i-power Mortgage Loan Accounts User Guide

Transcription

1 i-power Mortgage Loan Accounts User Guide 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 SETTING UP THE MORTGAGE LOAN DATABASE... 1 RESPA AND MORTGAGE ESCROW ACCOUNTS... 1 SETTING UP ESCROW ANALYSIS... 2 MORTGAGE LOAN PRODUCT CLASSES... 3 Setting Up a New Mortgage Loan Product Class... 3 Maintaining a Mortgage Loan Product Class Maintaining Variable and Fixed Rate Mortgage Loan Class Rates SYSTEM CODES DELINQUENCY STATUS CODES Setting Up a Delinquency Status Code Maintaining a Delinquency Status Code Deleting a Delinquency Status Code OCCUPANT CODES Setting Up an Occupant Code Maintaining an Occupant Code Deleting an Occupant Code PROPERTY CODES Setting Up a Property Code Maintaining a Property Code Deleting a Property Code EMPLOYEE CODES Setting Up an Employee Code Maintaining an Employee Code Deleting an Employee Code INVESTOR NUMBERS Setting Up an Investor Number Maintaining an Investor Number Deleting an Investor Number ACCOUNT STATUS CODES Setting Up an Account Status Code Maintaining an Account Status Code Deleting an Account Status Code LOAN TYPE Setting Up a Loan Type Maintaining a Loan Type Deleting a Loan Type COLLATERAL CODES Setting Up a Collateral Code Maintaining a Collateral Code Deleting a Collateral Code PRE ADJUSTMENT DAYS Setting Up Loan Pre Adjustment Days Maintaining Loan Pre Adjustment Days Deleting Mortgage Loan Pre Adjustment Days LOAN OFFICER Setting Up a Loan Officer Maintaining a Loan Officer Deleting a Loan Officer EXISTING LIEN CODE Setting Up an Existing Lien Code Maintaining an Existing Lien Code Deleting an Existing Lien Code MORTGAGE LOAN ID S Setting Up a Mortgage Loan ID Maintaining a Mortgage Loan ID Deleting a Mortgage Loan ID

4 INSURANCE COMPANIES Setting Up an Insurance Company Maintaining an Insurance Company TAX AUTHORITIES Setting up a Tax Authority Record Maintaining a Tax Authority INVESTOR SERVICING Setting up an Investor Institution Maintaining an Investor Institution LATE CHARGE PLANS Setting up a Mortgage Late Charge Plan Maintaining a Mortgage Late Charge Plan Viewing Late Charge Plan History OPENING A NEW MORTGAGE LOAN CALCULATING THE PAYMENT AMOUNT CHOOSING THE MORTGAGE LOAN PRODUCT MORTGAGE LOAN DETAILS MORTGAGE LOAN DISBURSEMENT OPENING AN ESCROW ACCOUNT OPENING A MEMBER INSURANCE RECORD OPENING A MEMBER TAX RECORD SETTING UP THE LEGAL DESCRIPTION SETTING UP AN ACCOUNT FOR ESCROW ANALYSIS Changing the next escrow adjustment date Preventing escrow analysis from taking place I-POWER ACCOUNT PROFILE MORTGAGE LOAN SUFFIX DROP-DOWN LIST HISTORY Transaction History Maintenance History OWNERS INFORMATION Home Previous Home Employment Previous Employment Temporary Mailing Identification WARNINGS AND LOCKS MORTGAGE LOAN FUTURE PAYOFF Viewing and Printing Loan Payoff Information GENERAL MORTGAGE LOAN INFORMATION Mortgage Loan Maintenance Loan Information Original Terms Payment/Escrow Information Interest Adjustment Options Line of Credit Insurance Late Charge Delinquency Delinquency/Method B Data Borrower DISCHARGE DEBT PROPERTY/MORTGAGE TAX/INSURANCE/LEGAL

5 CREDIT BUREAU ASSIGN LOAN TO INVESTOR FASB Tracking Expense and Income File maintaining expense and income information RATE CHANGE HISTORY AMORTIZATION SCHEDULE LOAN DOCUMENTS CHARGING OFF A SHARE ACCOUNT HOW CHARGED-OFF LOANS ARE REFLECTED ON REPORTS AND STATEMENTS Summary Trial Balance (RMG50010) Charged-Off Loans Report (RML60540) Combined Statements PERFORMING TRACKING AND ANALYSIS TRACKING INSURANCE INFORMATION Tracking insurance information for escrow-pay members Tracking insurance information for non escrow-pay members Additional insurance reports TRACKING TAX INFORMATION Tracking tax information for escrow-pay members Tracking tax information for non escrow-pay members Additional tax reports PERFORMING ESCROW ANALYSIS System calculation of escrow payment using aggregate accounting procedures Escrow reports and member statements PERFORMING STANDARD MONETARY TRANSACTIONS HOW INTEREST IS CALCULATED ON AMORTIZED MORTGAGE LOANS PERFORMING A MANUAL ESCROW CLUB DEPOSIT PERFORMING A MANUAL ESCROW CLUB WITHDRAWAL POSTING A FULL PAYMENT POSTING A PARTIAL PAYMENT POSTING A LATE-CHARGE ONLY PAYMENT POSTING AN EXTRA ESCROW OR ESCROW-ONLY PAYMENT POSTING MULTIPLE PAYMENTS ON CURRENT MORTGAGE LOANS POSTING MULTIPLE PAYMENTS ON DELINQUENT MORTGAGE LOANS ERROR-CORRECTING A TRANSACTION REVERSING A TRANSACTION FORBEARANCE TRANSACTION I-POWER SCREENS FOR FORBEARANCE PERFORMING A MORTGAGE LOAN/INVESTOR LOAN PRINCIPAL FORBEARANCE TRANSACTION INVESTOR LOAN SUMMARY SCREEN MORTGAGE LOAN MAINTENANCE SCREEN RECEIVE INVESTOR LOAN PAYOFF SCREEN RECEIVE MORTGAGE LOAN PAYOFF SCREEN MORTGAGE LOAN FUTURE PAYOFF SCREEN PERFORMING A CLOSE MORTGAGE LOAN ACCOUNT TRANSACTION PERFORMING A CLOSE INVESTOR LOAN ACCOUNT TRANSACTION INVESTOR LOAN PAYMENT SCREEN MORTGAGE LOAN PAYMENT SCREEN TELLER TOTALS (ONLINE AND VCU095) VCI112 DAILY ACTIVITY AUDIT OPTION TO HAVE THE INTEREST RATE NOTICE FROM VMI104 TO SHOW THE INDEX VALUE OPTION FOR HOST PROGRAM VMI104 TO SUPPRESS MORTGAGE LOAN NOTICES

6 OPTION TO HANDLE PAYMENTS FOR MORTGAGE LOANS THAT ARE PAID AHEAD SAMPLES OF COMMON MORTGAGE LOAN REPORTS LOAN CLASS PARAMETERS REPORT Frequency Purpose MORTGAGE LOAN PAYMENT TRANSFER REPORT Frequency Purpose SCHEDULE OF DELINQUENT MORTGAGE LOANS Frequency Purpose MORTGAGE LOAN TRIAL BALANCE Frequency Purpose TAX ALERT REPORT Frequency Purpose ESCROW ANALYSIS SUMMARY REPORT Frequency Purpose ESCROW OVERAGE CHECK SUMMARY Frequency Purpose CLOSED MORTGAGE SUMMARY REPORT Frequency Purpose

7 Setting up the mortgage loan database The first step in setting up your mortgage database is to open a new mortgage loan product class. The purpose of a loan product class is to establish categories of loans with common parameters such as interest rate, margin, payment frequency, and ARM frequencies. Once you establish a loan product class, you can assign any subsequent new mortgage loans with the same characteristics to that loan product class; all the parameters you entered for the loan product class will default into the member record for the mortgage loan account upon transmission. In i-power, loan product classes are required for adjustable-rate mortgage loans, and recommended for fixed-rate mortgage loans. The benefit of attachment is that certain data defaults automatically from the loan product class into the member s loan record, saving you time and effort in opening new loans. If you plan to perform escrow analysis on your mortgages, you must set up pre-adjustment days for adjustable-rate and fixed-rate mortgage classes. The process of setting up the loan product class is the same regardless of whether the mortgage has a fixed rate or an adjustable rate, except that adjustable-rate loan classes might require additional information (detailed in the step-bystep procedure). Even though the next interest adjustment date and the next payment adjustment date can be included at the loan class level, you can file-maintain these dates at the account level because individual loans can have different adjustment dates, based on their anniversary dates. RESPA and mortgage escrow accounts The Real Estate Settlement Procedures Act (RESPA) states that escrow adjustments on all mortgages closed after March 24, 1995, must use an aggregate analysis method of computation. i-power accomplishes this by utilizing the pre-adjustment days in the mortgage record (entered at the class level). If a specific number of days is used, such as 30, a date compare is made using the next escrow adjustment date minus the number of pre-adjustment days to determine whether to commit a new escrow amount. 1 EPL, Inc. Training Department

8 In conjunction with RESPA modifications, the values 98 and 99 in the PREADJUST DAYS field have new definitions for adjustment accounts: Value Old definition New definition 99 Committing occurs exactly one month prior to the actual adjustment date for interest, payment, and/or escrow payments. Adjust an account with a next adjustment date set for any time during the month for interest, payment, and/or escrow will commit the first business day of the previous month. For example, when the mortgage loan adjustment program runs on the night of June 1, all adjustment dates in July (1 31) receive pre-adjustment notices. This allows the commitment for all adjusting accounts for the next month to occur on a single day. 98 Committing occurs exactly 61 days prior to the adjustment date for payment, interest, and/or escrow payments. Commit the interest rate on the first business day that is two months prior to the next interest adjustment date. Payment and/or escrow adjustment will occur on the first business day of the prior month. i-power automatically sets the preadjust days in the mortgage record to 98 if the corresponding class has the same value. It also moves the next interest, payment, and escrow adjustment dates from the loan class to the corresponding next adjustment dates in the mortgage loan record. Setting up escrow analysis Escrow analysis was added to the i-power system to comply with the Real Estate Settlement Procedures Act (RESPA), referred to as Regulation X, concerning mortgage escrow accounts. Escrow adjustments on all mortgages closed after May 24, 1995, must use an aggregate analysis method of computation. When you wish to begin performing escrow analysis, contact your assigned EPL ODI Lending Support Representative, who will set up the necessary IPB options and system parameters for your credit union. Refer to page 168 for additional information on escrow analysis. 2 EPL, Inc. Training Department

9 Mortgage Loan Product Classes The purpose of a loan product class is to establish categories of loans with common parameters such as interest rate, margin, payment frequency, collateral code, type code, payment percentages. Once you establish a loan product class, you can assign any subsequent new mortgage loan with the same characteristics to that loan class; all the parameters you entered for the loan class will default into the application record upon selection of the class product. In other words, you need to type the specific loan parameters just once, not every time you open a loan application. Later, when you need to file-maintain interest rates or payment amounts, you do it once at the class level instead of once for each individual loan. Setting Up a New Mortgage Loan Product Class This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To set up a new mortgage loan product class, click on Manager on the menu bar and select Institution/Mortgage Loans/Product Classes from the drop-down list. 3 EPL, Inc. Training Department

10 The Manage Mortgage Loan Classes screen displays: 2. Click on the Add Mortgage Loan Class tab. The Add New Mortgage Loan Class screen displays: 3. Completed all applicable fields on the Add New Mortgage Loan Class screen as defined by your credit union s policies and procedures: 4 EPL, Inc. Training Department

11 Add New Mortgage Loan Class Field Description Valid Entries/Comments Class #: Indicates the class number associated with a variable or fixed rate loan class. 3 digits Valid Values: Class ID: Indicates the rate type this mortgage loan class code will be used with. Valid Values: 0 - Fixed Rate 2 Adjustable Rate Member Business Loan This field indicates whether the mortgage loan is a Member Business Loan (MBL). Valid Values: Yes No Class Description: Indicates a brief description of the mortgage loan class. 25 alphanumeric characters Loan Parameters Field Description Valid Entries/Comments Secured: Indicates whether this is a secured loan. Valid Values: Yes or No Valid for Lending System: Indicates whether the class code entered is valid for Mortgage Loans Valid Values: Yes (default) or No Status: Indicates whether this loan class is open or closed. Valid Values: Open or Closed Rate Adjustment Option: Indicates the method used for calculating rate changes. This field is used only when the Class ID field = Adjustable Rate. Valid Values: 0 - Use Interest Rate 1 - Use Index & Margin Adjustable rate mortgages only Interest Rate: Indicates the interest rate used for new loans assigned to this class. percentage format If you entered 0 in the RATE ADJ OPT field, type a value in this field. If you entered 1 in the RATE ADJ OPT field, leave this field blank. 5 EPL, Inc. Training Department

12 Index: Indicates the starting reference point (such as the 26-week T-bill) to establish a rate. percentage format Adjustable rate mortgages only If you entered 1 in the RATE ADJ OPT field, type a value in this field. If you entered 0 in the RATE ADJ OPT field, leave this field blank. Margin: Indicates the additional points added to the index in the loan class to calculate the new interest rate for the loan at the time of adjustment. percentage format Adjustable rate mortgages only If you entered 1 in the RATE ADJ OPT field, type a value in this field. If you entered 0 in the RATE ADJ OPT field, leave this field blank. Interest Calculation Method: Type of interest calculation used. Valid Values: Amortized Interest Simple Interest Interest Calculation Days: Type of year used to calculate the daily interest factor from the interest rate or index plus margin. Valid Values: 365 days (366 in leap year). 360 days 365 days Collateral Code: Type Code: Indicates the type of collateral to be used for all loans in this class. Indicates the number identifying the type of loan for all loans in this class. 3 digits (leading zeroes required) Valid entries defined by the credit union. Do not use 000, , 042, , 092, 093, 095, or 099. If this loan class will consist of more than one collateral type, do not type a value in this field. Instead, define the type for each loan at the account level Please refer to the Mortgage Loan System Codes section of this document for detailed information on the setup and maintenance of these codes. 3 digits (leading zeroes required) Valid entries defined by credit union. Do not use loan types (reserved for student loans). If this loan class will consist of more than one type of loan, do not type a value in this field. Instead, define the type for each loan at the account level. Please refer to the Mortgage Loan System Codes section of this document for detailed information on the setup and maintenance of these codes. 6 EPL, Inc. Training Department

13 Credit Bureau Account Type: Indicates the generic credit reporting account type for this loan class. Valid Values: 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 (default) 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 Term: Indicates the default number of payments for loans in this class. 3 digits Valid Values: EPL, Inc. Training Department

14 Loan Parameters continued Field Description Valid Entries/Comments Payment Frequency: Indicates how often payments are scheduled to be made on this loan. Valid Values: 01 Annual /One payment a year on a specified day. 02 Semi-annual/Is set according to the first payment date and then 6 months later and remains the same every year. 04 Quarterly 12 Monthly Payments 24 Semi-monthly/is every 15 days regardless of the first payment date. If the first pmt is 1/5 the next is 1/20, from that point on, the payments for the subsequent months will be 2/5 & 2/20, 3/5 & 3/20, and so on. When one of the payments are the last day of the month, it will always be the last day of the month, regardless if it is the 30th, 31st or 28th, it will always be the last day of the month. 25 Bi-weekly/Works like the every 14 days, except that the 3rd payday of any month is always skipped when resetting the next payment date. There are 2 months of the year that will have 3 pay days when using the every 14 day frequency and some companies do not take any distribution on that 3rd check. These paychecks are referred to a "free check". 26 Every 14 days/is just that, based on the first payment date, is due every 14 days, which is on the same day of every week 52 Weekly 99 Single Payment NOTE: For a monthly frequency loan, if the payment date is changed after the initial set up, the First Payment Date must also be changed. Our system uses the DAY of the first payment date to set the Next Payment Date. This is also true for the Annual frequency. For example: if a member decides they want their payments due on the 15th rather than the 10th of the month, when the Next Payment Date is file maintained to the 15th of the month, they must also set the First Payment Day if not, after that payment is made, the system will look at the First Payment date to set the next, if it is not changed at the same time, it will revert back to the 10th of the month. Default Late Charge Plan Indicates if and how late charges are calculated. Valid Values: 0 No Late Charge 1 Computed on Interest Due 2 Percentage of Unpaid Payment (All Loans) 3 Fixed Amount per Payment (will only display for mortgage loans) 4 Scheduled Payment less Partial Payment 5 Percentage of Unpaid Payment (This Loan) 7 Scheduled Payment Diff Min/Max Max Maturity Term Maximum number of months allowed for maturity extension Valid entries defined by Credit Union. If you entered 1 in the PMT ADJ OPT field, type a value in this field. Max Term Maximum Number of months ( ) allowed in term. Valid entries defined by Credit Union. If the loan term you enter at the loan level is greater than the value in this field, an error will be displayed. 8 EPL, Inc. Training Department

15 Min Term Minimum Number of months ( ) allowed in term. Valid entries defined by Credit Union. If the loan term you enter at the loan level is less than the value in this field, an error will be displayed. Adjustable Rate Loan Parameters Margin Variance How the margin is to be calculated. 0 = add margin to index 1 = subtract margin from index. Adjustable rate mortgages only The most common method is to add to the index. Ceiling: Indicates the maximum interest rate that can be charged for the life of the loan. Percentage format Adjustable rate mortgages only Floor: Indicates the minimum interest rate that can be charged for the life of the loan. Percentage format Adjustable rate mortgages only CAP Option: Indicates if and how caps are used. Valid Values: 0 - Not Using Caps 1 - Life Cap Only 2 - Term Cap Only 3 - Life & Term Cap 4 Annual Cap and Term Cap 5 Use Life, Annual and Term Cap Adjustable rate mortgages only CAP Sign: Indicates the function of the term cap. Valid Values: 0 Plus/Minus Cap Adjust 1 Plus Only Cap Adjust Adjustable rate mortgages only If you type a 0 in this field, the loan rate can go up either up or down by the margin amount as long as the caps are not exceeded. If you type a 1 in this field, the loan rate can only go up as long as the life cap is not exceeded. Life CAP: Indicates the maximum interest rate that a variable-rate loan can adjust from the original rate over the life of the loan. Percentage format Adjustable rate mortgages only Term CAP: Indicates the maximum amount the interest rate can change per term. Percentage format Adjustable rate mortgages only 9 EPL, Inc. Training Department

16 Interest Adjustment Term: Indicates the number of months between rate adjustments. Valid Values: For example, for quarterly rate changes, type 003. Adjustable rate mortgages only Type a value in either the INT ADJ TERM field only, or in both fields: If you enter a value in the INT ADJ TERM field and leave the INT ADJ DATE field blank, the next interest adjustment date calculated and stored in the member loan record will equal the original loan date plus the interest adjustment term. Each interest adjustment thereafter extends the next interest adjustment date in the member record by the interest adjustment term found in the loan class record. This is considered an anniversary-based interest adjustment, and is the one most commonly used. Adjustable Rate Loan Parameters Field Description Valid Entries/Comments Interest Adjustment Date: Indicates the date of the next variable rate loan interest adjustment. Mmddccyy format Adjustable rate mortgages only If you enter a value in both fields, the adjustment is considered non-anniversary-based. When you enter a valid interest adjustment date, that date defaults to the next interest adjustment date in the member loan record, regardless of the original loan date or the interest adjustment term. The interest adjustment term is used only in subsequent interest adjustments to systematically advance the next interest adjustment date in the member loan record. 10 EPL, Inc. Training Department

17 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. Valid Values: 00 Non Participating CU Defined Descriptions 99 Commit 1 Month Prior to Adjustment The value in this field enables the system to commit to a payment amount and interest rate prior to the actual adjustment, as well as to commit a new escrow amount. On the commit date (based on the pre-adjustment days), the system: Calculates a new payment amount, using the interest rate from the class record, and enters this payment amount in the COMMIT PAYMENT field and the interest rate in the COMMIT RATE field on the Loan Critical Data screen. Preadjustment notices are generated and should be mailed to the member. Performs an escrow analysis to calculate a new escrow amount, and enters this amount in the COMMIT ESCROW field. The system also generates Escrow Analysis History and Projection statements for you to mail to the member. The Member Profile will display the new committed payment and/or escrow amount if the next payment due date is equal to or greater than the next adjustment date. You should complete this field for fixed-rate mortgages because of escrow analysis on mortgages with tax and/or insurance escrows. Adjustable rate mortgages only Payment Adjustment Option: Indicates the method used to adjust payments. Valid Values: 0 = Adjust Rate Only 1 = Extend maturity date, Don t adj. pymt. 2 = Adj. Pymt, Don t extend maturity date Adjustable rate mortgages only 11 EPL, Inc. Training Department

18 Payment Adjustment Term: Indicates the number of months between payment adjustments Valid entries defined by credit union. Adjustable-rate mortgages only. Type a value in either the PMT ADJ TERM field only, or in both of these fields: If you enter a value in the PMT ADJ TERM field and leave the PMT ADJ DATE field blank, the next payment adjustment date calculated and stored in the member loan record will equal the original loan date plus the payment adjustment term. Each payment adjustment thereafter will extend the next payment adjustment date in the member record by the payment adjustment term found in the loan class record. This is considered an anniversary-based payment adjustment, and is the one most commonly used. Payment Adjustment Date: Indicates the date of the next variable rate loan payment adjustment. If you enter a value in both fields, the adjustment is considered non-anniversary-based. When you enter a valid payment adjustment date, that date is defaulted to the next payment adjustment date in the member loan record regardless of the original loan date or the payment adjustment term. The payment adjustment term is used only in subsequent payment adjustments to systematically advance the next payment adjustment date in the member loan record. 12 EPL, Inc. Training Department

19 The Add New Mortgage Loan Class screen displays: 4. Click on the <Save> button to update the class setup and return to the Manage Mortgage Loan Classes screen. 13 EPL, Inc. Training Department

20 The Manage Mortgage Loan Classes screen displays: 5. Click on the <Done> button to return to the main navigation screen. ~end~ 14 EPL, Inc. Training Department

21 Maintaining a Mortgage Loan Product Class This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain a mortgage loan product class, click on Manager on the menu bar and select Institution/Mortgage Loans/Product Classes from the drop-down list. The Manage Mortgage Loan Classes screen displays: 2. Click on the Edit icon of the mortgage loan product class to be file maintained. 15 EPL, Inc. Training Department

22 The Edit Mortgage Loan Class screen displays: 3. Click on the <Modify> button to file-maintain the mortgage loan class. Note: The Edit Mortgage Loan Class screen contains the same fields included in the Setting Up a New Mortgage Loan Product Class procedure describer earlier in this section. Refer to this section for detailed field descriptions. 16 EPL, Inc. Training Department

23 4. Once all changes have been made, click <Save>. 17 EPL, Inc. Training Department

24 5. The Manage Mortgage Loan Class screen displays the message: The Mortgage Loan class successfully updated! 6. Click on the <Done> button to return to the main navigation screen. ~end~ 18 EPL, Inc. Training Department

25 Maintaining Variable and Fixed Rate Mortgage Loan Class Rates The Change Rates option allows you to change the interest rate and/or index for a particular Mortgage Loan Product Class. This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain a mortgage loan rate, click on Manager on the menu bar and select Institution/Mortgage Loans/Product Classes from the drop-down list. The Manage Mortgage Loan Classes screen displays: 2. Click on the Change Rates tab. 19 EPL, Inc. Training Department

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27 The Manage Mortgage Loan Class Rates screen displays: 3. If applicable, scroll to the bottom of the screen and click on the <Modify> button to file maintain the mortgage loan class interest rate and/or index. 4. Once all changes have been made, click on the <Save> button. 21 EPL, Inc. Training Department

28 The Manage Mortgage Loan Class Rates screen displays the message: The Mortgage loan class rates updated successfully! 5. Click on the <Cancel> button to return to the Manage Mortgage Loan Classes screen. The Manage Mortgage Loan Classes screen displays: 6. Click on the <Done> button to return to the main navigation screen. ~end~ 22 EPL, Inc. Training Department

29 System Codes An important part of setting up the mortgage loan database is to setup your system codes. These codes allow you to enter pertinent information in the member s loan record. The mortgage loan system codes menu contains the following options: Delinquency Status Codes Occupant Codes Property Codes Employee Codes Investor Number Code Account Status Code Loan Type Collateral Code Pre Adjustment Days Loan Officer Existing Lien Code Mortgage Loan ID s This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To access the Mortgage Loan System Codes menu, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes from the drop-down list. 23 EPL, Inc. Training Department

30 Delinquency Status Codes This feature enables you to set up codes that indentify a delinquency status. Setting Up a Delinquency Status Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To set up a delinquency status code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Delinquency Status Codes from the drop-down list. The Manage Delinquency Status Codes screen displays: 2. Click on the Add Delinquency Status Codes tab. 24 EPL, Inc. Training Department

31 The Add Delinquency Status Codes screen displays: 3. Click in the Code field drop-down list and select the number to be associated with this delinquency status code. Tab to the Description field. Delinquency Status Codes Field Description Valid Entries/Comments Code Description Indicates the delinquent status of the loan. Indicates the name of the delinquency status code. Valid Values: alphanumeric characters CU Defined Descriptions 25 EPL, Inc. Training Department

32 The Add Delinquency Status Codes screen displays: 4. In the Description field, enter the name of the delinquency status code and click on the <Save> button. The Manage Delinquency Status Codes screen displays the message: Updated successfully 5. Repeat steps 2-4 to add additional delinquency status codes. 6. Once all delinquency status codes are added, click on the <Cancel> button to return to the main navigation screen in i-power. ~end~ 26 EPL, Inc. Training Department

33 Maintaining a Delinquency Status Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain a delinquency status code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Delinquency Status Codes from the drop-down list. The Manage Delinquency Status Codes screen displays: 2. Click on the Edit icon of the delinquency status code you wish to modify. 27 EPL, Inc. Training Department

34 The Edit Delinquency Status Codes screen displays: 3. Modify the delinquency status code description and click on the <Save> button. The Manage Delinquency Status Codes screen displays the message: Updated successfully. 4. (Repeat steps 2 and 3 to edit other delinquency status code descriptions. 5. Once all delinquency status codes are modified, click on the <Cancel> button to return to the main navigation screen. ~end~ 28 EPL, Inc. Training Department

35 Deleting a Delinquency Status Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To delete a delinquency status code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Delinquency Status Codes from the drop-down list. The Manage Delinquency Status Codes screen displays: 2. Click on the Delete icon of the delinquency status code you wish to remove. 29 EPL, Inc. Training Department

36 The Delete Delinquency Status Codes screen displays the message: Are you sure you want to delete this code? 3. Click on the <OK> button to delete the delinquency status code and description. The Manage Delinquency Status Codes screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to delete other delinquency status code descriptions. 5. Once all delinquency status codes are deleted, click on the <Cancel> button to return to the main navigation screen. ~end~ 30 EPL, Inc. Training Department

37 Occupant Codes This feature enables you to set up codes that indentify how the member will use the property. Setting Up an Occupant Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To set up an occupant code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Occupant Codes from the drop-down list. The Manage Occupant screen displays: 2. Click on the Add Occupants tab. 31 EPL, Inc. Training Department

