NLS User Guide - Nortridge Software

Transcription

Nortridge Loan System
User Guide
Version 4.10.6
Copyright ©2016. All Rights Reserved.
Rev. 20161011-A
Dear Nortridge Customer,
We, at Nortridge Software, have a long history of commitment and service to loan accounting
departments of all sizes.
For more than two decades, we have helped our clients better manage their loan portfolios. We
remain committed to providing new and enhanced features to what we firmly believe is the
BEST loan accounting solution on the market.
The Nortridge Loan System is a Windows-based program that provides the tools businesses
need to efficiently and cost-effectively manage their loans. Nortridge Loan System handles multiple loan types and adapts to the majority of lending environments. In today’s competitive lending marketplace, lenders must provide flexible loan terms to meet their customers’ needs. The
Nortridge Loan System accommodates these needs by providing the most flexible loan system
available.
The Nortridge Loan System is an easy to learn, comprehensive solution to managing loan portfolios. Now you can have the time and the software to increase your loan volume. In fact, we
do more than just service loans, Nortridge Loan System will track loans in process with demographic and financial information, as well as collection activity. Nortridge Loan System also
interfaces with third party systems such as general ledger and loan documentation systems.
As you review the Nortridge Loan System, our support department is ready to answer all of
your questions and assist you in your evaluation.
Sincerely,
William G. Hindson
President
Contents
Introduction
1
Contacting Nortridge Software
2
Installation
3
System Requirements
3
Client Computer Requirements
3
Server Requirements
3
Microsoft SQL Server Database Compatibility
4
Oracle Database Compatibility
4
Disk Space Requirements
4
Database Server Setup
5
Microsoft SQL Server Setup
5
Oracle Setup
6
Installing NLS
6
NLS on a Mac
9
NLS on Linux
13
Starting NLS for the First Time
14
Installing Reports
22
Upgrading NLS
25
User Interface
28
NLS Desktop
28
The Title Bar
28
The Menu Bar
29
The Toolbar
29
The Shortcut Bar
31
i
The Tree Toolbar
35
Contact View / Loan View
36
Setup
38
Security
38
User
40
Group
46
Default Privileges
47
Entry Log
47
Privileges Change Log
47
Active Users
47
System Setup
47
Comment Category
48
Customer Binaries
49
License Key
50
NLS Service
51
Report Manager
58
Reports AutoInstall
60
Payment Gateway
60
System Defaults
63
Contact Setup
69
Contact Type
69
Entity
75
Contact Defaults
77
Contact Relationships
80
Contact - Loan Relationships
81
Loan Setup
81
ii
Loan Class
82
GL Account Number
83
Impound Codes
84
Loan Group
85
Loan Payment Rules
98
Loan Template
100
Lookup Tables
131
Multi-Currency
134
Base Rate
138
Base Rate Spread
140
Interest Plan
142
Loan Defaults
147
Payment Methods
153
Status Codes
153
Suspense Accounts
158
Labels
160
Risk Rating
161
NSF
162
ACH
163
Credit Bureau
168
User Defined Fields
170
Loan Portfolio
171
Transaction Codes
173
Late Loan Events
222
Collateral
230
Statement
234
iii
Task Setup
239
Work Queue
239
Task Status
240
Task Priority
242
Task Template
243
Work Packet Status
247
Work Packet Priority
248
Work Packet Template
250
Workflow Overview
253
Collector Setup
268
Action Code
268
Result Code
269
Collection Code
270
Collection UDF
274
Disbursement / Trust Setup
279
Trust Account
279
Vendor Type
281
Voucher Type
282
Main Features
283
Working with Contacts
283
Adding a Contact
283
Telephone Editor
287
Contact Query
290
Search Criteria Metacharacters
291
Detail
293
Comments and Documents
307
iv
Demographics
313
Financials
313
Relationships
313
Portfolio
314
Task
315
Collateral
316
Disbursement Accounts
317
Credit Profile
317
History
319
Contact Import
320
Notifications
320
View Web Credentials
322
Loan Input Examples
323
Entering a Loan
324
Entering a Conversion Loan
353
Loan Query
390
Viewing a Loan
390
Binary Import / Export
407
Restructure
408
Queue On Demand Statement
413
XML File Import
414
Processing
415
Transaction
415
Accrual
416
Modify GL
419
Document Printing
421
v
Transaction Entry
422
Transaction Types
425
Batch Processing
428
Credit Card Processing
430
Global Suspense
433
Transactions for Disbursements
435
Printing Reports and Statements
439
NLS Defintions
440
Contact
441
Collateral Reports
441
Contact Portfolio
441
Inbox
443
Loan
443
Loan Portfolio
445
Setup
451
Advanced Reports
452
Word Document Interface
452
Excel Document Interface
458
Cash Flow Reports
460
Document Templates
461
Statements
485
Billing Statements
485
Periodic Statements
485
Printing Statements
486
Late Notices
487
Consolidated Statements
488
vi
Reprinting
488
Standard Statement Formats
489
Email and SMS
491
User Defined Field Attributes
505
Collateral
508
ACH
509
Loan ACH Configuration
509
Create an ACH
516
Amortized Fees
518
Setting Up Transaction Codes
518
Amortized Fee Setup
520
Viewing Existing Amortized Fees
531
Disbursement Screen
532
Vendors
532
534
Checks
534
Vouchers
535
Account Reconciliation
535
Vouchers to Print
537
Check Printing
538
Dashboard
539
Built-in Charts
539
Toolbar
541
Adding a New Dashboard and Charts
542
Contextual Menu
548
Dashboard Security
548
vii
Additional Features
552
Temporary Notes
552
Commitments
553
Adding a Commitment
554
Adding a Loan to a Commitment
554
Viewing Commitment Detail
554
Adding ACH Billing to Commitments
555
Credit Bureau for Commitments
556
Pools
556
Adding a Pool
557
Adding a Loan to a Pool
557
Detaching a Loan from a Pool
557
Viewing Pool Detail
557
Participation Loans
558
Adding a Participation Loan
559
Participant Setup
561
Participant Query
563
GL Setup Example
568
Charge Off / Multiple Book Accounting
572
Adding a Shadow Loan
573
Querying a Shadow Loan
576
Shadow Loan Payments
576
Shadow Loans and Pools
577
Task Manager
578
Task Manager Example
578
Using the Task Manager
586
viii
Task Manager Relationships
587
Collector Mode
625
Collection Campaigns
626
Escrow Module
629
Setup of Impound Transaction Codes
629
Setting Up Impound on a Loan
632
Impound Analysis
640
FARETS Interface
649
Credit Line Reserves
651
Credit Line Summary
651
Credit Line Detail
652
Linking Transaction Codes for Draws to Specific Credit Lines
657
Credit Bureau
658
Dealer Setup
658
View Credit Bureau Report on Individual Loan
659
Processing the Credit Bureau
661
Trust Accounting
665
Contact Disbursement Accounts
665
Loan Setup for Trust Accounting
666
Servicing Fee - Recurring Transaction
681
Integration with Disbursements
686
Trust Servicing Example
686
Special Accounting Considerations
698
Standard Interest Accrual Accounting
698
Rule of 78s Actuarial Interest Accounting
700
Rules
705
ix
To Do
705
NLS Event
707
Frequency
711
Condition
712
Finish Rule Setup
713
Web Services
715
Installation
715
Methods
717
VB.Net Example: Import XML
720
PHP Example #1: Authenticate Web User
721
PHP Example #2: Import XML
722
Frequently Asked Questions
722
Error Codes
723
Web Portals
723
Integration
723
Setting Up the WebPay Form
729
Borrower Portal
736
Nortridge Mail Source
745
Statement File For Mail Source
746
Logging on to MailSource
746
Statement Processing for MailSource
746
Transmitting the Document Queue
746
Delivery Point Validation
748
CDFI
749
NLS Log
758
Virtual System Date
759
x
Branch
760
Cash Drawer
765
Appendix
779
Equations and Procedures
779
Add on Interest
780
Interest Year Calculations
783
Round Off Errors
786
Merge Fields for Word Reports
787
Mail Merge Switches
790
Scripting
797
Reg Z Compliance
805
Holiday List
807
Reporting Points and MIP on 1098 Reports
808
Team Foundation Server
809
Microsoft SQL Server Application Role
812
Script Recorder
813
Glossary
817
Closing Notes
821
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Introduction
Introduction
Nortridge Software is pleased to present Nortridge Loan System (NLS), designed and
developed for lenders of all types and sizes. NLS incorporates the latest in object oriented technologies along with industry standard SQL databases and familiar Windows operation, providing an ideal solution for your lending operation.
The Nortridge Software staff, utilizing backgrounds in banking, hands on lending, loan operations, customer service, along with extensive technical expertise in software development,
has worked to provide a loan accounting and servicing system that is second to none.
NLS automates and manages the following key areas of a lending operation:
l
A comprehensive information infrastructure – a wide variety of information is at your fingertips, including such basics as company and contact names, addresses, and telephone numbers, as well as additional information that you can define for your specific
application or lending niche. Lending relationships can also be identified and tracked.
l
Records of your contacts and interactions with loan customers and prospects for your
lending services.
l
Day to day lending activities, including the entering and posting of loan transactions.
l
The accounting functions associated with a lending operation, including the accrual of
interest and other loan items.
l
Management reporting pertaining to your lending operation and the associated items
on your company’s general ledger.
l
The generation of customer statements and other customer reporting.
l
User security—protecting the integrity of your customer data and preventing unauthorized activity within your loan portfolio.
l
Workflow management with rules scripting support.
l
Highly efficient collection functionality for quick and effective collections.
l
NLS provides the flexibility to customize the system to your particular lending operation,
including the posting of loan activity to your general ledger.
l
Standard Windows make the software easy to learn and intuitive to operate.
Nortridge Software, LLC
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NLS is backed by the proven customer support services of Nortridge Software, a leader in the
development of software systems for the banking and financial marketplace. Nortridge Software is sensitive to the comments and questions offered by our customers and prospective
customers. As you review or operate NLS, please do not hesitate to share your input with us.
Contacting Nortridge Software
2 South Pointe Drive, Suite 250
Lake Forest, CA 92630
Phone: (714) 573-7988
Fax: (714) 572-0297
Support: (800) 435-7240
Web: www.nortridge.com
Office Hours: Monday to Friday, 6:00 AM to 5:00 PM Pacific Time
Notice of Liability
Nortridge Software believes that the software described in this publication is accurate and reliable and accepts no responsibility (financial or otherwise) for any consequence arising out of
the use of this software material. There are no warranties other than those expressly set forth in
the Software License Agreement.
The information contained herein is subject to change without notice. Revisions may be issued
from time to time to advise of such changes and / or additions.
All rights reserved. No part of this manual may be reproduced or transmitted in any form or by
any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without prior written permission from Nortridge Software,
LLC.
(714) 573-7988
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Installation
Installation
System Requirements
NLS 4.0 is a multi-tier client server application written entirely in Microsoft Visual C++ using an
industry standard back end database.
NLS supports integration with third party products using COM, DCOM, C++, VB, and SOAP
based web services. There are approximately 50 different third party products with which we
have interfaced. NLS is fully built in-house using Visual C++ with no third party software
products built into the software or required for use of the software.
Import and export controls are in the GUI with event driven scripting. Importing into the application is as simple as building an XML object and importing via one of our supported interface
methods.
Client Computer Requirements
Hardware requirements will vary depending on the operating system being used. PCs meeting
or exceeding the minimum requirements for its installed operating system is recommended.
Make sure the operating system is up-to-date with the latest software and security updates
installed.
Supported Operating Systems (both 32-bit and 64-bit are supported):
Windows 7
Windows 8
Windows 8.1
Windows 10
Nortridge Software uses Windows 7 64-bit in the development of NLS.
Server Requirements
Hardware requirements will vary depending on the operating system being used. For optimal
performance, a dual quad-core Xeon 5500 series server is recommended to service up to 100
NLS users and 50,000 to 100,000 active loans.
Supported Operating Systems (both 32-bit and 64-bit are supported):
Windows Server 2003
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Windows Server 2008 R1
Windows Server 2012
Nortridge Software uses Windows Sever 2008 R2 on all production and development servers.
Microsoft SQL Server Database Compatibility
Both 32-bit and 64-bit are supported.
Microsoft SQL Server 2005
Microsoft SQL Server 2008 R1
Microsoft SQL Server 2008 R2
NOTE
Standard edition is sufficient for up to 32 GB of RAM.
Oracle Database Compatibility
Oracle 9i, 10g, 11g, and 12c
NOTE
Oracle is supported on any Oracle supported operating system.
Disk Space Requirements
Disk space is dependent on the database used, number of loans in a portfolio, and type of history maintained. Estimates for a loan portfolio are 80 MB to 200 MB per 1,000 loans maintained for one year. Size per 1,000 loans is based on:
l
Statement, late notices, and other images being archived in the database.
l
Frequency of statements.
l
Loan setups that include complicated interest structures.
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l
Transactions per loan.
l
Collections activity for specific portfolio.
Database Server Setup
If Nortridge Loan System is to be installed in a Client / Server environment, it will be necessary
to configure the database prior to installing the loan system on any client computer. This will
not be necessary for NLS users who are employing the SaaS (Software as a Service) implementation of NLS in the ASP (Application Service Provider) environment. In this case, Nortridge
Software will be acting as your database administrator and you do not need to set up your
own database server.
The Nortridge Loan System must be installed to one of the following database platforms:
l
Microsoft SQL Server
l
Microsoft SQL Server Express (This version of SQL server may be used for demo purposes
and for single user implementations, and may be downloaded free of charge directly
from Microsoft)
l
Oracle
The Nortridge Loan System is capable of automatically configuring the default NLS database
schema. The sections on MSSQL Server and Oracle are for the use of DBAs who wish to know
how to manually configure the database.
Microsoft SQL Server Setup
If NLS will be used in a multi-user environment with Microsoft SQL Server, a database must be
set up. While version 2.10 or later of NLS can automatically build a database, the process may
be performed manually if desired. The following are the basic steps required to set up the database for use with NLS using SQL Server 2005.
1. Log onto SQL Management Studio. You must have privilege to create a database and
users.
2. Create a new database with the name NLS. Set the initial size to 100 MB. A database
name other than NLS can be used. The Nortridge Loan System uses approximately 80–
200 MB per 1,000 loans with one year of history.
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3. Navigate to the Security folder and choose Logins. Create a new login named
NORTRIDGE. A user name other than NORTRIDGE can be used.
4. Navigate to the Databases folder and expand the newly created database object. Rightclick the Users object underneath the newly created database and select “New Database User.” In the New User dialog, select the Login Name that was created in step 3.
Assign the role of “db_ddladmin” or “db_owner.”
5. Edit the database properties of the newly created NLS database and on the permissions
tab check the permissions: Create Table, Create View, Create SP, Create Default, and
Create Rule; for the newly created user NORTRIDGE.
6. Log onto Management Studio as the newly created user NORTRIDGE. Once logged in,
set the DB: field on the toolbar to the newly created NLS database name.
Using File > Open, choose the mssqlxx.sql file from the sql folder inside the NLS installation directory (C:\Program Files (x86)\Nortridge Software\NLS\bin\sql) and
execute (where xx is the version number of the .sql file).
After successfully reading in the initialization scripts, the database is ready for connection from the NLS program.
Oracle Setup
In order to use Oracle, a database must first be set up. The Nortridge Loan System supports
Oracle 7.3, 8.0.5 or greater, 9i, 10g, 11g, and 12c. The following are the basic steps required to
set up the database for use with NLS using Oracle 8. If you need further assistance, please call
Nortridge Software technical support.
1. Create a user named NORTRIDGE. Assign it to a default tablespace and temporary
tablespace. Grant this user “connect” and “resource” roles.
2. Log on to SQL Plus using the newly created NORTRIDGE user. Read in the oracle.sql initialization script located on the CD using @e:\sql\oraclexx.sql; (where xx id the version number of NLS being installed).
The path to this file on your CD is:
Program Files\Nortridge Software\NLS\bin\sql
After successfully reading in the initialization scripts, the database is ready for connection from the NLS program.
Installing NLS
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1. Close all open applications on your computer.
2. Double-click the downloaded NLS installation program.
3. After reading the “Welcome” window, click Next to continue. This will bring up the NLS
license agreement.
4. Click to select the I agree button and then click Next.
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5. Check which option items you wish to include in the installation.
6. The default destination folder for the NLS installation is shown. If you wish to install NLS to
a different directory, click Browse…. When the destination directory has been set, click
Next.
7. Click Next to begin the installation. All files necessary to run NLS will be copied to your
hard drive. A progress bar will show you the percentage of completeness of the
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installation.
8. When the installation is complete, click Close to exit Setup.
NLS on a Mac
OS X users can connect to and use Nortridge Loan System for ASP by following these steps to
install and set up Microsoft Remote Desktop on their Macs.
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1. Open the
Mac App Store app. You can find the app in your Applications
folder or in your Dock.
2. Once Mac App Store is open click
at the top right corner of the
window.
3. Type in Microsoft Remote Desktop in the search field and hit <Return>.
4. In the search result, click
to download and install the app.
5. Once the app is installed, click Open or double-click on the Microsoft Remote Desktop
icon in your Applications folder to launch the app.
6. Once Microsoft Remote Desktop is open, click
.
7. In the Edit Remote Desktops window, enter your server information and user credentials.
Connection name Enter a name for the connection for your own reference.
PC name
Enter the name of the PC to which you will be connecting to.
User name
Enter the user name that will be used to connect to the remote PC.
Password
Enter the password for the user.
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8. Next, click on
at the top of the window. You will now choose a folder on your
Mac for downloading and saving files. Click
located at the bottom left corner of the
window.
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9. Click Browse… next to Path.
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10. Browse to the folder where you would like to save your files and click Choose.
11. Click OK.
12. Close the Edit Remote Desktops window and your setup is now complete.
13. Start using NLS by selecting your remote server in the list and clicking
.
NLS on Linux
Linux users can connect to and use Nortridge Loan System for ASP by using the free remote
desktop protocol client FreeRDP. The latest version of FreeRDP should contain the changes
required to connect to the NLS server using TLS 1.2.
The following version has been tested to work with NLS:
https://github.com/FreeRDP/FreeRDP/archive/1210421b62972cfec2d5b84651c6452da416dd22.zip
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If you are using an older version or maintaining your own code, the changes that was needed
to connect to servers using TLS 1.2 is documented at:
https://github.com/FreeRDP/FreeRDP/issues/2828
Starting NLS for the First Time
When using Nortridge Loan System for the first time, follow these steps:
1. Double click the NLS.exe icon. NLS.exe can be found in the bin folder of your NLS installation (e.g. C:\Program Files (x86)\Nortridge Software\NLS\bin).
2. Because you have never logged on before, you will get a message, “Database Connection
Map file does not exist…” This file tells the loan system where to find its data.
3. Click OK.
4. Now, you will be brought to the Connect window. The OK option is not available because
there are no connections defined.
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5. Click Connections.
You are brought to the Manage NLS Connections window.
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6. Click Add.
A default name is given to your new connection. You may change the connection name if
you wish.
7. Select your type of database from the Connection Type drop down list. If you are using SQL
Express select Microsoft SQL Server.
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8. Fill in the rest of the parameters as follows:
Server
SQL Express
Use the computer name\sqlexpress
Microsoft SQL
Use the Server Alias name that is specified in SQL Server Client Network
Server
Utility.
Oracle
Use the Service Name that is specified in Oracle Net8 Easy Config.
Database Name
SQL
Express
Enter the desired database name (e.g. NLS).
Microsoft Enter an unused database name (e.g. NLS) to automatically build a new dataSQL
base or use the name of the database that was previously created in Enterprise
Server
Manager/Management Studio.
Oracle
Not Applicable.
Authentication
The authentication type determines if a user’s log in authentication will be based
on a user name and password stored in the database (database authentication) or if the user’s Windows network profile will be used (Windows authenAll Data-
tication).
base
Types
In the case of Windows Authentication, the user MUST be set up in security with a
user name that exactly matches their Windows login. In this case, upon launching NLS, the user will be logged into the proper account within the NLS database
which matches the account with which they are currently logged into Windows.
User Name
SQL
Express
Enter the desired user name for the database, nortridge is a typical setting.
Microsoft Enter the desired user name for the database if using the auto build feature, or
SQL
use the name of the user that was created in Enterprise Manager if the database
Server
was built manually.
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Oracle
Use the name of the user that was created in Security Manager.
Password
SQL
Express
Enter the correct password for the account specified in User Name.
Microsoft Enter the correct password for the account specified in User Name if using auto
SQL
build, or use the password that was specified for the user created in Enterprise
Server
Manager.
Oracle
Use the password that was specified for the user created in Enterprise Manager.
Trace File
This specifies the location for a data call output file. This file can be quite useful in debugging
problems and technical support. A common setting is:
C:\Program Files\Nortridge Software\NLS\TMP\Nls.out
9. Press OK to save the new settings. You are brought back to the Connect screen. Enter admin
for your user name and admin for your password.
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10. Click OK.
11. If the database specified has not been created yet, NLS will open the database builder dialog.
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12. All of the fields should automatically populate except the password for the administrative
account. Enter the password and click OK. If you are using MSDE the password will be nortridge.
13. Once the database has been built, NLS will open a dialog informing you the database was
created successfully.
14. Click OK. NLS will be shut down.
15. Double click the NLS icon to re-start the application. The connection screen will open up.
16. Enter admin for the user name and password and click OK.
17. NLS will prompt you to enter a new password. Type your desired password into the password and confirm password fields and click OK.
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18. Since you have never logged on to this database before, your license key will need to be
validated.
19. Place your NLS license key disk in drive A: and click Browse….
If your license file is saved on a hard drive or on the network, you can browse to find the file.
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20. Select the license.key file and click Open.
21. Click OK.
Now you will be taken to the main NLS environment.
Installing Reports
Nortridge Software distributes reports for NLS periodically in the form of Report Packs. A report
pack is included with your NLS install program and will be automatically placed into the Report
Packs directory of the installation path. Subsequent report packs will be distributed through our
website at www.nortridge.com.
1. To install a Report Pack, click
Setup on the Shortcut Bar or select VIew > Setup
menu.
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2. Click
to expand System (if it is not already expanded) then click Reports AutoInstall.
3. Click Get Files.
4. Browse to the location of the Report Pack. Its location may vary depending on your working environment.
If you have recently installed or upgraded your NLS version, then the latest report pack
(as of the time of that version’s build) will be located in your “Report Packs” directory
under “NLS.”
If you have downloaded the latest report pack from our website then the report pack will
reside at whatever location you have saved it to.
If you are on the ASP version of NLS, we will periodically upload the latest report pack to a
directory that is accessible from your browser within the ASP environment.
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5. Select the .nrp file and click Open. The reports will be loaded into the Auto-Installer.
6. Click Install.
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7. Click OK to dismiss the dialog then click OK on the Setup screen.
8. Click Yes. This completes the basic setup of NLS.
Upgrading NLS
Periodically, a new version of NLS—containing new features and enhancements—will be
released and can be downloaded by licensed NLS users.
The recommended steps for the client and database upgrade process are as follows:
1. Download the installer for the new version from https://www.nortridge.com/Customer_
Care/Nortridge_Support/nortridge_support.html.
2. Make a backup copy of your NLS database (Microsoft SQL Server or Oracle) to use in
testing the upgrade process. This is the best way to get a good idea of how long the database upgrade will actually take and will allow you to appropriately plan the timing of
the actual production upgrade. This backup should be restored as a test database with
a database name different from that of your production database.
3. Select a computer to be used for the upgrade test. If this computer does not already
have NLS installed, install your current (pre-upgrade) version of NLS on that computer.
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4. Test the connection between the upgrade test computer and the upgrade test database, and make sure that you can successfully log in.
