i-power Institution Menu - - Loan Draft Options Guide

Transcription

1 i-power Institution Menu - - Loan Draft Options Guide Last Revised on: 8/2/2007 EPL, Inc. 22 Inverness Parkway Suite 400 Birmingham, Alabama (205) EPL (4375)

2 Property of EPL, Inc., 22 Inverness Center Parkway, Birmingham, AL , (205) , Fax (205) EPL, Inc. believes this document is accurate and reliable, and much care has been taken in its preparation. However, EPL, Inc. cannot accept any responsibility, financial or otherwise, for any consequences arising out of the use of this material. The information contained herein is subject to change. Revisions may be issued to advice of such changes or additions. The information and techniques contained in this document are the property of EPL and may not be disclosed in total or in part without the written permission of EPL, Inc EPL, Inc. All rights reserved.

3 Table of Contents LOAN DRAFTS PRODUCT CLASSES...4 ADDING A NEW LOAN DRAFT PRODUCT CLASS...4 FILE MAINTAINING A LOAN DRAFT PRODUCT CLASS...14 MAINTAINING LOAN DRAFT CLASS RATES...19

4 Loan Drafts Product Classes Adding a New Loan Draft Product Class This procedure assumes you are starting from the Main Navigation screen. The Main Navigation screen displays: (1) To set up a new loan draft class, click on Manager on the menu bar and select Institution/Loan Drafts/Product Classes from the drop-down list. The Manage Loan Draft Classes screen displays: (2) Click on the Add Loan Draft Class tab. Page 4 of 21

5 The Add New Loan Draft Class screen displays: (3) Complete all applicable fields in the Add New Loan Draft Class screen as defined by your credit union s policies and procedures. Add New Loan Draft Class Field Description Valid Entries/Comments Loan Draft Type: Class #: Class ID: Class Description: Indicates the type of loan draft associated with this class. Indicates the class number associated with a HELOC or unsecured loan draft class. Indicates the rate type this loan draft class code will use. Indicates a brief description of the loan draft class. Home Equity Signature 3 digits Loandrafts (Home Equity) accounts with suffixes and interest greater than $ will have the interest reported on a 1098 form Consumer loandrafts, unsecured (signature loan) account with suffixes for which interest is not reported. Fixed Rate Variable Rate 25 alphanumeric characters Loan Draft Parameters Field Description Valid Entries/Comments Secured: Valid for Lending System: Indicates whether this is a secured loan draft. Determines whether the loan draft class code entered is valid for LOS. Yes No Yes No Page 5 of 21

6 Add New Loan Draft Class Loan Draft Parameters Field Description Valid Entries/Comments Status: Indicates whether this loan draft class is open or closed. Open Closed Rate Adjustment Option: Interest Rate: Index: Margin: Scheduled Payment Option: Minimum Payment: Payment Percent Option: Collateral Code: Indicates the method used for calculating rate changes. Indicates the interest rate used for new loan drafts assigned to this class. Indicates the starting reference point (such as the 26-week T-bill) to establish a rate. Indicates the additional points added to the index in the loan class to calculate the new interest rate for the loan draft at the time of adjustment. How payments are recalculated if an add-on has been made since the last statement. Indicates the minimum amount this payment can be. Indicates the method used in recalculating payment amounts. Indicates the type of collateral to be used for all loans drafts in this class. This field is used only when the Loan Class ID field = Variable Rate Use Interest Rate Use Index & Margin percentage format percentage format percentage format 0 - Don t recalculate pymnt. Amt. 1 - greatest of % of Bal/Min. pymt./amort. Pymt. Amt. 2 - greatest of % of Bal/Min. pymt./amort. Pymt. amt/prev. pymt. Amt. 3 - Interest only 4 Interest Only/Excess to Principal NOTE: If Scheduled Payment Option = 1, 2 or 3, then the Payment Calculation Method is automatically set to 0 and made a read only field. monetary format % from class % from individual loan draft NOTE: This field is valid when the Scheduled Payment Option = greatest of % of Bal/Min. pymt./amort. pymt. amt. or greatest of % of Bal/Min. pymt./amort. pymt. amt/prev. pymt.amt. 3 digits Codes and descriptions come from the System Codes Consumer Loan Collateral Codes are invalid because these are reserved for Student Loans. 092, 093, 095, 099 are invalid because these are reserved for Share Secured loans. Please refer to the Consumer Loan System Codes section of this document for detailed information on the setup and maintenance of these codes. Page 6 of 21