38 The Add Occupants screen displays: 3. Click in the Code field drop-down list and select the number to be associated with this occupant code. Tab to the Description field. Tape Insurance Codes Field Description Valid Entries/Comments Code Indicates the occupant code. Valid Values Description Indicates an occupancy description for the code 30 alphanumeric characters CU Defined Descriptions The Add Occupants screen displays: 4. In the Description field, enter the name of the occupant code and click on the <Save> button. 32 EPL, Inc. Training Department

39 The Manage Occupants screen displays: 5. Repeat steps 2-4 to add additional occupant codes. 6. Once all occupant codes are added, click on the <Cancel> button to return to the main navigation screen. ~end~ 33 EPL, Inc. Training Department

40 Maintaining an Occupant Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain an occupant code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Occupant Codes from the drop-down list. The Manage Occupants screen displays: 2. Click on the Edit icon of the occupant code you wish to modify. 34 EPL, Inc. Training Department

41 The Edit Occupants screen displays: 3. Modify the occupant code description and click on the <Save> button. The Manage Occupants screen displays: 4. Repeat steps 2 and 3 to edit other occupant code descriptions. 5. Once all occupant codes are modified, click on the <Cancel> button to return to the main navigation screen. ~end~ 35 EPL, Inc. Training Department

42 Deleting an Occupant Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To delete an occupant code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Occupant Codes from the drop-down list. The Manage Occupants screen displays: 2. Click on the Delete icon of the occupant code you wish to remove. 36 EPL, Inc. Training Department

43 The Delete Occupants screen displays the message: Are you sure you want to delete this code? 3. Click on the <OK> button to delete the occupant code and description. The Manage Occupants screen displays the message: Updated successfully. 4. Repeat steps 2 and 3 to delete other occupant code descriptions. 5. Once all occupant codes are deleted, click on the <Cancel> button to return to the main navigation screen. ~end~ 37 EPL, Inc. Training Department

44 Property Codes This feature allows you to setup codes that identify the classification of the property. Setting Up a Property Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To set up a property class code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Property Codes from the drop-down list. The Manage Property Class screen displays: 2. Click on the Add Property Class tab. 38 EPL, Inc. Training Department

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46 The Add Property Class screen displays: 3. Click in the Code field drop-down list and select the number to be associated with this property class code. Tab to the Description field. Tape Insurance Codes Field Description Valid Entries/Comments Code Indicates the property code. Valid Values One Family - CU Defined Descriptions Two Family - CU Defined Descriptions Three Family - CU Defined Descriptions Four Family - CU Defined Descriptions Condominium - CU Defined Descriptions Lot Purchase - CU Defined Descriptions Conventional Improvement - CU Defined Descriptions FHA Improvement - CU Defined Descriptions VA Improvement - CU Defined Descriptions Five or More Family Dwelling - CU Defined Descriptions Condominium Purchase - CU Defined Descriptions Condominium Improvement - CU Defined Descriptions Lot Purchase - CU Defined Descriptions User Defined Purchase - CU Defined Descriptions Description Indicates a property description for the code User Defined Improvements - CU Defined Descriptions 30 alphanumeric characters CU Defined Descriptions 40 EPL, Inc. Training Department

47 The Add Property Class screen displays: 4. In the Description field, enter the name of the property class code and click on the <Save> button. The Manage Property Class screen displays the message: Updated successfully. 5. Repeat steps 2-4 to add additional property class codes. 6. Once all property class codes are added, click on the <Cancel> button to return to the main navigation screen. ~end~ 41 EPL, Inc. Training Department

48 Maintaining a Property Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain a property class code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Property Codes from the drop-down list. The Manage Property Class screen displays: 2. Click on the Edit icon of the property class code you wish to modify. 42 EPL, Inc. Training Department

49 The Edit Property Class screen displays: 3. Modify the property class code description and click on the <Save> button. The Manage Property Class screen displays the message: Updated successfully. 4. Repeat steps 2 and 3 to edit other property class code descriptions. 5. Once all property class codes are modified, click on the <Cancel> button to return to the main navigation screen. ~end~ 43 EPL, Inc. Training Department

50 Deleting a Property Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To delete a property class code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Property Codes from the drop-down list. The Manage Property Class screen displays: 2. Click on the Delete icon of the property code you wish to remove. 44 EPL, Inc. Training Department

51 The Delete Property Class screen displays the message: Are you sure you want to delete this code? 3. Click on the <OK> button to delete the property class code and description. The Manage Property Class screen displays the message: Updated successfully. 4. Repeat steps 2 and 3 to delete other property class code descriptions. 5. Once all property class codes are deleted, click on the <Cancel> button to return to the main navigation screen. ~end~ 45 EPL, Inc. Training Department

52 Employee Codes This feature allows you to setup codes that identify different types of employees. Setting Up an Employee Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To set up an employee code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Employee Code from the drop-down list. The Manage Employees screen displays: 2. Click on the Add Employees tab. 46 EPL, Inc. Training Department

53 The Add Employees screen displays: 3. Click in the Code field drop-down list and select the number to be associated with this employee code. Tab to the Description field. Tape Insurance Codes Field Description Valid Entries/Comments Code Indicates the employee code. Valid Values 0-9, a-z Description Indicates a description of the employee code. 30 alphanumeric characters CU Defined Descriptions 47 EPL, Inc. Training Department

54 The Add Employees screen displays: 4. In the Description field, enter the name of the employee code and click on the <Save> button. The Manage Employees screen displays the message: Updated successfully 5. Repeat steps 2-4 to add additional employee codes. 6. Once all employee codes are added, click on the <Cancel> button to return to the main navigation screen. ~end~ 48 EPL, Inc. Training Department

55 Maintaining an Employee Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain an employee code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Employee Codes from the drop-down list. The Manage Employees screen displays: 2. Click on the Edit icon of the employee code you wish to modify. 49 EPL, Inc. Training Department

56 The Edit Employees screen displays: 3. Modify the employee code description and click on the <Save> button. The Manage Employees screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to edit other employee code descriptions. 5. Once all employee codes are modified, click on the <Cancel> button to return to the main navigation screen. ~end~ 50 EPL, Inc. Training Department

57 Deleting an Employee Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To delete an employee code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Employee Codes from the drop-down list. The Manage Employees screen displays: 2. Click on the Delete icon of the employee code you wish to remove. 51 EPL, Inc. Training Department

58 The Delete Employees screen displays the message: Are you sure you want to delete this code? 3. Click on the <OK> button to delete the employee code and description. The Manage Employees screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to delete other employee code descriptions. 5. Once all employee codes are deleted, click on the <Cancel> button to return to the main navigation screen. ~end~ 52 EPL, Inc. Training Department

59 Investor Numbers The Mortgage Loan Secondary Market Investor Servicing module (a.k.a. Investor Servicing), works in conjunction with the i-power Mortgage Loan module enabling you to sell and service mortgage loans on the secondary market. This system: Provides an easy way to service qualified mortgages originated by your credit union and sold to an investor; Transmits remittance information directly to MORNET or MIDANET for easy reconciliation and reporting; Supports the automation requirements for in-house servicing of investor-purchased mortgage loans (e.g., member payments and inquiries, general ledger reporting, etc.). This feature allows you to setup investor numbers for your institution. Setting Up an Investor Number This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To set up an investor number, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Investor Numbers from the drop-down list. 53 EPL, Inc. Training Department

60 The Manage Investor Numbers screen displays: 2. Click on the Add Investor Numbers tab. The Add Investor Numbers screen displays: 3. Click in the Code field drop-down list and select the number to be associated with this investor. Tab to the Description field. Complete the field as applicable: Tape Insurance Codes Field Description Valid Entries/Comments Code Indicates the investor number Valid Values code Description Indicates a description of the investor number code. 30 alphanumeric characters CU Defined Descriptions 54 EPL, Inc. Training Department

61 The Add Investor Numbers screen displays: 4. In the Description field, enter the name of the investor and click on the <Save> button. The Manage Investor Numbers screen displays the message: Updated successfully 5. Repeat steps 2-4 to add additional investor numbers. 6. Once all investor numbers are added, click on the <Cancel> button to return to the main navigation screen. ~end~ 55 EPL, Inc. Training Department

62 Maintaining an Investor Number This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain an investor number, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Investor Numbers from the drop-down list. The Manage Investor Numbers screen displays: 2. Click on the Edit icon of the investor number you wish to modify. 56 EPL, Inc. Training Department

63 The Edit Investor Numbers screen displays: 3. Modify the investor number description and click on the <Save> button. The Manage Investor Numbers screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to edit other investor number descriptions. 5. Once all investor numbers are modified, click on the <Cancel> button to return to the main navigation screen. ~end~ 57 EPL, Inc. Training Department

64 Deleting an Investor Number This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To delete an investor number, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Investor Numbers from the drop-down list. The Manage Investor Numbers screen displays: 2. Click on the Delete icon of the investor number you wish to remove. 58 EPL, Inc. Training Department

65 The Delete Investor Numbers screen displays the message: Are you sure you want to delete this code? 3. Click on the <OK> button to delete the investor number and description. The Manage Investor Numbers screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to delete other investor numbers. 5. Once all investor numbers are deleted, click on the <Cancel> button to return to the main navigation screen. ~end~ 59 EPL, Inc. Training Department

66 Account Status Codes This feature allows you to setup codes that define the account status. Setting Up an Account Status Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To set up an account status code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Account Status Codes from the drop-down list. The Manage Account Status screen displays: 2. Click on the Add Account Status tab. 60 EPL, Inc. Training Department

67 The Add Account Status screen displays: 3. Click in the Code field drop-down list and select the number to be associated with this investor. Tab to the Description field. Tape Insurance Codes Field Description Valid Entries/Comments Code Indicates the account status Valid Values code Description Indicates a description of the account status code. 30 alphanumeric characters CU Defined Descriptions 61 EPL, Inc. Training Department

68 The Add Account Status screen displays: 4. In the Description field, enter the account status description and click on the <Save> button. The Manage Account Status screen displays the message: Updated successfully 5. Repeat steps 2-4 to add additional account status codes. 6. Once all account status codes are added, click on the <Cancel> button to return to the main navigation screen. ~end~ 62 EPL, Inc. Training Department

69 Maintaining an Account Status Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain an account status code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Account Status Codes from the drop-down list. The Manage Account Status screen displays: 2. Click on the Edit icon of the account status code you wish to modify. 63 EPL, Inc. Training Department

70 The Edit Account Status screen displays: 3. Modify the account status code description and click on the <Save> button. The Manage Account Status screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to edit other account status codes. 5. Once all account status codes are modified, click on the <Cancel> button to return to the main navigation screen. ~end~ 64 EPL, Inc. Training Department

71 Deleting an Account Status Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To delete an account status code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Account Status Codes from the drop-down list. The Manage Account Status screen displays: 2. Click on the Delete icon of the account status code you wish to remove. 65 EPL, Inc. Training Department

72 The Delete Account Status screen displays the message: Are you sure you want to delete this code? 3. Click on the <OK> button to delete the account status code and description. The Manage Account Status screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to delete other account status codes. 5. Once all account status codes are deleted, click on the <Cancel> button to return to the main navigation screen. ~end~ 66 EPL, Inc. Training Department

73 Loan Type This feature allows you to setup codes that define the loan type. Setting Up a Loan Type This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To set up a loan type, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Loan Type from the drop-down list. The Manage Loan Type screen displays: 2. Click on the Add Loan Type tab. 67 EPL, Inc. Training Department

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75 The Add Loan Type screen displays: 3. Click in the Code field drop-down list and select the number to be associated with this loan type. Tab to the Description field. Loan Type Field Description Valid Entries/Comments Code: Indicates the type of loan. Valid Values: System Defined Codes 075 Real Estate Loans CU Defined Codes Description Indicates the type of loan. 30 alphanumeric characters Note: 075 Real Estate (only applies to consumer based real estate loans. True mortgage classes and do not apply to this rule. CU Defined Descriptions 69 EPL, Inc. Training Department

76 The Add Loan Types screen displays: 4. In the Description field, enter the loan type and click on the <Save> button. The Manage Loan Type screen displays the message: Updated successfully 5. Repeat steps 2-4 to add additional loan types. 6. Once all loan types are added, click on the <Cancel> button to return to the main navigation screen. ~end~ 70 EPL, Inc. Training Department

77 Maintaining a Loan Type This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain a loan type, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Loan Type from the drop-down list. The Manage Loan Type screen displays: 2. Click on the Edit icon of the loan type you wish to modify. 71 EPL, Inc. Training Department

78 The Edit Loan Type screen displays: 3. Modify the loan type description and click on the <Save> button. The Manage Loan Type screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to edit other loan type descriptions. 5. Once all loan types are modified, click on the <Cancel> button to return to the main navigation screen. ~end~ 72 EPL, Inc. Training Department

79 Deleting a Loan Type This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To delete a loan type, click on Manager on the menu bar and select Institution/Consumer Loans/System Codes/Loan Type from the drop-down list. The Manage Loan Type screen displays: 2. Click on the Delete icon of the loan type you wish to remove. 73 EPL, Inc. Training Department

80 The Delete Loan Type screen displays the message: Are you sure you want to delete this code? 3. Click on the <OK> button to delete the loan type and description. The Manage Loan Type screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to delete other loan type descriptions. 5. Once all loan types are deleted, click on the <Cancel> button to return to the main navigation screen. ~end~ 74 EPL, Inc. Training Department

81 Collateral Codes This feature allows you to setup codes that define the collateral for the loan. Setting Up a Collateral Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To set up a new collateral code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Collateral Codes from the drop-down list. The Manage Loan Collateral Codes screen displays: 2. Click on the Add Loan Collateral Code tab. 75 EPL, Inc. Training Department

82 The Add Loan Collateral Code screen displays: 3. Click in the Code field drop-down list and select the number to be associated with this collateral code. Tab to the Description field. Collateral Code Field Description Valid Entries/Comments Code: Indicates the Collateral Code Valid Values: CU Defined Descriptions 33 Open-end Share secured User Defined descriptions Open-end loans CU Defined descriptions CU Defined descriptions CU Defined descriptions Student Loans CU Defined descriptions CU Defined descriptions 99 CU Defined descriptions Description Indicates a description of the collateral. 30 alphanumeric characters CU Defined descriptions 76 EPL, Inc. Training Department

83 The Add Loan Collateral Code screen displays: 4. In the Description field, enter the collateral code and click on the <Save> button. The Manage Loan Collateral Code screen displays the message: Updated successfully 5. Repeat steps 2-4 to add additional loan collateral codes. 6. Once all collateral codes are added, click on the <Cancel> button to return to the main navigation screen. ~end~ 77 EPL, Inc. Training Department

84 Maintaining a Collateral Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain a collateral code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Collateral Codes from the drop-down list. The Manage Loan Collateral Code screen displays: 2. Click on the Edit icon of the collateral code you wish to modify. 78 EPL, Inc. Training Department

85 The Edit Loan Collateral Code screen displays: 3. Modify the collateral code description and click on the <Save> button. The Manage Collateral Code screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to edit other collateral code descriptions. 5. Once all collateral codes are modified, click on the <Cancel> button to return to the main navigation screen. ~end~ 79 EPL, Inc. Training Department

86 Deleting a Collateral Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To delete a collateral code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Collateral Codes from the drop-down list. The Manage Loan Collateral Code screen displays: 2. Click on the Delete icon of the collateral code you wish to remove. 80 EPL, Inc. Training Department

87 The Delete Loan Collateral Code screen displays the message: Are you sure you want to delete this code? 3. Click on the <OK> button to delete the collateral code and description. The Manage Collateral Code screen displays the message: Update successfully 4. Repeat steps 2 and 3 to delete other collateral code descriptions. 5. Once all collateral codes are deleted, click on the <Cancel> button to return to the main navigation screen. ~end~ 81 EPL, Inc. Training Department

88 Pre Adjustment Days This feature allows you to setup pre-adjustment days. This 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. Setting Up Loan Pre Adjustment Days This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To set up a loan pre adjustment day code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Pre Adjustment Days from the drop-down list. The Manage Mortgage Loan Pre Adjustment Days screen displays: 2. Click on the Add Mortgage Loan Pre Adjustment Days tab. 82 EPL, Inc. Training Department

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90 The Add Mortgage Loan Pre Adjustment Days screen displays: 3. Click in the Code field drop-down list and select the number to be associated with this loan pre adjustment days. Tab to the Description field. Loan Pre Adjustment Days Field Description Valid Entries/Comments Code: 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. Valid Values: System Defined Codes: 00 - Non Participating 98 - Commit 2 months prior to Adjustment 99 - Commit 1 Month Prior to Adjustment This value tells the system to compare all adjustment dates from the beginning of the next month to the end of the next month and to select those pre adjustments meeting this criterion; for example, on the night of May 1, the system selects all adjustment dates in June (from June 1 to June 30) to receive notices. Credit Union Defined Codes: these values function as an adjustment to the date 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 84 EPL, Inc. Training Department

91 Description 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. reached. 30 alphanumeric characters CU Defined Descriptions The Add Mortgage Loan Pre Adjustment Days screen displays: 4. In the Description field, enter the loan pre adjustment days and click on the <Save> button. The Manage Mortgage Loan Pre Adjustment Days screen displays the message: Updated successfully 5. Repeat steps 2-4 to add additional loan pre-adjustment day codes. 6. Once all loan pre adjustment days are added, click on the <Cancel> button to return to the main navigation screen. ~end~ 85 EPL, Inc. Training Department

92 Maintaining Loan Pre Adjustment Days This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain a loan pre adjustment days code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Pre Adjustment Days from the drop-down list. The Manage Mortgage Loan Pre Adjustment Days screen displays: 2. Click on the Edit icon of the loan pre adjustment days code you wish to modify. 86 EPL, Inc. Training Department

93 The Edit Mortgage Loan Pre Adjustment Days screen displays: 3. Modify the loan pre adjustment days description and click on the <Save> button. The Manage Loan Pre Adjustment Days screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to edit other loan pre adjustment day code descriptions. 5. Once all loan pre adjustment day codes are modified, click on the <Cancel> button to return to the main navigation screen. ~end~ 87 EPL, Inc. Training Department

94 Deleting Mortgage Loan Pre Adjustment Days This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To delete a loan pre adjustment days code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Pre Adjustment Days from the drop-down list. The Manage Mortgage Loan Pre Adjustment Days screen displays: 2. Click on the Delete icon of the loan pre adjustment days code you wish to remove. 88 EPL, Inc. Training Department

95 The Delete Mortgage Loan Pre Adjustment Days screen displays the message: Are you sure you want to delete this code? 3. Click on the <OK> button to delete the loan pre adjustment days code and description. The Manage Mortgage Loan Pre Adjustment Days screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to delete other loan pre adjustment day code descriptions. 5. Once all loan pre adjustment day codes are deleted, click on the <Cancel> button to return to the main navigation screen. ~end~ 89 EPL, Inc. Training Department

96 Loan Officer This feature allows you to setup codes that designate the loan officers processing the loan. Setting Up a Loan Officer This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To set up a loan officer code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Loan Officer from the drop-down list. The Manage Loan Officer screen displays: 2. Click on the Add Loan Officer tab. 90 EPL, Inc. Training Department

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98 The Add Loan Officer screen displays: 3. Click in the Code field drop-down list and select the number to be associated with this loan officer. Tab to the Description field. Loan Officer Field Description Valid Entries/Comments Code: Description Indicates the number of the loan officer or loan clerk responsible for this loan. Indicates the name of the loan officer or loan clerk responsible for this loan. 3 digits Valid Values: alphanumeric characters CU Defined Descriptions 92 EPL, Inc. Training Department

99 The Add Loan Officer screen displays: 4. In the Description field, enter the loan officer and click on the <Save> button. The Manage Loan Officer screen displays the message: Updated successfully 5. Repeat steps 2-4 to add additional loan officer codes. 6. Once all loan officer codes are added, click on the <Cancel> button to return to the main navigation screen. ~end~ 93 EPL, Inc. Training Department

100 Maintaining a Loan Officer This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain a loan officer code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Loan Officer from the drop-down list. The Manage Loan Officer screen displays: 2. Click on the Edit icon of the loan officer you wish to modify. 94 EPL, Inc. Training Department

101 The Edit Loan Officer screen displays: 3. Modify the loan officer description and click on the <Save> button. The Manage Loan Officer screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to edit other loan officer descriptions. 5. Once all loan officers are modified, click on the <Cancel> button to return to the main navigation screen. ~end~ 95 EPL, Inc. Training Department

102 Deleting a Loan Officer This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To delete a loan officer code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Loan Officer from the drop-down list. The Manage Loan Officer screen displays: 2. Click on the Delete icon of the loan officer code you wish to remove. 96 EPL, Inc. Training Department

103 The Delete Loan Officer screen displays the message: Are you sure you want to delete this code? 3. Click on the <OK> button to delete the loan officer code and description. The Manage Loan Officer screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to delete other loan officer code descriptions. 5. Once all loan officer codes are deleted, click on the <Cancel> button to return to the main navigation screen. ~end~ 97 EPL, Inc. Training Department

104 Existing Lien Code This feature allows you to setup codes that define existing liens. Setting Up an Existing Lien Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To set up an existing lien code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Existing Lien Code from the drop-down list. The Manage Existing Lien Code screen displays: 2. Click on the Add Existing Lien Codes tab. 98 EPL, Inc. Training Department

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106 The Add Existing Lien Codes screen displays: 3. Click in the Code field drop-down list and select the number to be associated with this existing lien. Tab to the Description field. Existing Lien Code Field Description Valid Entries/Comments Code: Indicates the number of the existing lien for this loan. 3 digits. Valid Values: No other mortgage outstanding We hold 1st mortgage We hold 2nd mortgage We hold 1st and 2nd mortgages Other institution holds 1st mortgage Other institution holds 2nd mortgage Other institution holds 1st and 2nd mortgages Individual holds 1st mortgage Individual holds 2nd mortgage Description Indicates the name of the existing lien for this loan CU Defined 30 alphanumeric characters CU Defined Descriptions 100 EPL, Inc. Training Department

107 The Add Existing Lien Code screen displays: 4. In the Description field, enter a description of the existing lien and click on the <Save> button. The Manage Existing Lien Codes screen displays the message: Updated successfully 5. Repeat steps 2-4 to add additional existing lien codes. 6. Once all existing lien codes are added, click on the <Cancel> button to return to the main navigation screen. ~end~ 101 EPL, Inc. Training Department

108 Maintaining an Existing Lien Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain an existing lien code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Loan Officer from the drop-down list. The Manage Existing Loan Code screen displays: 2. Click on the Edit icon of the existing loan code you wish to modify. 102 EPL, Inc. Training Department

109 The Edit Existing Lien Codes screen displays: 3. Modify the existing lien code description and click on the <Save> button. The Manage Loan Existing Lien Codes screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to edit other existing lien code descriptions. 5. Once all existing lien codes are modified, click on the <Cancel> button to return to the main navigation screen. ~end~ 103 EPL, Inc. Training Department

110 Deleting an Existing Lien Code This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To delete an existing lien code, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Existing Lien Code from the drop-down list. The Manage Existing Lien Codes screen displays: 2. Click on the Delete icon of the existing lien code you wish to remove. 104 EPL, Inc. Training Department

111 The Delete Existing Lien Codes screen displays the message: Are you sure you want to delete this code? 3. Click on the <OK> button to delete the existing lien code and description. The Manage Existing Lien Codes screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to delete other existing lien code descriptions. 5. Once all existing lien codes are deleted, click on the <Cancel> button to return to the main navigation screen. ~end~ 105 EPL, Inc. Training Department

112 Mortgage Loan ID s This feature allows you to setup mortgage loan id s. Setting Up a Mortgage Loan ID This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To set up a mortgage loan ID, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Mortgage Loan ID s from the drop-down list. The Manage Mortgage Loan ID screen displays: 2. Click on the Add Mortgage Loan ID tab. 106 EPL, Inc. Training Department

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114 The Add Mortgage Loan ID screen displays: 3. Click in the Code field drop-down list and select the number to be associated with this mortgage loan. Tab to the Description field. Existing Lien Code Field Description Valid Entries/Comments Code: Indicates the ID number for this mortgage loan. 3 digits. Valid Values: Conventional FHA FMHA VA 004 Construction Description Indicates a description of the Mortgage Loan ID for this loan CU Defined 30 alphanumeric characters CU Defined Descriptions 108 EPL, Inc. Training Department

115 The Add Mortgage Loan ID screen displays: 4. In the Description field, enter a description for the mortgage loan ID and click on the <Save> button. The Manage Mortgage Loan ID screen displays the message: Updated successfully 5. Repeat steps 2-4 to add additional mortgage loan ID s. 6. Once all mortgage loan ID s are added, click on the <Cancel> button to return to the main navigation screen. ~end~ 109 EPL, Inc. Training Department

116 Maintaining a Mortgage Loan ID This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain a mortgage loan ID, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Mortgage Loan ID s from the drop-down list. The Manage Mortgage Loan ID screen displays: 2. Click on the Edit icon of the mortgage loan ID you wish to modify. 110 EPL, Inc. Training Department

117 The Edit Mortgage Loan ID screen displays: 3. Modify the mortgage loan ID description and click on the <Save> button. The Manage Mortgage Loan ID screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to edit other mortgage loan ID descriptions. 5. Once all mortgage loan ID s are modified, click on the <Cancel> button to return to the main navigation screen. ~end~ 111 EPL, Inc. Training Department

118 Deleting a Mortgage Loan ID This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To delete a mortgage loan ID, click on Manager on the menu bar and select Institution/Mortgage Loans/System Codes/Mortgage Loan ID s from the drop-down list. The Manage Mortgage Loan ID screen displays: 2. Click on the Delete icon of the mortgage loan ID you wish to remove. 112 EPL, Inc. Training Department

119 The Delete Mortgage Loan ID screen displays the message: Are you sure you want to delete this code? 3. Click on the <OK> button to delete the mortgage loan ID and description. The Manage Mortgage Loan ID screen displays the message: Updated successfully 4. Repeat steps 2 and 3 to delete other mortgage loan ID descriptions. 5. Once all mortgage loan ID s are deleted, click on the <Cancel> button to return to the main navigation screen. ~end~ 113 EPL, Inc. Training Department

120 Insurance Companies The next step in setting up your database is to establish insurance records for insurance companies used by your member base, and to set up new insurance records in the future. This time-saving feature enables you to type in all the pertinent information about an insurance company just once instead of every time you open a new mortgage loan. One vital piece of information you enter is a unique company identifier (assigned by the credit union). When you open a new mortgage loan, you will use this company identifier to tie the mortgage loan account to the applicable insurance company (complete with all pertinent information). Setting Up an Insurance Company This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To set up an insurance company, click on Manager on the menu bar and select Institution/Mortgage Loans/Insurance Companies from the drop-down list. 114 EPL, Inc. Training Department

