Issue Loan Advance

Overview of IL412

There are some borrowers who prefer to have portions of a committed loan amount advanced incrementally, rather than receiving the loan as a lump sum. Loan advances increase the overall principal balance due on the loan, and closing fees are collected as loan advances are issued. Loan advances cannot be made above and beyond the committed amount of the loan, and the allowable advance amount is calculated based on committed amount less any previously advanced funds. In addition, loan advancements cannot be made once the commitment expiration date has passed. To issue a loan advance:

• From the DDI Connect main menu, double-click Financial Services
• Double-click Loans
• Double-click Transactions
• Double-click 412 Loan Advance. You will see this screen:

Enter the effective date of the advance and the loan number you wish to issue the advance for. You can also click the list icon to select from a list of loans in the system, or click the binoculars to search for the account that is associated with the loan you are wanting to work with. Once the loan number is populated, press enter or click Find. The loan information will now populate on the screen:

If you click the Mode button on the top of the screen, you can switch the active field between the Advance amount or the Net Advance amount fields. This allows you to enter either the advance amount before fees, or enter the Net Advance to have the system calculate the fees and populate how much the advance should be issued for. On this screen, depending on the mode you have selected, you have 4 fields available for editing:

Field	Description
Advance/Net Advance	If Advance is the field active, enter the amount being advanced. The system will deduct the applicable fees and populate the Net Advance field. If the Net Advance field is active, enter the amount. The system will again populate the applicable fees and populate the Advance field
Deduct interest due from advance	If selected, the system will deduct any interest due on the loan from the advance amount
Payee	Click the drop down arrow to select the payee for the advance
Payment	Click the drop down arrow to select the method of payment for the advance. The choices are Daily Check, Online Check, Offline (Manual) Check, EFT (ACH/Wire) and Investment Transfer. *Choices added*

When you have finished entering the information, click Save. The system will prompt you with a message:

Click Yes if you wish to proceed. You will see a second message:

If you are sure, click Yes. If there are no errors or issues, you will see this message:

Click OK.

You can now generate the payment, based on the option you chose.

Scheduling Loan Advances

You are able to schedule Loan Advances for Loans that are in the status of "Advancing on Loan".

• From the DDI Connect main menu, double-click Financial Services
• Double-click Loans
• Double-click Transactions
• Double-click 412 Loan Advance. You will see this screen:

Enter in either an advance amount or an application fee amount, then click the Schedule button:

You will be brought to a screen that looks like this:

Populate the following available fields:

Field	Description
Frequency	Enter the Frequency for the Advance amount entered on the prior page
Next Date	Enter the next date for the scheduled advance
Expires after (optional)	Enter the expiration date for the scheduled advance
Expires after	Click the drop down arrow to select the method of payment for the advance

When you have finished entering the information, click OK. The system will share a message similar to the below:

Note: If the commitment amount is raised for a Loan that is already fully advanced, you will be unable to schedule a Loan Advance unless you change the Loan Status (Changing the Status of a Loan) to an advancing status. After you have scheduled the advance, you must then manually update the Loan Status back to fully advanced, if applicable.