7 Add New Loan Draft Class Loan Parameters Field Description Valid Entries/Comments Type Code: Indicates the number identifying the type of loan for all loans in this class. 3 digits CU Defined Descriptions Student Loans - CU Defined Descriptions Real Estate (if interest is greater than $599.99, it is reported on a 1098 form) CU Defined Descriptions Please refer to the Consumer Loan System Codes section of this document for detailed information on the setup and maintenance of these codes. Credit Bureau Account Type: Indicates the generic credit reporting account type for this loan class. 7B Agricultural 00 Auto 3A Auto Lease 9B Business Line Personally Guaranteed 10 Business Loan 37 Combined Credit Plan 6A Commercial Installment Loan 7A Commercial Line of Credit 6B Commercial Mortgage Loan 0F Construction Loan 26 Conventional Real Estate Mortgage 18 Credit Card 47 Credit Line Secured 43 Debit Card 91 Debt Consolidation 8B Deposit Related 12 Education Loan 2C Farmers Home Admin (FmHA) Real Estate 19 Federal Housing Admin (FHA) Real Estate 0G Flexible Spending Credit Card 6D Home Equity 89 Home Equity Line of Credit 04 Home Improvement 1C Household Goods 13 Lease 15 Line of Credit Union 17 Manufactured Housing 90 Medical Debt 20 Note Loan Page 7 of 21

8 New Loan Draft Class Loan Parameters Field Description Valid Entries/Comments Term: Payment Frequency: Payment Calculation Method: Indicates the default number of payments for loans in this class. Indicates how often payments are scheduled to be made on this loan. Indicates the payment calculation method used for loan drafts in this class. 5 = 60 months 10 = 120 months 15 = 180 months 20 = 240 months 12 Monthly Payments This is the only valid entry for loan draft classes. 0 = Do not use payment table 1 = Use payment table If you type 1, the payment is adjusted automatically when an add-on occurs. If the new balance requires a larger payment, the system automatically increases the payment amount due. If the current payment amount is larger than the balance requires, the Lower Payment field of the Advance screen will display true and causes the system to refer to the Loan Payment Table for a new payment amount. Refer to the setup and maintenance of the LOC Payment Table section of this document. Late Charge Code: Percent of Balance: Draft Cycle: Max. Loan Amount: Indicates if and how late charges are calculated. Indicates the percentage of the outstanding balance to be used for calculating the scheduled payment amount. This 2-digit credit union defined number controls the loandraft statement cycle for loans with this class number. Indicates the maximum line of credit (and maximum loan draft balance) for a loan using this loan draft class. 0 = No Late Charge 1 = On int. due 2 = On sch. Pymnt. 4 = On sch.pymnt-partial pay 5 = California Method 7 = On sch. Pymnt. percentage format If you typed 1 or 2 in the Scheduled Payment Option field, you must enter a value in this field. It defaults to the member's loandraft statement cycle code. This links with the Share Draft Cycle file that contains a list of every statement cycle code established for this credit union and the dates that each cycle will produce a statement. monetary format Entry is required. If you try to establish a line of credit for higher than this amount for loandrafts with this class code, an error message will result. Either change to another loan class or lower the line-of-credit limit. Page 8 of 21