121 The Insurance Companies screen displays: 2. Click on the Add Insurance Company tab. The Add Insurance Companies screen displays: 3. Click in the Company ID field and enter the number to be associated with this insurance company. Tab to the next field. Complete all fields as applicable. 115 EPL, Inc. Training Department

122 Insurance Company Info Field Description Valid Entries/Comments COMPANY ID Unique company identifier (assigned by the credit union). 3 numeric characters. When you open a new mortgage loan, you will use this company identifier to tie the mortgage loan account to the applicable insurance company (complete with all pertinent information). COMPANY NAME SUBSIDIARY NAME Address Name of the insurance company. Name of the subsidiary or agency. 30 alphabetic characters 25 alphabetic characters ADDRESS 1 ADDRESS 2 CITY STATE ZIP PHONE Details Address of the insurance company, subsidiary, or agency. Additional space allotted for address. City in which the insurance company, subsidiary, or agency is located. State in which the insurance company, subsidiary, or agency is located. ZIP Code of the insurance company, subsidiary, or agency. Telephone number of the insurance company, subsidiary, or agency. Type in first line of the address. If more space is needed, use the next field also. (Continuation of preceding field.) 15 alphabetic characters Use the two-letter abbreviation. Refer to the Getting Started User s Guide for a list of state abbreviations. If you do not know the 4-digit extension, type four zeroes. Area code first. Do not use dashes or spaces. CONTRACT NUMBER Number of the contract that the insurance company has with the credit union under which all policies to members are issued. 10 digits 116 EPL, Inc. Training Department

123 REMITTAL DAYS AUTO DEBIT For members with insurance paid through escrow, the number of days prior to the next renewal date in the member insurance record that the premium debit will be performed. For members with insurance paid through escrow, whether the debit is to be performed automatically. 1 9 Valid entries defined by credit union. This field is tied to the AUTO DEBIT field. If the remittal days is zero, the stated payment date (at the member record level) will be used. Y = yes N = no If you type Y in this field, members with insurance premiums paid through escrow will have the debit systematically posted; all debit transactions for insurance will appear on the Escrow Insurance Withdrawal Report. If you type N in this field, members with insurance premiums paid through escrow will not be debited automatically; the debits must be performed manually. The premiums due will be displayed on the Escrow Insurance Payable Report. The Add Insurance Companies screen displays: 4. Repeat steps 2 and 3 to add additional insurance companies. 5. Once all insurance companies are added, click on the <Save>button to return to the main navigation screen. ~end~ 117 EPL, Inc. Training Department

124 Maintaining an Insurance Company This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain an insurance company, click on Manager on the menu bar and select Institution/Mortgage Loans/Insurance Companies from the drop-down list. The Insurance Companies screen displays: 2. Click on the Edit icon of the insurance company you wish to modify. 118 EPL, Inc. Training Department

125 The Edit Insurance Company screen displays: 3. Click the <Modify> button to edit the insurance company information and click the <Save> button when finished. The Edit Insurance Company screen displays with the message: Insurance Company was Updated Successfully 4. Repeat steps 2 and 3 to edit other insurance company information. 5. Once all insurance companies are modified, click the <Cancel> button. ~end~ 119 EPL, Inc. Training Department

126 Tax Authorities The final step in setting up the database is to establish the tax authorities (state, county, city, and other) used by your member base, and to set up new tax authorities in the future. The idea here is the same as for setting up the insurance companies: type in all the pertinent information once, and then tie the applicable tax authority to the member s mortgage loan account by means of a unique identifier (assigned by the credit union) when you open the new mortgage loan. Setting up a Tax Authority Record This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To set up a tax authority record, click on Manager on the menu bar and select Institution/Mortgage Loans/Tax Authorities from the drop-down list. The Tax Authorities screen displays: 2. Click on the Add Tax Authorities tab. 120 EPL, Inc. Training Department

127 121 EPL, Inc. Training Department

128 The Add Tax Authorities screen displays: 3. Click in the Tax ID field and enter the number to be associated with this tax authority. Tab to the next field. Complete all fields, if applicable. Tax Authority Info Field Description Valid Entries/Comments TAX ID LOCATION COLLECTOR NAME Unique identifier (assigned by the credit union) when you open the new mortgage loan. City and state in which the property is located. Name of the tax collector for this tax authority. 3 numeric characters. Use a tax authority number that has not yet been used by your credit union: = state tax authority = county tax authority = city tax authority = other tax authority TOWN_OF_city,_state Use the two-letter abbreviation for the state. First name first. If you do not know the name, type ATTN: TAX COLLECTOR. 122 EPL, Inc. Training Department

129 Address ADDRESS 1 ADDRESS 2 CITY STATE ZIP TELEPHONE Details Remittal address of tax collector. Additional space allotted for remittal address. City to which tax payments are remitted. State within which tax payments are remitted. ZIP Code for this tax authority. Telephone number of the tax collector. First line of address. If more space is needed, use the next field also. (Continuation of preceding field.) 15 alphabetic characters Use the two-letter abbreviation for the state. If you do not know the 4-digit extension, type four zeroes. Area code first. Do not use hyphens or spaces. FREQUENCY PAYMENT DATE REMITTAL DAYS DELINQUENT DATE PREPAY ROSTER DATE How often the taxes must be remitted to this tax authority. Date payment is due. For members with taxes paid through escrow, the number of days prior to the payment date the tax payment is debited. Date after which taxes are considered in arrears. Date you want a roster produced of all members who have prepaid their taxes. A = annually S = semi-annually Q = quarterly M = monthly mmddyy format Used in tracking and paying taxes. 1 9 Valid entries defined by credit union. Tied to the AUTOMATIC DEBIT field. Refer to that field (described below) for specific information. If remittal days is 0, the stated payment date will be used. mmddyy format Used primarily for member-pay tax tracking. A report of all loans with member-pay taxes is produced when the delinquent date equals the current business date; the date then advances by one frequency. mmddyy format Valid entries defined by credit union. Date is advanced one frequency when the roster is produced. 123 EPL, Inc. Training Department

130 AUTOMATIC DEBIT For members with taxes paid through escrow, whether the debit is to be performed automatically. Y = yes N = no If you type Y in this field, members with taxes paid through escrow will have the debit systematically posted; all debit transactions for taxes will appear on the Escrow Tax Withdrawal Report. If you type N in this field, members with taxes paid through escrow will not be debited automatically; the debits must be performed manually. The taxes due will be displayed on the Escrow Tax Payable Report. The Add Tax Authorities screen displays: 4. Repeat steps 2 and 3 to add additional tax authorities. 5. Once all tax authorities are added, click on the <Save>button to return to the main navigation screen. ~end~ 124 EPL, Inc. Training Department

131 Maintaining a Tax Authority This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain a tax authority, click on Manager on the menu bar and select Institution/Mortgage Loans/Tax Authorities from the drop-down list. The Tax Authorities screen displays: 2. Click on the Edit icon of the tax authority you wish to modify. 125 EPL, Inc. Training Department

132 The Edit Tax Authority screen displays: 3. Click the <Modify> button to edit the tax authority information and click the <Save> button when finished. The Edit Tax Authority screen displays with the message: Tax Authority was Updated Successfully 4. Repeat steps 2 and 3 to edit other tax authority information. 5. Once all tax authorities are modified, click on the <Cancel> button. ~end~ 126 EPL, Inc. Training Department

133 Investor Servicing The Mortgage Loan Secondary Market Investor Servicing module (a.k.a. Investor Servicing), works in conjunction with the i-power Mortgage Loan module enabling you to sell and service mortgage loans on the secondary market. This system: Provides an easy way to service qualified mortgages originated by your credit union and sold to an investor; Transmits remittance information directly to MORNET or MIDANET for easy reconciliation and reporting; Supports the automation requirements for in-house servicing of investor-purchased mortgage loans (e.g., member payments and inquiries, general ledger reporting, etc.). In order to comply with servicing rules required by the investor, this module complies with restrictions/rules placed on new mortgage loans, loan payments, etc. The system restrictions given next should be reviewed prior to using the Investor Servicing module. Investor Servicing accepts mortgage loans which have been disclosed using amortized (360 day) interest. The system will not accept simple interest loans. Investor Servicing reporting begins from the point when the loan is marked as sold up to the next remittance period. All loans are disclosed using monthly payments. Payroll deductions (weekly, bimonthly, etc.) are placed in an unapplied funds club account until the full payment has accumulated. On the monthly payment date, these funds can then be automatically transferred. All investor loans must be due on the first of the month. An escrow unapplied club account must exist for each investor loan. Your credit union designates club trailers to be used for these accounts and the system automatically opens the club account when the loan is sold. Both fixed and adjustable rate mortgages are accepted. The system will not, however, support graduated payment mortgages of any type. You cannot sell less than 100% of a loan to an investor. Investor Servicing does not support: Military indulgence rate relief, Interest buy-down plans, FHA service charges, loan add-ons, refinancing, or charge offs of investor loans. FNMA Actual/Actual remittance type and Freddie Mac net yield method of interest and principal remittance are accepted. The following are not used by Investor Servicing: FNMA Scheduled/Scheduled (MBS), FNMA Scheduled/Actual, FHLMC Alternative Method, or FHLMC timely principal and interest remittance. Late charges are assessed when the payment is overdue (rather than when the payment is received). All service fees are assessed using a percentage of interest (i.e., no flat amount servicing fees). This rate is negotiated between your credit union and the investor. 127 EPL, Inc. Training Department

134 Setting up an Investor Institution This feature allows you to setup new investor institutions. The procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To set up an investor institution record, click on Manager on the menu bar and select Institution/Mortgage Loans/Investor Institution from the drop-down list. The Investor Institutions screen displays: 2. Click on the Add Investor tab. 128 EPL, Inc. Training Department

135 The Add Investor Institution screen displays: 3. Click in the Investor ID field and enter the number to be associated with this investor institution. Tab to the next field. Complete all fields, if applicable. Investor Information Field Description Valid Entries/Comments INVESTOR ID Unique identifier (assigned by the credit union) when you open the new mortgage loan. 3 numeric characters. INVESTOR NAME The name of the investor 30 alpha-numeric characters. 129 EPL, Inc. Training Department

136 Address ADDRESS 1 First address line of the investor 30 alpha-numeric characters. First line of address. If more space is needed, use the next field also. ADDRESS 2 Second address line of the investor 25 alpha-numeric characters. Second line of address CITY Name of investor city 25 alpha-numeric characters. STATE Name of investor state Use the two-letter abbreviation for the state. ZIP ZIP Code for this investor If you do not know the 4-digit extension, type four zeroes. CONTACT The name of a contact for this investor 30 alpha-numeric characters. PHONE Telephone number of the investor Area code first. Do not use hyphens or spaces. Details INVESTOR STATUS This field can be used to close an investor account or to open one which has been closed. When you close an investor account, no new loans can be sold to this investor number. Loans which are currently active and sold to this investor, however, are unaffected by the investor status. Once all mortgages sold to this investor are paid off and a year-end has passed (with all year-end programs run), the closed investor record will be removed and the number can be used to set up a new investor. Valid values: Open Closed CU SERVICER CODE If the investor has assigned a code for your credit union, enter it here 10 alpha-numeric characters. 130 EPL, Inc. Training Department

137 INVESTOR PROCESSING CODE This two-digit code identifies whether or not this investor is using the Fannie Mae or Freddie Mac method. The system prints reports and performs other calculations based on the method selected. Valid entries are: 01 FNMA Actual/Actual (Fannie Mae) 11 FHLMC Accounting Net Yield (Freddie Mac) Whichever code is entered, a description of it appears to the right so that you can verify that the correct code was entered. Notice that if using FNMA, the remittance must be actual interest and actual principal collected (rather than scheduled interest and actual principal or scheduled interest and scheduled principal). Or, if using FHLMC, notice that interest and principal are remitted based on the Accounting Net Yield method. NEXT REMITTANCE DATE This field contains the next scheduled remittance date for this investor. FNMA cuts off as of the end of the month whereas FHLMC cuts off after the 15th of each month. If either of these dates falls on a weekend or holiday, the system defaults to the business day immediately before the non-business day. Mmddccyy format. LAST REMITTANCE DATE This field shows the date the last remittance file was created for this investor. Mmddccyy format. CURRENT PROCESSING PERIOD When remittance programs are run, this remittance and reporting date is rolled one month forward and gives the current processing period for this investor. When initially setting up an investor, enter the date you will remit for the first time to this investor. For example, if you will remit on August 15, 2009, enter 0809 in this field (the day of the month is not entered). Once the remittance program is run, the system will roll this date forward one month (to 0909). 131 EPL, Inc. Training Department

138 AUTO DEBIT This Yes/No flag indicates whether or not the system should automatically generate general ledger transactions (for the investor payable account) at the time of remittance. If yes, enter Y. If no, enter N. Y = yes N = no RETAIN TRANSACTION MONTHS In this three-digit field, enter the number of months the credit union will retain this investor s transactions in the database. Generally, these transactions are held a minimum of twelve months. If you need assistance or wish to change the current entry, contact your EPL ODI Lending Customer Support Representative. 3 digits 132 EPL, Inc. Training Department

139 Late Charge Parameters LATE FACTOR (PERCENTAGE) This field is the maximum percentage of the loan s regular payment amount (principal, interest, and escrow) which can be assessed as a late charge. This percentage defaults into any mortgages sold to this investor. This field works in conjunction with the next field, Maximum Late Charge Amount, and is controlled by the entry in the Late Charge Code field on the Mortgage Loan Details screen. The Late Charge Code entry tells the system how to use these two fields. For example, if a zero is keyed in Late Charge Code, no late charge is assessed. If a 1, 2, or 4 is entered, the percentage keyed in this field is used. If any other entry is made (regardless of that code s meaning in the Mortgage package) the Investor Loan package assesses the amount in Maximum Late Charge Amount. Four-digit number (includes two decimal positions) Enter without the decimal point. For example, entering 0500 equals 5%. 133 EPL, Inc. Training Department

140 MAXIMUM LATE CHARGE AMOUNT This five-digit, dollars and cents field contains the maximum dollar amount which can be assessed as a late charge. This amount is used if the percentage entered in the Late Factor % field causes the late charge to exceed the dollar amount in this field. For example, one member s monthly mortgage payment may be $600. If the late charge maximum percentage rate is 2%, that member would be assessed a late charge of $ Another member may have a payment of $800, making the 2% late charge $ Had you entered 1500 ($15.00) in this field, the first member would still be charged $12.00, but the second member would be charged $15.00 since the percentage total exceeded the amount in this field. 5 digits GRACE DAYS This number represents the number of grace days allowed before a payment is considered past due. If payment has not been received by the first business day past this grace period, the system assesses late charges. 3 digits FIXED LATE CHARGE AMOUNT This is the fixed late charge amount when using Late Charge Method 3. If Late Charge Method = 3, this is a required field. Not used by late charge methods 1, 2, 4, or 5. 5 digits 134 EPL, Inc. Training Department

141 The Add Investor Institution screen displays: 4. Repeat steps 2 and 3 to add additional investor institutions. 5. Once all investor institutions are added, click on the <Save>button to return to the main navigation screen. ~end~ 135 EPL, Inc. Training Department

142 Maintaining an Investor Institution This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain an investor institution, click on Manager on the menu bar and select Institution/Mortgage Loans/Investor Institution from the drop-down list. The Investor Institutions screen displays: 2. Click on the Edit icon of the investor institution you wish to modify. 136 EPL, Inc. Training Department

143 The Edit Investor Institution screen displays: 3. Click the <Modify> button to edit the investor institution information and click the <Save> button when finished. Note: The Edit Investor Institution screen contains the same fields included in the Setting Up an Investor Institution procedure describer earlier in this section. Refer to this section for detailed field descriptions. The Edit Investor Institution screen displays with the message: Investor Institution was Updated Successfully 4. Repeat steps 2 and 3 to edit other investor institution information. 5. Once all investor institutions are modified, click on the <Cancel> button. ~end~ 137 EPL, Inc. Training Department

144 Late Charge Plans This feature allows an institution to setup a mortgage late charge plan description and method with desired parameters for their institution. Note: There is an option in the Role Category that needs to be set to allow personnel to add or edit mortgage loan late charge plans. Setting up a Mortgage Late Charge Plan The procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To set up a late charge plan, click on Manager on the menu bar and select Institution/Mortgage Loans/Late Charge Plans from the drop-down list. 138 EPL, Inc. Training Department

145 The Manage Mortgage Late Charge Plans screen displays: 2. Click on the Add Late Charge Plan tab. The Manage Mortgage Late Charge Plan screen displays: 3. Click in the Plan Number field and enter the number to be associated with this late charge plan. Tab to the next field. Complete all fields, if applicable. 139 EPL, Inc. Training Department

146 Late Charge Plan Details Field Description Valid Entries/Comments PLAN NUMBER A number assigned to the late charge plan. When adding a new plan, the Plan Number will be prepopulated based on the next available number after the highest late charge plan number in the system. The Plan Number will be editable upon setting up a new plan, but will be disabled on edit. 3 numeric characters. CU Defined The Plan Number must be unique and up to 999 plans can be defined. DESCRIPTION A user-defined description of the late charge plan 50 characters STATUS The status of the late charge plan. When adding a new plan, the system will set the Status to Active as the default. The manager could change this to inactive in a case where they wanted to set the plan up, but were not ready to make it available to users. Once the plan has been established, a plan can only be marked Inactive if there are no open mortgage loan classes that are attached to the plan. Existing mortgage loans will continue to be serviced using an Inactive plan. Therefore, both active and inactive Late Charge Plans will be available when maintaining an existing mortgage loan. Valid values: 1 - active 0 - inactive 140 EPL, Inc. Training Department

147 LATE CHARGE METHOD This field indicates which late charge method is to be used for the late charge calculation for mortgage loans set to this late charge plan. The default value for new late charge plans is 0 No Late Charge. Valid Values: 0 No Late Charge 1 Computed on Interest Due 2 Percentage of Unpaid Payment (All Loans) 3 Fixed Amount per Payment (will only display for mortgage loans) 4 Scheduled Payment less Partial Payment 5 Percentage of Unpaid Payment (This Loan) LATE FACTOR (PERCENTAGE) This field is the maximum percentage of the loan s regular payment amount (principal, interest, and escrow) which can be assessed as a late charge. This percentage defaults into any mortgages sold to an investor. This field works in conjunction with the next field, Maximum Late Charge Amount, and is controlled by the entry in the Late Charge Code field on the Mortgage Loan Details screen. The Late Charge Code entry tells the system how to use these two fields. For example, if a zero is keyed in Late Charge Code, no late charge is assessed. If a 1, 2, or 4 is entered, the percentage keyed in this field is used. If any other entry is made (regardless of that code s meaning in the Mortgage package) the Investor Loan package assesses the amount in Maximum Late Charge Amount. Four-digit number (includes two decimal positions) Enter without the decimal point. For example, entering 0500 equals 5%. 141 EPL, Inc. Training Department

148 FIXED LATE CHARGE AMOUNT This is the fixed late charge amount when using Late Charge Method 3. If Late Charge Method = 3, this is a required field. Not used by late charge methods 1, 2, 4, or 5. 5 digits GRACE DAYS This number represents the number of grace days allowed before a payment is considered past due. If payment has not been received by the first business day past this grace period, the system assesses late charges. 3 digits MINIMUM LATE CHARGE AMOUNT This field indicates the minimum late charge amount (calculated + unpaid) for mortgage loans for this Late Charge Plan for all Late Charge Methods except for Late Charge Method 3. 5 digits = No minimum = Valid amounts ($ $ ) 142 EPL, Inc. Training Department

149 MAXIMUM LATE CHARGE AMOUNT This five-digit, dollars and cents field contains the maximum dollar amount which can be assessed as a late charge. This amount is used if the percentage entered in the Late Factor % field causes the late charge to exceed the dollar amount in this field. For example, one member s monthly mortgage payment may be $600. If the late charge maximum percentage rate is 2%, that member would be assessed a late charge of $ Another member may have a payment of $800, making the 2% late charge $ Had you entered 1500 ($15.00) in this field, the first member would still be charged $12.00, but the second member would be charged $15.00 since the percentage total exceeded the amount in this field. 5 digits = No Maximum = Valid amounts ($ $ ) PARTIAL PAYMENT PERCENTAGE The value in this field determines whether to assess a late charge on a mortgage loan when a partial payment exists. 4 digits. Enter 100% to always charge a late fee. This field is disabled for Late Charge Method = 1. LATE CHARGE IMPLEMEN- TATION OPTION This option determines when to start assessing late charges on mortgage loans using this late charge plan. There are two options to choose Calendar Date or Next Payment Date. The user will also enter the desired Implementation Date in the next field. Valid values: 0 - Calendar Date 1 - Next Payment Date 143 EPL, Inc. Training Department

150 LATE CHARGE IMPLEMEN- TATION DATE This date determines when to start assessing late charges on mortgage loans using this late charge plan. There are two options to choose Calendar Date or Date Next Payment. Mm/dd/ccyy format. UNPAID INTEREST When using Late Charge Method 1 Percent of Interest, this field indicates whether the unpaid interest amount is used EVERY time in the late charge calculation. This field is only enabled for Late Charge Method = 1. The Manage Mortgage Late Charge screen displays: 4. Repeat steps 2 and 3 to add additional late charge plans. 5. Once all late charge plans are added, click on the <Save>button to return to the main navigation screen. ~end~ 144 EPL, Inc. Training Department

151 Maintaining a Mortgage Late Charge Plan This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To file maintain a mortgage late charge plan, click on Manager on the menu bar and select Institution/Mortgage Loans/Late Charge Plan from the drop-down list. The Manage Mortgage Late Charge Plans screen displays: 2. Click on the Edit icon of the late charge plan you wish to modify. 145 EPL, Inc. Training Department

152 The Manage Mortgage Late Charge Plans screen displays: 3. Click the <Modify> button to edit the investor institution information and click the <Save> button when finished. Note: The Manage Mortgage Late Charge Plans screen contains the same fields included in the Setting Up a Mortgage Late Charge Plan procedure describer earlier in this section. Refer to this section for detailed field descriptions. The Manage Mortgage Late Charge Plans screen displays: 4. Repeat steps 2 and 3 to edit other late charge plan information. 5. Once all late charge plans are modified, click the <Done> button. ~end~ 146 EPL, Inc. Training Department

153 Viewing Late Charge Plan History This procedure assumes you are starting from the main navigation screen in i-power. The Main Navigation screen displays: 1. To view late charge plan history, click on Manager on the menu bar and select Institution/Mortgage Loans/Late Charge Plan from the drop-down list. The Manage Mortgage Late Charge Plans screen displays: 2. Click on the View History icon of the late charge plan you wish to view. 147 EPL, Inc. Training Department

154 The View Maintenance History screen displays: 3. You can choose to view late charge plan history for a particular date range by entering a date in the From Date and the To Date fields and clicking <Go>. 4. Once you are finished viewing late charge plan history, click the <Done> button. ~end~ 148 EPL, Inc. Training Department

155 Opening a New Mortgage Loan Calculating the payment amount The first step in opening a new mortgage loan is to calculate the payment amount. One way to do this is to use the Amortization Schedule feature in i-power. This screen is nothing more than a calculator. When you enter the required information, i-power calculates and displays the payment amount. This procedure assumes you are starting from the main navigation screen in i-power. 1. To calculate the payment amount, click on Reports on the menu bar and select Amortization Schedule from the drop-down list. 2. The Mortgage Loan Amortization Schedule screen displays. Complete the applicable fields: 149 EPL, Inc. Training Department

156 150 EPL, Inc. Training Department

157 Field Description Valid Entries/Comments PRINCIPAL BALANCE INTEREST RATE TERM (IN MONTHS) PAYMENT FREQUENCY PAYMENT AMOUNT Amount of principal only. Interest rate. Length of the mortgage loan in months. How often the payments are due. Amount of each payment. 11 digits (dollars and cents; no decimal point) Leading zeroes required. 6 digits (2 whole numbers followed by 4 decimal places; no decimal point) = single-payment loan 12 = monthly 24 = semi-monthly (due 15 days after first payment due date; third payment due one month after first payment due date) 25 = bi-weekly (due every 14 days until third payday; then skip 28 days no loan payment expected on third payday) 26 = bi-weekly (due every 14 days) 52 = weekly Display only. 3. Click <Go>. i-power calculates the payment amount based on the information you entered and displays the results in the Payment Amount field. 4. Write down the payment amount for use later when you perform the procedure for new-loan filemaintenance. You can choose to print the amortization schedule by clicking the <Print> button at the bottom of the screen or click <Cancel> to return to the main navigation screen in i-power. 5. Go directly to the next procedure, Choosing the Mortgage Loan Product. 151 EPL, Inc. Training Department

158 Choosing the Mortgage Loan Product The next step in opening a new mortgage loan is choosing the mortgage loan product. The purpose of this step is to attach the loan to a loan class (required for adjustable-rate loans; recommended for fixed-rate loans). After you have performed the new-loan file-maintenance on an amortized mortgage loan, you will notice on the Member Profile that a new club account is created with a trailer of 57 or 58. This club account is referred to as the unapplied funds club trailer, or the mortgage payment suspense account. This procedure assumes you are starting from the Member Profile screen in i-power. 1. To begin opening a new mortgage loan, click on New on the Member Profile of the member applying for the loan. 2. Next, select New Mortgage Loan under the Suffix Types that display on the screen: 152 EPL, Inc. Training Department

159 153 EPL, Inc. Training Department

160 3. The Borrowers screen displays the name of the member applying for the loan. You can choose to add a co-borrower by clicking on the Add Co-Borrower screen. If you click on the Add Co-Borrower screen, you will be required to enter the co-borrower s SSN and other pertinent demographic information. Click <Next>. 4. The Mortgage Loan Booking screen displays. From this screen you can choose a mortgage loan product as setup in your institution parameters mortgage loan product classes. Once you choose the mortgage loan product from the drop-down list of options in the Choose Mortgage Loan Product field, all the other values like Term, Collateral Code, Payment Frequency, etc. for that product class default on the screen. 154 EPL, Inc. Training Department

161 5. The following fields display on the screen: Choose Mortgage Loan Product Field Description Valid Entries/Comments CHOOSE MORTGAGE LOAN PRODUCT CLASS Attaches the loan to an existing class as setup in your Institution Parameters Valid entries defined by credit union. TERM Duration of the loan in months Entry is required. If you selected a loan product class, upon transmission the system will check the term against the maximum and minimum terms stated in the loan product class. An error will result if the term exceeds the maximum or falls below the minimum. COLLATERAL CODE Loan collateral. If you selected a loan product class and it contains a valid loan collateral code, that value will default into this field. If you did not select a loan product class with a valid loan type, select a valid loan collateral (defined by the credit union) in this three-digit field. TYPE CODE Type of loan. If you selected a loan product class and it contains a valid loan type, that value will default into this field upon transmission. If you did not select a loan product class with a valid loan type, select a valid loan type (defined by the credit union) in this three-digit field. 155 EPL, Inc. Training Department