5. Run the installer for the new version on the upgrade test computer.
6. Launch the new version of NLS on the upgrade test computer and connect to the
upgrade test database. Follow the on-screen prompts to upgrade the database. You
will be shown a report of the progress of the upgrade, but some individual steps of the
upgrade may take a long time (depending on the size of your database). Do not stop
the upgrade process.
7. When the upgrade is complete, log in to the new version of NLS and do any system testing that you desire.
8. Download and install a report pack appropriate to your new version of NLS. Test the
reports that you use on a regular basis.
9. When you are satisfied with the testing, and ready to upgrade the production database,
make sure that you have a fresh backup and that all NLS users are off the system.
10. Launch the new version of NLS on the upgrade test computer and connect to your production database. Follow the on-screen prompts to upgrade the database.
11. If for any reason the upgrade attempt fails, you must restore your database backup
before attempting to upgrade again.
12. If for any reason you decide to terminate your attempt to upgrade, and have not yet
upgraded the client computers (other than the computer selected to be the upgrade
test computer), it will only be necessary to restore your database backup in order to
resume production.
13. Once the production database has been upgraded successfully, verify that you are
able to successfully log in.
14. Install the report pack appropriate to your new version of NLS.
15. Run the installer for the new version on each client PC and test each connection.
While not all of these steps are absolutely required in order to upgrade an NLS version, following this procedure will ensure the minimum amount of production down time as a result of
the database upgrade, and also ensure that you are able to resume production with your previous version in the event of any unforeseen problem with the upgrade.
NOTE
If an NLS Service (such as NLSService.exe, NLSReportService.exe, or
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Installation
NLSServiceHost.exe) is running during the upgrade, the NLS Service exe file may not get
upgraded. To avoid this issue, terminate the process manually before upgrading. To terminate the process, go to the Task Manager by typing Alt-Ctrl-Delete and click on Task Manager. In the Task Manager, look for the NLS Service process in the list of running processes
then right click on the process name and select End Task. This will terminate the process and
allow the exe file to be upgraded.
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User Guide
User Interface
User Interface
NLS Desktop
The NLS Desktop is comprised of several panes and menus designed for interacting with the
program. These items are content sensitive and its functionality and available options will vary
based on your current working data.
The Title Bar
The NLS Title Bar is the band at the top of the NLS program window.
NOTE
The Title Bar’s appearance will differ based on the version of Windows being used but the
positioning of the window elements will be the same.
The Title Bar contains each of the following components (listed from left to right):
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The Icon: This is a graphical representation of The Nortridge Loan System that is used to identify
NLS. A similar icon was placed on your desktop during installation as a shortcut for launching
the program.
The Title: This is the title of the program running in the window and also contains the database
currently connected (as defined on your “Manage NLS Connections” window).
Minimize Button: This is a standard Windows button that clears the program from your desktop
and hides it on your Windows Taskbar. You can restore the program to full size by clicking the
NLS icon on your Windows Taskbar.
Maximize Button: This is a standard Windows button that causes the window to expand to fill
your screen. Clicking the same button again will return the window to its former size.
Close Button: This is a standard Windows button that closes the window and terminates the
program (if on a main program window). Clicking this button will shut down the Nortridge
Loan System.
The Menu Bar
The Menu Bar is a collection of drop down menus from which various functions of NLS can be
accessed.
To access one of the drop down lists, either click on the name of the menu, or hold down the
<Alt> key while typing the underlined letter for that menu.
EXAMPLE
To bring down the File menu, press Alt-F.
Sometimes a selection in a drop down menu will have a small arrow pointing to the right. This
arrow indicates that another menu is associated with that item. Bring your pointer down to the
indicated item, and a new menu will appear to the right. You can access any item on this new
menu normally.
Some menu items may not currently be available for use. These items are shown in a gray
color and are disabled.
The Toolbar
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The Toolbar is a collection of icons used to access various functions. These functions may also
be accessed through the menu bar.
NOTE
The content of the Toolbar may vary depending on the current function being performed.
The toolbar may be picked up and placed anywhere on the screen. In this way it can function
as a Tool Box. The functionality of the toolbar / tool box does not change; only its configuration.
The buttons shown on the toolbar, listed from left to right are:
Open Con-
Allows you to connect to an available database. NLS can be connected to
nection
multiple databases simultaneously.
Close Connection
Navigation
Allows you to log off a connected database.
A drop down list for quickly accessing features of NLS. This is available only
when the Shortcut Bar is not being used.
Cut
Clears highlighted item from the field and places it on the clipboard.
Copy
Places highlighted item on the clipboard without clearing it.
Paste
Inserts the content of the clipboard at the cursor.
Creates a new Contact or Loan entry screen. The down-arrow icon is a
drop down menu, from which you may select from a list of items that may
Add
be added to the currently selected Contact or Loan account, such as a
Commitment, Pool, or a Loan if you are on a Contact.
Saves any currently unsaved modifications to the Contact or Loan
Save
Cancel
account.
Removes the changes that are being entered, without saving.
Deletes the selected Contact or Loan. To delete a Contact, it must have no
Delete
Loans, Commitments, or Pools. To delete a loan, it must have a zero balance and be closed.
Clear
Clears all information from the Tree bar. Hitting [F5] on the keyboard will
also clear the query.
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User Interface
Query
Selects all Contacts or Loans in the database that meet the search paraGet Query
meters that have been entered and places them in the Tree bar. Hitting [F6]
on the keyboard will also initiate the query.
While a query is in progress, the Get Query button will change to this Stop
Stop Query
Query button. Clicking this button will halt the incomplete query that is in
progress.
Transaction Entry
Opens a window to enter a new transaction for the selected loan. Only
available when a loan is selected.
Start
Goes to the first Contact or Loan in the Query.
Previous
Goes to the previous Contact or Loan in the Query.
Next
Goes to the next Contact or Loan in the Query.
End
Goes to the last Contact or Loan in the Query.
Places a new Temporary Note on the Contact or Loan. The down-arrow
Notes
allows you to clear all Temporary Notes from the screen, or show all that
have been closed but not deleted.
Allows you to create a reminder message for a particular NLS user that will
New Notification
Individual
Report
pop up on their screen on or after a specified date and time, as long as
they are in NLS.
Brings up a menu to allow access to reports that may be printed for individual Contacts or individual Loans.
Enter text in this field and hit Tab or Enter to return any Contact or Loan
which contains the selected text in any Contact number, Loan number,
Quick Search
TIN, name, or address field.
Help
Activates the online manual and help system.
Collector
Toggles the screen between regular Loan Query mode and Collector
Mode
mode.
The Shortcut Bar
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User Interface
The Shortcut Bar contains items for quickly accessing various functions of NLS. It is divided into
five sections called “sliders”; Main, Processing, Disbursement, Reports, and Security. Click on a
slider to reveal items in those categories.
Main
This icon will bring up the NLS Task Manager. The system defaults to this view on
startup, although the user may change the order of the icons in the shortcut
Inbox bar, and the system will always default to whichever icon has been placed on
top.
Clicking this icon will bring up the Contact view.
Contact
Loan
Clicking this icon will bring up the Loan view.
Clicking this icon will bring up an entry screen for any collateral items which are
Collateral
to be tracked separately from any specific loan accounts. Collateral is usually
entered and accessed from the loan that it collateralizes.
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Campaign
Clicking this icon will bring up the collection mode Campaign Builder.
Builder
Setup This icon will bring up the global setup parameter menu for NLS.
Dash- Clicking this icon will bring up the Dashboard view.
board
Processing
Click the Processing slider to see the set of icons for loan processing options.
Transaction
Click this icon for a transaction batch entry screen. Transactions may also be
entered on specific loans from each loan’s query screen.
Click this icon to bring up the menu for end of day interest accrual proAccrual cessing.
Modify
those transactions to your General Ledger.
GL
face
Click this icon to modify the General Ledger transactions prior to uploading
GL Inter- Click this icon to view the GL interface as specified in the GL Interface Object
Name in loan setup defaults.
Document Printing
Click this icon to view Document Print Queue, Internal Print History, and
MailSource History information.
Disbursement
Click the Disbursements slider to bring up icons for the processing of vouchers and printing of
checks.
Disbursement
This icon takes you to a screen on which you may query vendors, disbursement accounts, checks, and vouchers.
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User Guide
User Interface
Vouch-
Click this icon to list all vouchers outstanding.
ers to Print
Print
Click this icon to print outstanding checks.
Checks
Reports
Click the Reports slider to bring up the icons for the various documents that can be printed in
NLS.
This icon allows access to all report documents. In NLS, reports (as opposed to
statements) are defined as any documents that can be printed at any time
Reports
(such as a Trial Balance or a General Ledger Posting Report).
Statements are defined in NLS as any document that is generated automatically by the system at a predetermined time.
EXAMPLE
A loan may be designed with a payment due on the first of each month and
Statements
a statement cutoff of –10. A statement for this loan would be generated 10
days prior to the due date. The data for the statement resides in a statement
queue until the statements are printed. Once statements are accessed from
this icon, all statements that are currently in the queue will be available to
print.
This icon accesses a function that will allow the reprinting of statements that are
Reprint
no longer in the queue because they have previously been printed .
Statements
Cash
Flow
Reports
This icon accesses the cash flow report generator. The cash flow reports are generated in Microsoft Excel, and they show a projection of expected payments
and income for the loans and periods selected.
Security
Click the Security slider to see the set of icons for NLS Security.
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User Guide
User Interface
This icon brings up a list of users and their security privileges. This screen allows
you to set or modify the security parameters for the users in your NLS database.
User
This icon brings you to the user group screen. From here, you can set up groups of
users with similar privileges. You can assign privileges to the group as a whole,
Group
then assign individual users to the groups.
This icon brings you to a screen where you will be able to assign or modify a set of
default privileges. These default privileges are automatically assigned to any
Default
newly created users. Privileges may then be added to or taken away from that
Privileges user on the User screen.
This icon brings up the entry log. This log lists each time any user has logged in or
Entry Log
logged out of the database.
Privileges
Change
This icon brings up a report of all changes to user privileges and shows which NLS
user modified that privilege.
Log
This icon brings up a list of all users who are currently logged into the database,
Act- their login time, and the network location of the computer from where they are
ive Users
logged in.
The Tree Toolbar
The Tree Toolbar or Tree Bar is where the entire list of the current query is displayed.
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The name of the database connection to which you are currently connected to is shown at the
top of the Tree Bar.
If multiple database connections are live at the same time, queries from separate databases
are not merged on the tree—each database must be queried separately.
The default settings in System Setup are currently set to show last name first. This is the default
setting for the Contact Tree Bar, but the administrator can set it differently. Placing your cursor
over the name will show a tooltip with the entire name displayed.
Contact View / Loan View
The Contact View / Loan View is the section of the screen where the detailed information of the
currently selected Contact or Loan is displayed.
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User Interface
The upper portion of the Contact View / Loan View contains the main information fields for the
selected Contact or Loan. The lower portion shows different sets of informational fields depending on which tab, located along the bottom of the view area, is selected.
If the shortcut bar is disabled,
appears on the toolbar. This toolbar button is a drop down
menu that replaces the functionality of the shortcut bar. The benefit is more space on the
screen for data.
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User Guide
Setup
Setup
Security
The comprehensive NLS security module is accessed from the Security slider on the shortcut bar
or from the View > Security menu.
Security - User view.
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User Guide
Setup
Security - Default Privileges tree view.
NLS security is built around a privilege tree that is used to assign privileges. This tree allows the
system administrator to set up privileges for individual users, groups of users, or system
defaults. Every function in NLS has its own set of privileges. A user will have access to any functions for which a privilege has been granted in personal privileges, in the group privileges as a
member of the group, or any privileges specified in a trustee access. The user only needs to
have a specific privilege in one place to be able to access a specific function.
NOTE
Trustee access can be configured in the following areas of Setup: comment category, contact type, collateral, loan group, loan portfolio, transaction codes, work packet template,
work queue, and task template.
The user account contains the user’s profile, individual privileges, group membership, entry
log, and privileges change log. The profile contains the user’s system password and password
expiration information, and the logs allow the system administrator to track the user’s access
to the system.
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User Guide
Setup
User
User profiles can be located by clicking Security on the short cut bar. The users will be displayed
in the Tree Tool Bar. The user tree shows all of the user accounts that have been configured
within the database. Only an Administrator account will exist on a new database. The administrator has full access to the NLS system—the password is the only setting on the account that
can be changed.
The User view is divided into a top pane and a lower pane. The top pane always displays the
user’s account name and related information. The content of the lower pane changes accordingly with the tab selection at the bottom of the window.
When you leave a user’s record after making changes, you will be prompted to save or cancel
those changes.
To add a new user, click
on the toolbar to open the Add User window. This window has
fields to add the User Signon Name, the user’s Full Name, Create Equivalent To:, and Password.
The Create Equivalent To: field will allow you to copy the setup of an existing user by selecting
from a drop down menu.
The password that is entered on the Add User window will be required for the user’s first sign on,
but the user will be immediately prompted to set a new password.
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User Guide
Setup
Click OK to save the changes and dismiss the window.
Profile
The Profile tab of the User allows the system administrator to set basic parameters for an
account, such as the user signon, password, and other basic information.
Fields in the User Profile
This is a system defined reference number. The Admin user is always
User Number
assigned number 0, and each new user is assigned the next available
number as they are entered.
This is the account name that the user will use to sign on to the system.
User Signon
This field is set when the user account is created but the administrator
may change it at a later date.
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User Guide
Setup
This field may be used to enter the entire name of the user. This field is
Full Name
set when the user account is created but the administrator may
change it at a later date.
This will display the last date and time that the selected user logged into
Last Login
the system. If the user has not logged in since the account was created,
the message “No login date available,” will be shown.
Account Disabled
Windows Authentication Only
Selecting this option will prevent the selected user from logging into the
system.
If this checkbox is selected, the selected user can only log on to NLS
using Windows authentication. The user’s login name and password
must match the login name and password of the user’s Windows login.
Clicking this button brings up a logon hours matrix. The matrix is 24
hours by 7 days, allowing the distinct specification for which of the 168
hours in a week the user is or is not allowed to log into NLS.
Logon Hours
Name/Address/etc
DBA1 Privileges
Read only user
These fields allow you to keep track of your employee information for
all NLS users.
If this checkbox is selected, any assigned privileges are overridden by
the DBA privilege, which grants complete access to the user.
If this checkbox is selected, the user will only be able to view contact,
loan, inbox, and reports.
Allow User to
If this checkbox is selected, the user may change their own password by
Change Their Own
clicking the change password button. The user must have the privilege
Password
to view users in security in order to access the button.
1 Database Administrator
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User Guide
Setup
Minimum Password Length
Force Periodic Password Changes
This setting allows the administrator to define a minimum number of
characters that the program will accept as a valid password for the
selected profile.
If this checkbox is selected, the user will be required to change their password periodically. This setting is used in conjunction with Days Between
Forced Password Changes and Date Password Expires settings.
Days Between
This number allows the administrator to define the length of the period
Forced Password
between password change prompts. It is only applicable if Force Peri-
Changes
odic Password Changes is enabled.
This is the date on which the user will be prompted to set a new pass-
Date Password
Expires
word. Once the password has expired, the Days Between Forced
Changes setting will determine the next date for which a new password
is required. This setting is only applicable if Force Periodic Password
Changes is active.
This button will allow the administrator to change a user’s password
Change Password
manually. Users can change their own password if they have been
granted the View, Update, and Change Password permissions in the
Users section of Security.
Selecting any one of these three options (Contact Officer, Loan Officer,
User Type
or Collector) allows this user to be a selection in the drop down list for
the appropriate fields on the Contact or Loan account.
Groups
To add a user to a group, click the Groups tab at the bottom of the security view.
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Setup
The Groups tab shows the status of all user groups as they relate to the user. Groups that the
user belongs to are shown on the left in the Member Of box, while groups that the user does
not belong to are shown to the right in the Not Member Of box.
To add the user to a group, select the group in the Not Member Of box and click <---Add.
To remove a user from a group, select the group in the Member Of box and click Remove--->.
Click <--- Add All to move all groups to the Member Of box.
Click Remove All---> to move all groups to the Not Member Of box.
Privileges
A user’s security privileges are set in the Privileges tree. To enable or disable a privilege, you
must expand the tree to the bottom level of the specific privilege. To expand a section of the
tree, click
then enable a privilege by selecting the option .
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User Guide
Setup
To check or uncheck a large range of options quickly, right-click on any item in the tree and
select Mark All from the context menu. All items under the item, including all item in its subbranches, will be enabled. To disable all items under a tree item, right-click and select Unmark
All.
Entry Log
The Entry Log tab is a record of each time the user has logged on and logged off the system.
The table shows the login time, logout time, port ID, and NLS version of every session that the
user was connected for.
The Privileges Change Log is a record of all modifications to the privileges for a single user. The
table displays every privilege that was modified on a single line with a Date Stamp, a description of the Privilege, the Old Value of the privilege, the New Value of the privilege, and the user
who made the modification.
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User Guide
Setup
Group
To more easily facilitate the control of user privileges, users may be placed into groups with the
privileges assigned to the groups rather than to each individual user.
A user has access to all the privileges granted to any group of which the user is a member, plus
any privileges that are specifically granted to the user account. Privileges are inclusive. If a user
is to be denied a privilege, that user must be removed from all groups that have that privilege
(or the privilege removed from the groups) and the privilege must also be removed from the
user’s personal privileges.
Privileges
Privileges may be assigned to whole groups as well as to individual users. To modify the privileges for a group, select Group from the shortcut bar. Then, select the actual group that you
wish to modify from the tree, and select the Privileges tab at the bottom of the Security View.
The procedures for granting and denying privileges to the group are identical to the procedures for individual users.
The Privileges Change Log for a group shows all of the changes that have been made to the
privileges for that group. It is identical in form and function to the user’s Privileges Change Log.
Group Members
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User Guide
Setup
The Group Members tab lists all users who are currently members of the selected group. The
table displays the User Name, Login ID, Last Login, and account status for each member of the
group.
Default Privileges
The Default Privileges display allows you to configure a set of privileges, which are automatically loaded onto any new user at the time the user is created.
Setup of default privileges is identical to the setup of user privileges.
Entry Log
The Entry Log shows the login and logout dates and times, the user account which was
accessed, and the actual network computer which logged in. This display shows the entry
information for all users and is a complete history of user access to the currently selected database.
The Privileges Change Log is a chronological list of all changes that have been made to any
user or group. It shows the date and time that the change was made, which user or group was
changed, which privilege was affected, the previous value, new value, and the user that made
the change.
Active Users
The Active Users display shows which users are currently logged onto the database and what
the network location from which they are connecting.
System Setup
The System Setup is accessed by selecting View > Setup menu item or clicking
Setup on
the Main slider of the Shortcut bar.
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User Guide
Setup
Comment Category
Comments, which may be added to contacts or loans, may be grouped into categories. Each
Comment Category has its own unique setup of user-defined fields that may be placed on the
comment, as well as its own comment security and hot-key phrases.
To add a new Comment Category, click Add
. On the Add Comment Category window,
type a name for the new category in the Category Code field. Select the Category Type from
the drop down list, and enter any Notes that you require to document your category.
The available Category Types are:
A Comment Category of this type will be available for use from the Comments
Generic
tabs
of the Contact, Loan, Collateral, Deposit, and Transaction His-
tory Screens.
A Comment Category of this type will be available for use only from the ComContact
ments tab
of the Contact.
A Comment Category of this type will be available for use only from the ComLoan
ments tab
of the Loan Screen.
A Comment Category of this type will be available for use from the Comments
Collateral
tab
of the Collateral Screen or from the Comments tab
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User Guide
Setup
of the Collateral tab
of the Loan Screen.
Loan
A Comment Category of this type will be available for use only from the Com-
Trans His-
ment
tory
Loan Screen.
pop-up window of the Transaction History tab
of the
A Comment Category of this type will be available for use only from the ComTask
ments tab
of the Tasks screen.
Comment Category Toolbar Buttons
Sends a list of the Comment Categories—with their descriptions, types, and
Print
Add
status—to the printer.
Adds a new Comment Category.
Deletes the selected Comment Category. A Comment Category may not
Delete
be deleted if any comments that have been entered on to the system are in
that Comment Category.
Allows you to change the Category Code and Description of an existing
Modify
Update
records w/
Comment Category.
Allows you to switch all existing comments from any one selected Category
to any other selected Category.
new category
Allows you to setup hot-key definitions for phrases that can be autoPhrases
matically entered into a comment by typing the hot-key.
This security feature allows you to lock a Comment Category so that it may
Trustee
only be accessed by certain users.
Customer Binaries
Any COM enabled application may be configured to run within the NLS parent application
frame. In order to configure another application to run within NLS, click the Add Binaries button on the Customer Binaries tab.
Enter a category, title, and description for your customer binaries as you would like them to
appear on the customer binary tree. Then click OK.
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User Guide
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Once this object has been configured, and the loan system has been rebooted, a new slider
called Custom will appear on the Shortcut Bar. Clicking on this object will bring up a tree that
will show a list of all the customer binaries that have been configured.
Clicking the entry for a customer binary within the tree will launch the appropriate application
within the NLS frame.
License Key
If your NLS database does not have a current license key, you will be taken to the License Key
tab of System Setup, and that is the only place in NLS to which you will be able to navigate to
until a valid license has been installed.
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User Guide
Setup
If your license is current, but you need to enter a new license key (such as if you have recently
purchased additional user licenses) you will enter your new license from the License Key tab of
System Setup.
Your license key will be provided by Nortridge Software as a license.key file, on either a disk
or through email. If you have received your file via email, copy it to your local hard drive.
Click Get Key. This will bring up a Windows browser. Use the browser to navigate to the
license.key file (either on your floppy disk or at the location to which you have saved it on
the hard drive). Once you have opened the file, its parameters (serial number, number of
users, expiration date, and special features) will be shown on the screen. Click OK to install the
license to the database.
NLS Service
The NLS Service can be used to schedule the accrual process or to schedule report generation.
The NLS Service is not installed by default on client computers and should only be installed on
those computers intended to run an automated process. During the installation process, the
NLS Service may be installed by selecting Custom/Complete installation and selecting the NLS
Service from the list of items to install.
Configure the NLS Service
1. Navigate to the bin directory (C:\Program Files (x86)\Nortridge Software\NLS\bin) and double click on NLSServiceMonitor.exe. If you receive the error
message below, you will need to right-click the NLSServiceMonitor.exe and select
Run as administrator.
This will present the following dialog box:
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User Guide
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If you had a previous version of the NLSService Installed, you will see a different dialog
box which will give you the option to remove the old NLSService—click Yes. After the old
Service has been removed, click File > Connect to another computer. Select the computer that you want to connect to and you will then be to the screen shown above,
where you may proceed with the remaining steps.
2. Fill in the Windows account information and click OK.
3. Start the service by clicking green arrow on the toolbar.
4. Right-click on Local Computer and select Add Server.
Fill out the database information.
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This will scan the available NLS databases on the server. If there are several databases,
the process could take some time. Once it is complete, select the NLS database for
which you want to configure the service and click OK.
5. After the database has been added, it will appear in the tree of the Service Monitor.
6. Go to Edit > Options and fill out a path for the log file and the path to the folder where NLS
is installed.
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7. Proceed with the configuration under NLS Service in System Setup to set up your accrual
automation.
Using NLS Service to Automate Accruals
In Setup > System > NLS Service, click Add
to add a new scheduled process. In the con-
figuration window, enter the appropriate database connection information and desired time
of execution.
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Parameters
/X = Y or /X = N (Close program when accrual is done—if not defined, /X = Y is
assumed)
/A = (The date to accrue through—the date format is mm/dd/yyyy)
/Y = (Use yesterday’s date)
/W = (Accrue through weekend)
NOTE
Use of this parameter could cause the loan to accrue into the future. Transactions may
not be performed on loans with future Accrued Thru Dates until that date has been
reached. Therefore, use caution when employing this parameter.
