Now your members can make multiple payments in the same month on their 365-day interest calculation loans, but the system will be smart enough to make only one payment towards their escrow per period without manual intervention on your part or having to use a sweep account.
CU*BASE will accept the payment and spread it over the payment matrix while advancing the next due date appropriately. CU*BASE will understand when the escrow transfer has been satisfied and when it is delinquent.
It doesn’t matter what method the member uses to make the payment—online banking, teller, phone transfer, direct mail post, AFT, etc.—all of the relevant posting programs have been changed to keep track of partial payments toward a full escrow transfer on 365 calc type loans.
This change affects only 365 calculation type loans. Partial escrow transfers are not supported for 360-day mortgages nor for interest-only loans.
The following conditions must be met to offer partial escrow payments to your members:
The Interest Calculation type of the loan category is a 0 = 365. (The mortgage is a 365 mortgage)
The Payment Calculation Type is Principal and Interest
To configure a loan category to allow multiple escrow payments, the Payment Controls screen needs to be set up in the following manner.
If partial escrow payments is allowed, members can pay multiple times during a month. These changes are recorded on the Inquiry view of the loan account. View the Escrow detail tab on the Payment information screen (typically known at the Delinquency pop-up window) accessed via Loan Account Inquiry.
First let’s review the meaning of the fields above. Loan partial payment is the amount paid toward the loan payment and escrow partial payment is the amount paid toward the escrow. These two items equal the Total partial payment. The Escrow remaining is the amount still left to pay to fulfill the escrow payment.
In the example above, the member has paid $17.97 toward her loan. This payment has gone to satisfy the first item in the payment matrix (escrow). It is recorded as a partial escrow payment of $17.97. At this point the member still owes $200.69 toward her escrow as well as the remaining amount due toward the loan payment, as well as the fees and other items in the payment matrix. Next week the member makes a payment of $250.00 toward her mortgage.
As you can see, the majority of this amount went toward satisfying the escrow payment, but $49.31 was put toward paying the loan payment and is now recorded as a Loan partial payment.
The member could continue to pay toward her loan during the month. When her payments had satisfied all of the items in the payment matrix, CU*BASE would advance her payment date ahead to the next month.