162 CREDIT BUREAU ACCOUNT TYPE Indicates the generic credit reporting account type for this loan class. Valid Values: 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 (default) 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 156 EPL, Inc. Training Department

163 PAYMENT FREQUENCY How often the payment is due. 01 = single-payment loan 12 = monthly 24 = semi-monthly (due 15 days after first payment due date; third payment due one month after first payment due date) 25 = bi-weekly (due every 14 days until third payday; then skip 28 days no loan payment expected on third payday) 26 = bi-weekly (due every 14 days) 52 = weekly The payment frequency defaults into this field from the loan product class. You can, however, change the frequency by selecting another value in the field. INTEREST Interest calculation used. A =amortized interest METHOD S =simple interest INTEREST CALCULATION BASIS Type of year used to calculate the daily interest factor. 000 =365 days (366 in leap year) 360 =360 days 364 =364 days 365 =365 days (regardless of leap year) 366 = Leap Year DELQIN- QUENCY METHOD Delinquency method used. B D =mortgage loans with terms of 15 years or longer =mortgage loans with terms of less than 15 years LATE CHARGE PLAN Method used to assess late charges. 0 = late charges not used 1 = percentage of unpaid interest 2 = % of payment of what is in IPB 3 = fixed amount per payment 5 = % of payment of this particular loan Use 5 if using a late charge. 6. Click <Next> when finished. The Mortgage Loan Details screen displays: 157 EPL, Inc. Training Department

164 Mortgage Loan Details The Mortgage Loan Details screen enables you to enter all the pertinent information required in the member s loan record that make up the details for this particular mortgage loan. After you have performed the new-loan file-maintenance on an amortized mortgage loan, you will notice on the Member Profile that a new club account is created with a trailer of 57 or 58. This club account is referred to as the unapplied funds club trailer, or the mortgage payment suspense account. This procedure assumes you are starting from the Mortgage Loan Details screen in i-power. 1. Complete all fields as applicable: Loan Terms Field Description Valid Entries/Comments PAYMENT AMOUNT Principal and interest portion of the scheduled payment. 9 digits (dollars and cents; no decimal point) This amount does not include the escrow amount. ALTERNATE PAYMENT A regular payment amount that exceeds the full scheduled amount. 9 digits (dollars and cents; no decimal point) This amount must include principal, interest, and escrow (if applicable). The letter A will appear on the Member Profile next to the 158 EPL, Inc. Training Department

165 payment amount. 159 EPL, Inc. Training Department

166 ESCROW PAYMENT Escrow portion of the scheduled payment, if applicable. 9 digits (dollars and cents; no decimal point) This amount does not include principal and interest amounts. On the Member Profile, the amount displayed under PYMT AMT reflects the total of both the escrow payment and the constant payment (P & I), and the letter E will appear next to the payment amount. If you do not set up the escrow account (in an upcoming procedure), the system will not allow any mortgage loan payments that include escrow. INTEREST RATE Interest rate (APR, not the daily factor) for the loan. 6 digits; no decimal point Entry is required. INTEREST DATE Date from which interest on the loan begins to accrue. The processing date (today s date) defaults into this field. You can, however, change the date by typing over the value in the field. FIRST PAYMENT DATE PRE-PAID INTEREST Date the first payment is due. If prepaid interest is collected, that amount should be keyed here and the amount in this field is moved into the YTD interest field when booked. One month from the processing date (today s date) defaults into this field. You can, however, change the date by typing over the value in the field. 7 digits (whole dollars only) POINTS PAID Dollar value paid at closing. 9 digits (dollars and cents; no decimal) LINE OF CREDIT LIMIT Line-of-credit amount for lineof-credit home-equity loans on the mortgage module. 7 digits (whole dollars only) LINE OF CREDIT EXPIRATION DATE Expiration date for line-of-credit home-equity loans on the mortgage module. mmddyyyy format PAYMENT METHOD How the payment is to be received. 2 = cash payment 5 = payroll 7 = payoff at CD maturity 9 = automatic transfer PAYROLL SOURCE Payroll source number. Used if payment method is 5 (payroll) or 9 (automatic transfer). LOAN ID Type of loan. 0 = conventional 1 = FHA 2 = FMHA 3 = VA 4 = construction Used in census tract reporting. CONSTRUCTION DRAWS Number of draws made against the construction loan to date EPL, Inc. Training Department

167 CONSTRUCTION CLOSE DATE For construction loans, the date set for draws to be complete and the balance rolled into a longterm mortgage loan. mmddyyyy format TOTAL EXPENSE This field currently has no functionality. TOTAL INCOME This field currently has no functionality. INSURANCE CODE 0 = no insurance LOAN OFFICER Loan officer number. 3 digits (defined by credit union) CREATE 1098 FORM? YES = create 1098 form NO = do not create 1098 form Borrower Information Field Description Valid Entries/Comments CREDIT SCORE Credit Score. Used if your credit union supports the internal credit scoring system. CREDIT SCORE DATE Credit Evaluation date. mmddyyyy format Used if your credit union supports the internal credit scoring system. EMPLOYEE CODE Type of credit union employee (if applicable). Non-employee E = employee O = officer D = director ECOA CODE Indicates the assignment of responsibility for this debt. Used for credit bureau reporting. Valid Values: 1 - Individual Acct 2 Joint Contract Responsibility 7 Maker Acct W Business/Commercial NOTE: The joint owner is reported to the credit bureau if your credit union uses credit reporting. 161 EPL, Inc. Training Department

168 Property Information Field Description Valid Entries/Comments PROPERTY CLASS Classification of the property = 1 family, purchase = 2 family, purchase = 3 family, purchase = 4 family, purchase = 1 family, home improvement = 2 family, home improvement = 3 family, home improvement = 4 family, home improvement = 1 4 family, non-occupant = 5 or more family dwelling = condominium, purchase = condominium, improvement = lot purchase = user-defined, purchase = user-defined, improvement Used in census tract reporting. NEW/USED Status of the property. 0 = new 1 = used YEAR BUILT Year the structure was built. mmddyyyy format OCCUPANT How the member will use the property. 0 = primary residential 1 = primary farm 2 = other residential 3 = other farm 4 9 = defined by credit union HUD CODE Signifies this is an FHA loan insured by HUD. If this is not an FHA loan insured by HUD, do not type a value in this field. FHA SECTION NUMBER Assigned by the FHA. For FHA reporting. 162 EPL, Inc. Training Department

169 FHA CASE NUMBER Assigned by the FHA. Used to identify the loan in correspondence between the FHA and the credit union. FHLB PLEDGED Signifies this loan is insured by FHLB. 0 = not insured by FHLB 1 = insured by FHLB 2. Click <Next> when you are finished. Note: the user has the option to <Exit> and return later to complete and book the loan within the same day, or choose <Next> to proceed to disburse the funds. If you click <Next>, The Setup Mortgage Loan Disbursement screen displays. 163 EPL, Inc. Training Department

170 Mortgage Loan Disbursement The next step in opening a new mortgage loan is to perform the monetary transaction. The purpose of this step is to designate to whom the funds are to be paid as well as the method of payment and can be accomplished on the Setup Mortgage Loan Disbursement screen. 1. Complete all fields as applicable: Loan Disbursement Details Field Description Valid Entries/Comments LOAN AMOUNT Amount of the loan 9 digits (dollars and cents, no decimal point) RECORDING FEES Any fees required that are financed with the loan. 8 digits (dollars and cents; no decimal point) Options Field Description Valid Entries/Comments TRANSACTION DESCRIPTION Optional message to be printed on the member s statement and receipt. 30 alphanumeric characters If you leave this field blank, the applicable i-power default will print. EFFECTIVE DATE Date the new loan is to be effective (if other than today s date). mmddyyyy format Entry is optional. PRINT MAIL You can choose whether to print Checkbox 164 EPL, Inc. Training Department

171 RECEIPT a receipt for this transaction. 2. Next, move to the Funds box. The Funds box is where the user will identify what types of funds are being used for this transaction. Each option in the Funds box has two ways to be activated. You can either click on the link with the mouse cursor or using the Ctrl + # keystroke on the number keyboard that corresponds to the desired option. The display of the available funds entries depends on the type of transaction being performed. Ctrl 2 Check. This option allows the funds to be disbursed by check. The user can verify the name and address to be printed on the check to be disbursed. Click <Done> when finished. Note that there may be an override required to complete any transaction by check. This would be determined by the credit union s policies and procedures. Ctrl 3 Transfer. This option allows the funds to be disbursed by transferring the funds to another account at the credit union. The member account number and verify letters will default on the Transfer to Details screen. Click <Done> when finished. Note that there may be an override required to complete any transaction by transfer. This would be determined by the credit union s policies and procedures. Ctrl 4 Voucher. For this option, enter the General Ledger Account Number and a corresponding description. Click <Done> when finished. Note that there may be an override required to complete any transaction by voucher. This would be determined by the credit union s policies and procedures. Ctrl 6 Suppress Check. Suppressing a check produces a check transaction including a receipt without printing a check. An example of a situation that may require the suppression of a check is if there is something wrong with the actual printed checks and a hand written check is required. With the Suppress Check option, the transaction will be generated and a receipt printed, but the check can be hand written as needed. Click <Post> when finished. 3. Once you have selected the funds entry type, click <Post>. The Book Loan Confirmation screen displays the message: Loan Booked Successfully. 4. Click <Done> to return to the Account Profile screen. 5. Does the member wish to set up an escrow account to pay insurance and/or taxes? Go directly to the next procedure, Opening an escrow account. 165 EPL, Inc. Training Department

172 6. If, however, your credit union wants to track insurance and taxes for non-escrow mortgages, go directly to the procedure titled Opening a member insurance record. 7. If your credit union does not want to track insurance and/or taxes for non-escrow mortgages, go directly to the procedure titled Setting up the legal description. 166 EPL, Inc. Training Department

173 Opening an escrow account If the member plans to pay insurance premiums and/or taxes through escrow, the next step is to set up an escrow account. Although this step is classified as a monetary transaction, you can do a teller override and enter $0.00 so that no money changes hands. When you perform the monetary transaction for a new escrow account, you assign the corresponding mortgage trailer that ties the escrow account to the specific mortgage loan. This procedure assumes you are starting from the Member Profile screen in i-power. 1. To begin opening a new escrow account, click on New on the Member Profile of the member applying for the loan. 2. Next, select New Escrow under the Suffix Types that display on the screen: 167 EPL, Inc. Training Department

174 3. The Club Account Information screen displays. Complete the following fields, if applicable: Club Account Information Field Description Valid Entries/Comments PRODUCT CLASS ESCROW SUFFIX NUMBER CORRESPONDING MORTGAGE TRAILER SPECIAL ACCOUNT DESIGNATION (NCUSIF) Indicates the number and description assigned to the club category. Club suffix number Trailer number for the mortgage loan. NCUSIF (National Credit Union Club Insurance Fund) type code. 3 digits. Valid Values: Valid Values: and Valid Values: Valid Values: Deferred-compensation accounts CU defined descriptions SEP Account (Pension/Profit Sharing) CU defined descriptions Irrevocable trust accounts CU defined descriptions Fiduciary accounts (custodian, guardian, or conservator accounts) CU defined descriptions Executor accounts (accounts held by an executor or administrator in a fiduciary capacity) CU defined descriptions Testamentary accounts (revocable, tentative, Totten, or payable-on-death (POD) trust account in which the beneficiary is a spouse, child, or grandchild of the member) CU defined descriptions Corporate, organization, partnership, and unincorporated association accounts CU defined descriptions These accounts are maintained under the corporation s tax ID number Public units accounts (in which the funds are invested by someone in a custodial capacity for a public unit) CU defined descriptions These accounts are maintained under the custodian s Social Security Number. 168 EPL, Inc. Training Department

175 4. Click <Next>. The Deposit Details screen displays to make a deposit to fund the account. 5. Once you have completed the Funds entry box, click <Post>. 6. Go directly to the next procedure, Opening a member insurance record. 169 EPL, Inc. Training Department

176 Opening a member insurance record The member has the choice of either paying the insurance premiums directly or establishing an escrow club to pay the premiums. If he or she chooses the escrow club, you need to set up a member insurance record, which ties the member loan record to the appropriate insurance company in your database. This record contains such information as the type of policy (homeowner s or flood, for example), the policy expiration date, and the premium due on the next remittance date. Even if the member chooses not to pay the insurance premiums by means of an escrow account, we recommend that you perform this step so that you can later track insurance information across your entire member base. The procedure for assigning the insurance company to the mortgage account begins below: The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select Tax/Insurance/Legal. 170 EPL, Inc. Training Department

177 The Mortgage Loan Tax/Insurance/Legal List screen displays: 2. Click on the Add an Insurance tab. 3. The Add Member Insurance Record screen displays. Complete the following fields, if applicable: 171 EPL, Inc. Training Department

178 Data Field Description Valid Entries/Comments INSURANCE COMPANY INSURANCE DESCRIPTION REMITTANCE CODE NEXT RENEWAL DATE POLICY FREQUENCY POLICY EXPIRE DATE POLICY EXPIRE TERM PREMIUM PER FREQUENCY POLICY NUMBER The name of the insurance company as set up in your institution parameters under the Manager menu. Description of the policy type. Remittance code. Date to which the policy extends. Length of current policy period. Expiration date of the policy. Number of months before the next premium is due. Amount of premium due for this policy on the next premium remittance date. Identification number on the face of the policy. 10 characters maximum Example: HOMEOWNER E = escrow pay (remit & tracking M = member pay (tracking only) C = credit union pay (inquiry only) P = totally prepaid (inquiry only) This code triggers tracking only, inquiry only, or escrow remittance and tracking, depending on the code selected. mmddccyy format A = annually S = semi-annually Q = quarterly M = monthly Used for member-pay tracking only. Mmddccyy format. If the remittance code is M (member-pay) and insurance tracking is desired, type in the policy expiration date. You must file-maintain this field upon receipt of the current policy information for all subsequent renewal periods. If new information is not received (or is not input) and the policy expiration date is reached, the Request for Insurance Confirmation notice is generated (if your credit union uses these notices), and it will appear on the Cancellation and Expiration Roster. 012 = annual 006 = semi-annual 003 = quarterly 001 = monthly It is critical that this premium amount be correct for escrow-paid insurance obligations (for escrow analysis). Alphanumeric characters only; do not type in special characters such as commas, periods, or dashes. 172 EPL, Inc. Training Department

179 Field Description Valid Entries/Comments MORTGAGE INS/PMI CODE INSURANCE TYPE AGENTS NAME AGENTS PHONE COVERAGE AMOUNT COVERAGE LIMITS COVERAGE CODE Type of insurance or the insurance provider. Name of agent issuing the policy. Telephone number of the agent issuing the policy. Face value of the insurance policy. Cost basis for replacement if a claim occurs. How the policy is executed. Valid entries defined by credit union. Valid entries defined by credit union First name first. Area code first. No hyphens or spaces. Whole dollars only R = replacement cost H = historic cost I = individual J = joint Used particularly in the cases of life and disability coverage. CLASS/ZONE Fire class or zone. May be used to create a rescue report showing exposure to risk. INSURED NAME Name of person holding the policy if not the member. First name first. 4. The Add Member Insurance Record screen displays. Click the <Save> button when finished. 173 EPL, Inc. Training Department

180 5. The Mortgage Loan Tax/Insurance/Legal List screen displays the message: Insurance Information added successfully. 6. Click <Cancel> to return to the Account Profile screen. 7. Go directly to the next procedure, Opening a member tax record. 174 EPL, Inc. Training Department

181 Opening a member tax record If the member decides to use an escrow account to pay the property taxes, the next step in the mortgage loan process is to set up the member tax record. Doing this ties the member record to the tax record, and enables you to maintain and track tax information on tax authorities and on the escrow payment of taxes for the loan. Even if the member chooses not to pay taxes by means of an escrow account, we recommend that you perform this step so that you can later track tax information across your entire member base. The procedure for assigning a member tax record to the mortgage account begins below: The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select Tax/Insurance/Legal. 175 EPL, Inc. Training Department

182 The Mortgage Loan Tax/Insurance/Legal List screen displays: 2. Click on the Add a Tax tab. 3. The Add Member Tax Record screen displays. Complete the following fields, if applicable: 176 EPL, Inc. Training Department

183 Data Field Description Valid Entries/Comments TAX AUTHORITY LOT/PARCEL TAX DESCRIPTION REMITTANCE CODE TAX PAYMENT PER FREQUENCY TAX ACCOUNT NUMBER TAX TYPE FILE/UNIT NUMBER LAST TAX AMOUNT DATE LAST TAX DATE NEXT TAX The name of the tax authority as setup in your institution parameters under the Manager menu. Identifying number of the lot or parcel. Description of the tax type. Remittance code. Amount of taxes due on the next tax payment date. Account number that identifies the property to the particular tax authority. Number that further identifies the property to the particular tax authority. Amount of tax last paid. Date the tax was last paid. Date the tax will next be due. 30 digits. This field will be used to link the legal description to this record and it MUST match exactly to the lot/parcel in the legal description. 10 alphabetic characters maximum Example: PROPERTY E = escrow pay (remit & tracking) M = member pay (tracking only) This code triggers tracking only or escrow remittance and tracking, depending on the code selected. It is critical that this tax payment amount be correct for escrowpaid tax obligations and escrow analysis. This is not the parcel identifier. Valid entries defined by credit union This is not the parcel identifier. Entry is optional. If taxes are paid through escrow (remittance code E) and automatically debited, this field will automatically update at each tax remittance. Mmddccyy format. Entry is optional. If taxes are paid through escrow (remittance code E) and automatically debited, this field will automatically update at each tax remittance. Mmddccyy format. The value in this field must equal the value in the next payment date in the tax authority record. If taxes are paid through escrow (remittance code E) and automatically debited, this field will automatically update at each tax remittance. 177 EPL, Inc. Training Department

184 4. The Add Member Tax Record screen displays. Click the <Save> button when finished. 5. The Mortgage Loan Tax/Insurance/Legal List screen displays the message: Tax information added successfully. 6. Click <Cancel> to return to the Account Profile screen. 7. Go directly to the next procedure, Setting up the legal description. 178 EPL, Inc. Training Department

185 Setting up the legal description The final step in opening a new mortgage loan is to set up the legal description of the property. This description states the status of liens against the property, the year through which taxes are paid, and appraisal and census tract information. The procedure for setting up the legal description for the mortgage account begins below: The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select Tax/Insurance/Legal. The Mortgage Loan Tax/Insurance/Legal List screen displays: 2. Click on the Add a Legal tab. 179 EPL, Inc. Training Department

186 3. The Add Legal Description screen displays. 4. Enter the Lot/Parcel Number as setup in the Member Tax Record and click <Go>. If the Legal Description Record is not found, move to the next step. 5. Click the <Modify> button and complete the following fields, if applicable: Data Field Description Valid Entries/Comments PROPERTY ADDRESS 1 Actual address of property. First line of address. If more space is needed, continue into next field. PROPERTY ADDRESS 2 Actual address of property continued. (Continuation of preceding field.) PROPERTY CITY City in which property is located. 15 alphabetic characters PROPERTY STATE State in which property is located. Type in the two-letter abbreviation. PROPERTY ZIP CODE ZIP Code in which property is located. If you do not know the 4-digit extension, type four zeroes. PROPERTY COUNTY County in which property is located. 15 alphabetic characters 180 EPL, Inc. Training Department

187 BRIEF LEGAL DESCRIPTION Additional identification of the property used when remitting taxes by means of escrow. 3 lines, 40 characters in each line PLAT BOOK/PAGE Plat book and page number from the subdivision lot and block description of the property. 10 alphabetic characters APPRAISED VALUE Dollar value of the property at last appraisal. 9 digits (whole dollars only) APPRAISAL DATE Date of the last property appraisal. Mmddccyy format. This is the only mandatory field on the screen. If you do not type an entry in this field, the system will return an error message. ASSESSED VALUE Dollar value of the property at last assessment. 9 digits (whole dollars only) ASSESSED IN NAME Name recorded on the tax notice if property is assessed and taxes are paid by someone other than the member. 20 alphabetic characters TAX YEAR Year through which taxes on the property are paid. 2 digits Used for loan draft processing on home-equity mortgage loans. PURCHASE PRICE Purchase price of the property. 9 digits (whole dollars only) LOAN-TO- VALUE RATIO Ratio of the loan to the value of the property. 3 digits (no decimal point) CENSUS # Census tract number, enumeration district number, or ZIP Code in which the property is located. Alphabetic or numeric characters only; do not type in special characters such as commas, periods, or dashes. All properties in the same area must be recorded in the same way. For example, if one is recorded as , another in the same area cannot be CT EPL, Inc. Training Department

188 EXIST LIEN CODE Extent of the mortgage liability. 00 = no other mortgage outstanding 01 = we hold 1st mortgage 02 = we hold 2nd mortgage 03 = we hold 1st and 2nd mortgages 04 = other institution holds 1st mortgage 05 = other institution holds 2nd mortgage 06 = other institution holds 1st and 2nd mortgages 07 = individual holds 1st mortgage 08 = individual holds 2nd mortgage = defined by credit union AMOUNT EXIST LIENS Amount of liens outstanding on the property other than that of your credit union. 9 digits (dollars and cents; no decimal point) 6. The Add Legal Description screen displays. Click the <Save> button when finished. 182 EPL, Inc. Training Department

189 7. The Mortgage Loan Tax/Insurance/Legal List screen displays. 8. Click <Cancel> to return to the Account Profile screen. 183 EPL, Inc. Training Department

190 Setting up an account for escrow analysis Note: In order for escrow analysis to take place, you must first contact your EPL ODI Lending Customer Support Representative, who will set up the necessary IPB options and system parameters for your credit union. The i-power system automatically defaults a date (mmddccyy) into the ESCROW ADJUSTMENT DATE field when you open a new mortgage: For fixed-rate mortgages, the default date is: mm December (always) dd calendar day the mortgage was opened yy year the mortgage was opened For variable-rate mortgages, the default date is: mm calendar month the mortgage was opened dd calendar day the mortgage was opened yy one year from the day the mortgage was opened You must have a valid value in the PRE-ADJUSTMENT DAYS field at the loan class level (which defaults to the mortgage loan account level) so that Escrow Analysis statements can be produced before the escrow amount is changed. Refer to the procedure titled Opening a new mortgage loan product class. The following pages contain two procedures involving escrow analysis that you might need to perform at times: 1. Changing the next escrow adjustment date (from the default date) 2. Preventing escrow analysis from taking place 184 EPL, Inc. Training Department

191 Changing the next escrow adjustment date This procedure assumes you are on the Account Profile screen in i-power. The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select General Mortgage Loan Info. The Mortgage Loan Maintenance screen displays: 2. Click on the <Modify> button. You may have to scroll to the bottom of the screen to click on the <Modify> button. 185 EPL, Inc. Training Department

192 3. Scroll to the Adjustment Options section and in the Escrow Adjustment Date field, enter the date you want the escrow analysis to take place. The day portion of the date must equal the day portion of the Date Next Payment date field in the Payment/Escrow Information section. 4. Click <Save> when finished. The Mortgage Loan Maintenance screen displays the message: Updated successfully. 5. Click <Cancel> to be returned to the Account Profile screen. 186 EPL, Inc. Training Department

193 Preventing escrow analysis from taking place Performing this procedure will prevent escrow analysis from taking place until you again file-maintain the Escrow Adjustment Date field back to a valid date. This procedure assumes you are on the Account Profile screen in i-power. The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select General Mortgage Loan Info. The Mortgage Loan Maintenance screen displays: 2. Click on the <Modify> button. You may have to scroll to the bottom of the screen to click on the <Modify> button. 187 EPL, Inc. Training Department

194 3. Scroll to the Adjustment Options section and in the Escrow Adjustment Date field, enter 00/00/ Click <Save> when finished. The Mortgage Loan Maintenance screen displays the message: Updated successfully. 5. Click <Cancel> to be returned to the Account Profile screen. 188 EPL, Inc. Training Department

195 i-power Account Profile The i-power Account Profile screen displays all accounts that the member is the primary owner of or a joint owner on. Loan accounts on the Account Profile screen are comprised of consumer and mortgage loans and display beneath the Deposit and Investment accounts as displayed below: The following fields are displayed within the Loan Accounts area of the Account Profile screen: Accounts Tab Loan Accounts Field Description Valid Entries/Comments Suffix Note # Description Balance Indicates the number assigned to the loan. Indicates the note number assigned to the loan by the Credit Union. Indicates the description of the loan. This description is printed on the member s statement next to the suffix number. Indicates the current balance of the loan. Read only Valid Values: = mortgage loans Read only 6 alphanumeric characters entry is optional read only 25 alphanumeric characters Read only monetary format Pay Off Indicates the amount required to pay off the loan on today s date (includes all interest and fees). Read only monetary format 189 EPL, Inc. Training Department

196 Accounts Tab Loan Accounts Field Description Valid Entries/Comments Due Date Indicates the date the next payment is due. Read only mmddccyy format The next due date remains the same until the entire scheduled payment amount has been posted. Payment Amount Escrow Amount Due Scheduled Payment Amount: Indicates the scheduled payment amount per frequency. Alternate Payment Amount: Indicates the payment amount the member will pay for a period of time that is different from the scheduled amount. When the alternate payment amount is used an A will be displayed to the right of the payment amount. Indicates the next amount of all escrow payments required with each regular payment. Indicates the amount due including any past due payments. Read only monetary format Scheduled Payment Amount: Cannot be 0 for open-end or loandrafts. Round up to whole dollars for loandrafts Data Base Field Name: LN-PYMT-AMT Alternate Payment Amount: If a member needs to pay a different payment amount from the scheduled payment amount for a period of time, enter that amount in this field. Once the member is ready to resume the original payment amount, file-maintain this field to zero. As long as an amount greater than zero appears in this field, the system will track the loan by that amount, overriding whatever amount appears in the Payment Amount field. When an alternate payment is being used, the letter A appears next to the payment amount field on the Account Profile screen. Data Base Field Name: LN-ALT-PYMT-AMT Read only monetary format This amount does not include principal and interest amounts. Read only monetary format 190 EPL, Inc. Training Department

197 Accounts Tab Loan Accounts Field Description Valid Entries/Comments Frequency / Payment Method Frequency Indicates how often payments are scheduled to be made on this loan. Payment Method Indicates the method by which loan payments will be made. Read only Frequency/Valid Values: 01 Annual 02 Semi-annual 04 Quarterly 12 Monthly Payments 24 Semi-monthly 25 Bi-weekly 26 Every 14 days 52 Weekly 99 Single Payment Payment Method/Valid Values: Valid Values: 0 Dividend Loan Payment (Code not currently supported by EPL) 2 Cash Loan Payment 5 Payroll Loan Payment If the ADV DAYS field in your IPB is set, the system will not advance the loan s next payment due date beyond the specified advance days. 7 Payoff at CD Maturity If the payoff is by certificate at its maturity. The loan must be cross-pledged to the certificate. When the certificate matures, the system will check to see if a loan has been cross-pledged against it. If so, the system checks the entry in this field. If the value in the field is 7, the system will perform the following transactions on the day the certificate matures: 1. Pay the interest to the certificate. 2. Transfer the new certificate balance to the loan trailer. If the proceeds from the certificate are not enough to completely pay off the loan, the system applies all available proceeds against the loan and prints this account on the Exception Report so that your credit union can take steps to collect the remaining balance. If the balance in the certificate is greater than the payoff amount, the remaining funds will be handled according to the instructions specified by the maturity option set up in the certificate record. 6 Payroll Loan Payment (Code not currently supported by EPL) 8 ODA Loan (overdraft account) (Code not currently supported by EPL) 9 Transfer for Payment 191 EPL, Inc. Training Department