9 New Loan Draft Class Variable Rate Loan Parameters Field Description Valid Entries/Comments Ceiling: Indicates the maximum interest rate that can be charged for the life of the loan draft. percentage format FOR VARIABLE-RATE LOANDRAFTS ONLY Floor: Indicates the minimum interest rate that can be charged for the life of the loan. percentage format FOR VARIABLE-RATE LOANDRAFTS ONLY CAP Option: Indicates if and how caps are used. Not Using Caps Life Cap Only Term Cap Only Life & Term Cap FOR VARIABLE-RATE LOANDRAFTS ONLY Life CAP: Indicates the maximum interest rate that a variable-rate loan can adjust from the original rate over percentage format FOR VARIABLE-RATE LOANDRAFTS ONLY the life of the loan. Term CAP: Indicates the maximum amount the interest rate can change per term. percentage format The new rate must be within the floor and ceiling rate restrictions FOR VARIABLE-RATE LOANDRAFTS ONLY CAP Sign: Indicates the function of the term cap. Up/Down Term Cap Up by Term Cap FOR VARIABLE-RATE LOANDRAFTS ONLY Interest Adjustment Term: Interest Adjustment Date: Indicates the number of months between rate adjustments. Indicates the specific date the rate will next change For example, for quarterly rate changes, type 003. FOR VARIABLE-RATE LOANDRAFTS ONLY mmddccyy format Type an entry in this field only if you change rates on a specific date or dates (such as if you change rates on October 1 each year). FOR VARIABLE-RATE LOANDRAFTS ONLY Page 9 of 21

10 New Loan Draft Class Variable Rate Loan Parameters Field Description Valid Entries/Comments Pre-Adjustment Days: Indicates the number of days before a rate and/or payment adjustment is to go into effect that a notice is sent to the member. 00 Non Participating CU Defined Descriptions 99 Commit 1 Month Prior to Adjustment You must type an entry in this field for variable-rate loan classes. The number is subtracted from the date in the INTEREST ADJUSTMENT DATE field (and/or the PAYMENT ADJUSTMENT DATE field) to determine the date on which the notices are sent. If your credit union is using the ability to commit to a new rate and/or payment before the actual adjustment takes place, this entry not only defines when the notice is sent to the member, but also freezes the rate to the new committed rate once this notice date has been reached. FOR VARIABLE-RATE LOANDRAFTS ONLY Please refer to the Consumer Loan System Codes section of this document for detailed information on the setup and maintenance of these codes. The Add New Loan Draft Class screen displays: (4) Once all applicable fields on the Add New Loan Draft Class screen have been completed, click on the Optional Fields tab. Page 10 of 21

11 The Loan Draft Class: Optional Fields screen displays: (5) Click on the Modify button and complete all applicable fields as defined by your credit union s policies and procedures. Loan Draft Class: Optional Fields Field Description Valid Entries/Comments Min. Charge Amount: Max. Number Drafts: Max. Number Option: (exceeds max. no. of drafts/cycle) Min. Draft Amount: Min. Draft Option: (amt. < Min. draft amt.) Max Number Charge Amount: Overdraft Limit %: Amount of the fee assessed if the member writes loandrafts for less than the minimum limit. Maximum number of loandrafts the system is allowed to post per statement cycle. Indicates what the system is to do if more loandrafts are written during a statement cycle than allowed. Minimum draft amount the member can write. Indicates what the system is to do if it receives a loandraft that is below the minimum limit. Amount of the fee assessed if the member has written too many loandrafts for the designated period. Percentage by which a member is allowed to exceed the line-ofcredit limit. 3 digits (whole dollars only) To allow unlimited loandrafts, type 999 in this field. 0 = Process the loandraft even if it exceeds the maximum allowed 1 = Do not process the loandraft 5 digits (whole dollars only) 0 = process the loandraft, regardless of amount 1 = do not process loandraft if less than the minimum Option 1 enables you to choose whether to send a notice to the member if a loandraft has been rejected. You prepare these notices in the same way as for non-sufficient funds notices. 3 digits (whole dollars only) 2 digits (whole numbers only) Page 11 of 21