/H = US (Accrue through holiday; supports US Federal Holidays)
NOTE
Use of this parameter could cause the loan to accrue into the future. Transactions may
not be performed on loans with future Accrued Thru Dates until that date has been
reached. Therefore, use caution when employing this parameter.
NOTE
/A and /Y are mutually exclusive, and if neither is used, the current system date will be
assumed.
Using NLS Service to Automate Report Generation
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User Guide
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To automate the generation of reports in NLS through the NLS service, first follow the steps
above to make sure that the NLS Service is enabled. Then create a Stored Parameter for the
report that you want to schedule. See section on Reports for more information.
Right-click on the Stored Parameter and select Schedule In Service. Fill in the parameters to
schedule your report and click OK.
Any parameter that is date dependent on the parameter list may now be edited by clicking the
button next to that parameter. The parameter can be set to be equal to the current date on
which the report is being run, or can be set to a date relative to the date on which the report is
being run.
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Using NLS Service to Automate Campaign Update
To automate the updating of Collection campaigns through the NLS service, first follow the
steps above to make sure that the NLS Service is enabled. Then create a collection campaign
that you wish to schedule.
Right-click on the campaign and select Schedule.
The scheduling parameters for the collection campaign are identical to those used for scheduling a report.
Using NLS Service to Automate ACH (NACHA) File Creation
To schedule the ACH processing (for ACH payments only—processing of vouchers to ACH is
not automatable through the Service), Select ACH from the Target Type drop down list and configure the parameters as follows:
Parameter
/H = company
header
/A = ach com-
Notes
ACH Company Header code number. (Required)
ACH Company code number. (Optional)
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User Guide
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Parameter
Notes
pany
/G = loan-
List of loan group numbers. Multiple loan groups should be separated with
group(s)
a comma. (Optional)
/M = +/- day
Defines the date to run the ACH through, relative to the current system
date. (Optional)
Location and name of the NACHA output file. The file name may be
formed from the following variables:
%m = Month as a decimal number (01-12)
%d = Day of month as a decimal number (01-31)
%y = Year without century as a decimal number (00-99)
/F = filename
%Y = Year in four digit format (yyyy)
%H = Hour in 24-hour format (00-23)
%I = Hour in 12-hour format (01-12)
%M = Minute as decimal number (00-59)
%S = Second as decimal number (00-59)
EXAMPLE
For the command line:
/H=1 /M=+1 /F=c:\achfolder\A%m%d%y.txt
When the ACH executes automatically on November 6, 2013, the ACH Header with a code
number of “1” will be used to create the header record in the NACHA file, the ACH will run for
all payments with execute dates up to November 7th, and the NACHA file will be created in
the C drive of the computer, in a folder called achfolder with a file name of A110613.txt.
Report Manager
If you create your own report using Word mail merge features or Excel, you could have a report
that is not in a report pack. Such a report would have to be configured manually. The configuration of all of the reports loaded into the NLS database may be viewed from the Report
Manager tab of System Setup.
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This is the name of the specific Report. When any report is selected in this field,
File Name
the information in all of the other fields will change to reflect the data for the
selected report.
Type
Type is the highest level of report grouping.
Within the Type grouping, the reports are grouped into categories. When reports
Category
are accessed, the reports will be organized by type and category on the report
selection tree.
Title
This is the title of the selected report. Usually, the title will be similar to the file
name.
The description field will simply show the title if the title is descriptive of what the
Description report does. If the workings of the report can not be explained simply in a short
title, then these specifications should be detailed in the description field.
This is the actual location of the report in the computer’s file system. This field
contains the path for the specific client computer on which it is currently being
Path
accessed. The same report will show a different path in the report manager on
another client computer if NLS is installed to a different directory on that computer.
Format File
This is the actual windows name of the format file (.dll file) for the report.
Printer
This field is not in use.
Force user
If this checkbox is selected, then whenever a report is run, NLS will check to
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make sure that the local version of the report on the client computer matches
to use this
the version in the database. If it does not, then the database version will auto-
version of
matically be downloaded to the client. This checkbox is selected by default on
report
all Nortridge Report Packs, and this will ensure that users are using the latest version of each report.
Reports AutoInstall
Reports are distributed by Nortridge Software in the form of Report Packs. When first setting up
the Nortridge Loan System, it will be necessary to load the report pack for the current version of
NLS. Periodic updates to the report packs may be downloaded from the Nortridge.com website, and occasionally a report pack containing a single report will be issued to fix a problem
with a report or provide a new report.
The report pack file will have a .nrp file extension. This file contains all of the reports in the particular report pack as well as the configuration information for those reports, so installing the
report pack will automatically configure the reports to run.
See Installing Reports on how to install report packs.
Payment Gateway
Before you can configure the loan system to accept automated credit card payments, you
need to have an account set up with Merchant Partners. If you do not currently have an
account, email [email protected] to get that process started.
Once your Merchant Partners account is in place, you will have the information necessary to
fill out the Payment Gateway Setup.
Go to System Setup and select Payment Gateway.
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Click Add
to add a new account.
Fill out the information provided by Merchant Partners. The information in the figures are for reference only.
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Click OK.
For information on how to link the gateway to the loan group, see Loan Setup: Loan Group.
For information on how to enter a credit card payment, see Transaction Entry: Credit Card Processing.
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System Defaults
The System Defaults tab contains global parameters that are not linked directly to either
Contact or Loan Setup.
Email/SMS1 Setup
Email/SMS History
Specify the number of days to keep the history in the table. 0 means
keep forever.
Email/SMS Interval The desired time interval (in seconds) after which the Email/SMS Servicer
Process
will send/receive email/SMS.
Email/SMS Ser-
This is the application that will process all of the incoming and outgoing
vicer
emails and SMS messages.
Microsoft Specific
Encrypt SQL
Connection
When enabled the connection to the database server is required to be operating with an SSL connection. If an SSL connection is not available, NLS will
show an error and disconnect. The Microsoft SQL Server instance must have
an SSL certificate installed.
SQL Applic-
To use a Microsoft SQL Server Application Role enter the name of the role here.
1Short Message Service is a text messaging service commonly used with mobile phones that uses standardized com-
munications protocols to exchange short text messages.
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ation Role
Name
SQL Application Role
Password
To use a Microsoft SQL Server Application Role enter the password of the role
here.
Miscellaneous
When this setting is enabled, NLS will store the program binaries in the
database. This is the installer for the current NLS version compressed
Binary Version
Updater
into a binary format. Each time a client computer connects to the database, their client version number is checked against the version stored
in the database. If the version stored in the database is newer, the
installer will be automatically unpacked from the database and
executed to upgrade the client.
N LS 4. 10. 1 AN D
LATE R
When enabled, branch support will allow for identifying branches, sep-
Branch
arating contacts, loans, and tasks by branch, and control user logins.
N LS 4. 10. 4 AN D
When enabled, you will be able to manage—the balances and the
LATE R
accounting and cash handling procedures associated with—specific,
Cash Drawer
Contact and Loan
Mixed Case Support
physical cash drawers containing bills, coins, and checks on hand.
When enabled, will allow mixed case alpha characters to be used in
the Contact name fields and the Loan name and shortname fields.
Nortridge Software recommends that all upper case characters be
used due to postal regulations.
This option allows the setting of NLS inactivity timeout. This value is represented as minutes between 1 and 300. If this value is 0, NLS will not
NLS Inactivity
Timeout
timeout.
EXAMPLE
If this value is set to 10, and there is an inactivity in NLS for 10
minutes, then the user will be automatically logged out of NLS.
Spell Checker
SQLSelectStatement
Restrictions
Used to enable and disable the spell checker throughout NLS.
This system default restricts specific kinds of command from being
executed in NLS scripting by the SQLSelectStatement method. The
default is Restrict Updates & DDL which will not allow any updates,
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insert, delete, or data definition language sql statements to be called
from the SQLSelectStatement method.
Validate ABA Num-
Validate the ABA number with the checksum value to ensure that a
ber
given 9 digit string is in fact a valid ABA number.
Oracle Specific
Oracle Case When enabled, this will force all queries to be case insensitive. This option is
Insensitive
only available on Oracle 10gR2 and greater. This parameter is ignored by
Search
databases other than Oracle
Reports
Database
Report Server
This parameter defines the report server to use when running reports. If
Microsoft Always On is being used, all connections will verify the status of the
sync prior to connection.
Global
Report Com-
Allows the user to set a company name globally on all reports.
pany Name
Launch Excel
Used to determine whether Excel is launched inside NLS or ourtside NLS.
Print PDF
Print engine to be used when printing a PDF document templates
Use Team Foundation Server as source code control of NLS
Integration
setup and scripting.
TIN Format
TIN Alpha-
When enabled, allows alphanumeric values to be entered into the tax iden-
numeric Entry
tification number fields in NLS.
TIN Auto
When enabled, will cause the tax identification number fields in NLS to auto
Format
format with dashes when a 9 digit number is entered.
TIN Dash Entry
When enabled, will allow dashes to be entered into the tax identification
number fields in NLS.
TIN Force
Sets the number of characters, excluding dashes, that the tax identification
Length
number field must be. A value of 0 disables this option.
User Defined Parameters
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When set to true, will display a progress bar when searching for
contact records. For very large databases (e.g. 500,000 plus
UDP:
contacts), the system may respond quicker by not having to
CIFRECFINDPROGRESSBAR
do an initial query to determine the progress bar values. This
will be superceded if defined in a local nort.udp file on a client computer.
UDP: DATEFMT
UDP: DEFAULT_
CONNECTION_POOL
Allows the setting of the global date format. This will be superceded if defined in a local nort.udp file on a client computer.
Allows the setting of the global default connection pool size.
This will be superceded if defined in a local nort.udp file on a
client computer.
Allows the setting of the global import field separator char-
UDP: FIELDSEPCHAR
acter. This will be superceded if defined in a local nort.udp
file on a client computer.
When set to true, will display a progress bar when searching for
loan records. For very large databases (i.e. 500,000 plus
UDP:
loans), the system may respond quicker by not having to do
LOANRECFINDPROGRESSBAR an initial query to determine the progress bar values. This will
be superceded if defined in a local nort.udp file on a client
computer.
Allows the setting of the global multi-character metacharacter.
UDP: MULTICHAR_METACHAR This will be superceded if defined in a local nort.udp file on a
client computer.
Allows the setting of the global range metacharacter. This will
UDP: RANGE_MATACHAR
be superceded if defined in a local nort.udp file on a client
computer.
Allows the setting of a global timeout value for report generation. This value is represented as seconds between 0 and
3600. If this value is 0, NLS will not timeout. This will be super-
UDP: REPORT_TIMEOUT
ceded if defined in a local nort.udp file on a client computer.
EXAMPLE
If this value is set to 10, NLS will wait for a record for 10
seconds before timing out and returning a message to the
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user.
UDP: SINGLECHAR_
METACHAR
Allows the setting of the global single-character metacharacter. This will be superceded if defined in a local nort.udp
file on a client computer.
Allows the setting of the global text import size. This will be
UDP: TEXTSIZE
superceded if defined in a local nort.udp file on a client computer.
Allows the setting of the global time format. This will be super-
UDP: TIMEFMT
ceded if defined in a local nort.udp file on a client computer.
Allows the setting of a global timeout value for transactions.
This value is represented as seconds between 0 and 3600. If
this value is 0, NLS will not timeout. This will be superceded if
defined in a local nort.udp file on a client computer.
UDP: TRANSACTION_TIMEOUT
EXAMPLE
If this value is set to 10, NLS will wait for a record for 10
seconds before timing out and returning a message to the
user.
Web Services
Last five passwords
unique
This option will keep the user from choosing a previously used password when
resetting their password. We will keep track of the last five passwords.
This is the timespan where a web user will not be allowed to log back in after
Lockout
the user has exhausted the allowable login attempts. This value is represented
Period
as hours between 0 and 48. If this value is 0, the web user will be locked out
indefinitely.
Unsuccessful
Login
Attempt
This is the number of unsuccessful attempts before a web user is denied from
logging in.
Web Inactiv-
This is the timespan where a web users will be automatically logged out after
ity Timeout
a period of inactivity. This value is represented as minutes between 5 and 60.
Web User
This is the number of days since the last password change that the user is
Password
required to change their password. If this value is 0, the web user will not be
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Change Frequency
Web User
Password
Inactivity
Expiration
required to change their password.
This is the number of days of inactivity until the password is required to be
changed. If this value is 0, the web user will not be required to change their
password.
The Microsoft SQL Server Application Role allows for using privileges specific to the connecting
application when Windows authentication is used to connect to the SQL server.
Configuring Microsoft SQL Server
To use Microsoft SQL Server Application Role with NLS, an application role must first be created
on the SQL Server. The process of creating an application role differs with the version of SQL
Server being used. Please refer to the documentation for your version of SQL Server to create
an application role.
https://msdn.microsoft.com/en-us/library/ms186574.aspx
In addition, users must have the following two privileges granted before application role can
be called:
1. The user must be given access to the database.
GRANT CONNECT TO [domain\login]
2. The user must be able to read from the system_defaults table.
GRANT SELECT ON system_defaults TO [domain\login]
Configuring NLS
Go to Setup > System > System Defaults.
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Click on the current value column of the SQL Application Role Name row and enter the name
of the application role created in SQL Server.
Click
in the current value column of the SQL Application Role Password row and enter the
password for the application role.
Click OK and restart NLS to save the changes.
Contact Setup
The Contact Setup is accessed by selecting View > Setup menu item or clicking
Setup on
Contact Type
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User Guide
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NLS has 150 user-defined fields available for use on every contact. There are 50 on each of
three forms: Detail, Demographics, and Financials.
Each contact is placed into one of the available contact types.
NOTE
If no new contact types are created, all contacts will be classified as <DEFAULT>.
There are also 16 additional user-defined fields for use with contact address book entries.
Each type has its own unique configuration for the 150 Contact User-Defined Fields. The label
and type of each user-defined field is defined on the Contact Type tab of Contact Setup.
To select which of the three forms of the user-defined fields (Detail, Demographics, or Financials) to modify, click on the appropriate tab.
For the Label, type in the label as you want it to appear on the screen next to the corresponding user-defined field.
For the Type, click on the field then click
and select the appropriate type for the user-defined
field from the drop down list.
Check Disabled, Required, Hide, Read Only, and Mixed Case as needed for the user-defined
field.
Click
to open a User-Defined Field Setup window for additional configuration options.
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In addition to the configuration of the user-defined fields, contact types also control the security access to the contacts within each type. Click
to designate which users are allowed
access to the contacts in a particular contact type.
User-Defined Field Types
A user-defined field of this type will allow entry of up to 50 characters of alphaText
numeric text. Also available in the User-Defined Setup window are Unlimited text
size, for removing the 50 character limit, and to allow Rich Text Format checkboxes.
A user-defined field of this type will allow for numeric entry. The number of
decimal places of precision can be defined, as well as a minimum and max-
Numeric
imum value that may be accepted into the field. The maximum field length is
25 digits, so you could define a maximum number of
9,999,999,999,999,999,999,999,999 (this is one short of 10 septillion). NLS will
not allow non-numeric characters to be typed into a numeric field.
A date field on the contact will be displayed in mm/dd/yyyy format, and an
Date
empty date field will show __/__/____ to indicate that this field is a date field.
The
icon next to the date field will bring up a calendar / date-picker.
To configure a drop down list, open the User-Defined Field Setup window. Click
to enter items that will appear in the drop down list for this field. A drop
Drop Down
down field can be designated as Allows user input or as Select only. If the field
allows user input, then the user may select from the list or type text in the field. If
set for select only, the field will not accept typed text.
Check Box
A user-defined field of this type will appear as a checkbox. A checkbox stores
boolean data (e.g. yes/no, on/of, true/false).
A button user-defined field is useful for activating Visual Basic Scripts. For fields
Button
of this type, a trigger of “On Button Click,” is added to the scripting interface. If
you want the button’s label to appear on the button instead of next to it, leave
the field label blank, and enter the label in the Default Value field.
Setting a user-defined field type to documents changes the field into a button.
Clicking this button will bring up a screen where documents may be attached
Documents
and documents that are already attached may be viewed. It is similar to the
documents tab on a comment. When the field is not open, a red number of
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User Guide
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the field will indicate how many documents are stored in this user-defined field.
This is designed to save time, as a user will not have to open a document storage user-defined field to determine if any documents are present.
Fields 51–55 on each of the UDF screens are available as Grid fields. These grids
may be enabled by toggling off the “Hide” attribute.
In the User-Defined Field Setup window, click
to open the Grid Setup win-
dow.
Grid
Grid Attributes
Type: If the grid is to take data from the database, this field indicates if that data
is to come from database tables related to Contact, Loan Accounts, Tasks,
Work Packets, or if it may take data from more than one of those sources at the
same time (generic).
Number of Rows: Defines the number of horizontal rows on the grid.
Number of Columns: Defines the number of vertical columns on the grid.
Column#: All attributes below this point are attributes of a specific column. This
field defines which column the attributes displayed below pertains to.
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Table Link: Allows the grid to automatically populate with values from the NLS
database.
Column Type: Defines the type of field of the particular column. Each column
acts as an additional user-defined field as defined in the section above.
Decimal Places: If the column type is “Numeric” you may specify the decimal
precision of the number.
Column Width: Defines the width of the column in pixels.
Column Header: Defines a title to be placed at the top of the column.
Column Alignment: Defines the justification of the column.
Read Only: If a column pulls data from the database, you may wish to make it
a read only column.
Comma: If the column type is numeric, you may specify if it should or should
not have commas.
Sub Totals (Last row): If the column type is numeric, selecting this option makes
the last row of the grid automatically contain the sum of all rows in the column.
Do not save to database: Some grids may be populated with data through
scripting. In this case, where the data is refreshed each time that the Grid comes
up, it may not be necessary to save the contents of the grid to the database
tables.
Do not activate dirty flag (Save button): If this checkbox is selected, then
changes in the grid do not lock the data record in the database. In this case
those changes will ultimately not be saved to the database.
Stretch last column: The right most column of the grid is stretched to fill any
remaining space in the defined size of the grid, after the column width of each
column has been accounted for.
SQL SELECT Statement: If the Table Link field specifies an SQL statement to populate the grid, then the SQL statement is typed here.
Options Tab
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User Guide
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Type Flag
Hide Tab
Hide Field
Designating a contact type with a type flag allows the contacts of that type to
link to the corresponding task manager relationship codes.
Selecting this option next to the name of one of the standard tabs on the contact will hide that tab for all contacts that are set to this contact type.
The Date of Birth and the Tax ID fields may be hidden on all Contacts that are set
to this contact type.
Default
An Entity Code may be set up to be the default code for all contacts added
Entity
using this contact type.
Default
Credit Profile
A credit bureau may be set up to be used as the default credit profile for all contacts added using this contact type.
Auto Num-
If Auto Numbering is enabled, you may set the auto numbering to be keyed to
bering
the reference number (ROWID 1 ) of the contact, or to a key that you set, which
Options
will iterate as each contact is added.
Use the mask to customize the customer number formatting.
The mask must follow the sequence in the format of: aaa%0#dbbb
Mask
aaa
a string of characters to be placed at the beginning of the contact number
1 A number used internally in a database to identify a row of data.
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%0
#
designates that the number 0 will be used to pad the ROWID or key
the minimum number of digits that will be used for the ROWID or key with
the padding
d
the actual character “d” indicates where the ROWID or key is to go and is
padded based on the number which precedes it
bbb a string of characters to be placed at the end of the number
EXAMPLE
If the mask was set to THX%05d-R2D2 and the current key was 1138, then the
next loan number would be THX01138-R2D2.
aaa is defined as THX, the %05d indicates that 5 digits are to be used with preceding 0s padding anything that is less than 5 digits long, and bbb is represented by -R2D2.
Use ROWID
When selected, the auto numbering will be keyed to the ROWID of the contact.
Re-number
on Type
This feature is not yet implemented.
change
Entity
The entity code is used to determine the type of Contact. Contacts are searchable by its entity
code, and an unlimited number of entity codes may be configured on the Entity tab of
Contact Setup.
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To add an entity code, click
or click on the empty space immediately below the last entity
code on the list. Enter a name for the entity code then click in an empty space. Finally select
the Entity Type for the new entity code.
Each entity code must belong to one of the three entity types. The entity type will determine the
arrangement and structure of the contact as well as the icon that the particular contact will
have in the contact search-tree.
Entity Types
Individual
This type of entity is used for contact accounts where the borrower is a single
person. Only one name field will exist in the contact info.
This type of entity is commonly used for contact accounts where the borrower
Couple
is a married couple. Also, when the borrowers are a pair of business partners
with no corporate shield, this entity type may be the most appropriate. The
contact info will have name fields for two individuals.
This type of entity is used for any contact where the borrower is a business
entity and you want to track the name of the proprietorship, DBA1 , part-
Organization
nership, or corporation separately from the names of any individuals within
the organization. The contact info will have a field for the name of the organ-
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ization, plus fields for the names of two individuals within that organization.
Any other names that need to be tracked may be added on the Addresses
tab.
Contact Defaults
The contact Defaults tab contains default settings relating directly to the Contact Information
File.
Address Services
Address
When enabled, uses web services to connect to a database at the Nortridge
DPV Lookup Software data center for Delivery Point Validation.
Display
Contact Maximum Fetch
Count
This value will limit the number of contact records that can be retrieved
from a query. The value of 0 denotes unlimited fetch count.
Phone Number
The default phone number mask is (000) 000-0000. A placeholder of “0”
Mask
forces a numeric value to exist.
Tree Control
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Defines how each entity is displayed in their respective tree views. Element 1 defines the left element, element 2 defines the middle element, and element 3 defines the right element.
EXAMPLE
The default values for Contact Tree Element 1 is Contact Number, Contact Tree Element 2 is
Last Name, and Contact Tree Element 3 is First Name. A contact with a Contact Number set
as 1, First Name as John, and Last Name as Doe will appear as [1] DOE JOHN in the contact
tree.
Contact Rela-
Element #1 of the Contact Relationship Tree Control. By setting this
tionship Tree Ele-
value you can control the displayed contents of the Contact Rela-
ment 1 – Couple
tionship Tree Control for the Couple type records.
Contact Rela-
tionship Tree Ele-
ment 1 – Individual tionship Tree Control for the Individual type records.
Contact Relationship Tree Element 1 –
Organization
value you can control the displayed contents of the Contact Relationship Tree Control for the Organization type records.
Contact Rela-
tionship Tree Ele-
ment 2 – Couple
Contact Rela-
tionship Tree Ele-
Organization
Contact Rela-
tionship Tree Ele-
ment 3 – Couple
Contact Rela-
tionship Tree Ele-
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Organization
Contact Tree Element 1 – Couple
Contact Tree Element 1 – Individual
Element #1 of the Contact Tree Control. By setting this value you can
control the displayed contents of the Contact Tree Control for the
Couple type records.
control the displayed contents of the Contact Tree Control for the Individual type records.
Contact Tree Ele-
ment 1 – Organ-
ization
Organization type records.
Contact Tree Ele-
ment 2 – Organ-
ization
Contact Tree Ele-
ment 3 – Organ-
ization
Contact – Loan
Element #1 of the Contact to Loan Relationship Tree Control. By setting
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Relationship Tree
this value you can control the displayed contents of the Contact-Loan
Element 1
Relationship Tree Control.
Contact – Loan
Relationship Tree
Element 2
Contact – Loan
Relationship Tree
Element 3
Contact Relationships
Contact relationships link separate contacts together. For example, if contact #1 is a corporation, and contact #2 is an individual who is the President of that corporation, contact #2 is
likely to appear on contact #1, but contact #2 is also a separate contact entry because the
individual has personal loans aside from the corporation. In this case, you may wish to have
some link between these two contacts to provide a reference.
Other relationships might link co-signers, co-guarantors, co-borrowers, family members,
officers in a business, or business partners.