198 Accounts Tab Loan Accounts Field Description Valid Entries/Comments Class Collateral Indicates the loan class used for this loan. Indicates the numeric code to describe the collateral of the loan. Read only. 3 digits Read only. 3 digits Open-end loans with credit limits are based on the IPB high and low Collateral Codes. Other valid entries are: 000, = student loan 092, 093, 095,099 = fully secured share (00 trailer on same account as loan) You may, however, define additional values as long as they do not conflict with the above values. Type Interest Rate Status Indicates the numeric code to describe the type of the loan. Codes 001 through 999 are available and user-defined with the exception of the following which activate special functions within the system: The annual percentage rate on the loan. Indicates the status of the loan suffix. If you use collateral code 33, the system will reduce the shares pledged by the principal amount of the loan payment. For codes 092, 093, 095, and 099, the pledged share amount can be reduced automatically by the principal amount of the payment that is, the amount of share pledged would continually decrease, and the amount of share available to the member would continually increase by the amount of the principal after each payment. If you use any of these codes, you must also complete the cross-pledge area of the screen. Please refer to the Mortgage Loan System Codes section of this document for detailed information on the setup and maintenance of these codes. Read only. 3 digits Valid Values: Code 075 has been hard-coded for real-estate loans. If you use this code and the interest is greater than $599.99, it will be reported on a 1098 form. Codes 060 through 069 have been hard-coded for student loans. If you typed 000 or a code between 060 and 069 in the COLLATERAL field, the loan type code must also be designated for student loans ( ). You may define additional values as long as they do not conflict with the above values. Please refer to the Mortgage Loan System Codes section of this document for detailed information on the setup and maintenance of these codes. Read only. 6 digits Read only. Valid Values: Open Closed Charged Off Discharged Sold (indicating an investor mortgage loan) ~end~ 192 EPL, Inc. Training Department

199 Mortgage Loan Suffix Drop-Down List The mortgage loan suffix drop-down list on the Account Profile screen contains the following menus: History Owners Warnings and Locks Loan Payment History Mortgage Loan Future Payoff General Mortgage Loan Info Discharge Debt Property/Mortgage Tax/Insurance/Legal Credit Bureau Assign Loan to Investor (once you assign a loan to an investor, Investor Loan will be included on this list if the loan is an investor mortgage). Please refer to the Assign Loan to Investor area of the documentation below for more details. FASB91 Rate Change History Amortization Schedule The Account Profile screen displays: 193 EPL, Inc. Training Department

200 History There are two types of History: Transaction and Maintenance. Transaction History displays financial transactions that occurred on a suffix. Transaction history may be viewed for one suffix or all suffixes of an account. History may also be viewed for a specific date or date range in addition to a single transaction or range of transactions dependent upon the search criteria selected. Maintenance History displays the past 7 days of file maintenance performed on a specific suffix. The share suffix maintenance history displays share maintenance and any changes made to the member demographics screens (address, joint owners, employment, etc.). You may also refer to the File Maintenance Journal, RMG11510; this report is run on a daily basis. Transaction History The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select History. 194 EPL, Inc. Training Department

201 2. The Mortgage Loan History screen with the Transactions tab highlighted displays the following fields: Transaction History Details Field Description Valid Entries/Comments Eff Date Act Date Act Time Tran Num Tran Type Tran Description Teller Num Branch Num Indicates the date on which the transaction is effective regardless when it occurred. The value in this field indicates the order of activity printed on the statement. Indicates the calendar date on which the transaction actually occurred. Indicates the time at which the transaction actually occurred. Indicates the transaction (receipt) number of the transaction. This number is used to aid in error correction or reversal of a transaction. Indicates the transaction type description. A transaction description entered at the time of the transaction by the teller or an automated process. This description shows up on the member statement. The teller number that performed the transaction. Indicates the branch number the transaction was performed Mmddccyy format The default is the business date. Mmddccyy format Military time format Check withdrawals: the check number that cleared either during nightly or online processing. ACH: the source number is used for automated internal transfers and payroll transactions. Other: all other transaction use a system-generated number. Deposits, withdrawals, payments, etc. ACH: Source # and Name appear ATM/Debit Card: Name and/or location appear Funds Transfer/Exception Payroll: Source # and Name appear Teller Number 999 represents an automated transaction, e.g., voice, homebanking, ATM/Debit Card, ACH, etc. 3 digits EPL, Inc. Training Department

202 Transaction History Details Field Description Valid Entries/Comments Tran Amt Principal Interest Insurance To Share Fee Amt Balance After Next Payment Action Indicates the amount of the transaction. Indicates the amount of the payment that is applied to the principal. Indicates the amount of the payment that is applied to the interest. Indicates the amount of the payment that is applied to the insurance. Indicates the amount of the payment that is applied to the share account when there is excess. Indicates the fee amount, if any, associated with the transaction. The suffix balance after the transaction is posted. Indicates the next payment date. Reject View Receipt icon and 3. Press <Cancel> to return to the Account Profile. icon ~end~ Monetary format Monetary format Monetary format Monetary format Monetary format Monetary format Monetary format mmddccyy format The Reject transaction. icon is used to Error Correct or Reverse a The View Receipt icon is used to view an on-line image of the transaction receipt in Adobe Reader. 196 EPL, Inc. Training Department

203 Maintenance History The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select History. 1. The Maintenance History screen with the Transactions tab highlighted displays the following fields: 197 EPL, Inc. Training Department

204 Maintenance History Details Field Description Valid Entries/Comments Date of File Maintenance Indicates the date on which the file maintenance occurred. Mmddccyy format Field Name Data Before Data After Teller Number Indicates the system field name that was changed. Indicates the content of the field before the most recent change. Indicates the content of the field reflecting the most recent changes. Indicates the user that performed the change. The information appears in whatever format the field dictates (e.g., date, dollar amount, alpha, etc.) The information appears in whatever format the field dictates (e.g., date, dollar amount, alpha, etc.) The information appears in whatever format the field dictates (e.g., date, dollar amount, alpha, etc.) Numeric 2. Press <Cancel> to return to the Account Profile. ~end~ 198 EPL, Inc. Training Department

205 Owners Information The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select Owners. The Owners screen displays: 2. Click on the Edit icon to inquire/file maintain the member or joint owner demographic information. 199 EPL, Inc. Training Department

206 There are six tabs within the Owner screen: Home Previous Home Employment Previous Employment Temporary Mailing Identification Home The Home screen displays: 3. Click on the <Modify> button to file maintain any fields on the Home screen. Owner Home Field Description Valid Entries/Comments Full Name: Member s full name. 35 alphanumeric characters Last-Name First-Name: U.S. Citizen: Shortened version of the member s name. Indicates whether the member is a US citizen or foreign. First, middle and last name format This is the name that is printed on any system-generated mailing such as statements and notices. 15 alphanumeric characters Last Name first, First Name last format The system uses the first two letters of the entry in this field as the verify letters in addition to searches by the member s last name. This name is printed on internal reports, but is not printed on the member s statement. Valid Values: Yes No 200 EPL, Inc. Training Department

207 Owner Home Field Description Valid Entries/Comments Relationship: Relationship of this owner to the primary member. Birth Date: Member s date of birth. Mmddccyy format Death Date: Address Type: Address 1: Indicates the member s date of death. Indicates whether the member address is domestic or foreign. Current address of the member. The word Member appears in this field for a new share account. This field cannot be changed on a new share account. This field is credit union defined; refer to the Customizing I-POWER Settings Guide for detailed information on the setup and maintenance of this field. This field is also required for calculating Credit Life/Disability and IRA Distributions when applicable. Mmddccyy format Valid Values: Domestic Foreign 35 alphanumeric characters Address 2: Continuation of Address alphanumeric characters City: State/Province: City in which the member currently resides. Indicates the state or province in which the member currently resides. Often used for the P.O. Box number. If you are entering a foreign address, use this line to enter the foreign province, county, and zip code. 35 alphanumeric characters 2 alpha characters or 20 alphanumeric characters NOTE: When the Address Type = Domestic use the State drop-down list. When the Address Type = Foreign, type the province name. Postal Code: Member s current zip code. 5 digit postal zip code and 4 digit extension County: Country Years: Months: Residence: County in which the member currently resides. Indicates the country in which the member currently resides. Number of years the member has resided at the current address. Number of months the member has resided at the current address. The status of the member s current residence. If you do not know the four-digit extension for the Zip Code, type four zeros or leave blank. 20 alphanumeric characters NOTE: when the Address Type = Foreign, this field is disabled. Valid Values: drop-down list contains all country names NOTE: this field defaults to United States when the Address Type = Domestic and this field is disabled. When the Address Type = Foreign, then you may select a country name from the drop-down list. 2 digits Valid Values: 0 11 Valid Values: Buying Own Renting Living with relative Not in this list 201 EPL, Inc. Training Department

208 Owner Home Field Description Valid Entries/Comments Phone: Mobile: Pager: Drivers License: State: DL Description: DL Issuance Date: DL Expiration Date: DL Verification Date: Member s area code and telephone number. Member s cell area code and telephone number. Indicates the member s pager area code and telephone number. Member s personal address. *See the Address Enhancement section for additional details. Member s drivers license number. The state in which the member s drivers license was issued. Indicates additional information regarding the driver s license the member presented. Indicates the date the driver s license was issued. Indicates the date the driver s license will expire. Indicates the date the credit union verified this driver s license. 10 digits It is not necessary to enter any hyphens - or parentheses ( ) between the numbers. The system will automatically place parentheses around the area code and a hyphen between the prefix and suffix, i.e., (555) digits It is not necessary to enter any hyphens - or parentheses ( ) between the numbers. The system will automatically place parentheses around the area code and a hyphen between the prefix and suffix, i.e., (555) digits It is not necessary to enter any hyphens - or parentheses ( ) between the numbers. The system will automatically place parentheses around the area code and a hyphen between the prefix and suffix, i.e., (555) alphanumeric characters Ensure at least/only one At exists and such as ipower@epl.net Ensure consecutive Periods. do not exist such as ipower..@epl.net Ensure no empty spaces exist such as ipower ipower@epl.net The period. when entered before the At cannot be next to such as ipower.@epl.net. Please note that s such as ipower.ipower@epl.net will be permitted. 20 alphanumeric characters 2 alpha characters Use the two-digit abbreviation of the US Postal Service. 25 alphanumeric characters Mmddccyy format Mmddccyy format Mmddccyy format TIP: You may click on the <Save> button and bypass the Previous Home, Employment, Previous Employment, Temporary Mailing and Identification screens. 202 EPL, Inc. Training Department

209 NOTE: All fields are not required; however if the Full Name, Last-Name First-Name, Address 1, City State, Zip and Birth Date fields are not completed, the system will automatically assign a Share Warning to the account. One of the following Warning Code/Descriptions will be assigned to the share account: Warning Code Warning Description 1 Missing Members name and address 4 Missing new account file maintenance 5 Combination of warning flags 01 and No date of birth 11 Combination of warning flags 01 and From the Home tab, click on the <Next> button, the Previous Home screen is displayed. If you continue clicking on the <Next> button and you will advance to the Employment, Previous Employment, Temporary Mailing and Identification screens. TIP: You may also navigate to the Home, Previous Home, Employment, Previous Employment, Temporary Mailing and Identification tabs by clicking on the tabs rather than using the <Next> button. Previous Home The Previous Home screen displays: 5. Click on the <Modify> button to file maintain any fields on the Previous Home screen. 203 EPL, Inc. Training Department

210 Owner Previous Home Field Description Valid Entries/Comments Address Type: Address 1: Indicates whether the member address is domestic or foreign. Previous address of the member. Valid Values: Domestic Foreign 35 alphanumeric characters Address 2: Continuation of Address alphanumeric characters City: State/Province: Previous city in which the member resided. Indicates the state or province in which the member previously resided. Often used for the P.O. Box number. If you are entering a foreign address, use this line to enter the foreign province, county, and zip code. 35 alphanumeric characters 2 alpha characters or 20 alphanumeric characters NOTE: When the Address Type = Domestic use the State drop-down list. When the Address Type = Foreign, type the province name. Postal Code: Member s previous zip code. 5 digit postal zip code and 4 digit extension Country How Long Years: Months: Indicates the country in which the member previously resided. Number of years the member resided at the previous address. Number of months the member resided at the previous address. If you do not know the four-digit extension for the Zip Code, type four zeros or leave blank. Valid Values: drop-down list contains all country names NOTE: this field defaults to United States when the Address Type = Domestic and this field is disabled. When the Address Type = Foreign, then the you may select a country name from the drop-down list. 2 digits Valid Values: 1 99 Valid Values: 0 11 TIP: You may click on the <Save> button at any time and bypass the Employment, Previous Employment, Temporary Mailing and Identification screens. 6. (From the Previous Home tab, click on the <Next> button, the Employment screen is displayed. Continue clicking on the <Next> button and you will advance to the Previous Employment, Temporary Mailing and Identification screens. TIP: You may also navigate to the Home, Previous Home, Employment, Previous Employment, Temporary Mailing and Identification tabs by clicking on the tabs rather than using the <Next> button. 204 EPL, Inc. Training Department

211 Employment The Employer Demographics screen displays: 7. Click on the <Modify> button to file maintain any fields on the Employer Demographics screen. Owner Employer Demographics Field Description Valid Entries/Comments Employer: Occupation: Date Hired: Address Type: Address 1: Member s current employer name. Member s occupation, position, rank or grade. Indicates the member s date of hire. Indicates whether the employer s address is domestic or foreign. Current address of the member s employer. 25 alphanumeric characters 20 alphanumeric characters Mmddccyy format Valid Values: Domestic Foreign 35 alphanumeric characters Address 2: Continuation of Address alphanumeric characters City: State/Province: Postal Code: Current city in which the member is employed. Indicates the state or province in which the member was previously employed. Member s current employer zip code. 35 alphanumeric characters 2 alpha characters or 20 alphanumeric characters NOTE: When the Address Type = Domestic use the State drop-down list. When the Address Type = Foreign, type the province name. 5 digit postal zip code and 4 digit extension If you do not know the four-digit extension for the Zip Code, type four zeros or leave blank. 205 EPL, Inc. Training Department

212 Owner Employer Demographics Field Description Valid Entries/Comments Country Phone: Extension: Mobile: Indicates the country in which the member previously was employed. Member s current work area code and telephone number. Indicates the member s work phone extension number. Member s work cell area code and telephone number. Member s work address. *See the Address Enhancement section for additional details. Valid Values: drop-down list contains all country names NOTE: this field defaults to United States when the Address Type = Domestic and this field is disabled. When the Address Type = Foreign, then you may select a country name from the drop-down list. 10 digits It is not necessary to enter any hyphens - or parentheses ( ) between the numbers. The system will automatically place parentheses around the area code and a hyphen between the prefix and suffix, i.e., (555) digits 10 digits It is not necessary to enter any hyphens - or parentheses ( ) between the numbers. The system will automatically place parentheses around the area code and a hyphen between the prefix and suffix, i.e., (555) alphanumeric characters Ensure at least/only one At exists and such as ipower@epl.net Ensure consecutive Periods. do not exist such as ipower..@epl.net Ensure no empty spaces exist such as ipower ipower@epl.net The period. when entered before the At cannot be next to such as ipower.@epl.net. Please note that s such as ipower.ipower@epl.net will be permitted. TIP: You may click on the <Save> button and bypass the Previous Employment, Temporary Mailing and Identification screens. 8. From the Employment tab, click on the Next button, the Previous Employment screen is displayed. If you continue clicking on the Next button, you will advance to the Temporary Mailing screen. TIP: You may also navigate to the Home, Previous Home, Employment, Previous Employment, Temporary Mailing and Identification tabs by clicking on the tabs rather than using the <Next> button. 206 EPL, Inc. Training Department

213 Previous Employment The Previous Employment screen displays: 9. Click on the <Modify> button to file maintain any fields on the Previous Employment screen. Owner Previous Employment Field Description Valid Entries/Comments Employer: Address Type: Address 1: Indicates the member s previous employer name. Indicates whether the member address is domestic or foreign. Indicates the address of the member s previous employer. 25 alphanumeric characters Valid Values: Domestic Foreign 35 alphanumeric characters Address 2: Continuation of Address alphanumeric characters City: State/Province: Postal Code: Country Indicates City in which the member was previously employed. Indicates the state or province in which the member previously resided. Indicates the member s previous employer zip code. Indicates the country in which the member previous employer resided. 35 alphanumeric characters 2 alpha characters or 20 alphanumeric characters NOTE: When the Address Type = Domestic use the State drop-down list. When the Address Type = Foreign, type the province name. 5 digit postal zip code and 4 digit extension If you do not know the four-digit extension for the Zip Code, type four zeros or leave blank. Valid Values: drop-down list contains all country names NOTE: this field defaults to United States when the Address Type = Domestic and this field is disabled. When the Address Type = Foreign, then you may select a 207 EPL, Inc. Training Department

214 country name from the drop-down list. 208 EPL, Inc. Training Department

215 Owner Previous Employment Field Description Valid Entries/Comments How Long Years: Months: Number of years the member was employed. Number of months the member was employed. Valid Values: 1 99 Valid Values: 0 11 TIP: You may click on the <Save> button and bypass the Previous Employment, Temporary Mailing and Identification screens. 10. From the Previous Employment tab, click on the <Next> button, the Temporary Mailing screen is displayed. If you continue clicking on the <Next> button, you will advance to the Identification screen. TIP: You may also navigate to the Home, Previous Home, Employment, Previous Employment, Temporary Mailing and Identification tabs by clicking on the tabs rather than using the <Next> button. 209 EPL, Inc. Training Department

216 Temporary Mailing The Temporary Mailing screen displays: 11. Click on the <Modify> button to file maintain any fields on the Temporary Mailing screen. Owner Temporary Mailing Field Description Valid Entries/Comments Address Type: Address 1: Indicates whether the temporary mailing address is domestic or foreign. Indicates the temporary mailing address of the member. Valid Values: Domestic Foreign 35 alphanumeric characters Address 2: Continuation of Address alphanumeric characters City: State/Province: Postal Code: County: Indicates the temporary mailing city of the member. Indicates the temporary mailing state or province of the member. Indicates the temporary mailing postal code of the member. County in which the member currently resides. 35 alphanumeric characters 2 alpha characters or 20 alphanumeric characters NOTE: When the Address Type = Domestic use the State drop-down list. When the Address Type = Foreign, type the province name. 5 digit postal zip code and 4 digit extension If you do not know the four-digit extension for the Zip Code, type four zeros or leave blank. 20 alphanumeric characters NOTE: when the Address Type = Foreign, this field is disabled. 210 EPL, Inc. Training Department

217 Country Phone: Start Date: End Date: Never Expire: Indicates the temporary mailing country of the member. Indicates the temporary mailing telephone number. Indicates the start date when all mailings are sent to the temporary mailing address. Indicates the end date when all mailings are sent to the Home or Work mailing address. Indicates that the temporary mailing address will be used for all mailings and statements. Valid Values: drop-down list contains all country names NOTE: this field defaults to United States when the Address Type = Domestic and this field is disabled. When the Address Type = Foreign, then you may select a country name from the drop-down list. 10 digits It is not necessary to enter any hyphens - or parentheses ( ) between the numbers. The system will automatically place parentheses around the area code and a hyphen between the prefix and suffix, i.e., (555) Non-maintainable from this screen mmddccyy format Non-maintainable from this screen mmddccyy format Non-maintainable from this screen Valid Values: Check box format Unchecked = Expires or not used Checked = Never Expire TIP: You may click on the <Save> button and bypass the Temporary Mailing and Identification screens. 12. From the Temporary Mailing tab, click on the <Next> button, the Identification screen is displayed. TIP: You may also navigate to the Home, Previous Home, Employment, Previous Employment, Temporary Mailing and Identification tabs by clicking on the tabs rather than using the <Next> button. 211 EPL, Inc. Training Department

218 Identification The Identification screen displays: 13. Click on the <Modify> button to file maintain any fields on the Identification screen. Maintain Applicant Identification Identification 1 Field Description Valid Entries/Comments Documentary Flag: ID Type: ID Description: ID Number: ID Issuance Date: Indicates the type of identification the member presents. Indicates additional information regarding the identification the member presented. Indicates the identification number of the type of ID the member presented. Indicates the date the ID was issued. Valid Values: Documentary Identification Non- Documentary Identification Valid Values: Foreign Government Issued ID Foreign Passport Known Existing Member Military ID Card Resident Alien Card State ID Card Unknown US Passport 25 alphanumeric characters 30 alphanumeric characters Mmddccyy format 212 EPL, Inc. Training Department

219 213 EPL, Inc. Training Department

220 Maintain Applicant Identification Identification 1 Field Description Valid Entries/Comments ID Expiration Date: ID Verification Date: Maintain Applicant Identification Identification 2 Indicates the date the ID will expire. Indicates the date the credit union verified this ID. Mmddccyy format Mmddccyy format Field Description Valid Entries/Comments Documentary Flag: ID Type: ID Description: ID Number: ID Issuance Date: ID Expiration Date: ID Verification Date: Indicates the type of identification the member presents. Indicates additional information regarding the identification the member presented. Indicates the identification number of the type of ID the member presented. Indicates the date the ID was issued. Indicates the date the ID will expire. Indicates the date the credit union verified this ID. Valid Values: Documentary Identification Non- Documentary Identification Valid Values: Foreign Government Issued ID Foreign Passport Known Existing Member Military ID Card Resident Alien Card State ID Card Unknown US Passport 25 alphanumeric characters 30 alphanumeric characters Mmddccyy format Mmddccyy format Mmddccyy format 214 EPL, Inc. Training Department

221 Maintain Applicant Identification Identification 3 Field Description Valid Entries/Comments Documentary Flag: ID Type: ID Description: ID Number: ID Issuance Date: ID Expiration Date: ID Verification Date: Indicates the type of identification the member presents. Indicates additional information regarding the identification the member presented. Indicates the identification number of the type of ID the member presented. Indicates the date the ID was issued. Indicates the date the ID will expire. Indicates the date the credit union verified this ID. Valid Values: Documentary Identification Non- Documentary Identification Valid Values: Foreign Government Issued ID Foreign Passport Known Existing Member Military ID Card Resident Alien Card State ID Card Unknown US Passport 25 alphanumeric characters 30 alphanumeric characters Mmddccyy format Mmddccyy format Mmddccyy format 14. Click on the <Save> button to update all file maintained fields. 15. Click on the <Cancel> button to return to the Owners screen. 16. Click on the <Done> button to return to the Account Profile screen. ~end~ 215 EPL, Inc. Training Department

222 Warnings and Locks Use the following procedure to view, set, or remove a lock or warning flag on the individual consumer loan or on the share account which in turn locks all associated suffixes. Both share lock and warning codes display on all monetary screens and on the Account Profile screen, however the individual consumer loan locks and warnings are accessed via the consumer loan suffix drop-down list. A warning code alerts you to an exception condition. It does not prevent transactions. A lock code prevents over-the-counter financial transactions from being posted to the share account and all associated suffixes. It will not prevent service charges or payroll postings. Warnings and Locks are credit union defined, however, the Lock codes have specified system interpreted values and Warnings have system-generated codes/descriptions that are not file maintainable. Please refer to the Customizing i-power Settings Guide for detailed information on the setup and maintenance of these fields for all types of suffixes. Share Locks Values System Interpreted Values must be removed by Supervisor with file maintenance before transaction can post require supervisor override for any withdrawals or paid out transactions on the account but no restraints for payments or deposits (paid in) require supervisor override for any transactions including paid in and paid out Share Warnings Number Description 1 Missing Members name and address 2 Share withdrawals in the current month (MTD) exceed the maximum number of share withdrawals allowed 4 Missing new account file maintenance (birth date, SSN, ownership code) 5 Combination of warning flags 1 and No date of birth 11 Combination of warning flags 1 and Frozen share pledge amount Mortgage Loan Locks Values System Interpreted Values Credit Union Defined Descriptions No monetary transactions allowed until the lock is removed. 80 New loan file maintenance has not been completed Credit Union Defined Descriptions No monetary transactions allowed until the lock is removed. Mortgage Loan Warnings Number Description 1 Missing name and address 4 Missing new account file maintenance (birth date, SSN, ownership code, etc.) 5 Combination of warnings 1 and 4 8 Balance of loan exceeds line of credit amount 9 Delinquent loan 2-3 Credit Union Defined Descriptions 6-7 Credit Union Defined Descriptions Credit Union Defined Descriptions 216 EPL, Inc. Training Department

223 The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select Warnings and Locks. The Warnings and Locks screen displays: 2. To set or remove a lock or warning from the mortgage loan account, click on the <Modify> button. 217 EPL, Inc. Training Department

224 Warnings and Locks Field Description Valid Entries/Comments Loan Locks: Loan Warnings: Indicates the lockout in effect on the loan, which in turn prohibits all transactions from processing. If no lockout is in effect, any share lockout will reflect on the loan transactions. Indicates the warning in effect on the loan to alert the teller of conditions, which exist on the account. Transactions will be processed but the teller should respond to the warning. If no warning is in effect, any share lockout will reflect on the loan transactions. Valid Values: Credit Union Defined Descriptions No monetary transactions allowed until the lock is removed. 80 New loan file maintenance has not been completed Credit Union Defined Descriptions No monetary transactions allowed until the lock is removed. Valid Values: 01 Missing name and address 04 Missing new account file maintenance such as birthdate, social security number, ownership code, etc. 05 Combination of warnings 01 and Balance of loan exceeds line of credit amount. 09 Delinquent loan. 2-3 Credit Union Defined Descriptions 6-7 Credit Union Defined Descriptions Credit Union Defined Descriptions If multiple warnings apply, the order of priority is: 1 st warning flag 08, 2 nd warning flag 09, and 3 rd any manual warning flag. Any other warnings are user defined and maintained. The Warnings and Locks screen displays: 3. Click on the Locks drop-down list and select the appropriate code/description. If you are removing a lock or warning, select no lock. 218 EPL, Inc. Training Department

225 The Warnings and Locks screen displays: 4. Click on the Warnings drop-down list and select the appropriate code/description. If you are removing a warning, select no warning Click on the <Save> button when completed or <Cancel> to return to the Account Profile screen. The <Cancel> button does not save changes. ~end~ 219 EPL, Inc. Training Department

