Loan Setup for Trust Accounting

Of the many global Loan Setup codes and parameters in the Nortridge Loan System (Portfolios, Classes, Groups, Status Codes, Transaction Codes, base rates, etc.) two need special consideration with regard to trust accounting. These are Loan Groups and Transaction Codes.

Loan Group Servicing Options

When a Loan Group is configured and that group is intended to represent a Lender—for whom you, as a servicer, are doing trust accounting—use the Servicing options tab of the Loan Group setup to link that loan group to the Lender’s disbursement account, you may also specify ACH/AFT configuration information if ACH/AFT will be used to collect the borrower’s payments and automatically deposit them into the lender’s account. In addition, a credit bureau header may be specified. This allows you to report to credit bureaus and have those reports specify the actual lender as the creditor on the account, not you, the servicer.

Additional information on configuring loan groups are available at Loan Group.

Region5.5.1+
 Available when ACH format is configured for both ACH (US) and AFT (CAN).
ACH/AFT Company Links to an ACH or AFT Company configured in the Automated Payments setup.
Credit Bureau Header Links to a Credit Bureau Header as configured in the parameters of Loan Setup.
Disbursement Account If you will be cutting checks to the borrower, this field links to the Disbursement Account configuration corresponding to the bank account from which you will be cutting those checks.
eSignature Platform5.15+
 Links to the eSignature platform as configured in DocuSign setup.
Payment Gateway Links to the payment gateway as configured in Payment Gateway setup.
Suspense Account Links to a suspense account as configured in Suspense Accounts setup.
Communication Links to a communication preference as configured in Communication setup.
Currency Links to a currency as configured in Multi-Currency setup.
Bankruptcy5.19+
 Links to a bankruptcy credential setup as configured in Bankruptcy setup.
Attach to a Vendor (Investor) Select this checkbox and use the lookup to link to the Disbursement Account on the Contact record of the lender.
Name The name of the contact on which the linked Vendor Disbursement Account exists.
Contact Number The Contact number of the contact on which the linked Vendor Disbursement Account exists.
Notes Use this field to enter any notes you need to make about the servicing procedures for this lender.

Transaction Codes for Trust Accounting

Seven standard transaction codes are available to control the placement of money into and out of trust and to control servicing fees for trust accounting.

Transaction Code Transaction Description
10 Trust Deposit
20 Trust Disbursement
22 Trust Disbursement - Servicing Fee
32 Trust Receivable - Servicing Fee
40 Subsidized Interest Receivable
42 Subsidized Interest Payable
50 Dealer Reserve Receivable