The relationship codes are configured on the Relationships and the Contact-Loan Relationships tabs in Contact Setup
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To add a new relationship code, click Add
. In the Add Relationship window, type a name
for the new relationship code, and if desired, type in a description. Click OK. The new relationship will be added to the list.
You may modify the description on an existing relationship code by selecting the relationship
code and clicking Modify
. The description can then be edited in the Modify Relationship
window that appears. The relationship code itself is not modifiable.
To delete an existing relationship code, select the relationship code that you want to delete
from the list then click Delete
. If the relationship is not currently used by any existing con-
tacts, it will be removed from the database. If the relationship code is in use, it may not be
deleted until all relationships which use that code have been removed from all contacts.
Contact - contact relationship codes are designed to link one existing contact to another existing contact. Each contact - contact relationship contains 16 user-defined fields, and these
may be defined differently for each relationship code. Once the relationship code has been
added on the Relationships tab in Contact Setup, you may configure the code’s user-defined
fields.
Contact - Loan Relationships
Every loan is created under and attached to a single Contact. Other Contacts may be linked
to an existing loan by using a Contact-Loan Relationship. The Contact-Loan Relationship
codes are added from the Contact-Loan Relationships tab of Contact Setup. Each ContactLoan relationship contains 16 user-defined fields, and these may be defined differently for
each relationship code. Once the relationship code has been added on the Contact-Loan
Relationship tab in Contact Setup, you may configure the code’s user-defined fields.
There is a checkbox in the Contact-Loan Relationship setup to indicate if the relationship represents co-borrower. A relationship code that represents a co-borrower will often be handled
differently by the Credit Bureau reporting functions.
Loan Setup
Various aspects of loan entry in NLS can be configured in Loan Setup.
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The Loan Setup is accessed by selecting View > Setup menu item or clicking
Setup on the
Main slider of the Shortcut bar.
Loan Class
Loan classes are used for reference and reporting purposes only. They have no association
with General Ledger accounting or the GL Posting Report. The use of loan classes is entirely
optional.
Class
Classes are added and configured from the Class sub-tab of the Loan Class tab of Loan
Setup.
To add a new class, click
. In the Add Class window, enter the name of the new class in the
Class 1 & 2 field. Enter a description to document what types of loans this class should be used
for.
The Class Specifier will allow you to determine if the particular class that you are configuring is
to be allowed to be used in the Loan Class 1 field of a loan, in the Loan Class 2 field, or both. If
the class is designed to be used only for Loan Class 1, then you can specify which Loan Class
2 values will be available for use with that particular Loan Class 1 value. If the class is to be
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used for Loan Class 2 only, then you can designate it to be available for use only if Loan Class
1 is set to a specific value. In this way, you can set up a hierarchical relationship between the
two classes, where Loan Class 2 may be designed as a sub-class of the Loan Class 1 values.
Class Overview
The Class Overview window shows a diagram of the hierarchical structure of your class setup.
When expanded, this diagram shows which classes are available for use in the Class 1 and
Class 2 fields and how the relationships between these classes are configured.
GL Account Number
General Ledger account numbers are automatically generated when Loan groups are
defined. If a GL account number is specified on a Loan Group, and that GL account number
is unrecognized by the system, you will be prompted to enter a description for that GL
account, and it will be added to the list of GL accounts which is maintained by NLS.
The list of GL accounts may be viewed on the GL Account Number tab on the Loan Setup window.
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Click Add
to add a new GL account number. Enter your new GL account number and a
description of the account in the dialog box and click OK.
N LS 4. 10. 4 AN D LATE R.
If the cash drawer feature is enabled, a drop down list will allow for the designation of the GL
account as a cash or bank account to be used with a cash drawer. Only GL accounts designated as a cash or bank account can be associated with a cash drawer.
Click Print
Click Delete
to print a list of all of the GL accounts that are configured in NLS.
to remove a GL account. GL account may only be remove if it is not attached
to any existing Loan Group.
Click Modify
to modify the description of the GL account. The account number of an exist-
ing GL account cannot be modified.
Impound Codes
NOTE
Impound feature is an optional module to NLS. Please contact your Nortridge representative for information on purchasing this module.
To configure Impound codes, select Impounds from Loan Setup.
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Click
to add an impound code. In the Add New Impound window, enter a name for the
code and select a transaction code for the Assessment and Distribution to be used with this
impound. Click OK when finished.
Loan Group
For General Ledger reporting purposes, the loans in your portfolio are organized into Loan
Groups. The Loan Group defines the specific General Ledger Accounts that the transactions for
loans in that group post to. If different groups of loans in your portfolio are posted to different
Loan Asset accounts, they must be in separate Loan Groups.
The use of Loan Groups within the loan system increases the flexibility of the system by allowing
the same transaction codes to be used for loans that post to different accounts. The transaction codes do not define specific accounts for their Credits and Debits. Instead the transaction codes specify a general category of GL account. These categories are assigned to
specific GL Accounts on the Loan Group.
Loan Groups may be accessed from the Loan Group tab of the Loan Setup window.
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The upper half of the Loan Group screen lists all of the currently configured loan groups. The
lower half contains tabs that show the configuration of the general ledger accounts and participation information for the currently selected loan group.
Buttons
This button allows you to add a new loan group. Enter the Loan Group Code
Add
and description on the dialog box. Once the loan group has been added, the
GL accounting may be configured on the tabs below.
Clicking this button will remove the currently selected loan group only if there
are no loans or transactions on the system which are tied to this loan group.
This means that once a loan group is entered, added to a loan, and trans-
Delete
actions are run on that loan, the loan group can never be deleted until all
loans on that group or all loans that have ever had any transactions while
they were a member of that group, are totally purged from the loan system.
This button allows the modification of the loan group’s description and status.
Modify
The actual GL account numbers assigned to the group are modified on their
appropriate tabs.
The Trustee feature allows you to set up a group of loans that can only be
Trustee
accessed by certain “Trustee” loan officers. To set the trustee access for a loan
group, select that loan group and click the trustee button.
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By default, the trustee access for a loan group is set to Everyone. If any user or
user group is added to the list of trustees for this loan group, that list of trustees
will supersede the setting: Everyone, and all users who are not then specifically
included on the trustee list, or who are not members of groups that are
included on the trustee list, will be locked out of all loans in this loan group.
Modification History
Click on the Modification History
button to see a list of the changes that
have been made to the Loan Group setup.
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This list shows who has made modifications to the Loan Group and when.
Click View
to see a list of the setup parameters after the modification was
made.
Click Show Differences
to see a side-by-side list of the setup parameters
before and after the modification. This is useful to illustrate the specific
change.
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Produces a printout of the complete list of loan groups. This printout does not
Print
include any of the detail on GL account configuration for any of those
groups.
GL Placeholders
This tab lists the configuration of general ledger accounts for the currently selected Loan
Group.
Cash
An asset account. This represents cash on hand or cash held in accounts for the
Account
purpose of lending. When principal is advanced, the amount is credited to this
1
account. All cash payments are debited to this account.
Cash
Account
An alternate cash asset account for use with user-defined transaction codes.
2
Loan
This account contains the sum of the principal outstanding for all loans in the
Asset 1
loan groups for which this asset account is used. When any principal payment is
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posted, the amount of the payment is credited to this account.
Loan
Asset 2
An alternate loan asset account for use with user-defined transaction codes.
This is an asset account (receivable). It keeps track of the amount of interest
Accrued
owed by borrowers to the lending institution. Daily interest accruals result in deb-
Interest 1
its to this account. Whenever an interest payment is made, the amount of the
interest payment is credited to this account.
Accrued
An alternate interest receivable asset account for use with user-defined trans-
Interest 2
action codes.
Accrued
Def Int 1
Accrued
Def Int 2
An interest receivable asset account for deferred interest.
An alternate interest receivable asset account for deferred interest.
Accrued
This is an asset account (receivable). It tracks the amount of late fees owed by
Late Fees
the borrowers to the lending institution. The assessment of a late fee results in a
1
debit to this account. Payment of a late fee results in a credit to this account.
Accrued
Late Fees
2
An alternate late fee receivable asset account for use with user-defined transaction codes.
This is an asset account (receivable). It tracks the amount of any fees (other than
Accrued
late fees) that are owed by the borrowers to the lending institution. Any trans-
Fees 1
action that causes a fee to be assessed will result in a debit to this account. The
payment of any such fee will result in a credit to this account.
Accrued
An alternate fee receivable asset account for use with user-defined transaction
Fees 2
codes.
Interest
Income 1
Interest
This is a revenue account. Daily interest accruals are credited to this account.
An alternate interest revenue account for use with user-defined transaction
Income 2 codes.
Deferred
Int
An interest revenue account for deferred interest.
Income 1
Deferred
An alternate interest revenue account for deferred interest.
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Int
Income 2
Late Fees
This is a revenue account. Any late fee assessed will result in a credit to this
Income 1 account.
Late Fees
An alternate late fee revenue account for use with user-defined transaction
Income 2 codes.
Fees
This is a revenue account. A fee (other than late fees) assessment will result in a
Income 1 credit to this account.
Fees
Income 2
Accounts
Payable
1
An alternate fee revenue account for use with user-defined transaction codes.
This is a liability account. An impound distribution results in a credit to this
account.
Accounts
Payable
An alternate payable account for use with user-defined transaction codes.
2
Impound This is a liability account. The account is credited when a borrower pays money
1
Impound
2
to impound and debited when the impound is distributed.
An alternate Impound account for use with user-defined transaction codes.
Writeoff,
This is an expense account. A principal write-off transaction results in a debit to
Principal
this account.
Writeoff,
This is an expense account. An interest write-off transaction results in a debit to
Interest
this account.
Writeoff,
Late Fees
Writeoff,
Other
Fees
This is an expense account. A late fee write-off transaction results in a debit to this
account (generally, late fees should be reversed rather than written off, unless the
write-off is a result of a Payoff Transaction).
This is an expense account. Any transaction that writes off a fee that is not a late
fee, will result in a debit to this account.
This is a liability account. Any overpayments that result from payoff transactions
Suspense will result in a credit to this account. This account is usually cleared out periodically by issuing refunds, or by transferring the funds to some revenue account
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if the funds are to be kept by the lending institution.
User Def
These accounts are used only for user-defined transactions. The transaction will
#1 – #50
credit or debit accounts according to the Manual Transaction Code Setup.
Servicing Options
The Servicing Options tab is used to control servicing of loans for other lenders. A loan group
can be configured to represent the loans that you are servicing for another lender. On the servicing options tab of that loan group, you can link the group to ACH codes, credit bureau
codes, disbursement accounts, and vendor accounts that are configured for that lender.
Also, in order to enable credit card processing for the loans in this loan group, you must select
a payment gateway.
A suspense account may be selected to control the flow of funds in the event that a payment
is received for which it is not known to which loan it should be posted.
Payment Method Override
The GL account number attached to any placeholder may be overridden based on the Payment Method. An example where this might be used would be that the cash account to be
debited when a payment comes in, might be different if the payment comes in through a
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check or through an ACH.
To set up a payment method override, click the Override button corresponding to the appropriate placeholder. This will bring up the GL override window.
The Default GL is used for any payment methods that are not overridden. To override a payment method, select the payment method and add the general ledger account to use in the
“GL Account” field. When a transaction is entered into NLS, if the transaction is mapped to this
placeholder, and an overridden payment method is used, then the appropriate overridden
general ledger account will receive the GL credit or debit.
Flip Dr/Cr on Transactions
When selected, this option will flip the debits and credits for any transaction executed on a
loan that belongs to this loan group. This option is useful if the loans are shown as liability type
loans on the general ledger instead of the standard asset type loan.
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Participation
Loan Groups can be used to handle the disbursement of funds to the proper General Ledger
accounts of Participation Loans. For a complete discussion of the NLS Participation Module,
see Participation Loans.
In a participation loan, some portion of the loan has been funded by an entity (called the participating entity) aside from the lender who is servicing the loan (called the lead participant).
The participating entity will collect a portion of the interest and principal payments made on
the loan. The percentage of payments collected by the participating entity is generally proportional to the percentage of principal that the participating entity funded. Some participation loans use LIFO and FIFO payment options instead of a percentage. LIFO (Last in – First
out) means that the participant whose funds were disbursed last is paid off first. FIFO (First in –
First out) means that the participant whose funds were disbursed first is paid back first.
Because the lead participant must pay some of the funds collected to the participating entity,
the general ledger accounting for the participation is handled differently than for regular
loans. This is reflected in the GL setup for the Loan Group of the participating entity.
Below is an example of a GL account setup for a participated, fixed rate, commercial loan. The
loan groups involved are 1501 – Commercial Loans – Fixed Rate, and 1504 – Participations
sold – commercial loans.
GL Account
Cash
Account
Loan Asset
Interest
Income
Accrued
Interest
Late Fee
Income
Accrued
Late Fees
Other Fees
1501
1501
Type
Account Type
Account
Asset
1001
Asset
1011
Asset
1501
Asset
1504
Revenue 6301
Liability
2804
Asset
Asset
1944
Revenue 6383
Liability
2804
Asset
Asset
1944
Liability
2804
1931
1937
Revenue 6399
1504
1504
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GL Account
1501
1501
1504
1504
Type
Account Type
Account
Asset
1937
Asset
1944
Expense
7601
Expense 7601
Liability
2701
Liability
Income
Accrued
Other Fees
Write-off
Accounts
Suspense
2701
The list of GL accounts involved in the servicing of this loan is:
1001 Currency and coin
1011 Funds held for participating entities
1501 Commercial loans – fixed rate
1504 Participations sold – commercial loans
1931 Accrued interest receivable – commercial loans
1937 Loan fees receivable
1944 Funds receivable on behalf of participating entities
2701 Acceptances outstanding
2804 Funds due to participating entities
6301 Interest income on commercial loans – fixed rate
6383 Late charges
6399 Other charges and fees on loans
7601 Provision for possible loan losses
Next, we continue the example by running through several transactions and seeing how they
affect the general ledger.
We begin the example by assuming a $2,000 loan at 12% interest. The loan is 50% participated.
At the start, our cash account (1001) holds $1,000, which is to be our portion of the principal of
this loan.
Starting Balances:
Account Debit
1001
Credit
1,000.00 0.00
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Transaction #1: The participating entity gives us $1,000 to lend. We place the money in a separate cash account (1011). We also credit a liability account (2804) to show that we must pay
this back to the participating entity. This transaction is done in your general ledger and is outside the scope of NLS (since the loan is not yet funded, and the Nortridge Loan System deals
only with the actual servicing of the loan).
Balances:
Account Debit
Credit
1001
1,000.00 0.00
1011
1,000.00 0.00
2804
0.00
1,000.00
Transaction #2: We fund the loan as a 50/50 participation for $2,000. On the day that the loan
is funded, the GL Posting Report instructs the accounting department to credit $1,000 to the
cash account (1001), credit $1,000 to the participant’s cash account (1011), debit $1,000 to
the loan asset account (1501), and debit $1,000 to the participant’s loan asset account
(1504).
Balances:
Account Debit
Credit
1001
0.00
0.00
1011
0.00
0.00
1501
1,000.00 0.00
1504
1,000.00 0.00
2804
0.00
1,000.00
Transaction #3: Over the course of a month, the system accrues interest on the $2,000 principal of $20. Of this $20, $10 is accrued on behalf of the participant and must eventually be
paid to that participant. Since the participant’s loan group setup shows the liability account
(2804) in the interest income column, the GL posting report will automatically increase the
amount owed to the participant. The user need only follow the GL posting report. $10 is debited to the accrued interest receivable account (1931), $10 is credited to the revenue account
(6301), $10 is debited to the participant’s accrued interest account (1944), and $10 is credited to the liability account (2804).
Balances:
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Account Debit
Credit
1001
0.00
0.00
1011
0.00
0.00
1501
1,000.00 0.00
1504
1,000.00 0.00
1931
10.00
0.00
1944
10.00
0.00
2804
0.00
1,010.00
6301
0.00
10.00
Transaction #4: The customer makes a payment of $120. This payment is distributed by the system as $100 to principal, and $20 to interest. On the GL Posting Report, this is further broken
down as a $50 principal payment for each participant, and a $10 interest payment. The GL
posts are: $60 debit to the cash account (1001), $60 debit to the cash account of the participant (1011), $50 credit to the loan asset (1501), $50 credit to the loan asset of the participant (1504), $10 credit to the accrued interest (1931), and $10 credit to the accrued
interest of the participant (1944).
Balances:
Account Debit
Credit
1001
60.00
0.00
1011
60.00
0.00
1501
950.00 0.00
1504
950.00 0.00
1931
0.00
0.00
1944
0.00
0.00
2804
0.00
1,010.00
6301
0.00
10.00
Transaction #5: At the end of each month, the lending institution in our example makes a payment to the participating entity of their portion of any loan payments made. To see what
needs to be paid, they need only refer to the balance of account 1011. A payment of $60 is
made to the participating entity. Like the original transfer of funds from the participating entity,
this payment is not handled within NLS. An entry for the transaction is made in the general
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ledger: $60 debit to the liability account of funds owed to the participating entity (2804), and
a $60 credit to the participating entity’s cash account (1011).
Final Balances:
Account Debit
Credit
1001
60.00
0.00
1011
0.00
0.00
1501
950.00 0.00
1504
950.00 0.00
1931
0.00
0.00
1944
0.00
0.00
2804
0.00
950.00
6301
0.00
10.00
Loan Payment Rules
Loan Payment Rules may be used to count a short payment as satisfied in full if the amount of
the payment exceeds a certain required threshold. In the event that this occurs, the billing
amount is automatically modified so that the amount billed is equal to the amount paid. The
adjustment will be shown as a payment threshold rule applied transaction type in the transaction history of the loan. This does not cause any additional change to the balances of the
loan which could result in a balloon payment.
The rules are set up in the Loan Payment Rules section of Loan Setup (fig. a), and assigned to
a specific loan with the Payment Rules drop down list on the Re-payment tab of that loan (fig.
b).
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Figure a – Loan Payment Rules section of Loan Setup
Figure b – Loan Account Setup Re-Payment tab of a loan.
To specify a set of rules, go to Loan Setup, Loan Payment Rules, and click Add
.
Give the rule a name and click OK.
Specify a dollar amount and/or a percentage, and one of the following attributes:
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Both Dollar
For the payment to be Satisfied, the amount remaining must be less than the
and Per-
specified dollar amount and also must be less than the specified percentage
centage
of the payment.
Either Dollar For the payment to be Satisfied, the amount remaining must be either less than
or Per-
the specified dollar amount or less than the specified percentage of the pay-
centage
ment.
Dollar
Percentage
specified dollar amount.
specified percentage of the payment.
Include non P&I in calculation: If selected, any fees attached to the billing will be used in the
calculation of the payment.
EXAMPLE
A loan billing with a P&I of $100 and a late fee of $5 has a loan payment rule applied to it
with a $2 payment threshold. If the include non P&I in calculation option is selected, a payment of $99 will not satisfy the loan payment rule but a payment of $104 will. Although the
payment is considered satisfied, $1 will remain on the late fee as non P&I fees are not
reversed.
Auto Apply As Payoff: If selected, any payment that is sufficient to payoff the loan will cause the
payment to automatically act as if the payoff checkbox was selected on the payment and
activate all associated payoff functionality. Note, that this is separate from the threshold for
payment. Auto payoff requires payment in full. For automating a short payoff, see Rules.
Loan Template
Much of the information required to enter a loan (interest year, statement codes, etc.) may be
common among all the loans within certain groups in your portfolio, or even common to all
the loans in the portfolio. To save time, and minimize the chance of error during data entry, NLS
allows you to configure Loan Templates. These templates contain much of the information
that would usually be entered on a loan, and they allow an operator to bypass the entry of
that information by simply selecting the appropriate loan template during the loan entry process.
A template can contain any of the following loan information:
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l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
Loan Groups
Loan Classes
Interest Accrual Information
Term Information
Statement Accrual Cutoff
Statement Printing Cutoff
Statement Code
Late Fee Code
Amortization Method
Payment Periods
Repayment Method
Percentage of Principal Reduction (if applicable)
Re-Amortization Information
Payment Distribution Default
Pre-payment Penalty
Interest Rate Information
Interest Only Period Information
Template setup can be accessed by clicking on the Loan Template tab in Loan Setup.
There are four sub-tabs available in the Loan Template tab by default: Main, Classification,
Statements, and Re-Payment. Additionally, four more tabs may be accessed by clicking their
checkboxes at the bottom of the Main tab, these are: Custom Payment, Recurring Transactions, Interest Only Term, and Lock Fields. Custom Payment and Interest Only Term are mutually exclusive, only one of these tabs is available in Loan Template setup at any time.
The Loan Template tab consists of the Toolbar, the Template Grid, and the template setup tabs.
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The toolbar allows the user to manage the templates displayed in the Template Grid.
Loan Template Toolbar
Opens the Add Template dialog box. Enter a name for the template in the Template Name field. An optional description for the template may be entered in
Add
the Description field. Once the name and description (if any) are entered click
OK and the template will be added to the grid.
Delete
Deletes the template that is currently selected in the grid.
Opens the Modify Template dialog for the selected template for changing the
Modify
Template Description of the template.
Modification His-
Shows a before and after history of changes to the template setup.
tory
Print
Prints all rows in the template grid.
Template Grid
The Template Grid displays a list of all the templates available in the database as well as basic
information about each template. The grid shows the Template Name, Template Description,
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and Status for each template. Template Name and Template Description are input by the user
when the template is first created. Status shows whether the template is Active or Inactive and
may be modified directly in the grid by using the checkbox. If a template is set to Inactive it will
not be available in the Add Loan dialog, templates are set to Active by default.
When a template is selected in the grid, its settings are automatically loaded into the Template
Setup tabs located directly under the grid. These tabs are where the settings that make up the
template are entered.
Main Tab
The Main tab contains the most frequently used setup options such as the Loan Type, interest
rate settings, payment period settings, and term information. At the bottom of this tab are
checkboxes to enable the optional Loan Template setup tabs: Custom Payment Schedule,
Recurring Transactions, Beginning Interest Only Period, and Lock Fields During Add Loan.
Loan Type
This sets the type of loan to be added and the available settings are: Term, Revolving, Non
Revolving, Commitments, and Pool.
Loan Type Definitions
Term
The loan has a specifically defined origination and maturity date as well as
a defined schedule of payments.
The loan has a credit line which can be drawn out up to a set limit, and
Revolving
repaid principle may be drawn out again. The term may be indefinite for this
type of loan. If the user selects Revolving as the Loan Type, the field Credit
Line and an options button for the field will be added to the Main tab.
The loan has a credit line which can be drawn out up to a set limit, but
Non
Revolving
repaid principle cannot be redrawn. The term is limited by the inability of the
borrower to keep drawing funds. If the user selects Non Revolving as the
Loan Type, the field Credit Line and an options button for the field will be
added to the Main tab.
A Commitment is an agreement by a lender to grant a loan or loans for a
Commitments specified amount of money at a future date. The holder of the commitment
may pay a fee to reserve the funds, but is not required to pay interest on the
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money unless it is actually borrowed.
A Pool is an aggregation of the loans of different borrowers, which have
Pool
been combined for a specific purpose, such as to be resold into the secondary market.
Interest Method
Interest Method sets the procedures that the system follow to calculate daily accruals. The available methods are: Simple Interest1 , Average Daily Balance, Fixed Amortization 2 , Fixed Amortization (Beginning), Rule of 78s (add-on)3 , and Rule of 78s (simple)4 . It is important to note
that certain interest methods may not be available depending on the Loan Type chosen for
the template.
Interest Method Types
Simple
Interest
The loan will always accrue daily on the current principal balance.
Interest is accrued daily on the current principal balance to an average daily
Average
balance interest balance, then on the billing cycle, the average daily balance
Daily Bal-
interest is moved to the current interest balance. During a billing cycle, the
ance
average daily balance interest balance becomes part of the payoff, not the
full billing cycle amount.