226 Mortgage Loan Future Payoff You can use this feature to determine the future payoff for the mortgage. Viewing and Printing Loan Payoff Information The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select Mortgage Loan Future Payoff. The Mortgage Loan Future Payoff screen displays: 2. Enter the date you want the system to calculate the future payoff to and click on the <Go> button. 220 EPL, Inc. Training Department

227 The Mortgage Loan Future Payoff screen displays: 3. To print this information, click on the <Print> button. The Adobe Reader window displays: 4. Click on the Print icon to advance to the Print dialog box. 221 EPL, Inc. Training Department

228 The Print dialog box displays: 5. Click on the <OK> button to send the document to the laser printer. The Adobe Reader window displays: 6. To close the window and return to the Maintenance History screen, click on the button located in the upper right corner of the window. 222 EPL, Inc. Training Department

229 The Mortgage Loan Future Payoff screen displays: 7. Click on the <Cancel> button to return to the Account Profile screen. ~end~ 223 EPL, Inc. Training Department

230 General Mortgage Loan Information The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select General Mortgage Loan Info. The Mortgage Loan Maintenance screen displays: 2. Click on the <Modify> button. You may have to scroll to the bottom of the screen to click on the <Modify> button. 224 EPL, Inc. Training Department

231 225 EPL, Inc. Training Department

232 Mortgage Loan Maintenance Loan Information Mortgage Loan Maintenance Loan Information Field Description Valid Entries/Comments Note Number: Indicates the note number assigned to the loan by the credit union. 6 alphanumeric characters entry is optional Officer: Collateral Code: Indicates the user defined loan officer code. Indicates the numeric code to describe the collateral of the loan. Valid Values: CU Defined Descriptions Please refer to the Mortgage Loan System Codes section of this document for detailed information on the setup and maintenance of these codes. 3 digits Open-end loans with credit limits are based on the IPB high and low Collateral Codes. Other valid entries are: 000, = student loan 092, 093, 095,099 = fully secured share (00 trailer on same account as loan) You may, however, define additional values as long as they do not conflict with the above values. If you use collateral code 33, the system will reduce the shares pledged by the principal amount of the loan payment. For codes 092, 093, 095, and 099, the pledged share amount can be reduced automatically by the principal amount of the payment that is, the amount of share pledged would continually decrease, and the amount of share available to the member would continually increase by the amount of the principal after each payment. If you use any of these codes, you must also complete the cross-pledge area of the screen. Please refer to the Mortgage Loan System Codes section of this document for detailed information on the setup and maintenance of these codes. Loan ID Type of Loan 0= conventional 1 = FHA 2 = FMHA 3 = VA 4 = construction Used in Census Bureau tracking Maturity Date: Create 1098 Form? Indicates the date that the loan will be matured (paid in full). mmddccyy format Yes = create 1098 form No = do not create 1098 form 226 EPL, Inc. Training Department

233 Class: Term: Type Code: Alternate Mail Frozen Date Closed: Forbearance Balance Forbearance Date Indicates the loan class used for this loan. Indicates the term, or the total number of payments on a loan. Indicates the numeric code to describe the type of the loan. Codes 001 through 999 are available and user-defined with the exception of the following which activate special functions within the system: Indicates mail correspondence destination Restricts access to the account because of a chargeoff, bankruptcy, Indicates the date the loan was paid off and closed. This field will be used to record the principal forbearance amount of the mortgage loan. The USER will be able to effective date the Forbearance transaction. The system will update the Forbearance Date based on the effective date of the transaction. 3 digits 3 digits 3 digits Valid Values: Code 075 has been hard-coded for real-estate loans. If you use this code and the interest is greater than $599.99, it will be reported on a 1098 form. Codes 060 through 069 have been hard-coded for student loans. If you typed 000 or a code between 060 and 069 in the COLLATERAL field, the loan type code must also be designated for student loans ( ). You may define additional values as long as they do not conflict with the above values. Please refer to the Mortgage Loan System Codes section of this document for detailed information on the setup and maintenance of these codes. 0 = mail correspondence to this address 1 = mail correspondence to an alternate address 1-9 Valid values defined by the Credit Union If you wish to block the account so that no transactions can take place, you must place a lockout on the share account. Mmddccyy format Read only The system will reduce the mortgage loan principal balance by the amount entered in transaction amount field and increase the Forbearance Balance amount field. The transaction amount cannot be greater than current principal balance of the mortgage/investor loan. Read only Mmddccyy format Member Business Loan This field indicates whether the consumer loan or loan draft is a Member Business Loan (MBL). Valid options: No - No, this is not a Member Business Loan (Default) Yes - Yes, this is a Member Business Loan 227 EPL, Inc. Training Department

234 Participation Loan This field indicates if the loan is a Participation Loan. Valid options: No - No, this is not a Participation Loan (Default) Yes - Yes, this is a Participation Loan Government Backed Participation Percentage This field indicates if the loan is Government Backed. This field indicates the percent of the Participation Loan that is owned Valid options: No - No, this is not Government Backed (Default) Yes - Yes, this is Government Backed Field size 5, default = ). Original Terms Mortgage Loan Maintenance Original Terms Original Loan Amount: Indicates the original loan amount (for both close and open-ended loans) or the highest balance of an openended loan. Monetary format Original Loan Date: Original Maturity Date Date First Payment: Original Term Original APR: Original Principal and Interest Indicates the date the loan was opened. Original Maturity Date of the loan. Indicates the date that the first payment is due. Mainly used for payroll payment loans. If payroll posting date is prior to the next payment date, the posting date must be file maintained in this field in order for the system to accept a loan payment at payroll posting. The day portion of this field is also utilized for establishing the next payment due date for new and/or zero balance loans awaiting overdraft. Duration of the loan in months Indicates the APR charged at the inception of this loan. Original principal and interest payment required to satisfy the mortgage obligation in the stated loan term. mmddccyy format This field is not updated by loan add-ons. mmddccyy format This date is calculated by advancing the original loan date by the original loan term in months. mmddccyy format Percentage format 9 digits This amount does not include the escrow amount. 228 EPL, Inc. Training Department

235 Payment/Escrow Information Mortgage Loan Maintenance Payment/Escrow Information Field Description Valid Entries/Comments Payment Method: Indicates the method by which loan payments will be made. Valid Values: 2 Cash Loan Payment 5 Payroll Loan Payment If the ADV DAYS field in your IPB is set, the system will not advance the loan s next payment due date beyond the specified advance days. 7 Payoff at CD Maturity If the payoff is by certificate at its maturity. The loan must be cross-pledged to the certificate. When the certificate matures, the system will check to see if a loan has been cross-pledged against it. If so, the system checks the entry in this field. If the value in the field is 7, the system will perform the following transactions on the day the certificate matures: 1. Pay the interest to the certificate. 2. Transfer the new certificate balance to the loan trailer. If the proceeds from the certificate are not enough to completely pay off the loan, the system applies all available proceeds against the loan and prints this account on the Exception Report so that your credit union can take steps to collect the remaining balance. If the balance in the certificate is greater than the payoff amount, the remaining funds will be handled according to the instructions specified by the maturity option set up in the certificate record 9 Transfer for Payment Date Next Payment: Indicates the date the next payment is due. mmddccyy format The next due date remains the same until the entire scheduled payment amount has been posted. 229 EPL, Inc. Training Department

236 Alternate Payment Partial Payment Amount: Indicates the payment amount the member will pay for a period of time that is different from the scheduled amount. Indicates any partial payments credited against the loan balance. When this field equals or exceeds the scheduled payment, the due date will roll forward one payment cycle. monetary format If a member needs to pay a different payment amount from the scheduled payment amount for a period of time, enter that amount in this field. Once the member is ready to resume the original payment amount, file-maintain this field to zero. As long as an amount greater than zero appears in this field, the system will track the loan by that amount, overriding whatever amount appears in the Payment Amount field. When an alternate payment is being used, the letter A appears next to the payment amount field on the Account Profile screen. monetary format When the full payment amount has been reached, the amount in the field returns to zero. Thus, this field is useful in determining loan status, and is also used in i- POWER s delinquency calculation and reporting. Unpaid Miscellaneous Payment Frequency: Amount of miscellaneous items due, but not paid to date Indicates how often payments are scheduled to be made on this loan. monetary format Valid Values: 01 Annual /One payment a year on a specified day. 02 Semi-annual/Is set according to the first payment date and then 6 months later and remains the same every year. 04 Quarterly 12 Monthly Payments 24 Semi-monthly/is every 15 days regardless of the first payment date. If the first pmt is 1/5 the next is 1/20, from that point on, the payments for the subsequent months will be 2/5 & 2/20, 3/5 & 3/20, and so on. When one of the payments are the last day of the month, it will always be the last day of the month, regardless if it is the 30 th, 31 st or 28 th, it will always be the last day of the month. 25 Bi-weekly/Works like the every 14 days, except that the 3 rd payday of any month is always skipped when resetting the next payment date. There are 2 months of the year that will have 3 pay days when using the every 14 day frequency and some companies do not take any distribution on that 3 rd check. These paychecks are referred to a free check. 26 Every 14 days/is just that, based on the first payment date, is due every 14 days, which is on the same day of every week 52 Weekly 99 Single Payment 230 EPL, Inc. Training Department

237 Principal and Interest Payment Escrow Payment Unpaid Escrow Number of Payment Coupons The principal and interest payment required to satisfy the mortgage obligation in the stated loan term. Current escrow payment required to satisfy the tax and/or insurance obligations stated in the member record. Amount of escrow due but not paid to date. NOTE: For a monthly frequency loan, if the payment date is changed after the initial set up, the First Payment Date must also be changed. Our system uses the DAY of the first payment date to set the Next Payment Date. This is also true for the Annual frequency. For example: if a member decides they want their payments due on the 15 th rather than the 10 th of the month, when the Next Payment Date is file maintained to the 15 th of the month, they must also set the First Payment Day if not, after that payment is made, the system will look at the First Payment date to set the next, if it is not changed at the same time, it will revert back to the 10 th of the month. 9 digits This amount does not include the escrow amount. 9 digits 9 digits This field is not applicable to amortized mortgage loans. 231 EPL, Inc. Training Department

238 Interest Mortgage Loan Maintenance Interest Field Description Valid Entries/Comments Interest Method Interest calculation used A = amortized S = simple Interest Rate: Indicates the interest rate used for the loan. percentage format Unpaid Interest: Interest YTD Points: Interest Calculation Method Interest Date: Prior Year Interest: Interest Life: Interest Reimbursed: Indicates any interest accrued but not paid as of the last interest date. Any loan transaction that does not satisfy interest due (add-ons, short payments, reversals, interest decrease, etc.) will cause this field to be affected. Negative amount is an interest credit to the loan. Indicates the year to date interest paid on the loan. Indicates the amount of points to be charged to the member at the time of closing of the loan. This amount will be reported on the 1098 forms at end of year. Type of year used to calculate the daily interest factor. Indicates the date through which interest on the loan has been accrued; usually last transaction date. Any interest unpaid as of this date will be stored in the Unpaid Interest field. Indicates the total amount of interest paid for the prior year Indicates the loan to date interest paid on the loan. This is known as the amount of interest paid during the life of the loan. Indicates the total amount of interest reimbursed for the prior year. monetary format NOTE: When payments are current, this field will contain zeroes. monetary format monetary format days (366 in leap year) 360 days 364 days 365 days (regardless of leap year) 366 days (leap year) mmddccyy format Interest is accrued from the date shown in this field to the current date. monetary format Reported on the 1098 form. monetary format monetary format Reported on the IRS 1098 form. Includes all accounts with reimbursed interest of $ or more, or all loans with year-to-date interest of $ or more. 232 EPL, Inc. Training Department

239 Adjustment Options Mortgage Loan Maintenance Adjustment Options Field Description Valid Entries/Comments Commit Date The date the new rate was committed. mmddccyy format Interest Adjustment Date: Payment Adjustment Date: Escrow Adjustment Date Commit Rate: Commit Principal/Interest Payment: Commit Escrow Payment Indicates the date of the next variable rate loan interest adjustment. Indicates the date of the next variable rate loan payment adjustment. Date of the next escrow adjustment Indicates the interest rate committed to the member to go into effect on the next interest adjustment date. Indicates the adjusted payment commitment amount. New (commit) escrow amount (after escrow analysis) mmddccyy format FOR VARIABLE-RATE MORTGAGE LOANS ONLY mmddccyy format Type an entry in this field only if you want the payment to be adjusted on a specific date. The system calculates and inserts a date in this field if 2 is entered in the payment adjustment option field in the loan class record. The value 2 indicates that the payment is to be adjusted without extending the maturity date of the loan. FOR VARIABLE-RATE MORTGAGE LOANS ONLY mmddccyy format. percentage format Used with variable-rate loans when an entry has been made in the pre adjust days field in the loan class record. If the rate adjustment option field in the loan class record is set to zero, or if this loan has a fixed interest rate, this field will show zeroes. If committing a new rate, this field will show zeroes up to the date notices are sent announcing the new rate, and then again after that rate becomes effective (that is, when the interest adjustment date is reached). Thus, the only time you will see an interest rate in this field is during the period between the notification of members and the actual date the new rate becomes effective. FOR VARIABLE-RATE MORTGAGE LOANS ONLY monetary format Used with closed-end variable-rate loans when an entry has been made in the pre-adjust days field and 2 is entered in the payment adjustment option field in the loan class record. The system calculates and inserts the new payment amount after the next payment adjustment goes into effect (unless the loan is delinquent). This amount appears only during the period from the day notices are generated to the date the payment becomes effective. At all other times, zeroes are displayed in this field. FOR VARIABLE-RATE MORTGAGE LOANS ONLY 9 digits 233 EPL, Inc. Training Department

240 Margin: Margin Variance Cap Life Cap Sign Cap Option Cap Rate Floor Rate: Adjustment Rate Minus Adjustment Rate Plus Variable Rate Next Index Variable Rate Prior Index Indicates the difference between the user rate index and actual interest rate of the loan (APR) How the margin is to be calculated. Indicates the maximum interest rate that a variable-rate loan can adjust from the original rate over the life of the loan. Indicates how adjustments are allowed. Indicates if and how caps are used for this loan. Indicates the maximum interest rate that a variable-rate loan can adjust (up or down) over a given term. Indicates the minimum APR that can be charged for this loan. New (commit) index on the mortgage loan Previous index on the mortgage loan percentage format FOR VARIABLE-RATE MORTGAGE LOANS ONLY 0 = add margin to index 1 = subtract margin from index FOR VARIABLE-RATE MORTGAGE LOANS ONLY percentage format FOR VARIABLE-RATE MORTGAGE LOANS ONLY Valid Values: 0 = Plus or Minus adjustments allowed 1 = Plus only adjustments allowed FOR VARIABLE-RATE MORTGAGE LOANS ONLY Valid Values: 0 = Caps not used 1 = Use life cap only 2 = Use term cap only 3 = Use life and term caps FOR VARIABLE-RATE MORTGAGE LOANS ONLY percentage format FOR VARIABLE-RATE MORTGAGE LOANS ONLY percentage format FOR VARIABLE-RATE MORTGAGE LOANS ONLY 6 digits 6 digits 234 EPL, Inc. Training Department

241 Pre-Adjust Days Rate Category Number of days prior to a rate adjustment that a notice is sent to the member. Method used to calculate rate changes The value in this field enables the system to commit to a payment amount and interest rate prior to the actual adjustment, as well as to commit a new escrow amount. On the commit date (based on the preadjustment days), the system calculates a new payment amount, using the interest rate from the class record, and enters this payment amount in the COMMIT PAYMENT field and the interest rate in the COMMIT RATE field on the Loan Critical Data screen. Preadjustment notices are generated and should be mailed to the member. On the commit date (based on the preadjustment days), the system performs an escrow analysis to calculate a new escrow amount and enter this amount in the commit escrow field. The system also generates Escrow Analysis History and Projection statements for you to mail to the member. The Member Profile screen will display the new committed payment and/or escrow amount if the next payment due date is equal to or greater than the next adjustment date. You should complete this field for fixed-rate mortgages because of escrow analysis on mortgages with tax and/or insurance escrows. 0 =interest rate only 1 =index and margin 2 =index and margin (1/8 rounding method used) FOR VARIABLE-RATE MORTGAGE LOANS ONLY 235 EPL, Inc. Training Department

242 Line of Credit Mortgage Loan Maintenance Line of Credit Field Description Valid Entries/Comments Line of Credit Limit: Indicates the line of credit amount associated with the loan. This amount could possibly increase or require supervisor override to bypass this amount if a loan add-on results in the balance being greater than this amount. monetary format whole dollars Line of Credit Expiration Date (mmddccyy): Construction Draws Construction Close Date Indicates the line of credit expiration date. CU maintains for inquiry purposes only; no system updates. Number of draws made against the construction loan to date. For construction loans, the date set for draws to be complete and the balance rolled into a long term mortgage loan. mmddccyy format 1-9 mmddccyy format 236 EPL, Inc. Training Department

243 Insurance Mortgage Loan Maintenance Insurance Field Description Valid Entries/Comments Insurance Code: Indicates the insurance rate code. This field (code) is used for credit life insurance taken out of the loan payments or used to add on the premium amount to the loan in an offline mode. Valid Values: System Defined 0 No Insurance 1 Single Credit Life 2 Disability 3 Single Credit Life and Disability 4 Joint Credit Life 5 Joint Credit Life and Disability CU Defined 6 99 CU Defined Descriptions Please refer to the Mortgage Loan System Codes section of this document for detailed information on the setup and maintenance of these codes. Tape Insurance: Insurance YTD Indicates the user-defined insurance code. Field is also used to identify those members participating in a user specified insurance program. There is an i-power program available which produces a tape of all loans with a Tape Insurance field > 0. Valid Values: CU Defined Descriptions (VCI122, VCI129, & VCI130) Please refer to the Mortgage Loan System Codes section of this document for detailed information on the setup and maintenance of these codes. 237 EPL, Inc. Training Department

244 Late Charge Mortgage Loan Maintenance Late Charge Field Description Valid Entries/Comments Late Charge Plan: Indicates if and how late charges are calculated. Valid Values: 0 No Late Charge 1 Computed on Interest Due 2 Percentage of Unpaid Payment (All Loans) 3 Fixed Amount per Payment (will only display for mortgage loans) 4 Scheduled Payment less Partial Payment 5 Percentage of Unpaid Payment (This Loan) 7 Scheduled Payment Diff Min/Max Late Charge Date: Unpaid Late Charge: Late Factor Late Charge YTD Late Charge Life Assessed Late Charge Indicates the late charge date. This field is used to aid in determining the correct number of payments subject to late charges. Indicates any late charges accrued but not paid. Any late charges due but not paid as of the last interest date when the late charges are calculated as a percent of the interest due. Any loan transaction that does not satisfy late charge amount due (add-on, short payments, reversals, etc.) will cause this field to be updated. This percentage is only used when the mortgage loan s Late Charge Plan is using Late Charge Plan = 5. Late charges paid during the current year. Late charges paid over the life of the loan. This field will be the late charge assessed and control the minimum/maximum late charge assess for the current scheduled payment. Default value = 0 This field is only applicable to Late Charge Plan 1. mmddccyy format An example is if a member is 3 months delinquent and an amount equal to one payment is made, the system will assess 3 late charges. In this case, the date of next payment will be advanced 1 frequency while the late charge date will be advanced by 3 frequencies. If a payment is made on time the next month, late charges will not be assessed, as the late charges applicable are current. * Same value as in the Date Next Payment field monetary format Percentage format 9 digits. Monetary format. 9 digits. Monetary format. 9 digits. Monetary format. It will be reset to zero each time a full scheduled payment has been received. If no minimum/maximum is used, this field will have no effect on how late charges are calculated. This is mainly used when the credit union uses the percent of interest late charge calculation, Late Charge Plan = 1. Field is only enabled if Late Charge Plan = EPL, Inc. Training Department

245 Delinquency Mortgage Loan Maintenance Delinquency Field Description Valid Entries/Comments Delinquency Method: Delinquency method used B = delinquency method B D = delinquency method D (used for mortgages having a term of less than 15 years). Delinquency Notice: Indicates the option for notices and small collection cards. This field applies only to credit unions that normally have more than one card or notice produced for delinquency notification. After the delinquency is cleared with the member, this field will need to be file maintained to "0". Valid Values: 0 Produce Notice 1 Do Not Produce Notice (VCU600) 239 EPL, Inc. Training Department

246 Delinquency/Method B Data Mortgage Loan Maintenance Delinquency/Method B Data Field Description Valid Entries/Comments Target Balance Target balance used in Method B delinquency calculation. 9 digits. Monetary format. Target Interest Target Date Unapplied target interest used in Method B delinquency calculation. Target date used in Method B delinquency calculation. Valid Values: 0 Produce Notice 1 Do Not Produce Notice (VCU600) mmddccyy format. 240 EPL, Inc. Training Department

247 Borrower Mortgage Loan Maintenance Borrower Field Description Valid Entries/Comments Employee: Type of credit union employee. Valid Values: Non Employee E = Employee O = Officer D = Director Phone 1 Phone 2 Credit Score: Credit Score Date: ECOA Code Telephone number of employee. Alternate telephone number of employee. Indicates the credit evaluation quotient on the last credit evaluation. Indicates the date of last credit evaluation date. Indicates the assignment of responsibility for this debt. Used for credit bureau reporting. 10 digits 10 digits 5 digits This field is maintained by the credit union. mmddccyy format This field is maintained by the credit union. Valid values: 1 Individual 2 Joint Contractual Liability 7 Maker T Terminated X Deceased W Business/Commercial Z Delete Consumer NOTE: The joint owner is reported to the credit bureau if your credit union uses credit reporting. ~end~ 241 EPL, Inc. Training Department

248 Discharge Debt When a debt is discharged: The credit union gives up rights to collect. The discharge debt must be reported to the Internal Revenue Service. The debt is not considered delinquent. The values in all the fields on the Discharge Debt Maintenance screen are reported to the member and to the IRS at the end of the year. Discharged debts appear in the Status field as Discharged on the Account Profile screen. The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select Discharge Debt. 242 EPL, Inc. Training Department

249 The Discharge Debt Maintenance screen displays: 2. Click on the <Modify> button. 3. The following fields display: Discharge Debt Maintenance Balances Field Description Valid Entries/Comments Current Balance: Payoff Amount: Interest: One Days Interest: Late Charge: Insurance: One Days Insurance: Indicates the balance of the loan account. Indicates the amount required to pay off the debt (includes all interest and fees). Indicates the total amount of interest due. Indicates the interest amount due on any one day. Indicates the total amount of late charges due on the debt. Indicates the unpaid insurance premium. Insurance amount due on any one day. read only monetary format read only monetary format read only monetary format read only monetary format The system multiplies the annual insurance rate by the balance and then divides the result by 365. read only monetary format read only monetary format read only monetary format The system multiplies the annual insurance rate by the balance and then divides the result by EPL, Inc. Training Department

250 Discharge Debt Maintenance Discharge Data Field Description Valid Entries/Comments Code: Indicates the discharge code. Valid Values: 0 - Not Discharged 1 - Discharged 2 - Discharged By Bankruptcy Court Effective Date: Indicates the discharge date. mmddccyy format Debt Amount: Interest Amount: Admin Costs: Debt Description: Indicates the total amount of the debt to be discharged. Indicates the total amount of interest to be discharged. Indicates the total of any late fees, origination fees, or other administrative fees that were discharged. Indicates a brief description of the debt or reason for the discharge. monetary format monetary format monetary format 25 alphanumeric characters The Discharge Debt Maintenance screen displays: 4. Once all modifications are made, click on the <Save> button to return to the Account Profile screen. ~end~ 244 EPL, Inc. Training Department

251 Property/Mortgage The Property/Mortgage option allows you to enter pertinent information about the property for which this mortgage is being obtained. The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select Property/Mortgage. The Mortgage Loan Maintenance/Property/Mortgage screen displays: 2. Click on the <Modify> button. 245 EPL, Inc. Training Department

252 3. The following fields display: Discharge Debt Maintenance Balances Field Description Valid Entries/Comments PROPERTY CLASS Classification of the property = 1 family, purchase = 2 family, purchase = 3 family, purchase = 4 family, purchase = 1 family, home improvement = 2 family, home improvement = 3 family, home improvement = 4 family, home improvement = 1 4 family, non-occupant = 5 or more family dwelling = condominium, purchase = condominium, improvement = lot purchase = user-defined, purchase = user-defined, improvement Used in census tract reporting. FHLB PLEDGED Signifies this loan is insured by FHLB. 0 = not insured by FHLB 1 = insured by FHLB If this property is not insured by FHLB, do not type a value in this field. NEW/USED Status of the property. N = new U = used FORECLOSURE AMOUNT Amount due from the foreclosure proceedings (if forced to foreclose). 10 digits, monetary format YEAR BUILT Year the structure was built. ccyy format FORECLOSURE DATE Date of the foreclosure. mmddccyy format OCCUPANT How the member will use the property. 0 = primary residential 1 = primary farm 2 = other residential 3 = other farm 4 9 = defined by credit union ATTORNEY Name of the attorney handling the foreclosure proceedings. 20 alphabetic characters 246 EPL, Inc. Training Department

253 Field Description Valid Entries/Comments HUD ASSUME AMOUNT FHA SECTION NUMBER Indicates that this is an FHA loan insured by HUD. Balance of the mortgage at the point of assumption. Assigned by FHA. If this is not an FHA loan insured by HUD, leave this field blank. 10 digits, monetary format Used for FHA reporting. ASSUME DATE FHA CASE NUMBER ASSUME MEMBER Date of the mortgage assumption. Assigned by FHA. Account number and trailer of the member assuming the mortgage. mmddccyy format Used to identify the loan in correspondence between the FHA and your credit union. Do not type spaces or hyphens. For example, if the account number is 1951 and the trailer number is 31, you would type The Mortgage Loan Maintenance/Property/Mortgage screen displays: 4. Once all modifications are made, click on the <Save> button to return to the Account Profile screen. ~end~ 247 EPL, Inc. Training Department

254 Tax/Insurance/Legal The Tax/Insurance/Legal option allows you to enter pertinent tax/insurance/legal description information about the property for which this mortgage is being obtained. The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select Tax/Insurance/Legal. The Mortgage Loan Tax/Insurance/Legal List screen displays. You can use this screen to add a member insurance record, add a member tax record and/or setup the legal description for the property. These procedures were described earlier in this document: Opening a member insurance record, Page 159 Opening a member tax record. Page 164 Setting up the legal description, Page EPL, Inc. Training Department

255 Credit Bureau The Credit Bureau option allows you to maintain information about this account to be submitted to the credit bureaus. The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select Credit Bureau. The Credit Bureau Maintenance screen displays: 2. Click on the <Modify> button. 249 EPL, Inc. Training Department

256 The Credit Bureau Maintenance screen displays: 3. Complete all applicable fields as defined by your credit union s policies and procedures. Credit Bureau Maintenance Data Field Description Valid Entries/Comments Credit Bureau Account Type: Credit Bureau Account Type: (continued) Indicates the generic credit reporting account type for this loan class. Indicates the generic credit reporting account type for this loan class. Valid Values: 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 Valid Values: 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 250 EPL, Inc. Training Department

