Loan Payments via Cash Processing
Once a cash receipt is accessible through Payment Processing, it is available to use in the application of a loan payment. Enabling access to the payment through Payment Processing requires that your organization first set it up as part of a payment batch in Cash Processing Stage 1. For a detailed description of this process, refer to this page: Cash Processing Stage 1.
The Loan Payments window allows you to specify the amount of the payment as well as certain critical aspects of how it is to be applied. You can then project this over the balances due for the current period in principal, interest, and reserve categories. The system suggests the portions of the payment to allocate in each category and permits you to adjust these amounts if necessary.
- From the DDI Connect main menu, double-click Financial Services
- Double-click Data Processing
- Double-click Receipt Processing (Stage 2). You will see this screen:
Please note that what you see on this screen will be a list of batches entered by users in your organization
- Change the default selections in the Batch Type and Show lists, if necessary, to filter the batches as desired
- When you see the batch that you are wanting to use, click once to highlight it. The items in the batch now become visible:
- To apply a payment, double-click on it. This will display the transactions tab:
- Double-click the Loan Transactions folder. This will display a sub-menu:
- Double-click the Loan Payment menu item. The Loan Payment screen will launch:
- In the Loan # field, enter the loan number. If you are not sure what the loan # is, you can search for it by either clicking the list icon to display a list of loans or by clicking the binoculars to do a search
- When you select the loan, the system will populate the the fields with information:
The following fields are present on this screen:
| Field | Description |
|---|---|
| Account | PIN and address information of the account identified in the loan record (display only) |
| Refund Payee | Party that is to receive a refund amount designated from the receipt. In order to be listed, payees must be linked to the loan record. This select list is enabled only if the Refund field below contains a dollar value greater than 0.00. Refund payees come from three different sources: the borrower name/address based on the master-account record, the default disbursement code (which can point to the borrower, beneficiary ID, remitter ID, or disbursement ID), or any correspondent record linked to the loan |
| Loan # | Numeric code representing the loan to which the receipt will be applied |
| Check Balance | Any portion of the receipt that has not been applied to a loan, investment, line of credit, portfolio, or accounts-receivable balance (display only) |
| Payment Amount | Dollar amount of the receipt to apply to the loan. Defaults to the check-balance amount displayed above |
| Regular Payment | Dollar amount of the regular payments designated for this loan |
| Status | Numeric code indicating the current loan status. The first digit in the code indicates the following: 0 – regular-payment loan, 1 - interest-only loan. The second digit in the code indicates: 0 – loan being set up, 1 – loan in process (not fully provided to the borrower), 2 – loan closed, 3 – loan paid off or no longer active |
| Due date | Date that the payment being processed was due |
| Next due date | Date that the next payment will be due |
| Payment type | The payment type selection impacts whether the loan prepaid/past-due values are modified via the subsequent payment. Regular payments decrease the loan due amounts. Extra payments reduce the loan principal and/or interest balance. Extra payments disable prioritization since they should always apply just to the principal balance |
| Estimate | If the borrower has sent in a payment that has extra funds and you choose either the Apply towards principal or the Apply towards refund option, you can click the Estimate button to review how those actions will affect interest, principal and refund |
| Prioritization | Selection indicating how to allocate the payment amount between principal, interest, and (if used) reserve when you click the Estimate button. If “Principal/Interest/Reserve” is chosen, for example, it will look first at the amount due for principal this period and allocate the maximum possible. If there is no principal due this period, the system will look at the amount due for interest this period, etc. |
| Extra amount | Allows you the option of choosing how you wish to handle any extra funds included with the regular loan payment |
At the bottom of the screen, these additional fields are present:
For each field (reserve, interest, principal, late fee and misc fee), there is a balance, due, paid and new balance column. The only field that you have the ability to modify is the Paid column. You can adjust the amount paid to any of the items, as long as the total paid does not exceed the payment amount.
- Review all of the fields to ensure that the data is correct. For example, you will want to be sure that:
- Interest Amount is correct
- Principal Amount is correct
- Next due date is correct
Note: If the borrower has sent in additional funds, you can tell the system how to handle the extra amount. The system defaults to "Leave Unprocessed", but you have the option of:
- Leave unprocessed
- Apply towards principal
- Apply towards refund
If the additional amount is designated to be paid toward the principal of the loan, it is STRONGLY recommended that you follow this procedure
Once you have reviewed all of the fields and verified that everything is correct, click Save. If the payment has been applied properly, the system will display the message "Transaction Successful". Click OK. You will be returned to the payment processing screen, where you can proceed to apply other payments or exit if you have completed the batch.