Interest is accrued daily on the amount of principal specified in the amort-
Fixed Amort-
ization schedule. Early or late payments do not affect the accrual. Principal
ization
reduction transactions will cause the schedule to re-amortize. The interest is
non compounding and it is usually calculated on a 360/360 interest year.
Fixed Amort-
The first payment can be due on the origination date of the loan, and the
ization
interest charged in that first payment is that which is expected to accrue in the
(Beginning)
upcoming period. The loan accrues according to an amortization schedule,
1 Type of interest method where the loan will always accrue daily on the current principal balance.
2 Type of interest method where interest is accrued daily on the amount of principal specified in the amortization sched-
ule. Early or late payments do not affect the accrual. Principal reduction transactions will cause the schedule to re-amortize. The interest is non-compounding and is typically calculated on a 360/360 interest year.
3 Type of interest method where the interest for the entire term of the loan is calculated at the start of the loan.
4 Type of interest method where the loan accrues as a simple interest loan but the interest portion of the payment is
determined by applying the Rule of 78s to the total projected interest amount for the life of the loan.
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but this schedule is based on interest paid in advance of the payment period
rather than in arrears.
Rule of 78s –
Also referred to as Add-On Interest Method. Please refer to the Appendix for
Add On
detailed documentation of this interest method.
This type of loan accrues as a simple interest loan, however the interest portion
Rule of 78s –
of the payment is determined by applying the Rule of 78s to the total projected
Simple
interest amount for the life of the loan. For more information about the Rule of
78s see the Appendix.
Additional Options
Clicking
located to the right of the Interest Method selector will open up the Accrual dialog
which allows the user to set advanced options for interest accruals. Note that some or all of
these options are not available when certain Interest Methods are selected.
Controls the behavior of the daily accruals at the beginning and end of the
loan. Setting First Day will cause the system to accrue interest on the origination
First or Last
Day
Accrual
date of the loan but not on the payoff date. If Last Day is set, interest will not be
accrued on the origination date, but one day’s accruals will be added to a payoff if the interest for that day has not yet been accrued at the time of the payoff
transaction. Finally a setting of Both Days will accrue interest on the origination
date and one day’s accrual will be added to a payoff if the interest for that day
has not yet been accrued at the time of the payoff transaction.
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Sets the behavior of accruals with respect to transaction processing. If Beginning
of Day Accrual is set, accruals on the loan are run each day before any transactions are entered. If a transaction is entered when accruals are not up to date,
Beginning
or Ending
Day
the accruals on the loan will be brought through the current date before the
transaction is applied. When End of Day Accrual is set, accruals on the loan are
run at the end of each day after the day’s transactions have been entered. Once
the accruals are run, no more transactions may be run on the loan until the next
day. If a transaction is entered when accruals are not up to date, the accruals
on the loan will be brought up through the previous day before the transaction is
applied.
Interest
Method
This is a mirror of the Interest Method field in the Main tab, It is locked in the
Accrual dialog and is presented for reference only. Any changes to this field
must be made through the Main tab.
Interest
Allows the user to set the interest year calculation for interest accruals. See the
Year
Appendix for more information.
Same as Cash1 period may be defined with a period type and number of periods. For example, three months and 90 days are similar, but not precisely
Interest
identical. When this feature is enabled, any time a payment is made during the
Free
same as cash period, the system will calculate an amount required to payoff the
Method
loan if all previous interest payments had been applied to principal. Any payment in excess of this amount will cause those interest payments to credit the
principal so that the loan may be paid off interest free.
Minimum
Sets a minimum principal balance for the purpose of accruing interest. If the prin-
Accrual
cipal balance of the loan drops below this value, interest will be accrued on this
Balance
value as long as the loan remains open and active.
The final payment on a Fixed Amortized loan is generally adjusted slightly
Keep Final upward or downward to reflect whatever amount is left at the time that the final
Payment
payment is due. Selecting this option will result in the final payment being the
Constant
same amount as all of the other payments. The interest accrual in the final
period will be adjusted to achieve this final payment amount.
Interest Rate
1If the payments on the loan equal the total advanced before the expiration of same as cash, all interest is reversed and
all payments to interest are credited to principal and the loan is paid off.
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Adding an interest rate via this field will set the loan to a fixed APR equal to the value entered.
Clicking
located to the right of the Interest Rate field will open the Interest Rate options dia-
log where advanced settings for the interest rate of the template may be set.
The Interest Rate dialog allows the user to input more advanced interest schemes for the template. The Interest Plan drop down list allows the user to select a pre-defined interest plan.
Interest Plans are very similar to templates and allow for the quick selection of complex interest
schemes.
Below the Interest Plan drop down list is the interest object list which shows all of the interest rate
objects for the loan. The interest structure may be very simple, containing a single fixed rate
interest object for the term of the loan. It may be very complex, with multiple variable and fixed
interest steps for each condition of the loan. Or it may be anywhere in between. The list is
divided into three types of interest objects; Main, Post Maturity, and Default Interest. The interest
objects in the Main interest group control the standard interest rate for the loan and are in
effect, unless overridden by a Post Maturity or Default Interest object. Post Maturity interest
objects, if specified, will go into effect on the day of maturity (for first day interest loans) or on
the day after maturity (for last day interest loans). Default Interest objects, if specified, are in
effect when the loan is considered to be in default.
Adding an Interest Object
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The Add button will open the Add Step dialog which sets the basic parameters for an interest
object; the Interest Type and Step Type (including the step values if applicable).
Interest Type
Interest Type determines which group the interest object will be added in, and under which
conditions an interest object will be in effect. Depending on what (if any) interest objects
already exist for the template, the available options may be locked or restricted. Also a template may only have one interest object per group if the Step Type is set to Term.
A Normal interest type will be added to the Main group and will be in effect for the regular,
non-default, term of the loan. The interest type will automatically be set to Normal when the first
interest object is added to the template.
Post Maturity interest is used after the regular term of the loan has expired and is added in the
Post Maturity group.
Default Interest While in Default type interest objects are in effect whenever the Default Condition has been met. If payments bring the loan current, the loan will be considered to be out of
default and will revert to the current Normal interest type object. This interest type is shown
under the Default Interest group.
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Default Interest Until Maturity objects will be in effect if the default conditions have been met.
Unlike Default Interest While in Default, once the default condition has been triggered, the
Default Interest Until Maturity object will be in effect until the loan reaches maturity. This type of
loan is also added under the Default Interest group.
Intro Rate interest objects are in effect from the start of the loan until the expiration date is
reached. They may be configured as variable rate by assigning a base rate, and if that is done,
they may be tied to a base rate spread to define the adjuster over the base rate. An additional
flat positive or negative adjustment may be added.
Step Type
Step Type allows the user to set the step interest behavior of the interest object. Step Type may
be set to Term, Days, or Amount.
When the Step Type is set to Term the interest object does not step and will be in effect as set by
the object’s Interest Type.
A step type of Days allows the loan to have multiple interest objects for each group that are in
effect for a specific range of days with respect to the group. For example, the first interest object
with a Default Interest While in Default interest type could be set to one to 15 days with a fixed
interest rate of 15%. The next default interest object could be set to 15 to 30 days with an
interest rate of 16%, etc. Setting the step type to Amount allows stepping the interest based on
the current principal balance of the loan.
Step From and To set the day or amount parameters for an interest object when the Step Type is
set to Days or Amount. From sets the low end of the range for the object and To set the high
end of the range.
Once these parameters are set, clicking OK will add the object to the appropriate group. Click
Cancel to exit the dialog without making any changes to the interest setup.
An interest object’s settings are controlled in the Main, Variable, Constraints, Compounding,
and Minimum Interest tabs to the right of the interest object display.
Secondary Interest Stream
A loan can be configured to accrue a secondary stream of interest. This functionality is useful
for payment in kind and other situations where two separate accrual rates are necessary.
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To activate the secondary interest stream, select the Secondary Interest checkbox on the
Interest Rate screen in either the loan template or in loan setup. The interest rate screen will be
divided into two tabs: Stream 1 and Stream 2.
The secondary interest stream has identical setup parameters to the primary, except for the
addition of one drop down list: Loan Balance. This allows you to determine if the secondary
interest stream shall be combined with the primary in the Current Interest Accrued loan balance, or shall be recorded in a separate loan balance called Deferred Interest.
Payment Period
Payment Period sets the length of the payment cycle and its options are: Days, Weekly, BiWeekly1 , Semi-Monthly2 , 28 Day, Monthly, Bi-Monthly3 , Quarterly4 , Semi-Annually5 , Annually,
and Maturity. Click …
to open the Payment Determination dialog.
Payment Determination
The Payment Determination dialog sets advanced options for payments such as minimum
and maximum payment amounts, the amortization method used to determine payment
amounts, and other options.
1 Every two weeks.
2 Twice a month.
3 Every two months.
4 Every three months or four times a year.
5 Every six months or twice a year.
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This value is added to the Next Interest Due Date to determine the date through
which interest will be billed.
Accrual
Cutoff
EXAMPLE
If the next interest payment is due on September 1st, and the Accrual Cutoff is
-1, the September 1st payment will include all interest through August 31st.
Accrual Cutoff is not applicable to loans with Fixed Amortization or Rule of 78s
interest.
Min Payment
Amount
Sets the minimum payment for the loan. If the total balance of the loan is greater
than the Min Payment Amount, the program will always bill at least the amount
set in this field, no matter what the calculated payment is. If the balance of the
loan is less than the minimum, the remaining balance will be billed.
Max Pay-
Sets the maximum amount the loan will bill for. If the calculated payment is
ment
more than the maximum, the payment will be lowered to the maximum
Amount
amount.
Determines how the payments are calculated. When set to Not Applicable, the
loan does not use an amortized payment and instead uses the settings in the
Interest payment and Principal payment sections of the dialog to calculate principal and interest billings.
Amortize
Based on
360/360
Amortize
Amort
Method
Based on
Actual
Interest Year
Total Payment Combined
Total Payment Separated
Interest
Uses the standard amortizing equation to determine the payment amount.
Derives interest and principal billings from an amortization calculation, which is modified to account for the difference in
interest accrued by an interest year other than 360/360.
Creates a single payment based on the criteria specified in the
Principal payment section.
Makes separate principal and interest receivables based on the
settings in the Principal payment section.
Used when amortization method is set to Not Applicable to calculate the interest
receivable on a payment.
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Determines the dates and frequency of interest billings. This superPeriod
cedes the setting of Payment Period on the main tab for the interest
portion of the payment, but otherwise functions the same.
Sets the calculation method for the interest receivable. A setting of
Payment
Method
Not Applicable will disable interest billing for the loan. All Interest
Due at payment less accrual cutoff will bill interest by projecting the
interest accruals forward to the due date, then taking off a number
of days of interest equal to the accrual cutoff.
Used when the amortization method is set to Not Applicable, Total Payment
Combined, or Total Payment Separated to determine the principal billing.
Determines the dates and frequency of billings. This supersedes the
setting of Payment Period on the main, but otherwise functions the
Period
same. If Total Payment Combined or Total Payment Separated is
selected for amortization method, the interest amount is calculated
as if All Interest Due at payment less accrual cutoff is selected.
Sets the calculation method for the principal receivable.
Will disable principal billing for the loan. If AmortNot Applicable ization Method is set to either of the Total Payment
Principal
settings, this will disable interest billing as well.
Fixed Principal
Bills the amount of principal specified in the Fixed
Payment
Amount field for each payment.
Payment
Method
Percentage of
Principal
Outstanding
Principal
Divided by
Remaining
Term
Will bill a percentage of the principal balance at
the time of billing as defined by the Percentage
field.
Bills an amount of principal equal to the Principal
Remaining, less any principal billed but unpaid,
divided by the number of payments remaining in
the term.
Continue
Billing
If selected, the regular payment will continue to bill every period until the loan is
After
paid off.
Maturity
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Do not Bill
Principal
Balloon
This option is only available if Continue Billing After Maturity is selected.
If selected, no balloon payment will bill and the loan will continue to bill its regular monthly payment until paid off. In effect, the term of the loan is governed by
the payments.
Advanced
Button
Re-Amortize payment - The payment amount is recalculated using the amortization equations, with the current principal, interest rate, and remaining term.
Re-Amortize loan - On Fixed Amortized Loans only: the amount accrued on is reindexed in the amortization schedule, resulting in the accrual and the interest to
principal breakdown of future payments being adjusted to reflect the previous
principal advances and reductions.
The payment and the loan (accrual) may be re-amortized independently.
Calculate Payment Inclusion Of - For those loans where the payment is a fixed
amount and the distribution is defined at the moment of payment (interest first /
remainder to principal), any of the loan balances selected here will be included
along with the interest for the purpose of determining, after the interest and these
balances have been paid, how much of the required payment remains to be
applied to principal.
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Payment Due Date Rule - Only available for certain loan types. Allows a payment which will be due on a weekend or holiday to be pushed to the next business day. If the rule for holidays is invoked you may select from United States,
Canada, Mexico, and NYSE. See List of Holidays.
Rebate Rule - This functionality is supported under both Rule of 78 (Sum of
digits) and fixed amortized loans. The logic includes two options: “Proportional”
and “Through End of Period.”
When set to “Proportional”, the interest is not rebated and is proportionally
charged to the payoff date in the period. This is the default for fixed amortized
loans.
When set to “Through End of Period” and additional option appears named
“Cutoff Days.” Cutoff days when set to 0 (default for Rule of 78s) will earn the
entire period of interest if the payoff is on the first day of the period. Setting
“Cutoff Days” to 15 will result in no interest earned in the period if the payoff is
prior to the 15th of the period and will earn the entire period of interest after the
15th day of the period.
Reg Z Tolerance - This option, when set, will take into account the rule of Reg Z
with respect to the whole first period rule when the actual first period is short or
long. In short, the rule allows the creditor, when making calculations and disclosures, to disregard any irregularity in the first period following these rules:
1. For transactions in which the term is less than 1 year, a first period not more
than 6 days shorter or 13 days longer than a regular period.
2. For transactions in which the term is at least 1 year and less than 10 years, a
first period not more than 11 days shorter or 21 days longer than a regular
period.
3. For transaction in which the term is at least 10 years, a first period shorter than
or not more than 32 days longer than a regular period.
When this checkbox is selected and the rules apply, NLS will calculate the first
period as a regular period. For more information on this regulation, please refer
to Reg Z Title 12 Part 226 Subpart C “Closed-End Credit” 226.17.
Term
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The term of the loan is defined by the Term Type, Term, and Term Due fields on the main tab.
Term Type defines how the length of the term is measured. When set to Days the term of the
loan is equal to the number of days specified in the Term field. The maturity date of the loan will
be calculated by adding the appropriate number of days to the Origination Date. Setting Term
Type to months defines the term of the loan as a specific number of months equal to the setting in the Term field. A Term Type of Payments sets the length of the loan equal to a number of
payments determined by Term. The actual length of the payment period is determined by the
Payment Period and Payment Determination settings. No Term is used for revolving credit
loans with an indefinite term, this type of loan will have no maturity date.
On Amortized Loans, the Amortization Term of the loan may be different from the actual term
which defines the maturity date. One example of this would be a 30 year amortized loan where
the loan must be repaid or re-amortized within five years. When the Term Due field contains a
different value than the Term field, Term defines the amortization term of the loan, while Term
Due defines the maturity date.
Checkboxes
The checkboxes at the bottom of the tab allow access to additional tabs used to set up
advanced features. Selecting a checkbox will turn on its corresponding tab. Note that the Custom Payment Schedule and Beginning Interest Only Period tabs cannot be used at the same
time.
Classification Tab
The classification tab of the template contains default settings for loans that are to be added
using that template for the following fields:
l
Loan Portfolio
l
Loan Group
l
Loan Class 1
l
Loan Class 2
l
Loan Officer
l
Collection Officer
See the respective topics on these fields for further information.
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Statements Tab
The Statements tab of the template contains default settings for loans that are to be added
using that template for the following fields:
The number of days prior to the due date of the next payment on which that payBilling
Cutoff1
ment will bill and a receivable will be created in the payments due tab. The
billing date (which is also the next statement date if the loan uses a billing statement2 ) is calculated by adding the Billing Cutoff (a negative number) to the
due date.
Statement Allows you to select a statement code to be assigned to the loans. This can be a
1
billing statement code or a periodic statement3 .
Allows you to select a second statement code to be assigned to the loans. This is
Statement optional. It should be used for a loan that, for example, has a monthly billing
2
statement and a quarterly periodic custom statement. If the same statement
code is selected in both fields, you will get the same statement twice.
Late Fee
Code
Allows you to select a late fee code for the loans that will be entered using this
template. The late fee code defines the various late loan events (fees and
notices).
This functionality will test prior to assessing a late fee to see if the customer has
Make
Timely
made a whole payment during the current payment cycle that has been distributed to a previous period’s receivable. If Make Timely is enabled and the customer has made a full payment, no late fee will be assessed. This option is
available to be set in the setup of the loan where the late fee is set.
Allows for the selection of an NSF code for the loans that will be entered using this
NSF Code
template. The NSF code defines any automatic NSF fee to be applied if a payment is reversed because of insufficient funds.
Re-Payment Tab
1 The number of days prior to the due date of the next payment on which that payment will bill and a receivable will be cre-
ated. The billing date is calculated by adding the billing cutoff to the due date.
2 Due date of a loan and billing cutoff determines when the statement is queued for processing and printing.
3 User specified date determines when the statement is queued for processing and printing.
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The Re-Payment tab contains the settings that control how the loan system processes payments. This includes re-amortization settings, payment distribution order, and pre-payment
penalties.
Amortization Repayment Type controls what portion of a payment is applied to interest vs. principal. This field may be locked or restricted depending on the Interest Method selected in the
Main tab. If the loan does not use an amortization schedule to determine the payment
amount, Not Applicable is the proper setting. Repay Using Fixed Amortization Schedule determines the interest / principal breakdown using the amortization schedule, and is unaffected by
the interest balance on the date that the payment is received. Repay Using Interest First
Remainder to Principal applies funds to cover all of the outstanding interest on the loan at the
time the payment is received, with the remainder of the payment being applied to principal.
This results in more of the payment being applied to principal if the payment is received early,
and less if the payment is received late.
Principal and Interest Recalc is not currently implemented.
Pre Payment Penalty Type is not currently implemented.
Payment Distribution
When a payment is made on a loan and if the user does not manually specify to which balances the payment is to be applied, the system will apply the funds in the order specified in the
loan’s Payment Distribution setting.
To change the payment distribution order for the template, click …
located to the right of
Payment Distribution to open the Payment Distribution dialog.
To change the default distribution order, click on a distribution Item in the list, and use the Up
and Down buttons to set the order desired. Clicking the Reset button will set the distribution
back to the system default.
Distribution Item Definitions
Past Due
Interest
Past Due
Principal
Past Due
Late Fees
All interest billed and due for which the due date is prior to the current date.
All principal billed and due for which the due date is prior to the current date.
All late fees billed and due for which the due date is prior to the current date.
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Past Due
Fees
Current
Interest
Due
Current Principal
Current
Late Fees
Current
Fees
All other fees billed and due for which the due date is prior to the current date.
All interest which has been accrued and has been billed, but which is not past
due.
All principal which has been billed, but is not past due.
All late fees which have been billed, but are not past due.
All other fees which have been billed, but are not past due.
Current
Interest
Any interest which has been accrued but which has not been billed.
Accrued
Unbilled
All remaining principal on the loan after all of the billed payments and any out-
Principal
standing interest have been satisfied.
Suspense
If this item is reached, any remaining portion of the payment will go to the suspense account.
Unbilled
Any late fees for which there is a late fee balance, but no outstanding receiv-
Late Fees
able.
Unbilled
Fees
Current
Interest
Through
Effective
Date
Past Due
User Def #1
– 10
Any fee for which there is a fee balance, but no outstanding receivable.
This selection will only be in effect if it is placed above Current Interest Accrued,
because that selection will pick up all remaining interest. Current Interest
Through Effective Date takes the Current Interest Balance and subtracts any
accruals that were posted subsequent to the effective date of the payment.
The user-defined loan balances which have been billed and for which the due
date is prior to the current date.
Current
User Def #1
The user-defined loan balances which have been billed, but are not past due.
– 10
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Unbilled
User Def #1
The user-defined loan balances which have not been billed.
– 10
Past Due
Deferred
Interest
Any deferred interest for which there exists an outstanding receivable and for
which the due date of that receivable is past.
Current
Due
Any deferred interest for which there exists an outstanding receivable and for
Deferred
which the due date of that receivable is the present of a future date.
Interest
Unbilled
Deferred
Interest
Any deferred interest for which there is a deferred interest balance, but no outstanding receivable.
P + I Inclusion User
If these are moved above the past or current due interest, then the user-defined
Def # 1 -
loan balance will be taken first as part of a P + I payment.
#10
Past Due
The amount of any impounds billed by the Escrow Module, which have a due
Impound
date in the past.
Current
The amount of any impounds billed by the Escrow Module, which have a due
Impound
date in the present of future.
Unbilled
Impound
Will apply against any monies disbursed from the Impound Account that are in
excess of the amount collected when no impound billing exists. The impound
account is a contra account and would have a negative balance in this case.
Apply
Excess Prin-
If selected, and the distribution reaches the Unbilled Principal level, the system
cipal as
will automatically bill the receivables for the next regularly scheduled payment,
Future Pay-
then the distribution will return to the top of the list.
ments
Interest
If selected, the system will calculate the amount of interest that was or will be
Through
(depending on if the payment is being made early or late) accrued as of the
Due Date
due date, and this is the amount of interest that is applied. If the payment is
(Zero Bal-
being made early, the principal portion of the payment will result in less interest
ance)
being accrued for the remainder of the period, and this could result in negative
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interest as of the due date. The distribution will be corrected to prevent the negative balance (i.e. just enough interest and principal will be paid so that the balance will be zero as of the due date).
If selected, the system will calculate the amount of interest that was or will be
Interest
(depending on if the payment is being made early or late) accrued as of the
Through
due date, and this is the amount of interest that is applied. If the payment is
Due Date
being made early, the principal portion of the payment will result in less interest
(Negative
being accrued for the remainder of the period, and this could result in negative
Balance)
interest as of the due date. The borrower will have paid extra interest for the
period and this will result in less interest being charged in the following period.
Disable Suspense
Bucket
Selecting this option disables suspense. Overpayment on a payoff will still go to
suspense, but suspense is ignored in the distribution order.
Disable
autoreversal of
Unless this is selected, the system will automatically reverse a late fee if a pay-
Late Fees
ment is back-dated to a date prior to the expiration of the grace period that
on effective caused the late fee to be executed.
dated payments
Disable
autoapplication
of reversed
Unless this is selected, the system will automatically apply a late fee if a pay-
late fees on ment is reversed after the expiration of the grace period for that payment.
NSF and
reversed
payments
Disable reapplication Unless this is selected, whenever a payment, which is not the last payment to
of pay-
have been entered, is reversed, the system will automatically reverse and then
ments dur-
reapply all subsequent payments so that they will be applied as they would
ing out of
have been had the reversed payment never been entered.
sequence
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payment
reversal.
If selected, it acts as an override on the Past Due Interest / Past Due Principal disOldest Payment First
tribution. When there are multiple payments past due, this override will force
payment of principal on the first payment before allowing payment of interest
on the second payment. Without the override, all past due interest would be
paid before anything was paid to principal.
Cover Late
If selected, the late charges associated with a past due payment will be paid
Charges
before funds are applied to the next payment.
Cover Fees
If selected, the fees associated with a past due payment will be paid before
funds are applied to the next payment.
If selected, any billed impounds which have a due date that is the earliest due
Cover
Impounds
date of any other outstanding receivables will be covered before any later
receivables. This acts as an override to the distribution order.
Custom Payment Tab
NLS allows the user to set up complex or arbitrary payment options via the Custom Payment
tab. In order to access the tab, the Custom Payment Schedule checkbox must be selected in
the Main tab. Selecting custom payments will disable Payment Period and the field will be
removed from Main tab.