257 Account Status: Special Comments: Indicates the loan account status that is reported to the credit bureau(s). Indicates the loan account comments that are reported to the credit bureau(s). Valid Values: 05 Account Transfer to Another Office 11 Current Account 13 Paid or Closed Account 41 Deletes Entire Account 61 Account Paid in Full was a Voluntary Surrender 62 Account Paid in Full was a collection account, insurance or government claim 63 Account Paid in Full was repossession 64 Account Paid in Full was a charge off 65 Account Paid in Full, A Foreclosure was Started 71 Account 30 Days Past the Due Date 78 Account 60 Days Past the Due Date 80 Account 90 Days Past the Due Date 82 Account 120 Days Past the Due Date 83 Account 150 Days Past the Due Date 84 Account 180 Days Past the Due Date 88 Claim Filed with Government for Insured Portion of Balance on a Defaulted Loan 89 Deed Received in Lieu of Foreclosure on a Defaulted Mortgage 93 Account Seriously Past Due and/or Assigned to Internal or External Collections 94 Foreclosure/Credit Grantor Sold Collateral to Settle Defaulted Mortgage 95 Voluntary Surrender 96 Merchandise was repossessed by Credit Grantor, May be Balance Due 97 Unpaid Balance Reported as a Loss by Credit Grantor (Charge-Off) Valid Values: I Election of Remedy M Account Closed as Creditor Grantor s Request AP Credit Line Suspended BB Lease Full Termination/Status Pending BC Lease Full Termination/Obligation Satisfied BD Lease Full Termination/Balance Owing BE Lease Full Termination/Status Pending BF Lease Full Termination/Obligation Satisfied BG Lease Full Termination/Balance Owing BH Lease Full Termination/Insurance Loss BI Lease Involuntary Repossession BJ Lease Involuntary Repossession/Obligation Satisfied BK Lease Involuntary Repossession/Balance Owning BL Credit Card Lost or Stolen BS Prepaid Lease AS Account Closed Due to Refinance AT Account Closed Due to Transfer 251 EPL, Inc. Training Department

258 AM Account Payment Assured by Wage Garnishment S Special Handling V Adjustment Pending AV First Payment Never Received AW Affected by Natural Disaster AZ Redeemed Repossession BO Foreclosure Proceedings Started B Accounts Payments Managed by Credit Counseling Service C Paid by Comaker AB Debt Being Paid Through Payment Agreement AC Paying Under a Partial Payment Agreement AG Single Interest Loan Compliance Condition Code: Indicates the compliance condition code and consumer information indicators that are reported to the credit bureau(s). Valid Values: XA Account Closed as Consumers Request XB Account Information Disputed by Consumer XC Completed Investigation of FCRA Dispute Consumer Disagrees XD Account closed at Consumers Request and Dispute Under FCBA XE Account Closed at Consumers request and Dispute Investigation Completed, Consumer Disagrees. XF Account in Dispute Under FCBA XG FCBA Dispute Resolved Consumer Disagrees XH Account Previously in Dispute Now Resolved, reported by Credit Grantor XR Removes the Most Recent Reported Compliance Condition Code Consumer Information Indicators: Indicates the compliance condition code and consumer information indicators that are reported to the credit bureau(s). Valid Values: A Petition for Chapter 7 Bankruptcy B Petition for Chapter 11 Bankruptcy C Petition for Chapter 12 Bankruptcy D Petition for Chapter 13 Bankruptcy E Discharged through Bankruptcy Chapter 7 F Discharged through Bankruptcy Chapter 11 G Discharged through Bankruptcy Chapter 12 H Discharged through Bankruptcy Chapter 13 I Chapter 7 Bankruptcy Dismissed J Chapter 11 Bankruptcy Dismissed K Chapter 12 Bankruptcy Dismissed L Chapter 13 Bankruptcy Dismissed M Chapter 7 Bankruptcy Withdrawn N Chapter 11 Bankruptcy Withdrawn O Chapter 12 Bankruptcy Withdrawn P Chapter 13 Bankruptcy Withdrawn Q Removes Bankruptcy Indicator Previously 252 EPL, Inc. Training Department

259 Reported R Reaffirmation of Debt S Removes Reaffirmation of Debt and Reaffirmation of Debt Indicators Previously Reported T Credit Grantor Cannot Locate Consumer U Consumer Now Located (Removes Previous T Indicator) V Chapter 7 Reaffirmation of Debt Rescinded W Chapter 11 Reaffirmation of Debt Rescinded X Chapter 12 Reaffirmation of Debt Rescinded Y Chapter 13 Reaffirmation of Debt Rescinded The Credit Bureau Maintenance screen displays: 4. Once all fields have been updated, click on the <Save> button to return to the Account Profile screen. ~end~ 253 EPL, Inc. Training Department

260 Assign Loan to Investor The Assign Loan to Investor option is used to warehouse, sell, or repurchase a specified mortgage loan. Before attempting to sell a loan, you must first set up your investor records as described earlier in this section. Also, this screen should only be used by persons knowledgeable of investor rules and guidelines as well as with the Mortgage Loan Secondary Market Investor Servicing module rules. For example, if the mortgage account has not been established with a due date of the first day of the each month, you will receive an error message at this screen. Thus, you may wish to check the mortgage record (refer to your Mortgage Loan documentation) to be sure the payment due date is set for the first of each month. When a loan is sold, the Investor Servicing program automatically opens a corresponding unapplied escrow club account with a zero balance to store unapplied funds as required by investors. The club trailer assigned to this account is determined by your trailer assignments in the IPB (IP-CB-TYPE should equal 3, which is unapplied ). When opened, the system prints the trailer information on the Mortgage Loan File Maintenance Report and the New Club Account Report. Note that if your credit union allows multiple mortgages per member, you must reserve more than one club trailer number to be used for unapplied funds accounts. For example, if a member has two mortgages which have been sold, the first mortgage may use club trailer 33 as the unapplied funds account. The second mortgage cannot use the same account, so it may be assigned club trailer 34. Two other club accounts are also defined for use with mortgages sold to investors. You can set up a club account for loss drafts when needed to hold funds from insurance claims (e.g., for disaster repair). The club trailer assigned to this account is defined in the IPB (IP-CB-TYPE should equal 4). The club trailer for the tax and insurance escrow club account is defined here also (IP-CB-TYPE should equal 2). Since investors require full payment each month, partial payments are not accepted. If, however, members have a portion of each payment deducted from their paychecks weekly, this deduction will be deposited in the unapplied escrow account. Once the full payment has accumulated, the system automatically transfers it from this unapplied funds account. This account can also be used if the member sends more than the monthly payment and fails to specify where the excess funds are to be deposited. Once you have contacted the member, the excess funds can then be transferred from the unapplied funds account to whatever account the member specifies. The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select Assign Loan to Investor. 254 EPL, Inc. Training Department

261 The Investor Loan Assignment screen displays: 2. Click on the <Modify> button. 3. Complete all applicable fields as defined by your credit union s policies and procedures. Investor Loan Assignment Data Field Description Valid Entries/Comments CU Investor ID This field shows the investor number entered when selecting this option. This field cannot be edited at this screen. If the wrong code has been entered, exit this screen and reenter. ML-INVESTOR 255 EPL, Inc. Training Department

262 Principal Balance This field contains the principal balance of the loan (as of today s date). This field cannot be changed. ML-PRIN-OUT-BAL Investor Loan Number This ten-digit numeric field is used to enter the account number being assigned to this account by the investor. 10 digits. ML-INV-LN-NBR Investor Loan Group Number This ten-digit numeric field is used if the present loan was sold to the investor as part of a group (even if the group contained only this one account). This is the group number assigned by the investor. 10 digits. ML-INV-GROUP-NR 256 EPL, Inc. Training Department

263 Date Principal Sold Enter the date this loan was acquired by the investor. This date should be entered in the usual MMDDCCYY format (Month, Day, Year). ML-SOLD-DT Amount Principal Sold This eleven-digit, dollars and cents field contains the balance of the loan sold to the investor. This entry should generally equal the amount in Principal Balance. If the sale of this loan will not be final for several days, a week, or whatever, the investor may give you what the balance will be at that time and you can enter that amount in this field. 11 digits. Standard monetary format. ML-SOLD-PRIN-AMT Percentage Sold This field must remain as 100 (for 100%). The Investor Servicing module currently only supports the sale of 100% of the loan balance. ML-PCNT-ACQR Noteholder Code This one-digit code indicates who holds the mortgage note. Valid entries are: 0 = Note held by the investor 1 = Note held by the servicer 2 = Note held by a third party ML-NOTE-HOLDER-CD Noteholder Name (if 3rd Party) If a third party holds the note on this mortgage, enter the name of the third party in this 30-position, alphanumeric field. This information is required by and sent to the investor. 30 alphanumeric characters. ML-INV-NAME 257 EPL, Inc. Training Department

264 Sold Loan Code An entry in this field indicates the ownership of the loan. Valid entries: Not Sold = CU Owned. This indicates the loan is still owned by your credit union. You can go from Not Sold (credit union-owned) to a W (Warehoused). You cannot change Not Sold to an I (Sold to investor) or to an R (Repurchased). W=Warehoused. A loan must be warehoused before it can be sold. From W = Warehoused, you can change this to I (Sold) or back to Not Sold (credit union owned). I = Sold to Investor. Once a loan has been warehoused (W), you can change this to an I when it is sold. From Sold, you can only change this to an R (Repurchased). R = Repurchased. If your credit union must repurchase a sold loan from an investor, enter R in this field. From R, you can go to Not Sold (if your credit union chooses to keep this mortgage), or to a W if you are trying to sell it again. ML-SOLD-IND Current Pass Through Rate This six-digit field is used to enter the current interest rate being paid to the investor. Interest entries do not contain a decimal point. For example, an entry of is 11.5%. 6 digits. ML-INV-INT-RATE Servicing Fee (Rate) If your credit union is collecting a fee for servicing this loan for the investor, the percentage of the loan payment s interest is entered in this six-digit field. Interest entries do not contain a decimal point. For example, an entry of is 3.78%. 6 digits. ML-SVC-FEE-RAT Excess Yield Rate The Excess Yield Rate is achieved by subtracting the Pass Through Rate from the Note Rate and then subtracting the servicing fees from this total. This field is six digits and is a percentage of any excess interest yield returned. Thus, it is entered in the same manner as described for Current Pass Through Rate or Servicing Fee. 6 digits. ML-EXC-YIELD-RATE 258 EPL, Inc. Training Department

265 Loan Purchase Indicator This one-digit code indicates the value purchased. Special edits are performed on the pass through rate and servicing fee depending on your entry in this field. Valid entries are: 1 = Purchased as par value the servicing fee plus the pass through rate equals the annual loan rate. The excess yield equals zero. 2 = Purchased at premium the servicing fee plus the pass through rate plus the excess yield will be greater than the annual rate. 3 = Purchased at a discount the servicing fee plus the pass through rate will be less than the annual rate. The excess yield will equal zero. ML-PUR-IND The Investor Loan Assignment screen displays: 4. Once all fields have been updated, click on the <Save> button to return to the Account Profile screen. ~end~ 259 EPL, Inc. Training Department

266 FASB 91 Tracking Expense and Income i-power offers the ability to automatically track you credit union s expense and income for each mortgage loan over the life of the loan, as required by FASB 91. When you open a new loan, you will enter the total amount of the credit union s expense for the loan in the Original Expense field on the Book Loan screen and the total amount of the income to be generated from the loan in the Original Income field on the Book Loan screen. Upon booking the loan, the system inserts these amounts into the following fields on the Mortgage Loan Maintenance screen of the FASB 91 menu option: The Book Loan screen displays: The Mortgage Loan Maintenance screen displays: 260 EPL, Inc. Training Department

267 Although the values in the Original Expense and Original Income fields on the Mortgage Loan Maintenance screen never change (unless you file maintain them), the values in the remaining four fields will change. At the end of the month, the systems uses the following formulas to calculate the new values for these four fields. Unamortized Expense: Current Unamortized Expense Number of months remaining in loan = new Unamortized Expense Unamortized Income: Current Unamortized Income Number of months remaining in loan = new Unamortized Income Monthly Expense: Current Unamortized Expense Number of months remaining in loan = new Monthly Expense Monthly Income: Current Unamortized Income Number of months remaining in loan = new Monthly Income The monthly Loan Income/Expense Amortization Report provides your credit union with the detail needed for general ledger entries, including original expense, monthly amortized expense, remaining amortized expense, original income, monthly amortized income, and remaining amortized income. In addition, the report includes each member s account number and an aggregate total at the end. When a loan is closed, the system reports the remaining amount in the Unamortized Expense and Unamortized Income fields for that month s expenses and income figures. 261 EPL, Inc. Training Department

268 File maintaining expense and income information If you need to file maintain expense and income information, use the following procedure: The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select FASB 91. The Mortgage Loan Maintenance/FASB 91 screen displays: 2. Click on the <Modify> button. 262 EPL, Inc. Training Department

269 3. Complete all fields as applicable: Mortgage Loan Maintenance FASB91 Field Description Valid Entries/Comments Original Expense: Original Income: Monthly Expense: Monthly Income: Unamortized Expense: Unamortized Income: Indicates the total credit union expense for the loan. Indicates the total credit union income for the loan. Indicates the expense amortized last month for the loan. Indicates the income amortized last month for the loan. Indicates the remaining unamortized expense for the loan. Indicates the remaining unamortized income for the loan. monetary format Data Base Field Name: LN-TOTAL-EXPENSE monetary format Data Base Field Name: LN-TOTAL-INCOME monetary format Data Base Field Name: LN-LST-MONTH-EXP monetary format Data Base Field Name: LN-LST-MONTH-INC monetary format This amount will decrease monthly since a portion of the original expense is amortized each month (and thus deducted from the total). By the end of the loan, this field will equal zero. Data Base Field Name: LN-UNAMORT-EXP monetary format This amount will decrease monthly since a portion of the original income is amortized each month (and thus deducted from the total). By the end of the loan, this field will equal zero. Data Base Field Name: LN-UNAMORT-INC The Mortgage Loan Maintenance/FASB91 screen displays: 4. Once all modifications are made, click on the <Save> button to return to the Account Profile screen. ~end~ 263 EPL, Inc. Training Department

270 Rate Change History Changes you make with this procedure change only the history of rate changes; they do not physically affect the loan. The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select Rate Change History. The Rate Change History List screen displays: 2. Click on the Edit icon view and/or edit the rate change information. 264 EPL, Inc. Training Department

271 The Mortgage Loan Maintenance/Rate Change History screen displays: 3. Once all modifications are made, click on the <Save> button. Mortgage Loan Maintenance Rate Change History Field Description Valid Entries/Comments Rate Effective From Date: Indicates the date the rate change became effective. mmddccyy format Daily Periodic Rate: Indicates the daily interest rate. percentage format Annual Percentage Rate: Last Interest Adjustment Date: Indicates the annual interest rate. Indicates the date the interest rate was adjusted. percentage format read only field mmddccyy format ~end~ 265 EPL, Inc. Training Department

272 Amortization Schedule This option allows you to view an amortization schedule for this loan. The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select Amortization Schedule. The Mortgage Loan Amortization Schedule screen displays: 2. Scroll down the page. You can choose to print the schedule by clicking the <Print> button or you can click on the <Modify> button. If you choose the <Modify> button, you can change the loan terms to produce a different amortization schedule. 3. Click <Cancel> to return to the Account Profile screen. 266 EPL, Inc. Training Department

273 Loan Documents This menu option is used to produce the loan documents. The Account Profile screen displays: 1. Click on the mortgage loan Suffix # drop-down list and select Loan Documents. ~end~ 267 EPL, Inc. Training Department

274 Charging Off a Share Account In order to charge off a member s account to prevent additional monetary transactions from occurring, you must first perform the following procedure to make the necessary changes to the respective share product class(es) and to your credit union s IPB. Performing this procedure will prevent the share statement from being printed; it will instead go on microfiche. Your credit union will not then be charged for an open share account. 1. If this share account has any loans associated with it, you must first charge off the loans. 2. In the respective share product class, set the Auto Close if brought to zero balance and no other open suffixes? field to 0 Do Not Close Automatically. 3. In your IPB, set the IP-CH-OFF-ACCT-FL field to 1-Maintenance of Open Close Code Allowed. This allows a share account to be charged-off by allowing the maintenance of the Open/Closed Code to a 2 Account Open for Charge Off Loan found on Page 1 of the General Share Information screen. 4. Close all other active suffixes on this share account. 5. Bring the share account to a zero balance. 268 EPL, Inc. Training Department

275 6. Change the value of the Open/Closed Code to a 2 Account Open for Charge Off Loan found on Page 1 of the General Share Information screen. ~end~ 269 EPL, Inc. Training Department

276 How Charged-off Loans are Reflected on Reports and Statements Summary Trial Balance (RMG50010) This report shows the Frozen Accts in the mortgage loan area both by institution and by branch in the Loan Data section of the report. Charged-Off Loans Report (RML60540) This report, which runs at month end, shows only charged-off loans. It includes the same information as is contained in the Schedule of Delinquent Loans Report. Report Field NR CH OF LOANS BY TYPE LOANS BY COLL LOANS BY INS CODE Description Number of charged-off loans and total amount charged-off. Type code, total loans with this type code that have been chargedoff, and amount charged-off. Collateral code, total loans with this collateral code that have been charged-off, and amount charged-off. Insurance code, total loans with this insurance code that have been charged-off, and amount charged-off. Combined Statements In most cases, when you charge off a loan, you should file maintain the Mail Code field on Page 2 of the General Share Information screen to be a value greater than 1 (for no mail). The member should not receive a statement, but the statement will be sent to your credit union and will appear on tour microfiche. If you also charge off the share account by file maintaining the Open/Close Code field on Page 1 of the General Share Information screen to 2 - Account Open for Charge Off Loan, no statement will be mailed (either to the member or sent to the credit union), but the statement will be included on tour microfiche. ~end~ 270 EPL, Inc. Training Department

277 Performing tracking and analysis Tracking insurance information Tracking is an important activity you can perform for all members holding mortgage loans, regardless of whether they participate in E-Escrow Pay, M-Member Pay, C-CU Pay, or P-Totally Prepaid their insurance premiums and taxes. For escrow-pay members, tracking means knowing when the payments are due for insurance and taxes ensuring that disbursements are made in a timely manner. For Member Pay, CU Pay, and Totally Prepaid members, tracking means ensuring that policies are renewed and taxes are paid. This ensures that the structure is covered in case of fire or damage, and that no tax liens are placed against the property. If you want to track insurance information online, you must first set up an insurance record for each member holding a mortgage loan. Remember, you can do this regardless of how the insurance premiums are paid (Escrow Pay, Member Pay, CU Pay, or Totally Prepaid). When you opened the new mortgage loan, you probably set up a member insurance record by designating the remittance code (Escrow Pay, Member Pay, CU Pay, or Totally Prepaid) on the Add Member Insurance Record screen. Once you entered the remittance code, the record was set up. If you did not set up the member insurance record when you opened the mortgage loan, but you would like to track insurance information, you can do so by simply accessing the Add Member Insurance Record screen (select Tax/Insurance/Legal from the Mortgage Loan Suffix drop-down list on the Account Summary page) at any time and designating the remittance code. That s all there is to it. If the member wants to set up an escrow account at this time, however, you also need to open a new escrow club account and file-maintain the escrow payment on the Mortgage Loan Maintenance screen (select General Mortgage Loan Info from the Mortgage Loan Suffix dropdown list on the Account Summary page). Now you re ready to begin tracking. The following paragraphs explain tracking activities for escrow-pay members and for non escrow-pay members (Member Pay, CU Pay, or Totally Prepaid). 271 EPL, Inc. Training Department

278 Tracking insurance information for escrow-pay members If you have members who pay their insurance premiums through escrow, you can automatically receive Projected Insurance Liability Reports on the first of each month for the next month. This report lists, by insurance company, all escrow-pay members whose premiums will come due in the next month. It also indicates whether there will be sufficient funds in the escrow account to meet the premium. If there is a shortage in the escrow account, you can send the member a Notice of Escrow Deficiency, which can be generated at the same time as the Projected Insurance Liability Report. (Contact your EPL ODI Lending Support Representative for access to this option). The next step is to ensure that payment is made by the due date. Depending on how the mortgage loan account was set up, the withdrawals are either debited automatically from the escrow account (auto-debit = Y), or are performed manually (auto-debit = N): If the choice was automatic withdrawal, i-power will perform the debit at the appropriate time and you will receive an Escrow Insurance Withdrawal Report listing all escrow-pay members for whom the automatic withdrawal was performed. (The escrow withdrawals also appear on your Daily Activity Audit). The renewal date advances when the system-generated withdrawal is performed. Note: If your credit union does not immediately generate an insurance check to offset the amount, you should post the amount in a suspense account. If the choice was manual withdrawal, you will receive an Escrow Insurance Payable Report that lists all escrow-pay members for whom the next renewal date minus the remittal days equals today s date. You must then debit the members escrow accounts manually. The renewal date does not automatically advance when you perform the online withdrawal from the escrow club account. You will need to filemaintain the RENEWAL DATE field on the Member Insurance Record screen. When you generate the insurance check to send to the insurance company, you should accompany it with a copy of the Insurance Remittal Report. This report lists information on the insurance company, such as address, telephone number, and agent s name, but suppresses sensitive balance and account information. 272 EPL, Inc. Training Department

279 Tracking insurance information for non escrow-pay members If insurance premiums are set up as Member Pay, CU Pay, or Totally Prepaid, your role is to manually file-maintain the policy expiration date and cancellation dates on the member insurance records. Thus, your tracking efforts are reactive rather than proactive for these members. For these members, you can have a Notice of Request for Insurance Confirmation generated and sent to the member when the policy expiration date equals today s processing date. This indicates that no new policy information has been received. You can also receive a report (of the same name) listing the same information, but with member telephone numbers included so that you can telephone the member directly. If you later receive a notice of cancellation or non-renewable from the insurance company, you need to enter the effective date of the cancellation or non-renewable in the member insurance record. You now have two options: Generate a Notice of Insurance Cancellation/Non-renewable to be mailed to the member. ~ OR ~ Generate the report of the same name and telephone the member directly. This report is a cumulative list of all members for whom you have received a cancellation or nonrenewable notice. The names remain on the report until you file-maintain the member insurance record. If you receive notice of a new policy or renewal from either the member or the insurance company, you need to filemaintain the dates on the Member Insurance Record screen. 273 EPL, Inc. Training Department

280 Additional insurance reports In addition to the insurance reports discussed in the preceding paragraphs, i-power offers four other insurance reports you might find helpful (some of these reports are in the standard package; others are chargeable items): Insurance Alert Report This report alerts the credit union to any unresolved problems, such as cancellations or escrow deficiencies, related to the member insurance records. Insurance Company Listing This report lists all insurance carriers set up on your database. Insurance Trial Balance by Insurance Company This report lists all members attached to the various insurance companies on your database. The report is sorted by insurance company identifier, with the related member detail for each insurance company arranged in alphabetical order. Cancellation and Expiration Roster This roster alerts the credit union to all member-pay or escrow-pay insurance records with a cancel/non renew date less than or equal to 60 days from today s date. This report is sorted by expiration date. 274 EPL, Inc. Training Department

281 Tracking tax information There are two major differences between tracking insurance information and tracking tax information: Insurance premium due dates are unique to each member s insurance record, and the dates and frequencies of tax payments are contained in the tax authority parameters. Taxes must either be remitted through escrow or by the member directly (CU Pay and Totally Prepaid remittance codes are not allowed). If you want to track tax information online, you must first set up a tax record for each member holding a mortgage loan. You probably did this when you opened the new mortgage loan by designating the remittance code (escrowpay or member-pay) on the Add Member Tax Record screen. Once you entered the Remittance Code, the record was set up. If you did not set up the member tax record when you opened the mortgage loan, but you would like to track tax information, you can do so by simply accessing the Add Member Tax Record screen (select Tax/Insurance/Legal from the Mortgage Loan Suffix drop-down list on the Account Summary page) at any time and designating the Remittance Code. That s all there is to it. If the member wants to set up an escrow account at this time, however, you also need to open a new escrow club account and file-maintain the escrow payment on the Mortgage Loan Maintenance screen (select General Mortgage Loan Info from the Mortgage Loan Suffix drop-down list on the Account Summary page). Now you re ready to begin tracking. The following paragraphs explain tracking activities for escrow-pay members and for member-pay members. 275 EPL, Inc. Training Department

282 Tracking tax information for escrow-pay members If you have members who pay their taxes through escrow, you can automatically receive Projected Tax Liability Reports on the first of each month for the next month. This report lists, by authority, all escrow-pay members whose taxes are due in the next month. It also indicates whether there will be sufficient funds in the escrow account to meet the payment. If there is a shortage in the escrow account, you can send the member a Notice of Escrow Deficiency, which can be generated at the same time as the Projected Tax Liability Report. The next step is to ensure that payment is made by the due date. Depending on how the mortgage loan account was set up, the withdrawals are either debited automatically from the escrow account (auto-debit = Y), or are performed manually (auto-debit = N): If the choice was automatic withdrawals, i-power will perform the debit at the appropriate time and you will receive an Escrow Tax Withdrawal Report listing all escrow-pay members for whom the automatic withdrawal was performed. (The escrow withdrawals also appear on your Daily Activity Audit). The next payment due date advances when the system-generated withdrawal is performed. Note: If your credit union does not immediately generate a tax check to offset the amount, you should post the amount in a suspense account. If the choice was manual withdrawal, you will receive an Escrow Tax Payable Report that lists all escrowpay members for whom the next renewal date minus the remittal days equals today s date. You must then debit the members escrow accounts manually for the tax amounts. The next payment due date does not automatically advance when you perform the online withdrawal from the escrow club account. You will need to file-maintain the date on the Add Member Tax Record screen. When you generate the check to send to the tax authority, you should accompany it with a copy of the Tax Remittance Report. This report lists information on the tax authority, such as address, telephone number, and tax collector s name, but suppresses sensitive balance and account information. 276 EPL, Inc. Training Department

283 Tracking tax information for non escrow-pay members If property taxes are set up as member-pay, your role is to manually file-maintain the next payment due date and the tax amount fields on the member tax records. Thus, your tracking efforts are reactive rather than proactive for these members. For these members, you can generate a Tax Verification Roster that lists all member-pay members for whom the tax delinquent date (found on the tax authority record) is equal to the current processing date (the tax delinquent date advanced one frequency). You should follow up with either the member or the tax authority to determine whether the taxes have been paid. Additional tax reports In addition to the tax reports discussed in the preceding paragraphs, i-power offers two other tax reports you might find helpful: Tax Alert Report This report alerts the credit union to any unresolved problems related to the member tax records, including escrow deficiencies, tax authority linkage problems, escrow club linkage problems, and legal structure linkage problems (the data contained in the member tax record and the legal record must be consistent). Escrow Tax Prepay Roster This roster, which is produced by tax authority, lists all escrow-pay members with a prepay tax date greater than the last date this report was generated, but not greater than today s date. The purpose of this report is to request current year taxes due for each escrow-pay member. 277 EPL, Inc. Training Department