12 Loan Draft Class: Optional Fields Field Description Valid Entries/Comments Overdraft Limit Amount: Overdraft Charge Amount: Annual Fee: Amount over the line-of-credit limit the system will allow. Charge to be assessed if the member exceeds the line of credit, but is within the acceptable tolerance range. Annual fee charged for the loandraft. 5 digits (whole dollars only) If you did not type an entry in the OVERDRAFT LIMIT % field, the system will use the amount in this field. If you did type a value in the OVERDRAFT LIMIT % field, the system will use the lesser of these two fields. 4 digits (dollars and cents; no decimal point) To specify that no special charge is to be assessed, type 0 in this field. If this field is zero and a loandraft is not honored because it exceeds the line of credit, the NSF charge defined in your credit union s IPB file will be assessed. Unless the value in this field is 0, the amount in this field is also used if a loandraft exceeds the line of credit and will not be honored. This field works in conjunction with the OVERDRAFT LIMIT AMOUNT field and the OVERDRAFT LIMIT % field. 5 digits (dollars and cents; no decimal point) Any loan opened within the month and year that the annual fee is assessed will be bypassed until the following year s processing. For example, if a loan was opened on 12/10/96 and the annual fee is assessed on 12/31/96, no fee will be assessed on this loan until 12/31/97. (6) Click on the Save button to update the class setup and return to the Manage Consumer Loan Classes screen. Page 12 of 21

13 The Manage Consumer Loan Classes screen displays: (5) Click on the Done button to return to the Main Navigation screen. ~end~ Page 13 of 21

14 File Maintaining a Loan Draft Product Class This procedure assumes you are starting from the Main Navigation screen. The Main Navigation screen displays: (1) To file maintain a loan draft class, click on Manager on the menu bar and select Institution/Loan Drafts/Product Classes from the drop-down list. The Manage Loan Draft Classes screen displays: (2) Click on the Edit icon of the loan draft class to be file maintained. Page 14 of 21

15 The Edit Loan Draft Class screen displays: (3) Click on the Modify button to file maintain the loan draft class. The Edit Loan Draft Class screen contains the same fields included in the Opening a New Loan Draft Class procedure; refer to this section for detailed field descriptions. The Edit New Loan Draft Class screen displays: (4) Once all applicable fields on the Edit New Loan Draft Class screen have been modified, click on the Optional Fields tab. Page 15 of 21

16 The Loan Draft Class: Optional Fields screen displays: (5) Click on the Modify button and modify all applicable fields as defined by your credit union s policies and procedures. (6) Once all applicable fields on the Loan Draft Class: Optional Fields screen have been modified, click on the Loan Forms tab. Page 16 of 21

17 The Loan Form Package screen displays: (6) Click on the Modify button and modify all applicable fields as defined by your credit union s policies and procedures. You may have to scroll to the bottom of the screen to click on the modify button. (7) Click in the check box in the Select column of the loan form you wish to be associated with this loan draft class. (8) Once all respective forms are selected, click on the Save button to return to the Loan Draft Class: Optional Fields screen. Page 17 of 21

18 The Loan Draft Class: Optional Fields screen displays: (9) Click on the Cancel button to return to the Manage Loan Draft Classes screen. The Manage Loan Draft Classes screen displays: (10) Click on the Done button to return to the Main Navigation screen. ~end~ Page 18 of 21

19 Maintaining Loan Draft Class Rates This procedure assumes you are starting from the Main Navigation screen. The Main Navigation screen displays: (1) To file maintain a consumer loan class, click on Manager on the menu bar and select Institution/Loan Drafts/Product Classes from the drop-down list. The Manage Loan Draft Classes screen displays: (2) Click on the Change Rates tab Page 19 of 21

20 The Manage Loan Draft Class Rates screen displays: (3) If applicable, scroll to the bottom screen and click on the Modify button to file maintain the consumer loan class interest rate and/or index. (4) Once all changes have been made, click on the Save button. Page 20 of 21

21 The Manage Loan Draft Class Rates screen displays: (5) Click on the Cancel button to return to the Manage Loan Draft Classes screen. The Manage Consumer Loan Classes screen displays: (6) Click on the Cancel button to return to the Main Navigation screen. ~end~ Page 21 of 21