Amortized Fee Setup

Some of the parameters for amortized fees can be pre-defined and saved as templates in Setup > Loan Setup > Amortized Fees. The templates can then be selected when setting up an amortized fee on a loan and the configured parameters will be filled in accordingly. The description of the fields can be found in their respective amortization type sections below.

Click … next to Start Date to configure the start date that will be filled in for the amortized fee when the template is selected.

Type Defines the method by which the date is determined.
Not Applicable

Leaves the date field blank allowing for manual configuration of the date.

Relative from Origination Date

The start date is determined by the Period and # of Periods based on the origination date of the loan.

Relative from Current Date

The start date is determined by the Period and # of Periods based on the current date.

Day Value Forces the date to a specific day of the month.
N/A (or value of 0)

Sets the date as defined by Period and # of Periods.

Force Negative

Rolls back the specified number of days.

Force Positive

Jumps forward the specified number of days.

Force Neutral

Sets the date to the specified day of the month.

Date This field is not applicable and is disabled.

Configuring Amortized Fee on a Loan

To set up an amortized fee on a loan, query the loan, then click the Loan tab of the ribbon bar and select  Amortized Fees in the Setup group.


Click AddAdd.

Select <MANUAL> from the Template drop down list to start with a clean slate or select a pre-defined template to work with. The specific configuration will depend on the type of fee amortization:










Cancellation Tab

Options and rules to be applied when an amortized fee is canceled is configured in this tab.
Actuarial / Pro-RataRule of 78Conditional Pro-RataRule of Anticipation
Type Calculation used to determine the amortization adjustment and cancellation amounts.
Actuarial

Entire amortization amount is used as the cancellation amount.

NLS 5.20 and later

Straight Line Periodic

Remainder of the amortized fee is canceled while the pro-rata rate of the amortization fee is reversed. Rebate rule is applicable.

Straight Line Custom

The unamortized balance is canceled. Rebate rule not applicable.

Effective Interest Method

The unamortized balance is canceled. Rebate rule not applicable.

Effective Interest Method - Daily Accrual

The ratio of earned interest to anticipated life interest is canceled. Rebate rule is applicable.

Principal/Original Balance ProRata Method

The unamortized balance is canceled. Rebate rule not applicable.

Rule of 78

Remainder of the amortized fee is canceled. Rebate rule is applicable.

Average of Rule of 78 and Straight Line

The ratio of earned interest to anticipated life interest is canceled. Rebate rule is applicable.

Pro-Rata

Remainder of the amortized fee is canceled while the pro-rata rate of the amortization fee is reversed. Rebate rule is applicable.

Rule of 78’s

Remainder of the amortization fee is reversed. Rebate rule is applicable.

Conditional Pro-Rata5.16+

Same as Pro-Rata with the ability to define the number of days from origination. Rebate rule not applicable.

Rule of Anticipation - A&H5.38+

Uses the Rate Lookup table to determine the refund amount when a loan is canceled or paid off early. The rate lookup table must be configured in Setup > Loans > Amortized Fees.

Cancellation Transcode Transaction code to use with the cancellation.
Minimum Cancellation Sets the minimum amount required for the cancellation amount. Cancellation amount is 0 if it is less than the minimum cancellation value. Maximum value is 999.00.
Minimum Amortized Fee5.18+
The minimum amount that may be assessed on the loan.

Example

If the closing fee of a loan is $30 and the loan is paid off before maturity, setting this to $25 will still asses $25 fee on the loan.
Non-Refundable Amount5.38+
The amount that is to be excluded from the total amortized fee amount prior to calculating the refund amount.
Cancel on Early Payoff When selected, the entire amortized fee is removed when the loan is paid off early.
Refund Setup Expire Date5.18+
No refund of amortized fees is issued on or after the specified date.

Example

If the closing fee can only be refunded within the first 90 days and the lender is allowed to keep the full amount after 90 days, advance this date 90 days from the origination date.
Complete Refund Expire Date5.20+
A full refund of amortized fees is issued on or before the specified date.
Rebate Rule Rules for rebate determination.
Through End of Period

Payment must be made before the end of the period minus the specified Cutoff Days for the rebate to be applied.

Through End of Period from Origination Date5.28+

Refund is calculated from the origination date.

Proportional

Rebate is proportionally applied.

Nearest Payment Date

If a payment falls within the first half of the month, rebate is applied.

Rebate Factor Percentage5.15+
Only applicable to type Pro-Rata. The percentage of the refund amount (unamortized fee) portion to be included in the total cancellation amount.
Cancellation Computation5.16+
Only applicable to type Conditional Pro-Rata.
Origination Date to Maturity Date

Default. Refund is computed based on the number of days from the origination date to maturity date.