The Custom Payment tab contains a toolbar and the Custom Payment Schedule grid. Click
Add
Delete
to open the Add Repayment Object dialog to create a new repayment object. Click
to delete the repayment object that is currently selected in the grid. Click Modify
to open the Modify Payment dialog which mirrors the options in the Add Repayment Object dialog, except that the Repeat field is not present.
The grid displays the payment number, due date type, due date period, number of periods,
day value, amount type, amount percent, fixed amount, and late fee schedule for each repayment object.
Add Repayment Object
The Add Repayment Object dialog contains all of the parameters necessary to create a new
repayment object for the template.
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Care should be taken when setting the parameters of a repayment object, as some settings
are logically incompatible with each other and may produce unexpected results.
Payment Type
Payment Type determines what type(s) of receivable the custom payment object will generate.
Interest Only Pay- The repayment object will generate an interest receivable based on the
ment
Amount Type, Amount Percentage, and Amount Fixed settings.
Interest Only Pay- Creates an interest receivable based on the Amount Type, Amount Perment Less Out-
centage, and Amount Fixed settings, however all calculations for the
standing Billed
amount of the receivable are carried out after any outstanding billed
Interest
interest is deducted from the current interest amount of the loan.
Principal Only
Creates a principal receivable based on the Amount Type, Amount Per-
Payment
centage, and Amount Fixed settings
Principal Only
Creates a principal receivable based on the Amount Type, Amount Per-
Payment Less
centage, and Amount Fixed settings, however all calculations for the
Outstanding
amount of the receivable are carried out after any outstanding billed prin-
Billed Interest
cipal is deducted from the current principal amount of the loan.
Fixed Principal
Creates a principal receivable based upon the setting of the Amount Fixed
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Payment Plus
field and creates an interest receivable in the amount of the currently
Accrued Interest
accrued interest at the time the receivable is generated.
Fixed payment
amount cov-
Creates a single receivable in the amount of the Amount Fixed field, apply-
ering all interest
ing the payment to interest first then applying any remaining amount to
remainder to
principal.
principal
Bill all interest
Creates an interest receivable for all outstanding interest at the time of
due
billing.
Bill all principal
Creates a principal receivable for all outstanding principal at the time of
due
billing.
Bill entire loan
Creates an interest receivable for all outstanding interest and a principal
amount
receivable for all outstanding principal for the loan at the time of billing.
Due Date Type
Due Date Type controls how the system calculates the due date of the repayment object. Relative from previous payment calculates the date starting from the billing date of the last payment, or the origination date if no previous payment exists. Relative from Origination Date
calculates the date starting from the origination date of the loan.
The billing date is determined by stepping forward from the date determined by Due Date Type
a number of periods (specified by Number of Periods) of length set by Due Date Period.
EXAMPLE
A payment object set to: Due Date Type – Relative from Origination date, Due Date Period –
Months, and Number of Periods – 3, would set the date 3 months forward from the origination date of the loan.
Due Date Day Value
Due Date Day Value will force the due date of the repayment object to the date specified in the
field within the current month.
EXAMPLE
If the calculated date for the repayment object was the 15th of June but Due Date Day
Value was set to 1, the actual due date would shift to the 1st of June.
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Amount Type
Amount Type specifies the method by which the amount of the receivable is calculated.
Will result in no payment being generated, unless Payment Type has a specific
method for calculating the payment amount.
Not Applicable
EXAMPLE
Fixed Principal Payment Plus Accrued Interest will use the amount set in the
Amount Fixed field for the principal portion of the billing and the current
interest amount for the interest billing, regardless of the setting of Amount
Type.
% of Original Principal
% of Current Principal
% of Current
Interest
Fixed
Amount
Calculates the payment amount based on a percentage (set in the Amount Percentage field) of the original principal amount of the loan.
Calculates the payment amount based on a percentage (set in the Amount Percentage field) of the current principal amount of the loan.
Calculates the payment amount based on a percentage (set in the Amount Percentage field) of the current interest amount of the loan.
Bills the amount specified in the Amount Fixed field.
Amount Percentage
Amount Percentage specifies the percentage to be used to calculate the payment mount,
where applicable.
Amount Fixed
Amount Fixed specifies the payment amount for Payment Types and Amount Types that use a
fixed payment amount.
Late Fee Schedule
Late Fee Schedule allows the payment object to utilize any of the Late Loan Codes set up in the
Late Loan Events tab of Loan Setup.
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Repeat
Repeat allows the user to create multiple copies of the same repayment object for the purpose
of easily setting up a custom periodic billing cycle. When the user clicks the OK button to add
the repayment object, a number of copies equal to Repeat will be created. This setting should
only be used when Due Date Type is set to Relative From Previous Payment.
Recurring Transactions Tab
Recurring Transactions allows the user to add custom transactions which re-executed at specified time to the template. The Recurring Transactions tab consists of the toolbar, the transaction list, and the settings tabs.
The toolbar has buttons (from left to right) to
action,
Add a new transaction,
Move Up a transaction on the list, and
Delete a trans-
Move Down a transaction on the list.
The transaction list displays a list of all the recurring transactions for the template. When a transaction is selected, its settings will load into the Event, Transaction, and Notes tabs to the right of
the transaction list.
Event Tab
The Event tab holds the basic settings that determine when the transaction will occur and for
how long it will repeat.
Description Sets the name of the transaction in the transaction list.
Controls whether the transaction is a Scheduled, Periodic, Billing, Daily Accrual,
or On Payment transaction.
Scheduled transaction is a single time event and will only occur once. Only a
Start Date and a Statement Cutoff may be specified for a scheduled event.
Event
Periodic event may be run repeatedly until the Expire Date parameters are satisfied or until it has run for the length specified in #of Periods.
Billing event will occur each time the loan bills a payment through its automated payment cycle.
Daily Accrual event will execute every day, and be adjusted if the balance it is
accrued on has a backdated change.
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On Payment event will occur whenever a payment is entered on the loan.
Max
Sets the maximum number of times the event may run. This setting supercedes
Repeat
the settings for Expire Date and # of Periods.
Determines when the transaction will first run. Clicking
Start Date
will open the Date
Parameters dialog which contains the settings necessary to define the start
date.
Expire Date
Determines when the transaction will end. Clicking
will open the Date Para-
meters dialog which contains the settings necessary to define the expire date.
Period
For Periodic transactions, the length of time between transactions is specified as
a # of Periods of length determined by the Period field.
Will force the due date of the recurring transaction to the date specified within
the current month.
Due Date
Day
EXAMPLE
If the calculated date for the transaction was the 15th of June but Due Date
Day value was set to 1 the actual due date would shift to the 1st of June.
For recurring transactions that will use a trans code that is NOT a receivable, the
statement cutoff should be set to zero. The transaction will actually execute on
Statement
Cutoff
the transaction due date plus the Statement Cutoff.
NOTE
The Statement Cutoff is a negative number so the transaction will execute a
number of days before the due date.
If this checkbox is selected, the recurring transaction will occur at the end of the
Execute
accrual process, after the day’s interest has been accrued. Otherwise, it will
Post
occur earlier in the process, before the interest accrual. This can be critical if the
Accrual
transaction is set to execute for an amount equal to a percentage of the current interest balance.
Date Parameters
The Date Parameters dialog is accessed by clicking …
in the Start Date and Expire Date
fields.
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Type defines the method by which the date of a recurring transaction is determined. If type is
set to Relative From Origination Date, the transaction will occur when the duration defined by
the Period and # of Periods fields has elapsed since the origination date of the loan. Relative
From 1st Principal Payment will cause the transaction to occur when the duration defined by
the Period and # of Periods fields has elapsed since the first principal payment becomes due.
Relative From 1st Interest Payment will cause the transaction to occur when the duration
defined by the Period and # of Periods fields has elapsed since the first interest payment
becomes due. Although it is possible to set the Type to Fixed Date, doing so is not recommended for templates.
Day Value allows the loan to force a recurring transaction to a specific day of the month. N/A
ignores the setting of day value, allowing the transaction to occur as defined by Period and #
of Periods. Force Negative will cause the transaction to roll back to the date selected.
EXAMPLE
If Day Value is set to 5 / Force Negative and the transaction will normally occur on June 2,
the transaction will actually occur on May 5.
Force Positive will make the transaction jump forward to the selected day value. Force Neutral
will force the transaction to the selected day in the current month.
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EXAMPLE
If Day Value is set to 15 / Neutral, a transaction will occur on the 15th of June regardless of
whether the transaction was scheduled to happen on the 1st or the 31st of June.
NOTE
The day value is only functional with a relative rate change type and will not be available
when type is set to Fixed Date.
Date sets an absolute date for the transaction when Type is set to Fixed Date. While this setting
is functional with loan templates, it is not recommended because of possible conflicts when
the date selected on the template becomes earlier than the origination date of a loan added
with the template. For loans that require a Fixed Date for a recurring transaction, we recommend entering the date information at loan input time instead of in the template.
Transaction Tab
The Transaction tab holds the settings that define the transaction.
Transaction Type
Transaction
The transaction code to be executed is selected from the Transaction Code
Code
drop down list.
Principal Due
Interest Due
Payment
In place of this selection, use Transaction Code, and set the Transaction
Code number to 120.
In place of this selection, use Transaction Code, and set the Transaction
Code number to 122.
The recurring transaction will automatically post a payment of the amount
specified, according to the default distribution settings on the loan.
The transaction is a servicing fee, which can be defined as a fixed amount, a
percentage, or a lookup table. A vendor may be specified for the receipt of
Servicing Fee
the servicing fee, and the reconciliation of that fee can be by any one of the
following three methods: Net from Cash - By Payment, Net from Cash - Total
Outstanding, or Bill Lender.
Subsidization
Settlement
This recurring transaction type is only available if the transaction is on a participant. The transaction will automatically create a voucher to allow for the
billing of subsidized interest to the subsidizing participant.
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Transaction Code
Select the transaction code to be executed by the recurring transaction.
Late Fee Schedule
If the transaction code selected is a receivable, a late fee schedule can be assigned to the
receivable so that a late fee will automatically post if the receivable is not paid before the expiration of the grace period.
Amount Type
This allows you to select a Fixed Amount for the transaction or to define the transaction
amount as a percentage of any loan balance.
Amount / Percentage
If the transaction is to be for a fixed amount, enter that fixed amount here. If it is a percentage
of a loan balance, enter the percentage here.
Amount Min
If the amount is a percentage and that calculated percentage is less than the amount entered
in this field, the transaction will execute for the amount in this field.
Amount Max
If the amount is a percentage and that calculated percentage exceeds the amount entered in
this field, the transaction will execute for the amount in this field. A value of zero in this field
indicates no maximum (not a maximum of zero).
Notes Tab
The Notes tab allows the user to input notes about any recurring transactions included in the
template.
Beginning Interest Only Period Tab
The Interest Only Term tab allows the user to set up a period in the beginning of the loan that
only bills the interest accrued. The fields function in a similar manner to those in the Main tab,
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but apply only to the interest only term.
Term Type defines how the length of the interest only term is measured. When set to Days the
interest only term is equal to the number of days specified in the Term field. Setting Term Type to
months defines the interest only term as a specific number of months equal to the setting in the
Term field. A Term Type of Payments sets the length of the interest only term equal to a number
of payments determined by Term. The actual length of the payment period is determined by
the Period field.
It is possible for the interest only term to have a different interest year than the regular term of
the loan which is set in the Interest Year field.
Lock Fields During Add Loan Tab
Lock Fields tab allows the template to prevent the user from changing certain settings while the
loan is being added. When a user chooses the template in the add loan dialog, any of the
areas that are selected will not be able to be changed.
Will lock fields in the Main, Classification, Setup, and Re-Payment tabs. ExcepLoan Setup
tions are Net Loan Amount, Payment Amount, Interest Rate, and Origination
Date in the Main tab, and Loan Officer and Collection Officer in the Setup tab.
Interest Rate
Recurring
Transactions
Credit Line
Will lock the interest rate and options for the loan, if applicable.
Will lock all fields in the Recurring Transactions tab.
Will lock all changes to the Credit Line field and its options, if applicable.
Credit Bureau Report Tab
Credit Bureau
Header
Select from the Credit Bureau Headers that you have configured in the Credit Bureau section of Loan Setup.
Portfolio
Select the portfolio type to be reported (as defined by the credit bureau reporting
Type
agencies) which is to be used with the loans that are added with this template.
Account
Type
Select the account type to be reported (as defined by the credit bureau reporting agencies) which is to be used with the loans that are added with this template.
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Primary
ECOA
Code
Select the ECOA code to be reported (as defined by the credit bureau reporting
agencies) which is to be used with the loans that are added with this template.
Lookup Tables
Lookup tables are used with recurring transactions to automatically apply a fee or an amount
to a loan based on certain criteria as defined in the lookup table.
Lookup tables can be configured by clicking
Setup on the Main slider on the Shortcut bar
(or View > Setup menu) then Loan Setup > Lookup Tables.
Lookup Table
To add a new lookup table, click
Add at the top of the upper pane in the window. Enter a
name for the table and a description and click OK.
Opens a dialog for entering a name and description for adding a new lookup
Add
table.
Opens a dialog for editing the description of the selected lookup table. The name of
Modify a lookup table cannot be modified once it is created.
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Deletes the selected lookup table. Only tables that are not currently being used in a
Delete
recurring transaction can be deleted.
Table Entry
With a lookup table selected, click
Add below in the lower pane to add a new entry for the
table.
Add
Adds a new table entry to the currently selected lookup table.
Delete
Deletes the selected table entry.
To edit a table entry, click on any of the cells in the table and enter a value into the cell that will
be used to match against in the loan.
Table Entry Fields:
Original Loan
Balance
Current Principal Balance
State
Days Active
The amount that will be matched against the loan’s original balance.
The amount that will be matched against the current principal balance of the
loan.
Will be matched against the State of the contact’s address to which the loan
belongs.
The number that will be matched against the number of days the loan has
been active.
Days Past
The number that will be matched against the number of days the loan is days
Due
past due.
Amount
Percentage
The amount that is to be applied to the loan, under the transaction type as
defined in the recurring transaction setup, when a match occurs.
This field is reserved for future use.
How Values are Matched
During a lookup, a match will occur if the numeric value (in the loan) being looked up is
equal to or greater than the value in a table entry—except for the State field which will only look
for an exact match.
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EXAMPLE
If a recurring transaction is set up with a late fee transaction code using a lookup table containing entries for 10, 30, and 60 days past due with the amount field set to 5, 15, and 25
respectively, a loan that is 50 days past due will match the 30 days past due table entry and
apply a $15 late fee to the loan when the recurring transaction is processed.
A table entry must satisfy all entered fields for the entry to be a match during a lookup.
EXAMPLE
If a table entry has 10,000 entered in its original loan balance and 10 entered in the days
past due, a loan’s original balance must be $10,000 or greater and currently be 10 or more
days past due on its payment for the table entry to be a match.
If more than one table entries satisfy a criteria, the table entry with the least amount of difference to the value it is matched against will be used.
EXAMPLE
If there are table entries with the original loan balance set to 5,000 and 10,000, a loan with
an original loan balance of $15,000 will satisfy both table entries but the table entry with
10,000 will be used as it is closer to 15,000.
When different table entries with different fields satisfy a criteria, the table entry with the highest
precedence will be used. The order of precedence, high to low, is original loan balance > current principal balance > state > days active > days past due.
EXAMPLE
If there is a table entry with the original loan balance set to 10,000 and another table entry
with days past due set to 10, a loan with an original balance of $10,000 and is currently past
due by 10 days will satisfy both table entries but the table entry with the original loan balance set to 10,000 will be used because the original loan balance has a higher precedence
than days past due.
Using Lookup Tables
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Lookup tables can be configured to be used when setting up a loan template with a recurring
transaction or for individual loans by querying a loan and selecting View > Recurring Transactions menu. Select Use Lookup Table from the Amount Type drop down list in the recurring
transaction setup dialog and click
next to the amount field to select a lookup table.
When the specified recurring transaction event occurs, the defined lookup table values will be
compared against the loan values and apply the specified amount when there is a match.
TIP
If you do not see a lookup table listed, go back to the lookup tables setup and make sure
Active status is selected for that table.
Multi-Currency
Multi-currency support in NLS allows for entering loans in a different currency and using scripts
to convert from one currency to another. The interface provides for a single location where all
currencies’ exchange rates can be maintained.
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To set up multi-currency, go to Setup in the Main slider of the Shortcut bar (or View > Setup
menu) then expand Loan Setup and select Multi-Currency.
Click
Add at the top of the top pane to add a new currency.
Enter a currency acronym, code, symbol, or anything to help identify the currency into the
Abbreviation field and a descriptive name for that currency (e.g. € or EUR for Euros). Click OK.
Click
Add at the top of the lower pane to add a new exchange rate for the selected cur-
rency.
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Type in or use the popup calendar to enter the closing date of the currency’s exchange rate
from the source of the exchange rate.
Enter a US Dollar value that is equivalent to a single unit of the foreign currency.
EXAMPLE
If 1 Canadian Dollar is equal to 0.75 US Dollar, enter 0.75 in the Exchange Rate field.
Enter the source of the exchange rate in the Exchange Rate Source field for reference (this field
may be left blank). Click OK and restart NLS to save the changes.
Using Multi-Currency in Loans
When entering a new loan, the currency for that loan may be chosen if a different currency
has been defined in the Multi-Currency setup. A USD label will be shown in the Net Loan
Amount field. Click on the USD label and select a different currency from the drop down list.
The label will change to reflect the currency chosen for the loan.
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Once a loan is created, the currency for the loan cannot be changed. All transactions henceforth for that loan will be in the defined currency. The currency used for the loan will be indicated in the amount field of the transaction entry dialog.
Scripting with Multi-Currency
Multi-currency can be used with scripting in converting currencies for reports and user-defined
fields. The following script takes the latest exchange rate for the specified currency of the loan
and places the converted USD value of the loan’s principal balance into UDF1.
VBSCRIPT
Set App = GetObject(, "nls.application")
refno = App.getfield("loan_refno")
curr = App.sqlselectstatement("select currencyID from loanacct where
acctrefno = " + cstr(refno))
if (curr = 0) then
exrate = 1
else
rateid = App.sqlselectstatement("select max(currencyExchangeratesID)
from currencyexchangerates where currencyID = " + cstr(curr))
exrate = App.sqlselectstatement("select exchangerate from
currencyexchangerates where currencyexchangeratesID = " + cstr(rateid))
end if
prin = App.getfield("loan_currpramt")
prinUSD = cdbl(exrate) * cdbl(prin)
App.setfield "loan_detail1_UDF1", prinUSD
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App.savescreen()
App.refreshscreen()
refno = App.getfield("loan_refno")
curr = App.sqlselectstatement
("select currencyID from loanacct
where acctrefno = " + cstr(refno))
if (curr = 0) then
exrate = 1
else
rateid = App.sqlselectstatement
("select max(currencyExchangeratesID) from currencyexchangerates where currencyID
= " + cstr(curr))
exrate = App.sqlselectstatement
("select exchangerate from currencyexchangerates where currencyexchangeratesID = " + cstr
(rateid))
end if
prin = App.getfield("loan_currpramt")
prinUSD = cdbl(exrate) * cdbl(prin)
App.setfield "loan_detail1_UDF1",
prinUSD
App.savescreen()
App.refreshscreen()
Sets variables and gets the loan’s native currency ID.
If the loan’s currency is USD (curr = 0) then
the exchange rate (exrate) is set to 1. Otherwise the variable exrate is set to the specified
currency’s latest exchange rate.
Principal of the loan is multiplied by the exrate
and assigned to loan_detail1_UDF1.
Base Rate
Base Rate Schedules are used to control the interest on variable rate loans. A base rate schedule is added and configured from the Base Rate tab of the Loan Setup window. The base rate
schedule specifies a basis rate for all of the variable rate loans that are tied to it. Each loan’s
interest rate will be equal to that basis rate, plus some adjuster that is specified in that loan’s
individual setup. Pre-programmed rate changes may be set up on the base rate schedule,
and when it comes time for a rate change, the change will be automatically reflected on any
loan that is tied to that base rate.
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The buttons on the upper portion of the Base Rate window:
Creates a new base rate schedule. Enter a name and description for the base rate,
and click OK. The system will automatically prompt a Base Rate Correction to force
you to set an initial rate for this base rate schedule. Enter a date, or use the date
Add
picker to set the starting and ending dates for the initial interest rate for this base rate
schedule. Enter the interest rate in the base rate field, and enter a comment about
this rate if one is desired. Click OK.
Deletes the highlighted base rate schedule. You will not be allowed to delete a base
Delete
rate schedule if it is currently referenced on any existing loan accounts.
Opens the Modify Base Rate dialog. Enter a new description and click OK.
Modify
Base Rate Corrections
The lower half of the base rate window shows the list of base rate corrections for the currently
selected base rate schedule.
This window shows the effective dates of each base rate correction, the rates that will be in
effect on those dates, the day and time the rate was entered, and which NLS user entered it.
The buttons on the lower half of the Base Rate window:
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Click this button to send the list of base rate corrections to the printer. This prinPrint
tout will give you the entire schedule for the selected base rate.
Creates a new Base Rate Correction entry. Base rate corrections are used to preset a known, upcoming, rate change. They also allow you to enter a rate
change that has already passed, automatically correcting all necessary interest
accruals for the loans affected. Use the date pickers, or key in the dates in the
Add
Effective From and Effective To fields. Enter the new rate, and a comment if one
is required. Click OK. When Show/Hide Corrections is set to “Show,” a checkmark will indicate which old rate entries have been superseded by the new rate
change.
This button toggles between “Show” and “Hide” settings. When the display is set
to show corrections, all entries will be displayed, with those that have been
Show/Hide superseded, indicated by a check mark. When the display is set to hide corCorrection rections, the check marked entries will be removed, so that you can easily see
the schedule as it is currently in effect.
Base Rate Spread
On variable rate loans, the spread (the amount by which the current rate of the loan differs
from the base rate being tracked) may be configured to be a value dependent upon the current balance of the loan, the original amount of the loan, or the size of the credit line
approved. This grid between the size of the loan and the spread is configured in Loan Setup Base Rate Spread.
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Buttons on the upper portion of the Base Rate Spread window:
Creates a new base rate spread. Enter a name and description for the base rate
Add
spread, and click OK.
Deletes the selected base rate spread. You will not be allowed to delete a base rate
Delete
spread if it is currently referenced on any existing loan accounts.
Opens the Modify Base Rate Spread dialog. Enter the new description and click OK.
Modify
Base Rate Spread Elements
The lower half of the base rate spread window shows the list of base rate spread elements for
the currently selected base rate spread schedule.
This window shows the effective principal range of each base rate spread, the spread that will
be in effect for those balances, the day and time the rate was entered, and which NLS user
entered it.
Buttons on the lower half of the Base Rate Spread window:
Click this button to send the list of base rate elements to the printer. This printout
Print
Add
will give you the entire schedule for the selected base rate spread.
Creates a new Base Rate Spread Element. Base rate spread elements are used
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to define the spread based on the balance of principal (current, total, or credit
amount). Enter the range amounts and the spread value. Click OK. When
Show/Hide Corrections is set to “Show,” a check-mark will indicate which old
rate entries have been superseded by the new spread value.
This button toggles between “Show” and “Hide” settings. When the display is set
to show corrections, all entries will be displayed, with those that have been
Show/Hide superseded, indicated by a check mark. When the display is set to hide corCorrection rections, the check marked entries will be removed, so that you can easily see
the schedule as it is currently in effect.
Interest Plan
The Interest Plan feature allows you to set up interest schedules that may be used on loans and
on blocks of loans. If the Interest Plan is modified, the change to the interest set-up is reflected
on all of the loans that are part of that interest plan.
Interest Plans are configured on the Interest Plan tab of the Loan Setup window.
