-down list, the Select Payment Option box displays when you click in the Payment Amount field. Select an option and click OK.
n To add a row, select Add a row from the Edit menu.
n To delete a row, select the row and select Delete current row from the Edit menu.
n Variable rate is only available for Commerical loans.
n The rate is the initial interest rate of the note for fixed rates and the interest rate plus margin (commonly referred to as the Market Rate) for variable rates. The margin that prints on the note will default from the variable rate product setup in administration. If the margin for the variable rate product is not current, update the product in adminsitration.
n Accrued Interest Since Last Payment: The accrued interest since last payment will be calculated and displayed.
n Payment that will Fully Amortize the remaining Balance: This option should be used for your final payment stream and will calculate the final amortized payment to pay off the balance of the loan.
n Other Payment: Allows you to enter a set payment amount.
n Amortize Over: When amortizing multiple payment streams you must reduce the amortized over number based on the number of previous payments.
Example
2 payments-P&I amortize over 35 payments
5 interest only payments
7 payments-P&I amortize over 33 payments
5 interest only payments
7 payments-P&I amortize over 26 payments, etc.
Instead of amortizing over 35 payments in each one, you must continue to reduce this number based on the number of previous payments for each payment stream.
n Level Principal Reduction: Allows you to state that you are paying down a specific portion of the principal and paying all accrued interest. You will need to enter the principal portion of the payment in the available field and the system will calculate the full payment based on that amount plus accrued interest.
n You cannot have overlapping payment streams. If your payment streams (also referred to as rows) have overlapping time periods, you will receive a message that the dates are out of sequence.