History of Payment Changes on a Loan Account

Screen ID:	IMEMLN-01
Screen Title:	History of Payment Changes
Panel ID:	5098
Tool Number:	Multiple
		Click here to magnify

This screen appears when you use History (F9) on the Loan Account Inquiry or Loan Account Maintenance screens. It will also appear when you use Payment Change (F9) on the Delinquency pop-up window.

This screen displays a history of each time the regular payment amount was changed on this loan account. This is used primarily when handling a delinquent situation on a loan where the payment changes over time. For example, on an interest-payment-only type loan, a new payment is typically calculated every month. Or on a line of credit loan, a new payment might be calculated every time a disbursement is made.

Any time a loan's regular payment amount is changed, the system will write out a history record that displays the date changed, the new payment, a reason for the change, the employee ID when appropriate, and the balance, rate, and term of the loan at the point when the change was made. A record is written when a new loan is created, as well as when the payment is changed manually using account maintenance. The snapshot includes payment information as it stood before the change as well as after the change is saved.

When viewing an interest-payment-only loan, you will see a column showing Interest Due and Delinquent Interest Due as of the time of the payment change. For a mortgage loan, there will be columns showing the Escrow Amount and Total Payment Amount including escrow.

Remember that a history record is simply a “snapshot” at a particular point in time: When the payment was changed, what did the loan account look like before and after changes went into effect?

CU*TIP: This history file began being populated after the fall 2006 release, with additional changes made in the Fall 2007 release. Payment changes made prior to those changes will not be included in the history.

To see more information about a particular change, select the item in the list and click Select or press Enter to proceed to the detail screen.

Payment Change History and Delinquency Calculations

The CU*BASE delinquency calculator will now determine a loan's delinquent amount using the number of payments delinquent and the detail of the actual payments involved, instead of using multiples of the current payment amount, as it did in the past.

In the case where a payment has been consistent for the entire delinquent period, the end result is the same. For loans where the payment changes periodically, the system now has enough information to allow members to catch up their loan payments using the actual payment amounts they were supposed to pay.

By using the records in the payment change history file, CU*BASE can keep track of the true delinquent amount, even for a loan over two months delinquent with multiple payment changes over the year. When a payment is made, the system will check to see whether the amount will satisfy the actual payment amounts that were missed.

For example, say a member missed his $100 payment in August. During September, the payment amount was changed to $125. He also missed that $125 payment in September and October. When November comes around, if he makes a $100 payment, CU*BASE will know that amount is enough to satisfy the August payment and will move the due date forward one month. Or if in November the member pays $225, CU*BASE would know to move the due date forward two periods, because the amount was enough to cover both the August and September payments.

The process is somewhat more complex for interest-only loans, but because of the data being stored in the payment change history file, CU*BASE has all of the information it needs to determine the payment amounts that should have been paid, and use that information when determining how to handle delinquency calculations—even for loans that have been delinquent more than 2 months, or with partial payment amounts. No more manual handling required for payments on these delinquent loans!

For more information about the specific differences for interest-only loans, refer to the Interest Payment Only booklet.

Field Descriptions

Field Name	Description
Change Date	The date on which the payment change was made.
Reason	On this screen you see the loan payment history. The reason codes are listed below.. This is a description of the reason for the change, such as loan creation, a variable rate change, LOC disbursement or payment, refinance, escrow analysis, interest-only payment change, or payment change made manually via account maintenance. Reason codes are as follows: EA = Escrow Analysis CI = CPI Payment LC = Loan Creation LD = Loan Disbursement LP = LOC Payment LG = Loan Category Change LH = Loan Cat + Bal MC = Manual Change ME = Escrow Change PC = Int Only Pymt Change RC = Other RF = Refinance VC = Variable Rate Change
Balance As Of Change	This shows the account balance at the time of the change.
Rate	This shows the rate on the loan at the time of the change.
New Payment As Of Change	This shows the new payment amount that was put into place. Select the record and use the Detail feature to see both current and previous side by side.
Escrow	(Appears on loans with attached escrows only.) The escrow amount as of the time of the change.
Total Pmt	(Appears on loans with attached escrows only.) The total payment amount (Reg. Pmt + Escrow Amt).
Int Due	(Appears only for interest-payment-only loans.) The interest due on the loan as of the time of the change.