284 Performing escrow analysis Another important part of maintaining mortgage loans is performing escrow analysis on the account level. You can perform escrow analysis even if members do not remit payments through an escrow account. (Refer to the procedure titled Setting up an account for escrow analysis on page 168. The Real Estate Settlement Procedures Act (RESPA) referred to as Regulation X concerning mortgage escrow accounts. This regulation states that escrow adjustments on all mortgages closed after May 24, 1995, must use an aggregate analysis method of computation. i-power has been modified to comply with this regulation. At least once each year, you should request that a Mortgage Loan Escrow Analysis report be run for each of your mortgage loans (even if member do not remit payments through an escrow account). The system uses the preadjustment days in the mortgage loan account record and the escrow adjust date to determine when to perform the escrow analysis. When the system uses the beginning balance in the escrow club for escrow analysis, it determines the beginning balance in the following way, depending on the status of the loan: Current loan. If the loan is current (that is, the payment has already been made for the month), the system uses the current escrow balance as the beginning balance in the escrow club. If the payment for the current month has not yet been made (payment due for June 1 on June 1, for example), the system assumes the payment will be made, and adds the escrow payment amount due to the escrow balance for calculation. Past-due loan. If the loan is past due (that is, the loan is due for a payment from the prior month) and is just at, or one day over, 30 days past due (all loans due in May on June 1, for example), the system determines whether a payment occurred in the prior month (May). If so, the system assumes the payment will be made and adds the escrow payment amount due to the escrow balance for the calculations. Delinquent loan. A delinquent mortgage loan is defined as any loan with a past due amount greater than that specified above for past-due loans, or an account that did not receive a payment in the prior month. If a loan is delinquent, the system uses the current escrow balance for all computations. If the member pays the loan up to date during the next year, the possibility of an escrow balance overage exists. Paid-ahead loan. The system uses the current escrow balance for computations. 278 EPL, Inc. Training Department

285 System calculation of escrow payment using aggregate accounting procedures To compute the monthly escrow payment amount: 1. Use the tax and insurance records to identify each disbursement to be paid from the escrow account and total them. 2. Divide the total disbursements by 12. Note: Each tax and insurance payment, and the division, are rounded to the nearest dollar. To compute for the allowable one- or two-month cushion: 1. Use the tax and insurance records to identify each disbursement to be paid from the escrow account and total them. 2. Divide the total disbursements by 12 (for a one-month cushion), or by 6 (for a two-month cushion). To calculate the shortage or overage: 1. Prepare a projected trial balance showing each deposit and each withdrawal expected over the next 12 months, and the escrow account balance after the transaction. 2. Identify the lowest month s balance. 3. Subtract the cushion (one or two months), if applicable, from the projected lowest month s balance. If the number is positive, it is an overage. If the number is negative, it is a shortage. 279 EPL, Inc. Training Department

286 Escrow reports and member statements The following reports and member statements are produced when escrow analysis is performed. Escrow Analysis Summary Report This detail report shows information on each escrow account on which the escrow analysis was performed. Information includes account number, short name, next due date, actual and projected escrow balance, computed overage or shortage, and other related information. Refer to the Samples of Common Mortgage Loan Reports section at the end of this document for a sample of this report. Escrow Overage Check Summary This detail report, which is actually a check register, shows the account name, club trailer, short name, check amount, new club balance, and other related information. In addition to this report, the system will print the checks on stock paper, which will be sent to the credit union for actual typing of checks. The EPL Data Center will not be printing the actual checks. Refer to the Samples of Common Mortgage Loan Reports section at the end of this document for a sample of this report. Annual Escrow Account Disclosure Statement Projections for the Coming Year This disclosure statement shows the member a projection of what activity is expected to occur over the next 12 months, one month at a time. This statement will be printed at the EPL Data Center and forwarded to the credit unions when the analysis is done. Annual Escrow Account Disclosure Statement Account History This disclosure statement shows the member the actual activity in his/her escrow account. This statement will be printed at the EPL Data Center and forwarded to the credit unions when the analysis is done. 280 EPL, Inc. Training Department

287 Performing standard monetary transactions Note If a member s mortgage loan is 30 days or more past due, he/she will be denied access to all accounts through ATM, Home Banking and VOICE. This means that even if the loan is 29 days past due, the member still has access to his/her account through ATM, Home Banking and VOICE. How interest is calculated on amortized mortgage loans Amortized-interest mortgage loans have the following characteristics: Fixed payment schedule Based on payment frequency Interest due does not vary according to the date the payment was actually made Thus, regardless of whether a member makes an early or late payment, he or she pays the same amount of interest as if the payment had been made on the scheduled due date. This ensures that some portion of the payment is applied to principal. Depending on your credit union s policy, a late charge may be assessed for late payments. The formula for calculating amortized interest is: Rate Frequency Principal = Amortized Interest For example, the following are the calculations for an interest payment on a $1, principal balance at a rate of 12% for various frequencies: Payment Frequency Calculation Monthly (PYMT FREQ = 12) (0.12 / 12) x $1, = $10.00 Semi-monthly (PYMT FREQ = 24) (0.12 / 24) x $1, = $5.00 Bi-weekly (PYMT FREQ = 25) (0.12 / 25) x $1, = $4.80 Bi-weekly (PYMT FREQ = 26) (0.12 / 26) x $1, = $4.62 Weekly (PYMT FREQ = 52) (0.12 / 52) x $1, = $ EPL, Inc. Training Department

288 Performing a manual escrow club deposit All monetary transactions can be done by accessing the Financial Transactions box on the Account Profile as shown below: 1. Select Deposit in the drop-down list in the Command field, select the Suffix number of the escrow club account and then click <Go>. The Deposit screen displays: 2. Enter the Deposit Details and Deposit Options. Complete the appropriate fields (you might want to type a brief description in the TRANSACTION DESCRIPTION field). 282 EPL, Inc. Training Department

289 3. Next, move to the Funds box. The Funds box is where the user will identify what types of funds are being used for this transaction. Each option in the Funds box has two ways to be activated. You can either click on the link with the mouse cursor or using the Ctrl + # keystroke on the number keyboard that corresponds to the desired option. The display of the available funds entries depends on the type of transaction being performed. Ctrl 1 Cash. This option allows the funds to be deposited by cash. Ctrl 2 Check. This option allows the funds to be deposited by check. The user can verify the name and address to be printed on the check to be deposited. Click <Done> when finished. Note that there may be an override required to complete any transaction by check. This would be determined by the credit union s policies and procedures. Ctrl 3 Transfer. This option allows the funds to be deposited by transferring the funds from another account at the credit union. The member account number and verify letters will default on the Transfer to Details screen. Click <Done> when finished. Note that there may be an override required to complete any transaction by transfer. This would be determined by the credit union s policies and procedures. Ctrl 4 Voucher. For this option, enter the General Ledger Account Number and a corresponding description. Click <Done> when finished. Note that there may be an override required to complete any transaction by voucher. This would be determined by the credit union s policies and procedures. Ctrl 5 CU Check. This option allows the funds to be deposited by Credit Union check. 4. Click <Post> when finished. 283 EPL, Inc. Training Department

290 Performing a manual escrow club withdrawal All monetary transactions can be done by accessing the Financial Transactions box on the Account Profile as shown below: 1. Select Withdrawal in the drop-down list in the Command field, select the Suffix number of the escrow club account and then click <Go>. The Withdrawal screen displays: 2. Enter the Withdrawal Details and Withdrawal Options. Complete the appropriate fields (you might want to type a brief description in the TRANSACTION DESCRIPTION field). 284 EPL, Inc. Training Department

291 3. Next, move to the Funds box. The Funds box is where the user will identify what types of funds are being used for this transaction. Each option in the Funds box has two ways to be activated. You can either click on the link with the mouse cursor or using the Ctrl + # keystroke on the number keyboard that corresponds to the desired option. The display of the available funds entries depends on the type of transaction being performed. Ctrl 1 Cash. This option allows the funds to be disbursed by cash. Ctrl 2 Check. This option allows the funds to be disbursed by check. The user can verify the name and address to be printed on the check to be disbursed. Click <Done> when finished. Note that there may be an override required to complete any transaction by check. This would be determined by the credit union s policies and procedures. Ctrl 3 Transfer. This option allows the funds to be disbursed by transferring the funds from another account at the credit union. The member account number and verify letters will default on the Transfer to Details screen. Click <Done> when finished. Note that there may be an override required to complete any transaction by transfer. This would be determined by the credit union s policies and procedures. Ctrl 4 Voucher. For this option, enter the General Ledger Account Number and a corresponding description. Click <Done> when finished. Note that there may be an override required to complete any transaction by voucher. This would be determined by the credit union s policies and procedures. Ctrl 6 Suppress Check. Suppressing a check produces a check transaction including a receipt without printing a check. An example of a situation that may require the suppression of a check is if there is something wrong with the actual printed checks and a hand written check is required. With the Suppress Check option, the transaction will be generated and a receipt printed, but the check can be hand written as needed. Click <Post> when finished. 4. Click <Post> when finished. 285 EPL, Inc. Training Department

292 Posting a full payment The most common type of payment is the full payment. This involves posting the payment to the mortgage loan trailer by means of the Financial Transactions command box. This holds true even for delinquent loans; the late charge need not be paid in order to satisfy the full payment required. The due date will still advance, just as if the payment were made on time. (Refer also to the heading Payments on delinquent loans later in this section.) i-power applies full payments first to escrow, then to interest, and finally to principal: escrow then interest then principal If the full payment (with no late charge included) is made by the due date (or within the grace period), the due date and the late charge date advance. If the full payment is made after the grace period, the due date and the late charge date advance, and the accrued late charges move to the UNPAID LATE CHARGE field. If the payment includes extra funds not designated for special processing (such as for principal only), the extra funds portion of the payment will be applied to escrow due and unpaid, late charges due, miscellaneous charges due, accrued and unpaid interest, and finally to principal. 286 EPL, Inc. Training Department

293 Posting a partial payment i-power cannot process partial payments directly against an amortized mortgage loan (it is possible, however, for i-power to do this for simple-interest mortgage loans). You will need to post a deposit to the unapplied funds club trailer. You can use the Account Summary to check the balance in the unapplied funds club trailer associated with that loan: If the balance in the unapplied funds trailer plus the partial payment is less than one full payment amount, deposit the payment into the unapplied funds trailer. If balance in unapplied funds trailer + partial payment < one full payment amount Then deposit payment into unapplied funds trailer If the balance in the unapplied funds trailer plus the partial payment equal one full payment amount, you will need to withdraw the funds from the unapplied funds trailer and then process the full payment amount to the mortgage loan trailer. (Or, you could deposit the partial payment into the unapplied funds trailer and let the system make the transfer that evening; explained on the next page). If balance in unapplied funds trailer partial + = payment one full payment amount Then deposit payment into unapplied funds trailer and transfer full payment into mortgage loan trailer 287 EPL, Inc. Training Department

294 Each night, the Data Center runs a program that automatically transfers the funds from the unapplied funds accounts to the respective mortgage loan trailers if the next payment due date is less than or equal to the current date and the unapplied account contains enough funds to satisfy one full payment amount. When the transfer occurs, both the due date and the late charge advance. If a partial payment is processed through the payroll program, i-power automatically deposits it into the unapplied funds club account, regardless of the distribution record. The system then checks the balance in the unapplied funds club account. If there is enough to make a full payment, the system transfers the payment to the mortgage loan trailer. 1. First you need to access the Account Profile to check the balance in the unapplied funds club trailer. 2. Is the balance in the unapplied funds trailer plus the partial payment less than the full payment amount or equal to the full payment amount? If... Then... Less than full payment amount Deposit the payment into the unapplied funds trailer. Equal to full payment amount a. Deposit the partial payment into the unapplied funds trailer. b. Transfer the full payment amount to the mortgage loan trailer. 288 EPL, Inc. Training Department

295 Posting a late-charge only payment Sometimes a member might want to apply a payment to the late charge only. You can do this by posting the payment to the mortgage loan trailer and specifying it as a late-charge only payment on the Receive Mortgage Loan Payment screen as shown below: If a payment includes a late charge, the payment is applied first to escrow, then to interest, then to principal, then to unpaid escrow, and finally to late charge. 289 EPL, Inc. Training Department

296 Posting an extra escrow or escrow-only payment Whether you want to post a payment containing extra funds designated for the escrow club, or consisting of funds for the escrow club only, the process is the same: Post a separate deposit to the escrow club suffix. You cannot include the extra escrow payment in a regular mortgage payment. What type of payment is the member making? If... Then... extra escrow a. Post the normal full payment amount to the mortgage loan suffix. Do not include the extra escrow amount. b. Deposit the extra escrow amount directly into the escrow club account suffix. escrow only Post the escrow-only payment amount directly to the escrow club account suffix. 290 EPL, Inc. Training Department

297 Posting multiple payments on current mortgage loans Because of secondary market guidelines for amortized mortgages, a member is allowed to pay only one month ahead on a current mortgage (current month plus one month). To do this, you would simply post the current month s payment to the mortgage loan account, and then post the next month s payment to the mortgage loan account. It is critical that you post these payments separately in order for the next payment due date to advance properly. If, however, the member wishes to pay several months ahead, you would need to post the third and subsequent payments to the unapplied funds trailer and enter a brief description of the transaction in the TRANSACTION DESCRIPTION field. (The i-power system requires an entry in the TRANSACTION DESCRIPTION field whenever a deposit is made to the unapplied funds trailer.) The system will automatically transfer the funds from the unapplied funds trailer to the mortgage loan trailer when the payments come due. For example, if on January 1 a member wishes to remit his or her January payment and pay ahead through June, you have two options to post the payments: Option 1 Option 2 1. Post the January payment to the mortgage loan suffix 2. Post the February post to mortgage loan suffix 3. Post the March payment to the unapplied funds suffix and type MARCH PAYMENT in the TRANSACTION DESCRIPTION field 4. Post the April payment to the unapplied funds suffix and type APRIL PAYMENT in the 1. Post the January payment to the mortgage loan suffix 2. Post the February post to mortgage loan suffix 3. Post the March, April, May, and June payments in one lump sum to the unapplied funds suffix and type MARCH, APRIL, MAY, JUNE PAYMENTS in the TRANSACTION DESCRIPTION field TRANSACTION DESCRIPTION field 5. Post the May payment to the unapplied funds suffix and type MAY PAYMENT in the TRANSACTION DESCRIPTION field 6. Post the June payment to the unapplied funds suffix and type JUNE PAYMENT in the TRANSACTION DESCRIPTION field 291 EPL, Inc. Training Department

298 Posting multiple payments on delinquent mortgage loans Posting payments on delinquent loans is done one full regular payment at a time. It is critical that you post these payments separately in order for the next payment due date to advance properly. If a member makes a payment on a mortgage loan that is delinquent and does not include the applicable late charge amount in the payment amount, i-power will still accept the payment and advance the next payment due date and the next late charge date. The system will then move the amount in the accrued late charge field to the unpaid late charge field. This is called deferring the late charge. If, at management discretion, you want to later waive the late charge, you can file-maintain the unpaid late charge field on the Mortgage Loan Details screen to zero. 1. Post one payment into the mortgage loan trailer. 2. Repeat Step 1 for each full payment amount received 292 EPL, Inc. Training Department

299 Performing error-corrections and reversals Error-correcting a transaction The following is important background information you need to be aware of in performing error-corrections: All error-corrections are performed from the Electronic Journal You can error-correct reversals and back out your transactions in the order of occurrence by trailer. You do not lose maintenance with an error-correction or have to re-key the original transaction. Although the error-correction need not be performed on the originating terminal, the teller number must be that of the originating teller. If you do not enter the memo/receipt/check number, the system returns an error message. If the system cannot find the memo/receipt/check number you entered, it returns an error message. If the last transaction for the account and trailer was entered by the requesting teller, the system returns the appropriate screen, pre-filled with the transaction information. If the transaction was not entered by the requesting teller, the system returns an error message. The error-correction must be done by the originating teller (it can, however, be performed at a different terminal). For transactions that do not require the entry of a receipt number, the system-generated audit number is forced into the receipt number field and serves as the transaction number for purposes of the errorcorrection. For transactions that do not require a trailer number (such as cashing a check), you must still enter a trailer number (use 00 in such cases). If you request the correction of only a part of a multi-part transaction, the system requires a supervisor override to complete the transaction. Also, when you request the error-correction, the screen displays all parts of the original transaction, flagging those components that cannot be undone due to intervening transactions. For this type of error-correction, remember to take special care with cash and check balancing. If a trailer has had manual maintenance performed between the original entry and your error-correction request, the system returns a warning. This warning alerts you to review the maintenance history to ensure that the changes have not been negatively impacted. Although file-maintenance should not be lost, you should review the changes to ensure the information is correct. Transfer transactions now produce only one receipt number. Two receipts will be printed, but they will have the same receipt number. Split deposits (multiple sources of funds) are written as separate transactions. When error-corrected, these transactions are linked, requiring that both be corrected. The P that defaults for the second transaction indicates that the transaction is paired with the other transaction. If you enter X for the first transaction, both transactions are undone.\ Transactions that have been error-corrected appear on the Error Corrected Transactions Report 293 EPL, Inc. Training Department

300 Reversing a transaction In performing this procedure, you will need to use the Reversals Worksheet (located after this section). Remember that you must process reversals for each portion of the payment separately and in this order: Escrow (if applicable) Late charge (if applicable) Interest Note If you reverse the interest portion of a mortgage loan payment, the amount does not reduce interest or real-estate interest in your teller totals. Interest reversals and real-estate interest reversals are listed as separate categories in your teller totals. Principal 1. Print a history of the mortgage loan suffix. You will use the information in this history to perform the reversal. 2. Does the member have an escrow account? If... Then... yes a. Print a history of the escrow club trailer. b. Go to Step 3. no Go to Step On the Reversals Worksheet, write down the breakdown of the reversal payment. 4. Perform and print a mortgage loan inquiry. 5. In the Before Adjustment column of the worksheet, write down the values contained in the following fields of the Mortgage Loan Inquiry screen: Current balance Number of past-due payments Unpaid interest Past-due amount Unpaid late charge Target date Unpaid escrow Target balance Interest date Late charge date Date next payment due 6. Perform and print a mortgage loan statistical inquiry 7. In the Before Adjustment column of the worksheet, write down the values contained in the following fields of the Mortgage Loan Statistical Inquiry screen: YTD interest YTD late charge 294 EPL, Inc. Training Department

301 8. Perform and print a mortgage loan payoff inquiry as of the processing date. 9. In the Before Adjustment column of the worksheet, write down the values contained in the following fields of the Mortgage Loan Payoff Inquiry screen: Accrued interest Accrued late charge Balance in escrow club (if applicable) 10. Calculate what the fields in the Before Adjustment column of the worksheet should be after the payment is reversed. 11. Write down the result of Step 10 in the Desired column of the worksheet. 12. Process the reversals for escrow, interest, insurance, late charge, and principal (in that order) on the mortgage loan as JV entries. Note: You should fill in the TRANSACTION DESCRIPTION field so the reversal is clearly identified. When you reverse the interest portion on an amortized mortgage loan, the system assumes that the entire payment is being reversed. The due date and late charge date will be backed up by one payment frequency, and the amount of interest being reversed will be added to the unpaid interest field. The interest date will not be changed. The partial pay field is not updated when you perform a reversal on an amortized mortgage loan. 13. Depending on the circumstances, do one of the following: Deposit the total amount of the reversed entries to the unapplied funds club trailer (this is a JV entry). You must fill in the TRANSACTION DESCRIPTION field or the system will return an error message. Perform a new monetary transaction on the mortgage loan (this is a JV entry). Note: When re-applying an amortized mortgage loan payment that was previously reversed, if late charges were involved and the transaction amount to be re-applied includes funds to cover the late charge payment, you should first apply a late-charge-only payment, and then apply the scheduled payment amount. 14. Perform and print another mortgage loan inquiry. 15. In the After Adjustment column of the worksheet, write down the values contained in the following fields of the Mortgage Loan Inquiry screen: Current balance Number of past-due payments Unpaid interest Past-due amount Unpaid late charge Target date Unpaid escrow Target balance Interest date Late charge date Date next payment due 16. Compare the values in the Desired column to those in the After Adjustment column thus far. If there are any errors, file-maintain the fields on the Mortgage Loan Maintenance screen accordingly. You can not file-maintain the fields for current balance or number of past-due payments. 295 EPL, Inc. Training Department

302 17. Perform and print a mortgage loan statistical inquiry. 18. In the After Adjustment column of the worksheet, write down the values contained in the following fields of the Mortgage Loan Statistical Inquiry screen: YTD interest YTD late charge 19. Compare the values in the Desired column to those in the After Adjustment column thus far. If there are any errors, file-maintain the fields on the Mortgage Loan Maintenance screen accordingly. 20. Perform and print a mortgage loan payoff inquiry as of the processing date. 21. In the After Adjustment column of the worksheet, write down the values contained in the following fields of the Mortgage Loan Payoff Inquiry screen: Accrued interest Accrued late charge Balance in escrow club (if applicable) 22. Compare the values in the Desired column to those in the After Adjustment column thus far. If there are any errors, file-maintain the fields on the appropriate screens accordingly. 296 EPL, Inc. Training Department

303 Reversals Worksheet Account number: Mortgage number: Unapplied trailer number: Breakdown of reversal: Principal: $ Interest: $ Escrow: $ Late charge: $ Name: Escrow number: Field Before Adjustment Desired After Adjustment Current balance $ $ $ Balance in escrow club $ $ $ Accrued interest $ $ $ Unpaid interest $ $ $ Accrued late charge $ $ $ Unpaid late charge $ $ $ Unpaid escrow $ $ $ Interest date / / / / / / Date next payment due / / / / / / Number past-due payments Past-due amount $ $ $ Target date / / / / / / Target balance Late charge date / / / / / / YTD interest $ $ $ YTD late charge $ $ $ 297 EPL, Inc. Training Department

304 Forbearance Transaction On February 18, 2009, President Obama announced the Homeowner Affordability and Stability Plan to help families restructure or refinance their mortgage loans to avoid foreclosure. As part of this plan, the Treasury Department announced a national modification program aimed at helping homeowners, both those who are in default and those who are at imminent risk of default, by reducing monthly payments to sustainable levels. The Treasury issued uniform guidance for loan modifications across the mortgage industry. Further guidance was issued to Fannie Mae servicers for adoption and implementation of the Home Affordable Modification Program (HMP) for Fannie Mae loans. All Fannie Mae-approved servicers must participate in the program; however, any servicers may elect to participate in the HMP. In the modification program, servicer s must follow modification steps (actions) to get the homeowner s monthly mortgage payment ratios reduced to 31 percent. The last step is, if necessary, to provide for principal forbearance. The principal forbearance amount is non-interest bearing and non-amortizing. The amount of principal forbearance will result in a balloon payment fully due and payable upon the earliest of the borrower s transfer of the property, payoff of the interest bearing unpaid principal balance (UPB) or maturity of the mortgage loan. In order to comply with the new HMP, credit unions need the ability to capture a forbearance amount separate from the principal balance in i-power. The credit unions also need the ability to add this forbearance amount to any pay-off quotes. 298

305 i-power Screens for Forbearance A monetary command Forbearance is available on the Financial Transactions drop down command list, as shown below: 1. If the loan is an Investor Loan, the system will return the Perform Principal Forbearance/Investor Loan Information screen, as shown below: 299

306 2. If the loan is a regular (in-house) mortgage loan, the system will return the Perform Principal Forbearance/Mortgage Loan Information screen, as shown below: NOTES: The Forbearance transaction will only be available for Mortgage and Investor Mortgage Loans. The Perform Principal Forbearance transaction will be a journal voucher transaction (auto balancing) like a dividend adjustment transaction. The transaction will reduce principal and increase the new Principal Forbearance field and update the Principal Forbearance Date. New transaction codes IVPF and MLPF will be created. Bucket 2 will be the principal reduction (credit), Bucket 5 will be the Forbearance increase (debit). The interest date, unpaid interest, late charge date and unpaid late charges will not be affected (changed) when a Forbearance transaction has been performed. The Forbearance transaction will reduce the Target Balance by the amount of the Forbearance transaction. IP-EXCEPTION-FLAG 550 will apply when making a Principal Forbearance transaction. The USER must have appropriate override level to complete the transaction. The teller will have the ability to error correct/reverse this transaction The Forbearance transaction will be reported on the member s statement. The Forbearance amount will be added to the Summary Trial Balance for both regular (non-investor) mortgage loans and investor mortgage loans. 300

307 Performing a Mortgage Loan/Investor Loan Principal Forbearance Transaction 1. The USER will request Forbearance from the Quick Transaction/Financial Transactions command drop-down list. The system will return the following loan account information on the Perform Principal Forbearance screen, as shown below: Principal Balance Payoff Amount Due Date Payment Amount Unpaid Late Charges Escrow Balance Amount Due Unapplied Balance Locks Warnings Messages Comments. 2. The Transaction Amount field will be used to record the principal forbearance amount of the mortgage loan. The system will reduce the mortgage loan principal balance by the amount entered in transaction amount field and increase the Principal Forbearance amount field. The transaction amount cannot be greater than current principal balance of the mortgage/investor loan. 301

308 3. The USER will be able to effective date the transaction. The system will update the Principal Forbearance Date based on the effective date of the transaction. 4. The USER will be able to enter a Transaction Description to be displayed on the transaction history and statement. 5. Click <Post>. IP-EXCEPTION-FLAG 550 will apply when making a Principal Forbearance transaction. The USER must have appropriate override level to complete the transaction. 302

309 Investor Loan Summary screen A Forbearance Information section (read-only fields) is available on the Investor Loan Summary screen, as shown below: 1. Click <Cancel> to return to the Account Profile. 303

310 Mortgage Loan Maintenance screen The system will display the Forbearance Balance amount as well as the Forbearance Date (the date of the principal forbearance transaction) on the Mortgage Loan Maintenance screen, as shown below: NOTE: this information (read-only fields) will be displayed on the Mortgage Loan Maintenance screen regardless of mortgage loan type (in-house vs. investor) 1. Click <Cancel> to return to the Account Profile screen. 304

311 Receive Investor Loan Payoff screen The Principal Forbearance Amount is available on the Receive Investor Loan Payoff screen (see below) and now includes this amount in the Transaction Amount. The system will calculate the payoff on the current balance amount then add the forbearance amount to the payoff calculation and display the total in the Transaction Amount and Funds Required fields. The transaction will payoff the current balance, interest and late charges, then the forbearance balance. 305

312 Receive Mortgage Loan Payoff screen The Principal Forbearance Amount is available on the Receive Mortgage Loan Payoff screen (see below) and now include this amount in the Transaction Amount. The system will calculate the payoff on the current balance amount then add the forbearance amount to the payoff calculation and display the total in the Transaction Amount and Funds Required fields. The transaction will payoff the current balance, interest and late charges, then the forbearance balance. 306