Loan Type Maintenance

Overview of IL440

Loan Type Maintenance allows you to establish and modify rules for different loan types. Loans of the same loan type behave similarly in various respects. They have the same default interest rate, for example, and the same default duration. They reference the same DDI-Connect security functions in determining which users are authorized to view or change loan records. And their transactions affect the general ledger in the same way, unless modified at the level of the individual loan.

To add a new loan type:

• Double-click Financial Services

• Double-click Loan

• Double-click Setup

• Double-click Loan Type Maintenance. You will see this screen:

Please note that the types you see on your screen will entirely depend on what types your organization has already established.

To add a new Loan Type, click the "Add" button on the toolbar. This will enable the fields for editing.

Settings Tab

The following fields are present on the Settings tab:

Field	Description
Loan Type	Alphanumeric code identifying a category of loans with certain characteristics
Description	Brief, alphanumeric text explaining the purpose of the loan type
Loan Numbers/thru	Beginning and ending number of the numeric range applicable for this loan type
Interest Rate	Default interest rate applicable for this loan type
Amortization Term	Default duration, in months, for this loan type
Inquiry Security	This function utilizes the DDI-Connect Security codes. For a thorough understanding of how security works within DDI-Connect, we recommend you reference the Security document located here: Security Function Maintenance To set security on a specific code, you would enter the requirements in this format: !NA/7 or #NA. These are just examples...you can use whatever security function you like in order to restrict access to a code.
Maintenance Security	This function utilizes the DDI-Connect Security codes. For a thorough understanding of how security works within DDI-Connect, we recommend you reference the Security document located here: Security Function Maintenance To set security on a specific code, you would enter the requirements in this format: !NA/7 or #NA. These are just examples...you can use whatever security function you like in order to restrict access to a code.
Collect 30 days of interest (assuming 30/360 basis) with every payment	Selection prompting DDI-Connect to collect 30 days’ interest by default for payments made on loans of this type.

General Ledger 1 Tab

When you click the General Ledger 1 tab, you will see this screen:

It is important to note that only certain General Ledger accounts are required. For example, if your organization does not charge a late fee, you do not have to set up a General Ledger account for any fields pertaining to late fees.

For any of the fields on General Ledger 1 2, or 3, you can either key in the GL number or click the list icon to the right of the field to select from the GL accounts within the system.

The following fields are available on the General Ledger 1 tab:

Field	Description
Cash Account	Checking account affected by various loan transactions impacting cash general ledger (i.e., loan advances, loan payments)
Deposit Cash Account	Checking account affected by various deposit related loan transactions
Loan G/L Account	General-ledger account affected by loan transactions
Loan Advances	General-ledger account affected by loan advances
Loan Payments	General-ledger account affected by loan payments
Reserve/Escrow	General-ledger account affected by reserve/escrow payables
Reserve/Esc. Exp	General-ledger account affected by reserve/escrow expenses
App. Fee Reserve	General-ledger account affected by application fee reserves
Loans in Process	General-ledger account affected by loans in process
Closing Fee Income	General-ledger account affected by closing-fee income
Application Fee Income	General-ledger account affected by application-fee receipts

General Ledger 2 Tab

When you click the General Ledger 2 tab, you will see this screen:

The following fields are available on the General Ledger 2 tab:

Field	Description
Misc Adjustments	General-ledger account affected by miscellaneous adjustments
Disbursements Payable	General-ledger account affected by disbursements payable
Interest Receivable	General-ledger account affected by interest receivable
Interest Income	General-ledger account affected by interest income
Interest Collected	General-ledger account affected by interest collected
Rebate Expense	General-ledger account affected by rebate expenses
Rebate Payable	General-ledger account affected by rebate payable
Late Fee Income	General-ledger account affected by late-fee income
Late Fee Accrued	General-ledger account affected by accrued late fees

General Ledger 3 Tab

When you click the General Ledger 3 tab, you will see this screen:

The following fields are available on the General Ledger 3 Tab:

Field	Description
Misc Fee Income	General-ledger account affected by miscellaneous fee income
Misc Fee Accrued	General-ledger account affected by accrued miscellaneous fees

Reserve Tab

When you click the Reserve tab, you will see this screen:

The following fields are available on the Reserve tab:

Field	Description
Positive Balance Rate	Default interest rate applicable in the case of a positive reserve/escrow balance for loans of this type
Negative Balance Rate	Default interest rate applicable in the case of a negative reserve/escrow balance, if allowed, for loans of this type
Allow Negative Reserve	If selected, indicates that the system will allow a negative reserve/escrow balance for loans of this type
Calculation Frequency	The frequency with which the system will use the method identified below to re-calculate the interest expense on a reserve/escrow balance for loans of this type
Calculation Method	Selection indicating the rules to follow in calculating the interest expense on any reserve/escrow balance for loans of this type

When you have entered all of the applicable information, click the Save button to retain your changes.