To add a new Interest Plan, click Add
. Enter a name and description for the Interest Plan,
and click OK.
Once the Interest Plan has been added, it must be configured similarly to any interest entry on
a loan, or on a template.
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Main Tab
The Main tab has the most commonly used settings for interest object setups.
Interest
Displays the Interest Type set in the Add Step dialog (click Add to open the Add Step
Type
dialog). This field is for display only and is not editable.
Select from any available base interest rate schemes that have been defined in the
Base
Base Rate tab of the global Loan Setup. If no Base Rate schemes are defined this
Rate
field is not editable and will default to NONE. If NONE is selected the interest rate will
be determined by the value of the Interest Rate field.
Base
Modifies the base rate for the interest object by summing the value of the Base Rate
Rate
and the Base Rate Adjuster. This field may contain a negative value. If base rate is
Adjuster set to NONE, this field is not functional.
Interest
Rate
Sets the APR for the interest object when no Base Rate is selected.
Defines when the loan is considered to be in default. This setting is only used when
an interest object is set to an Interest Type of Default Interest While in Default or
Default
Default Interest Until Maturity. If the Default Interest Period is set to Days, then the
Interest
loan will be considered to be in default when any payment is past due by the num-
Period
ber of days in the Default interest Days field. If a different period, such as months or
quarters, is specified then the loan will be considered to be in default when it is past
due by that period (e.g. one month of one full quarter).
Variable Tab
Variable interest rates in NLS are controlled by a combination of the selected Base Rate and
the Rate Change information in the Variable tab of the template (or loan). When a rate
change event occurs, the system will check the selected Base Rate index and if a new interest
rate is specified, the system will apply the new rate until the next rate change event occurs, at
which time the index will again be selected. If the interest rate changes more than once
between rate change events, only the latest rate will be applied.
The Variable tab contains the parameters necessary to control rate change events and notifications for a variable interest rate loan. These settings work in conjunction with the Base Rate
selected in the Main tab and are not available unless a base rate is selected. NLS provides for
setting two different rate change triggers on templates, an Initial Rate Change, which determines the first date on which the loan will check the base rate index for a rate change, and
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Subsequent Rate Changes, which determines how the system will derive the dates for all future
checks against the base rate index.
Clicking on …
for either Initial Rate Change or Subsequent Rate Changes will open the
Date Parameters dialog. This dialog sets all of the parameters necessary to define when a rate
change event occurs. Because these parameters are date dependent and a template should
be set up so that it can be used at any time a loan is added, it is often ineffective to set the rate
change date parameters on the template. In that case, they must be set on a loan-by-loan
basis when each variable rate loan is added.
Type defines the method by which the date of a rate change is determined. Not Applicable disables the rate change event and all other fields in the Date Parameters dialog. If the Initial Rate
Change is set to Not Applicable, Subsequent Rate Changes will be disabled, and the interest
rate will be set to the current value of the selected base rate as of the origination date of the
loan when it is added. If type is set to Relative From Origination Date, the rate change event will
occur when the duration defined by the Period and # of Periods fields has elapsed since the origination date of the loan. Relative From Origination Date is intended for use with the Initial Rate
Change, and although it is possible to select this type for Subsequent Rate Changes, we do
not recommend doing so, because it will only trigger a rate change event once. If a periodic
rate change is required, Subsequent Rate Changes should be set to a type of Relative to Initial
Rate Change. This type is only available for Subsequent Rate Changes and functions in the
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same manner as Relative From Origination Date, except that the period is relative from the last
rate change. The last type, Fixed Date, is possible to use on a loan template, however we
recommend against this practice because a loan may be added at any time using the template, even after a fixed date would become invalid. As mentioned in the section above, if the
rate changes are to be defined with a fixed date, then they must be defined as each loan is
entered, not on the template.
When type is set to Relative From Origination Date or Relative to Initial Rate Change, the total
time between rate change events is defined by the Period and # of Periods fields. # of Periods
sets the number of cycles, as defined by the Period field, between rate change events.
EXAMPLE
If period is set to Monthly, # of Periods is set to 3, and Type is set to Relative From Origination
Date for the Initial Rate Change, then the first possible rate change for the loan would be 3
months from the origination date of the loan.
Day Value allows the loan to force a rate change to a specific day of the month. N/A ignores
the setting of day value, allowing the rate change to occur as defined by Period and # of Periods. Force Negative will cause the rate change to roll back to the date selected.
EXAMPLE
If Day Value is set to 5/Force Negative and the rate change is scheduled to occur on June 2,
the rate change will actually occur on May 5.
Force Positive will make the rate change jump forward to the selected day value. Force Neutral
will force the rate change to the selected day in the current month.
EXAMPLE
If Day Value is set to 15/Neutral, a rate change will occur on the 15th of June regardless of
whether the change was scheduled to happen on the 1st or the 31st of June.
NOTE
The day value is only functional with a relative rate change type and will not be available
when type is set to Fixed Date.
Date sets an absolute date for the rate change when Type is set to Fixed Date. While this setting
is functional with loan templates, it is not recommended because of possible conflicts when
the date selected on the template becomes earlier than the origination date of a loan added
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with the template. For loans that require a Fixed Date for a rate change we recommend entering the date information at loan input time instead of in the template.
When the date parameters are set for a rate change the box to the right of
will display a
description of when the rate change will occur in plain English.
EXAMPLE
If the Initial Rate Change was set to—Type – Relative From Origination Date, Period –
Monthly, # of Periods – 3, Day Value – 1/Force Negative—the description would display
“Advance 3 month(s) relative from origination date, Force backward to 1st day of the
month.”
Constraints Tab
The Constraints tab contains the settings for interest limits when a variable interest rate is used.
Cap Rate
Defines the maximum interest rate for the loan.
Floor Rate
Sets the minimum interest rate for the loan.
Maximum
Change Per
Sets the maximum rate change for each single rate change event.
Adjustment
Maximum
Change Per
Year
Maximum
Change Per Life
Minimum
Change
Limits the total amount by which the rate can be adjusted in one calendar
year (January 1st through December 31st).
Limits the total amount by which the rate can be adjusted, effectively creating another cap and floor rate for that loan which are based on the initial rate.
Sets the minimum amount by which the rate can change at one time.
Compounding Tab
The Compounding tab contains the controls for setting up compound interest on a loan.
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The types of compounding available are: None, Periodic Compounding, Compounding When Past Due, and Compound Past Due.
None: There is no compounding of interest on the loan.
Periodic Compounding: Each day’s interest is accrued on the sum of the principal
Type
balance plus whatever portion of the interest was accrued as of the last compounding date.
Compounding When Past Due: All interest is compounded whenever the loan is
past due.
Compound Past Due: Only that portion of the interest which has been billed and
which has a due date in the past is compounded.
Period
Only available for Periodic Compounding. Defines the compounding period.
Only available for Periodic Compounding. Used with Period to determine the compounding period.
# of
Periods
EXAMPLE
If a loan is to compound interest every five days, the period could be set to days
and the number of periods set to 5.
First
Defines the first date on which the loan is to be compounded. The Period and # of
Date
Periods then determine the subsequent dates from that point.
Loan Defaults
The Loan defaults tab contains default settings relating directly to the loans.
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Accrual
This is the location/filename that will be generated by NLS during accrual to help
Accrual
debug the accrual problem. Only set the filename if you are experiencing an
Log
accrual problem. Once this value is set, the Accrual Thread value will be forced to
1.
Allow
Future
Accruals
Allows the portfolio to be accrued through the weekend or weekend and holidays.
Nortridge discourages the use of this feature for it closes the day to all transactions. Before enabling, please contact Nortridge Customer Support for additional information.
ACH
ACH –
Effective
Date Rule
This option will allow the user to specify the effective date of an ACH payment
based on the due date, post date, or the lesser of the two.
ACH –
General
This option will allow the user to specify the general ledger date of an ACH pay-
Ledger
ment based on the due date, post date, or the lesser of the two.
Date Rule
ACH –
Saturday
Due Date
This option will modify the effective dates of pending transactions in NLS that fall
on a Saturday to Friday, Saturday, Sunday, or Monday.
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Rule
ACH –
Sunday
This option will modify the effective dates of pending transactions in NLS that fall
Due Date
on a Sunday to Friday, Saturday, Sunday, or Monday.
Rule
Return
This option allows for control over how the NACHA return file is matched to the ori-
File Match- ginal ACH entry. Original trace ID will match with the originating trace ID whereas
ing
Loan Number, Date, and Amount will match with the specific returned details.
Commitment
The order of the two-letter codes in this field determine the default distribution
order for payments entered on a commitment or pool level. The two-letter
codes are as follows:
OP = Oldest payments due
Commitment EV = Distribute among the loans evenly
Distribution
PR = Distribute among the loans proportionally using the current principal bal-
Order
ance to determine the ratio
OL = Oldest loan
CC = Current receivables that are attached directly to the commitment/pool
CP = Past due receivables that are attached directly to the commitment/pool
CO = Unbilled receivables that are attached directly to the commitment/pool
Display
Loan Dealer
This option allows the user to define the data format displayed in the
Field Display
LoanView Dealer Field.
Loan Maximum Fetch
Count
This option will limit the number of loan records that can be retrieved from a
query. The value of 0 denotes unlimited fetch count.
LoanView
This option allows the user to choose truncation or rounding of the interest
Interest Bal-
balances on the LoanView screen. This option does not affect the data,
ance Option
only the display of the data.
ParticipantView This option allows the user to choose truncation or rounding of the interest
Interest Bal-
balances on the ParticipantView screen. This option does not affect the
ance Option
data, only the display of the data.
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Set Loan Bal-
This option allows the user to choose either 2 decimal places or 5 decimal
ance Precision
places for the LoanView and ParticipantView balance fields. This option
to 5 Places
does not affect the data, only the display of the data.
General Ledger
GL Auto
By setting this value, NLS will allow the user to specify an automatic method for
Cutoff
controlling the GL Minimum Date. This value is superceded by the use of the GL
Date
Minimum Date.
GL Interface
Object
Name
GL Maximum
Cutoff
Date
GL Interface Object Name. This parameter is the custom general ledger interface
dll file name. When a valid dll name (e.g. GLInterface.dll, quickbooks.dll) is specified, the system will load this custom interface into the processing section of
NLS (a new GL Interface option will appear under Processing). For more information on this functionality please contact Nortridge Software.
By setting this value, NLS will not allow the general ledger date to be set after this
date. This effectively allows the user to force all general ledger entries to be posted in a specific accounting period.
GL Minimum
By setting this value, NLS will not allow the general ledger date to be set prior to
Cutoff
this date. This effectively allows the user to close accounting periods.
Date
Miscellaneous
Interest
Rate
Decimal
Places
This default defines how many decimal places are used in NLS when working
with interest rates. The available options are for five or eight decimal places of
precision on the anualized interest rate.
Calculation of the balloon payment is an expensive process during the
Recalc Bal-
accrual run. The options are:
loon Pay-
Continuous - This will re-calculate the balloon payment after every transaction
ment
Last 3, 6, or 12 Months of Loan - This will re-calculate the balloon payment only
during the last months of the loan and will greatly enhance performance.
Transaction This option allows the control of batches in Transaction Processing. There are
Entry
three options: Disabled, Prompt for Batch, and Force Batch. If disabled, batches
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can not be used. Prompt for Batch will prompt the user to set up a batch before
Batches
starting transaction entry but a batch is not required. The Force Batch option
forces the user to use batches when entering transactions.
Voucher
This option will determine the options available to the user when processing
Check Print- vouchers. Print Check will allow the user to create a check whereas Print Report
ing Option
will only generate a report. Both options will mark the voucher as processed.
Multi Threading
Accrual
Process
Max
Thread
Count
During accrual processing, NLS will spawn additional processing threads which will
greatly increase the throughput of accruals. Depending on the server that this is
executed on will determine the number of effective threads that can be used. Note
of caution, more threads does not necessarily equate to better performance.
Credit
During processing of the credit bureau reporting, NLS will spawn additional pro-
Bureau
cessing threads which will greatly increase the speed of creating the Metro 2 file.
Max
The server that this is executed on will determine the number of effective threads
Thread
that can be used. Note of caution, more threads does not necessarily equate to
Count
better performance.
Oracle Specific
Oracle
Size of buffer for bulk mode operation. When using this parameter bigger is not
Accruals
always better. Start with an initial value of 500 or 1,000 and work up from there.
Bulk Insert Valid range is 1 - 10,000. This parameter is ignored by databases other than
Buffer
Oracle
Accruals
Bulk Insert
Mode
Oracle
Enable bulk insert mode operation during accrual processing. Turning this parameter on can greatly increase the speed of accruals on large systems. This parameter is ignored by databases other than Oracle
Tree Control
Contact – Loan
Relationship Tree
Element 1 –
Couple
Contact – Loan
Element #1 of the Loan View Relationship Tree Control. By setting this
value you can control the displayed contents of the Contact-Loan Relationship Tree Control for the Couple type records.
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Relationship Tree
value you can control the displayed contents of the Contact-Loan Rela-
Element 1 – Ind.
tionship Tree Control for the Individual type records.
Contact – Loan
Relationship Tree
Element 1 – Org.
tionship Tree Control for the Organization type records.
Contact – Loan
Relationship Tree
Element 2 –
Couple
Contact – Loan
Relationship Tree
Element 2 – Ind.
Contact – Loan
Relationship Tree
Element 2 – Org.
Contact – Loan
Relationship Tree
Element 3 –
Couple
Contact – Loan
Relationship Tree
Element 3 – Ind.
Contact – Loan
Relationship . Tree
Element 3 – Org.
Loan Tree Control
Element #1 of the Loan View Tree Control. By setting this value you can
Element 1
control the displayed contents of the Loan Tree Control.
Loan Tree Control
Element 2
Loan Tree Control
Element 3
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Payment Methods
Payment method is selected from a drop down list during transaction entry. The contents of
that drop down list are defined on the Payment Method tab of Loan Setup.
Click Add
to add a new payment method. Enter a description for the new payment
method, and click OK to add the new payment method to the list.
Fund Hold Days: This parameter relates to trust servicing. If you are servicing a loan for another
lender, and all payments must be remitted to that lender upon receipt, the voucher for the
remittance to the lender is delayed by this number of days to allow for the payment to clear.
The voucher for the servicing fee would be offset by an associated hold voucher to indicate
that the servicing fee was for a payment that had not yet been remitted to the lender.
Status Codes
NLS has two fields that define the status of a loan. The first is Loan Status, which will always be
assigned one of the following settings: Active, Closed, Draft, Canceled, or Restructured. The
definitions of these settings cannot be modified. However, you may enter your own custom
status codes from the Status Codes tab of Loan Setup to perform different functions to a loan.
All loans will have one Loan Status, and in addition, may have one or more Status Codes
which can also be used to query and filter reports. You will find that a Status Code is an option
for most standard reports provided with NLS. As a result, Status Code(s) is an easy way to filter,
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sort, or group your reports.
General tab of Status Codes setup window.
Add
Add new status code.
Delete
Delete the selected status code. Only status codes not in use can be deleted.
Modify
Modify the selected status code.
Trustee
Assign security on a user or group level to the selected status code.
To add a new Status Code, click Add
at the top of the window, enter a name and descrip-
tion for the Status code, and click OK. Then you may select which features are to be disabled
for loans which belong to that Status Code.
General Tab
List
When selected, the status code will be included in the Lists tree view.
If the List option is selected for one or more status codes, a Lists tree view will become available.
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Lists option available at bottom of the tree view.
Lists tree view.
Hide on Loan Screen
When selected, the status code will not be displayed in the Status Codes field on the loan
screen. The status code will still appear in the tooltip and status codes window.
Status Code Precedence
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Every status code is assigned a precedence number. Status codes with lower precedence
numbers will overrule status codes with a higher precedence. If a loan has multiple status
codes that will have conflicting effects, the loan will ignore the conflicting selection from the
status code with the higher precedence.
Mutual Exclusivity
If status codes are setup to be mutually exclusive to other status codes, NLS will prevent both
status codes from being applied to loan at the same time.
Processing Tab
Processing tab of Status Codes setup window.
All accrual processing will be suspended for any loan that has a status code on
which this checkbox is selected. Because any loan is required to have its accruDisable
Accruals
als up to date before any transactions can be processed, this status effectively
shuts down all payment processing as well. In addition, no loan that has had
accrual processing disabled will appear on any Trial Balance Report, as balances are entered on the Daily Trial Balance table of the database during the
accrual processing.
Disable
Statements will not be placed in the print queue for any loan that has a Status
Statements Code with this checkbox selected. This will prevent the new generation of state-
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ments, but will not stop the printing of statements that were placed in the queue
prior to the modification of the loan’s status code. If an unprinted statement is
in the queue, and an order is given to NLS to print all unprinted statements, the
Status Code will have no effect on which statement is printed.
Late Notices will not be placed in the print queue for any loan that has a Status
Disable
Late
Notices
Code with this checkbox selected. This will prevent the new generation of Late
Notices, but will not stop the printing of Late Notices that were placed in the
queue prior to the modification of the loan’s status code. If an unprinted Late
Notice is in the queue, and an order is given to NLS to print all unprinted Late
Notices, the Status Code will have no effect on which Late Notice is printed.
NOTE
A note about Disable Accruals setting: It is strongly recommended that this option is not
selected when simply putting a loan on a “non-accrual state.” The accrual process performs 17 different steps, not just the calculation and accrual of interest. If this setting is selected, none of those steps will occur. If you are simply trying to stop the accrual of interest on
the loan, it is recommended that you change the interest rate to 0% instead; the loan will
continue to accrue (and complete the 17 steps) without adding interest to the loan. Should
you decide at a later time that you want to change the interest rate (to start accruing
interest again or to go back in time and reinstate the original interest rate), you can do that
at any time. And when you do that, it will ask you for an effective date for this change.
Transactions Tab
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Transactions tab of Status Codes setup window.
Disable All
Transaction
Processing
Disable Principal
Advances
No transactions, standard or manual, may be processed on loans with a
Status Code which has this checkbox selected.
The standard Principal Advance transaction (trans code 100) may not be run
on loans with a Status Code that has this checkbox selected. This will not prevent the application of a manual transaction code that has been configured
to do the same thing.
For any loan that has a Status Code with this checkbox selected, all payment
type transactions will be disabled. A payment type transaction is defined as
Disable All
any transaction which will pay down an existing receivable item that is on the
Payments
Payments Due tab. This includes trans codes 200, 202, 204, 206, 208, 210, 250,
252, 254, and any user-defined transaction code for which the Payment option
has been selected on the Payment Processing tab.
Disable Principal
Reductions
The standard Principal Reduction transaction (trans code 220) may not be run
on loans with a Status Code that has this checkbox selected. This will not prevent the application of a manual transaction code that has been configured
to do the same thing.
Suspense Accounts
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Global Suspense Accounts are used to control the flow of funds when a payment is received
for which the account to which the payment should be directed is unknown.
To set up a Suspense Account, select Suspense Accounts from the Loan Setup menu under
Setup.
Click Add
. Enter an account name and description.
Click OK.
To ensure that funds flowing into and out of the suspense account are properly accounted for
on the general ledger, the global suspense account must be tied to a loan group in the loan
group servicing options. Select the suspense account from the Suspense Account drop down
list in the Servicing Options tab.
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See Global Suspense Account on how to make entries into suspense accounts.
Labels
In addition to user-defined information fields on both the Contact and the Loan screens, NLS
also has User-Defined Statistics Items, Loan Balances, and Loan Group GL Placeholders. To
name any of these user-defined items, go to the Labels tab of Loan Setup.
Select the specific field to be named from the User Defined Field # drop down list of either the
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Statistics, Loan Balance, or Loan Group sections, and type the name in the User Defined Label
field.
When referring to a User-Defined field, statistic, loan balance, or loan group placeholder, in
conversation with a Nortridge Software Customer Support Representative, please be sure to
inform the support technician that it is a user-defined item that you are discussing. Otherwise, it
will appear to that technician that you are asking a question about a field that does not exist in
the Nortridge Loan System. Knowing that you are discussing a user-defined item will put the
technician in a better position to more quickly identify which field you are referring to, and to
determine the cause of your problem.
Risk Rating
Risk Rating is a parameter which may be placed on a loan for the purpose of estimating the,
“After expected loss,” value of your portfolio. Risk Rating codes are configured on the Risk Rating tab of Loan Setup.
To add a new risk rating, click Add
, enter a Code, risk rating percentage or reserve per-
centage, and a description if required. Click OK.
There is no requirement that your Risk Rating percentage and your Reserve percentage add up
to 100%, as they are used in totally separate reports. It is quite likely that you will decide to use
one or the other, but not both.
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The Risk Rating percentage represents the value of the loans with this risk rating, and is used on
the risk report to estimate the “after risk” value of your portfolio.
EXAMPLE
If 1 out of every 20 loans of a particular risk rating were to be assumed to go bad, then that
risk rating should be set to 95%.
The Reserve Percentage represents the amount of money held in reserve on your general
ledger for expected loan losses, and is used on the Loan Loss Reserve Report. Essentially, the
loan-loss reserve represents the assumption of loan loss expense in advance, rather than waiting for the loans to actually default. The Reserve percentage is set by the management of the
lending institution, although for certain types of lending institutions, a minimum loan-loss
reserve percentage may be required by the charter or by regulators.
When the risk rating is entered or modified on a loan, the user has the ability to set an effective
date for the modification. Any date dependent reports that are configured to select by, sort by,
or display risk rating will use the risk rating that was in effect as of the trial date for which the
report is being run.
NSF
Codes for Non-Sufficient Funds handling procedures are set up on the NSF tab of Loan Setup.
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To add an NSF code, click Add
. Enter a description (the code numbers will be entered
sequentially). Click OK.
To configure your NSF code, you will need to add NSF events. These events are triggered by the
number of NSFs that have been incurred against the loan. An event could be configured for
the first five NSFs, with another event (possibly with a larger NSF fee) being configured for the
sixth and subsequent NSFs.
To add an event, click Add in the lower left-hand corner. Specify the number of NSFs. This event
will be for all NSFs of that number and higher. For example, if this event is for the first five NSFs
only, then specify: 1. Then set up another event on which you will specify: 6.
The Transcode for the NSF fee will default to Transaction code 180, which is our standard NSF
fee, but if you set up a manual transaction code for your own NSF fee, it may be selected from
the drop down list.
Enter the fee amount. This amount will be automatically assessed when an NSF is incurred on
any loan that has this NSF code attached to it.
If the checkbox “On NSF Reassess Late Fee” is selected and a payment is reversed as a result of
an NSF and if a late fee would have been assessed had the payment not been entered, then
the late fee will be re-assessed automatically.
Once the NSF code has been configured, that code may be attached to loans or placed on
loan templates. When an NSF transaction is run against the loan, three actions will result: 1)
The specified payment will be automatically reversed. This is a special NSF reversal and is different from a regular reversal. 2) The NSF fee specified in the NSF setup will be assessed. 3) The
NSF counter of the loan’s statistics will be increased by 1.
ACH
The global ACH setup is located on the ACH tab of Loan Setup. The ACH data about your company is entered here.
You must add data for at least one ACH header and one ACH company.
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Click Add
to add a new ACH Header.
ACH
A sequential, unique, number assigned by NLS to identify this particular ACH
Header ID
header code in the database.
ACH
Header
Name
Your name for this particular ACH Header code. This information does not
appear in the ACH file. It is here to help you identify the ACH header code in NLS.
Select from the available Payment Methods in NLS. The Payment Method selec-
Payment
Method
ted will be the payment method used on the pending transactions created by
the ACH, and subsequently will be the Payment Method on the payments that
are posted by those pending transactions. The standard payment method of
ACH will be selected by default.
Immediate
The Immediate Destination field identifies the party to which the file is being
Destination delivered. It contains the Routing Number of the ACH Operator – TCB Services.
Immediate
Destination The name of the ACH or receiving point for which the ACH file is destined.