Custom

Enter the maximum number of Days from Origination Date.

Refund Rate5.38+
Only applicable to Rule of Anticipation. Select from refund rate(s) as configured in Setup > Loan Setup > Amortized Fees > Rate Lookup. When a selection is made, the most recent rate will be shown to the right of this field.

Rate Lookup

NLS 5.38 and later

Rate lookup is used by the “Rule of Anticipation - A&H” cancellation type. A rule is defined as an XML using <RATELOOKUP> as the root element and <RATE> as a leaf node.

The XML is parsed from top to bottom and the rate specified for the first matching criteria will be used.

To specify a default rate for when there is no match, specify a <RATE> element under <RATELOOKUP> at the end of the XML. Specifying a <RATE> element at the top of the XML will result in that rate always being used regardless of any matching criteria below it.

Click to check the validity of the XML.

<RATELOOKUP>

Attribute Comments
No attribute Root element.

<LOAN_GROUP_NO>

Attribute Comments
Value The loan group number. Use a comma when specifying multiple loan groups.

<LOAN_PORTFOLIO_NO>

Attribute Comments
Value The loan portfolio number. Use a comma when specifying multiple loan portfolios.

<BORROWER_STATE>

Attribute Comments
Value The state of the borrower’s address. Use a comma when specifying multiple states.

<BRANCH_STATE>

Attribute Comments
Value The state of the branch address. Use a comma when specifying multiple states.

<ORIG_LOAN_AMOUNT_MAX>

Attribute Comments
Value The maximum value of the original loan amount.

<RATE>

Attribute Comments
Tn The rate to use for each defined n term.

Example

<RATELOOKUP>
  <LOAN_GROUP_NO value="1,2">
    <BORROWER_STATE value="CA,AZ,TX">
      <ORIG_LOAN_AMOUNT_MAX value="5000">
        <RATE T1="0.09836" T2="0.14673" T3="0.19458" T4="0.2419" T5="0.28871" T6="0.335" T7="0.3808" T8="0.4261" T9="0.4709" T10="0.51523" T11="0.55907" T12="0.60244" T13="0.64534" T14="0.68778" T15="0.72977" T16="0.7713" T17="0.81239" T18="0.85304" T19="0.89325" T20="0.93304" T21="0.9724" T22="1.01135" T23="1.04988" T24="1.088" T25="1.12572" T26="1.16304" T27="1.19996" T28="1.2365" T29="1.27265" T30="1.30842"/>
      </ORIG_LOAN_AMOUNT_MAX>
      <ORIG_LOAN_AMOUNT_MAX value="10000">
        <RATE T1="0.09803" T2="0.14609" T3="0.19352" T4="0.24033" T5="0.28654" T6="0.33214" T7="0.37714" T8="0.42157" T9="0.46542" T10="0.5087" T11="0.55143" T12="0.5936" T13="0.63524" T14="0.67633" T15="0.71691" T16="0.75696" T17="0.7965" T18="0.83554" T19="0.87408" T20="0.91214" T21="0.94971" T22="0.9868" T23="1.02343" T24="1.05959" T25="1.0953" T26="1.13057" T27="1.16538" T28="1.19977" T29="1.23372" T30="1.26725"/>
      </ORIG_LOAN_AMOUNT_MAX>
    </BORROWER_STATE>
    <BORROWER_STATE value="NY">
      <RATE T1="0.09819" T2="0.14641" T3="0.19405" T4="0.24111" T5="0.28762" T6="0.33356" T7="0.37896" T8="0.42382" T9="0.46815" T10="0.51195" T11="0.55523" T12="0.59799" T13="0.64026" T14="0.68202" T15="0.72329" T16="0.76408" T17="0.80438" T18="0.84422" T19="0.88359" T20="0.92249" T21="0.96095" T22="0.99895" T23="1.03652" T24="1.07365" T25="1.11034" T26="1.14662" T27="1.18247" T28="1.21791" T29="1.25294" T30="1.28757"/>
    </BORROWER_STATE>
  </LOAN_GROUP_NO>
  <RATE T1="0.09803" T2="0.14609" T3="0.19352" T4="0.24033" T5="0.28654" T6="0.33214" T7="0.37714" T8="0.42157" T9="0.46542" T10="0.5087" T11="0.55143" T12="0.5936" T13="0.63524" T14="0.67633" T15="0.71691" T16="0.75696" T17="0.7965" T18="0.83554"/>
</RATELOOKUP>