Reversing Loan Advances
Overview of IL420
On certain occasions a borrower may want to reverse a loan advance. This is another case where the funds from the reversal are recorded as a receipt (in Cash Receipts Stage 1) and then must be linked to the appropriate loan in Payment Processing.
Note: The procedure described below assumes that you have already entered the received funds as part of a payment batch in Cash Receipts Stage 1. To process the reversal:
- From the DDI Connect main menu, double-click Financial Services
- Double-click Data Processing
- Double-click Payment Processing. The Payment Processing screen will launch:
Locate the batch containing the item(s) you wish to process. Click once to highlight. In the detail area, double-click the first item that you wish to process. This will open the Transactions tab:
Double-click the Loan Transactions item:
Double-click Loan Advance Reversal. The Loan Advance Reversal screen will launch:
If the loan number was entered in the Reference field in the Stage 1 Cash Processing area, the system will populate this screen with the loan information. If it was NOT entered, enter the loan number and press Enter or click Find to populate the screen. You have the following options on this screen:
| Field | Description |
|---|---|
| Re-advance reversal | If the advance being returned was a re-advance (a reissue of an advance), you can click this box to indicate that the re-advance is being reversed. Leave it unchecked if this was a standard advance |
| Principal Balance | Enter the amount being reversed for principal balance, if applicable |
| Interest Due | Enter the amount being reversed for interest due, if applicable |
| App Fee Balance | Enter the amount being reversed for application fee balance, if applicable |
| Close Fee TTD | Enter the amount being reversed for closing fees, if applicable |
The total field at the bottom will display the total amount being reversed.
Review the information on the screen to ensure that it is correct, and click Save. You will see this warning message:
NOTE: Accrued interest can be adjusted by using the Financial Adjustment process.
Click OK. You will now see this message:
Click OK to return to the Payment Processing screen.
