Loan Category Configuration: Payment Controls

Screen ID:	n/a
Screen Title:	Payment Controls
Panel ID:	2317
Tool Number:	n/a
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This window appears after using "Payment Controls" (F17) on the loan category configuration general information screen.

This screen is used to control how payments can be made for loans with this category code. The main purpose is for loans with mortgage collateral and those with a 360-day interest calculation, but the controls are flexible enough to be used with any loan type. See the Field Descriptions below for a detailed explanation of how each control will work.

I have a 365 loan with an attached escrow account where the system made an escrow transfer for less than the normal escrow payment amount. How can I figure out why that happened?

Following are the only loan payment programs that will use these new controls:

Online Banking and Audio Response

In It's Me 247 online banking and CU*TALK, if the controls are used, members will receive appropriate instructions if they attempt to make a loan payment improperly:

“The payment amount is not correct. Only a full payment is allowed.”
“A payment is not allowed at this time. Please contact the Credit Union for more information."

Special note for 360 mortgages: Because of the complexity of messages that would be needed to handle mortgage payments via a voice response system, payments can NOT be applied to 360 loans (Interest calculation type 3 = 360/Post) via CU*TALK audio response. Members will hear the message shown above if they attempt to transfer money to a 360 mortgage loan in CU*TALK audio response. Refer to the 360-Day Interest Calculation booklet for more details.

Teller Posting

Member Transfers (via Tool 516: Member Transfer, Phone Operator, and Journal Transfer (F13) in Teller Posting)

Direct/Mail Post

In CU*BASE, if the controls are used, when an employee attempts to make a payment incorrectly the following messages will be displayed as appropriate:

“The amount being applied is not a full payment.”
“Payment cannot be made until the first payment date."

Field Descriptions

Field Name	Description
Allow partial payments	This field lets you control whether a member can make small payments that will apply toward satisfying a future payment due. The Partial pay field accumulates the amounts of small payments and when an entire regular payment is reached, the system will move the due date forward to the next period (if allowed by the loan categoryNext payment date/delinq control setting). IMPORTANT: Because of the complexity and special requirements of mortgages that use a 360-day interest calculation, this feature is ignored and assumed to be unchecked for loans where Interest calculation type is set to 3 = 360/Post. On 360 mortgages, the system will not pay any attention to amounts in the Partial pay field on the loan account record when determining whether to move a due date ahead. Instead, when a payment is being made, either by an employee in CUBASE or via online banking, special messages will appear to explain that any payment that is lower than a regular payment amount will be applied directly to principal. (For automated payment processes such as ACH distributions, the system also applies these payments to principal, but of course without the messaging.) Refer to the 360-Day Interest Calculation booklet for more details about sweep accounts or other techniques to help members make payments on these loans. Leave this unchecked and if a payment is entered other than the normal payment amount, a warning will be displayed and the payment may not be allowed to post with the incorrect amount. (For 360-mortgages, see the 360-Day Interest Calculation booklet for samples of the messages that explain to the user/member how the payment will be applied to principal instead.) In this context, the “normal payment amount” means the regular scheduled payment amount, plus any escrow amount, plus all outstanding fines due. Credit Cards:* The first two boxes should be checked for credit card products. Credit Cards will accept partial payments and overpayments, and payments can be made at any time without restriction. The third box can be left checked but does not apply to credit card products.
Allow partial escrow payments	Check this box to allow partial escrow payments. Think of it as a flag that allows partial payments. The following conditions must be met for this to be a valid selection: Allow partial payments (above) must be checked, the loan’s interest calculation type must be 0=365 (only valid for 365 interest calculation loans) and the payment calculation must be blank=payment and interest. Checking this option allows a member to make multiple payments in one payment period on a 365 interest calculation loan that has an escrow without the need of a sweep account. SEE: Escrow 365 Partial Escrow Paymentsfor more details. Credit Cards: The first two checkboxes should be checked for credit card products. Credit Cards will accept partial payments and overpayments, and payments can be made at any time without restriction. The third checkbox can be left checked but does not apply to credit card products.
Allow payment prior to first payment date	This will prevent members from making a payment prior to the first scheduled payment date. This is primarily used by credit unions that sell mortgages in the secondary market, but can also be used for any loan type desired.