Name
Immediate
The Immediate Origin field identifies the sender of the file. It contains the Rout-
Origin
ing Number of the ODFI – ABC Trust.
Immediate
Origin
The name of the ACH Operator or sending point that is sending the file.
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Name
Click Add
to add a new ACH Company.
ACH Com-
A sequential, unique, number assigned by NLS to identify this particular ACH
pany ID
company code in the database.
ACH Company Name
Company
Name
Your name for this particular ACH company code. This information does not
appear in the ACH file. It is here to help you identify the ACH company code in
NLS.
The value of this field is established by the Originator for purposes of further
identifying the source of the entry and for descriptive purposes for the
Receiver.
This field in the Entry Detail Record allows ODFIs to include codes of sig-
Company
Discretionary
Data
nificance only to them, to enable specialized handling of the entry. There will
be no standardized interpretation for the value of this field. It can either be a
single two-character code or two distinct one-character codes, according to
the needs of the ODFI and/or Originator involved. The field must be returned
intact for any returned entry.
Company
Identification
The Company Identification is an alphanumeric code used to identify an Originator. The Company Identification Field must be included on all prenotification records and on each entry initiated pursuant to such
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prenotification.
The Originator establishes the value of this field to provide a description of the
purpose of the entry to be displayed back to the Receiver. The field must conCompany
tain the word “REVERSAL” (left justified) when the batch contains reversing
Entry Descrip- entries. The field must contain the word “RECLAIM” (left justified) when the
tion
batch contains reclamation entries. This field must contain the word
“NONSETTLED” (left justified) when the batch contains entries which could not
settle.
Originating
DFI Identification
The Routing Number is used to identify the DFI originating entries within a
given batch.
Individual ID
Choose from loan number, account reference number, or contact number.
To Use
The entry will be put in field 7 of the ACH file.
Individual
Name To Use
Choose from Loan Name, Loan Shortname, Last Name or Company Name
of the contact that the loan is on, or First and Last Name or Company Name
of the contact that the loan is on. The entry will be put in field 8 of the ACH file.
If the bank sends an exception file, and that file is in the standard return format, the file may be
imported. This will cause automatic reversal of the corresponding payments. Depending upon
the reversal return code sent for the payment in question by the bank, NLS will automatically
reverse the payment as an NSF or as a standard reversal. The determination of which reversal
return codes constitute an NSF is made on the ACH Reversal Return Codes tab of the ACH Company setup.
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Representment Tab
When an ACH transaction fails, the invalid transaction must be reversed and the transaction
“re-presented” or re-sent at a later date. The representment feature in NLS automates this process.
On the Main slider in the Shortcut bar click
Setup then Loan Setup then ACH. Click the
Company tab then the Representment tab.
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NLS can attempt up to two re-presentment cycles. Select the First checkbox then choose from
the drop down list, the number of days after the ACH is returned that the re-presentment should
be made. Select all Return Codes that will trigger a re-presentment from the list.
Select the Second checkbox to set up a second re-presentment if needed.
Now, when a NACHA return file from a bank is imported into NLS, any invalid transaction
matching the return codes will be reversed and a new ACH payment made on the specified
number of day(s) after the return.
Credit Bureau
The global setup for Credit Bureau is configured from the Credit Bureau tab of Loan Setup.
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Click Add
to configure a new credit bureau header.
Enter the unique ID code provided to you from the various reporting agencies in the appropriate fields. Enter the reporter name and address as defined in your accounts with the reporting agencies. Enter your identification number. This is a number used to uniquely identify a
data furnisher. It is your internal code to identify the particular branch office from which the
data originated.
Requesting Credentials
If you are going to be pulling credit reports into NLS, configure the credentials provided to you
by the credit bureau on the Requesting Credentials tab of the Credit Bureau Setup.
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N LS 4. 9. 3 AN D LATE R
To enable the receiving of risk based pricing add-on data from a credit bureau click Add
Ons
and select Risk Based Pricing in the Add Ons dialog. The data returned by the credit
bureau is a ranking percentage of the credit score. A min/max credit score value may also
be requested from TransUnion.
For more information, see Credit Profile.
User Defined Fields
There are 100 user-defined fields in NLS that are associated with loan accounts and are not
configured by loan portfolio. These include five user-defined fields associated with transaction
batches, five associated with transaction entry, and 90 associated with participants (45 on
each of two tabs in the participant view).
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The method for configuring these user-defined fields is similar to the method discussed with
respect to the user-defined fields on Contact and Loan Portfolios. These fields may be configured from the User Defined Fields tab of Loan Setup.
Loan Portfolio
NLS has 100 user-defined fields available for use on every Loan. There are 50 on each of two
forms: Loan Detail 1 and Loan Detail 2.
Each Loan is placed into one of your Loan Portfolios. If you do not configure any new Loan
Portfolios, all Loans will exist in a portfolio called <DEFAULT>.
Each portfolio has its own unique configuration for the 100 Loan User-Defined Fields. The label
and type of each user-defined field is defined on the Loan Portfolio tab of Loan Setup.
Loan Detail 1 and Loan Detail 2 tabs allow you to select on which of the two forms you wish to
configure your user-defined fields. Script tab allows you to program Visual Basic code that will
be activated by certain triggers associated with the loans in the portfolio. See the section on
Scripting for more information.
On the grid, you can modify the label, set the data type from the drop down list, set a default
value, disable a field, make a field required, hide a field, make a field read only, set a field to
allow mixed case, and access the advanced properties of the field.
Options Tab
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Hide Field
The Entity and Tax ID fields may be hidden on all loans that are in this loan Portfolio.
Hide Tab
Selecting this option next to the name of one of the standard tabs on the Loan will hide that tab
for all loans that are set to this contact type.
Enable Auto Numbering
If Enable Auto Numbering is selected, you may set the auto numbering to be keyed to the reference number of the loan, or to a key that you set, which will iterate as each loan is added.
Mask
The mask is formatted as follows: aaa%n#dbbb
where:
aaa = a string of characters to be placed at the beginning of the loan number
% = the actual character “%” sets off the starting string from what follows
n = any single character after “%” to designate which character will be used to pad the number
(refno or key)
# = a number which indicates how many digits to pad
d = the actual character “d” indicates where the refno or key is to go, and it is padded based
on the number which proceeds it and the character proceeding that number
bbb = a string of characters to be placed at the end of the loan number
EXAMPLE
If the mask were set to THX%05d-R2D2 and the current key was 1138, then the next loan number would be THX01138-R2D2.
Class 1 Label and Class 2 Label
The Class 1 Label and Class 2 Label fields allows for the customization of the class labels. By
default, the fields are labeled Class 1 and Class 2. Simply type in a new label and the new
label will be used where loan classes are displayed for the selected loan portfolio. This only
changes the label names as displayed and does not affect the actual loan classes as configured in the loan class setup.
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Shows the default Class 1 and Class 2 labels for the default loan portfolio on a loan view.
Transaction Codes
In the Nortridge Loan System, all transaction entry functions make use of structured Transaction Codes. These codes define the way any transaction affects the general ledger, the loan
balances, the billings, and the payments.
The integrated functionality of transaction code definitions and parameters allows great flexibility in setting up user-defined transactions.
Transaction Codes are configured from the Transaction Codes tab of Loan Setup.
The parameters that define a transaction code are configured on the various tabs:
General Ledger Controls
General Ledger Controls dictate the Credit and Debit transactions to the General Ledger that
are caused by this transaction.
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Usually there will be one Credit and one Debit for a single transaction, but there are some rare
types of transactions that will prompt postings to multiple accounts.
EXAMPLE
US Farm Equipment Financing Company has a main account for its lending reserves that is
defined by the placeholder PHCash Account1. They give credit lines to farmers and the farmers take cash advances for livestock, feed, and equipment. USFEFC sets up a separate
manual transaction for each of these kinds of advances. Their accounting department has
set up a cash clearing account for livestock, feed, and equipment, and reconciles the
amounts loaned for each by looking at the monthly total of debits to each account. These
accounts don’t actually hold any balance, but funds must be funneled through them, and
the company wishes to process just one transaction, not two. The Credits and Debits for the
Livestock Principal Advance Transaction are:
DEBIT 1
Livestock Clearing Account
CREDIT 1 PHCashAccount1
DEBIT 2
PHLoanAsset1
CREDIT 2 Livestock Clearing Account
PHCashAccount1, and PHLoanAsset1 are placeholders for accounts that are defined in the
loan group. Livestock Clearing Account would be a specific account that USFEFC has set up
on their ledger.
The credit and debit fields may be populated with placeholders, or with specific accounts. If
populated with a specific account, that account will be credited or debited whenever that
transaction is processed. If the field is populated with a placeholder, that placeholder will be
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matched to a specific account, on the loan group setup, for the loan group, to which the
loan, on which the transaction is processed, belongs. That specific account will then be credited or debited by the transaction.
Loan Controls
Loan Controls determine which Loan Balances and Statistical Entries are affected by the transaction.
A transaction could be configured to affect up to two Loan Balances, and up to four Statistics
(e.g. the Capitalize Interest Transaction will decrease the Interest balance of the loan while it
increases the Principal balance).
The loan balances affected may not be modified on default system transactions, although the
statistics may. Be careful when modifying the statistics of a default transaction as—if this is not
done with great care and consideration—it could result in useless and nonsensical statistics.
Payment Processing Controls
All transactions that represent receivables or payments that satisfy receivables require Payment
Processing Controls. These controls tell the loan system if the transaction in question generates
a receivable item on the Payments Due tab of the Loan Query, or if it pays such an item, or if it
does neither.
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If the transaction is a payment or a receivable, it requires a payment type to be selected: principal, interest, late charge, or fee. All payments and receivables must have an Associated
Transaction. The associated transaction for a payment is a receivable, and the associated
transaction for a receivable is a payment. To be associated, the payment and receivable must
have identical payment types.
The Statement Text field defines a text string to be placed on any report or statement that
provides listings of these transactions.
If the Payment History checkbox is selected, all instances of the transaction will be placed on
the Loan Payment History tab of Loan Query and on the Payment History Reports. All transactions go on the Transaction History tab and on Transaction Register reports.
Voucher Processing
If a transaction generates a voucher (which will ultimately result in a check being printed from
NLS) the setup for that voucher is configured on the Voucher Processing tab.
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User Guide
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The Voucher Type Code drop down list is populated from the voucher code setup in the Disbursement setup.
If the force voucher checkbox is selected, then a voucher will be created whenever the trans
code is run. If it is not selected, then the voucher checkbox will be present on the transaction
entry screen, and the user may choose at that time if they need a voucher to be created.
The Voucher reference box contains data that is to be placed in the reference field of the
voucher. This data may be a fixed string of characters, or may be a dynamic variable as listed
below, or any combination thereof.
The variables that may be entered in the reference box are as follows:
%N Account Name
%L Loan Number
%I Impound Invoice
%A Impound Account
%R Impound Reference
%S Shortname
%D Impound Description
%a Loan Acctrefno
%U User Reference
Options
These options control when and how a transaction code may be used, and may allow the
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User Guide
Setup
transaction to induce a modification to the loan setup.
The loan setup is modified, with a new payment override, which is derived
Recalc Pay-
using the amortizing equations, and based on the current balance, current
ment
interest rate, and remaining term. The loan can also be set up to do this automatically upon any rate change, principal advance, or principal reduction.
Re-Amortize
The amortization schedule is adjusted to reflect the current balance and rate.
Loan Pay-
The loan can also be set up to do this automatically upon any rate change,
ment
principal advance, or principal reduction.
Force Amortization
The amortization schedule of the loan will be adjusted when this transaction is
Schedule
run, regardless of the re-amortize settings on the loan.
Adjustment
Disallow
Amortization
Schedule
Adjustment
Disable use
The amortization schedule of the loan will not be adjusted when this transaction is run, even if the transaction is an advance or reduction, and the loan
is set up to re-amortize on advances and reductions.
This transaction code cannot be accessed through the transaction import pro-
in batch files cedure.
Disable use
in manual
This transaction code cannot be accessed from the loan account or from the
transaction
transaction batch entry screen.
entry
Disable use
This transaction code cannot be executed through a recurring transaction.
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User Guide
Setup
in recurring
transactions
Disable use
in late loan
This transaction code cannot be executed by a late loan event.
events
Disable
This transaction cannot be accessed by any means. It remains on the system
transaction
in order to have an accurate setup for any transactions of this type, which
from further
were executed in the past. Any transaction code that was ever used on an
use
existing loan account cannot be deleted.
Enable use
in NSF
events
Disable flow
to shadow
loan
Designates the transaction as an NSF fee. The transaction code must be a
receivable.
If a shadow loan exists and has a setup that designates that all transactions
executed on the parent loan should flow through to the shadow loan, this
option makes the transaction an exception. Transaction with this trans code
will never flow through to shadow loans.
Exclude
The transaction will not be shown and considered in the calculations for an
From Amort-
amortization schedule report created by NLS. This could cause strange results
ization
on that amortization schedule if this checkbox is selected on a transaction
Schedule
code that affects loan balances.
Ignore
This transaction code can execute even if in doing so would carry the bal-
Credit Limit
ance of the loan above its credit limit.
Report as
charge off to This transaction is designated as a charge off for the purpose of credit bureau
the credit
reporting.
bureaus
Include in
The transaction (generally a receivable) is used to help determine the past
Loan Aging
due status of the loan.
Include in
APR Calculation
The transaction will be included in the loan amount for the purpose of determining the APR in the origination module.
Notes
179
User Guide
Setup
The Notes tab displays the comments entered during the setup of a manual transaction.
Adding a User-Defined Transaction Code
To add a Manual Transaction code, click Add
. This will bring up the first “page” of the Trans-
action Code Wizard.
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User Guide
Setup
Enter a number for the Transaction Code. All manual (user-defined) transaction codes must
use even numbers greater than or equal to 500. Numbers below 500 are reserved for the
default system transactions and odd numbers are reserved for the reversing transactions that
are automatically set up along with every transaction code.
Enter a name for the transaction, a description, and a statement description. The Statement
description is the text that will appear on any statement that shows a transaction history.
Select either Receivable or Generic for the Transaction Type. If you select Receivable, then you
will be prompted to create an associated Payment transaction to go along with the Receivable transaction that you are creating. If you link the Receivable transaction to a Payment
transaction that already exists, the Wizard will skip that step.
Click Next > to bring up the second page of the Wizard.
If your transaction is a receivable, the second page of the Wizard will require you to define the
type of receivable. Because a receivable transaction can be set up to bill an amount on a
loan without affecting any loan balance (e.g. a transaction which bills interest which has
already accrued) the type of balance that this receivable bills must be specified.
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User Guide
Setup
Select the type of receivable from the drop down list. The available types are: Principal, Interest,
Late Fee, Fee, Principal & Interest, Principal Balloon, Interest Balloon, and 10 user-defined loan
balances. A receivable type of Principal & Interest creates a single receivable with an indefinite
principal and interest breakdown. The amount of interest due is defined by the interest balance on the effective date of the payment, and the amount of principal due is defined as the
amount of the receivable left over after the interest has been paid.
Select a Transaction Code number to be used as the associated payment for this receivable.
This may be an existing payment transaction code selected from the drop down list, or a new
transaction code may be entered in the field.
Click Next > to go on to the next page of the Wizard.
The next page of the Wizard will allow you to set the General Ledger Controls for your Transaction Code.
Select the appropriate Credit and Debit accounts from the drop down lists. The lists will include
all of the GL accounts that are configured on your loan system, as well as all of the place holders, so that you may configure the transaction to credit or debit a specific account, or to refer
to the Loan Group to determine which accounts should be affected.
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User Guide
Setup
On this page, you will define the Loan Controls (Loan Balances affected; Statistics will be on
another page) for your transaction code. Select the loan balance or balances that are to be
affected by the transaction, and specify if the transaction causes those balances to increase
or decrease.
Once you have set the loan balances that are to be affected by the transaction, click Next > to
go on to the next page of the Wizard.
On this page, you will specify the Statistics that are to be affected by this transaction. You may
affect up to four statistics with the transaction. Select the statistic to be affected from the drop
down list, and then specify if that statistic should be increased or decreased.
183
User Guide
Setup
184
User Guide
Setup
If the trans code is to generate a voucher for check processing, select the Voucher Type Code.
Select the Force Voucher checkbox if needed, and enter any required reference in the Voucher
Reference field.
185
User Guide
Setup
Enter the transaction code options (as defined in the previous section).
Click Finish to save the new Transaction Code.
If the transaction entered was a receivable, and if the payment transaction that you linked to
was defined with a transaction code for a transaction that does not yet exist, an alert will indicate that a payment record needs to be entered.
Click OK to go back to the beginning of the Wizard so that you may configure a payment transaction with that transaction code number.
Standard Transaction Codes
186
User Guide
Setup
This is a list of the standard transaction codes in NLS and their default setup configurations.
10 - 50
10
Trust Deposit
Debit
Trust - Cash Account
Credit
Trust - Undisbursed Funds
Loan Balance Affected N/A
Loan Statistic Affected
N/A
11
Reverse Trust Deposit
Debit
Credit
Trust - Cash Account
N/A
20
Trust Disbursement
Debit
Credit
Accounts Payable
N/A
Voucher Type
Lender Disbursement
21
Reverse Trust Disbursement
Debit
Accounts Payable
Credit
N/A
Voucher Type
Lender Disbursement
22
Trust Disbursement - Servicing Fee
Debit
Accounts Receivable
187
User Guide
Setup
22
Credit
Accounts Payable
N/A
Voucher Type
Servicing Fee Payment
23
Reverse Trust Disbursement - Servicing Fee
Debit
Accounts Payable
Credit
Accounts Receivable
N/A
Voucher Type
Servicing Fee Payment
32
Trust Receivable - Servicing Fee
Debit
Accounts Payable
Credit
Accrued Fees (2)
Loan Balance Affected Servicing Fee (Decrease)
N/A
Voucher Type
Servicing Fee Receivable
33
Reverse Trust Receivable - Servicing Fee
Debit
Accrued Fees (2)
Credit
Accounts Payable
Loan Balance Affected Servicing Fee (Increase)
N/A
Voucher Type
40
Subsidized Interest Receivable
Debit
Accounts Receivable
Credit
Accrued Interest
Loan Balance Affected Interest (Increase)
188
User Guide
Setup
40
N/A
Voucher Type
Subsidized Interest Rec
41
Reverse Subsidized Interest Receivable
Debit
Accrued Interest
Credit
Accounts Receivable
Loan Balance Affected Interest (Decrease)
N/A
Voucher Type
Subsidized Interest Rec
42
Subsidized Interest Payable
Debit
Credit
Accounts Payable
N/A
Voucher Type
Subsidized Interest
43
Reverse Subsidized Interest Payable
Debit
Accounts Payable
Credit
N/A
Voucher Type
Subsidized Interest
50
Dealer Reserve Receivable
Debit
Accounts Receivable
Credit
Dealer Reserve
N/A
Voucher Type
189
User Guide
Setup
51
Reverse Dealer Reserve Receivable
Debit
Dealer Reserve
Credit
Accounts Receivable
Loan Statistics Affected N/A
Voucher Type
100 - 193
100
Principal Advance
Debit
Loan Asset
Credit
Cash Account
Loan Balance Affected Loan Amount (Increase)
Principal Advanced (Increase)
101
Reverse Principal Advance
Debit
Cash Account
Credit
Loan Asset
Loan Balance Affected Loan Amount (Decrease)
Principal Advanced (Decrease)
106
Credit Line Limit
Debit
None
Credit
None
Loan Balance Affected Credit Line Limit (Increase)
N/A
107
Reverse Credit Line Limit
Debit
None
Credit
None
Loan Balance Affected Credit Line Limit (Decrease)
N/A
190
User Guide
Setup
108
Credit Draw Limit
Debit
None
Credit
None
Loan Balance Affected Credit Draw Limit (Increase)
N/A
109
Credit Draw Limit
Debit
None
Credit
None
Loan Balance Affected Credit Draw Limit (Decrease)
N/A
110
Precomputed Interest
Debit
Loan Asset
Credit
Accrued Deferred Interest
Loan Balance Affected Add-on Interest
N/A
111
Reverse Precomputed Interest
Debit
Credit
Loan Asset
Loan Balance Affected Add-on Interest (Decrease)
N/A
112 FA Precomputed Interest
This transaction code is for use by lenders who are using FA type loans in certain
instances where they need the precomputed interest for their accounting.
This transaction does nothing other than exist. There are no balances adjusted or
accounting entries defined.
When a loan is added, this transaction code will execute for the amount of the expected interest.
191
User Guide
Setup
112 FA Precomputed Interest
When the two transaction codes are added during the upgrade, they are disabled. If a
customer needs this functionality, they will need to go to transaction code setup and
deselect the “Disable from further use” option.
113 Reverse FA Precomputed Interest
This transaction code is for use by lenders who are using FA type loans in certain
instances where they need the precomputed interest for their accounting.
This transaction does nothing other than exist. There are no balances adjusted or
accounting entries defined.
When a loan is added, this transaction code will execute for the amount of the expected interest.
When the two transaction codes are added during the upgrade, they are disabled. If a
customer needs this functionality, they will need to go to transaction code setup and
deselect the “Disable from further use” option.
120
Principal Billing
Debit
None
Credit
None
Loan Balance Affected
N/A
N/A
Receivable Type
Principal
Associated Transaction 200 – Principal Payment
121
Reverse Principal Billing
Debit
None
Credit
None
N/A
N/A
Receivable Type
Principal
Associated Transaction 200 – Principal Payment
192
User Guide
Setup
122
Interest Billing
Debit
None
Credit
None
N/A
N/A
Receivable Type
Interest
Associated Transaction 202 – Interest Payment
123
Reverse Interest Billing
Debit
None
Credit
None
N/A
N/A
Receivable Type
Interest
Associated Transaction 202 – Interest Payment
124
Principal and Interest Billing
Debit
None
Credit
None
N/A
N/A
Receivable Type
Principal
Associated Transaction Both 204 - P+I Principal Payment and 206 - P+I Interest Payment
125
Rev. Principal and Interest Billing
Debit
None
Credit
None
N/A
N/A
Receivable Type
Principal
Associated Transaction Both 204 - P+I Principal Payment and 206 - P+I Interest Payment
193
User Guide
Setup
126
Principal Balloon Billing
Debit
None
Credit
None
N/A
N/A
Receivable Type
Principal
Associated Transaction 208 – Principal Balloon Payment
127
Reverse Principal Balloon Billing
Debit
None
Credit
None
N/A
N/A
Receivable Type
Principal
Associated Transaction 208 – Principal Balloon Payment
128
Interest Balloon Billing
Debit
None
Credit
None
N/A
N/A
Receivable Type
Interest
Associated Transaction 210 – Interest Balloon Payment
129
Reverse Interest Balloon Billing
Debit
None
Credit
None
N/A
N/A
Receivable Type
Interest
Associated Transaction 210 – Interest Balloon Payment
194
User Guide
Setup
130
Deferred Interest Billing
Debit
None
Credit
None
N/A
Loan Statistics Affected
N/A
Receivable Type
Deferred Interest
Associated Transaction 212 – Deferred Interest Payment
131
Reverse Deferred Interest Billing
Debit
None
Credit
None
N/A
N/A
Receivable Type
Deferred Interest
Associated Transaction 212 – Deferred Interest Payment
150
Late Fee
Debit
Accrued Late Fees
Credit
Late Fees Income
Late Fees (Increase)
Late Charges Earned (Increase)
Receivable Type
Late Charges
Associated Transaction 250 – Late Fee Payment
151
Reverse Late Fee
Debit
Late Fees Income
Credit
Accrued Late Fees
Late Fees (Decrease)
Late Charges Earned (Decrease)
Receivable Type
Late Charges
Associated Transaction 250 – Late Fee Payment
195
User Guide
Setup
152
Credit Line Advance Fee
Debit
Accrued Fees
Credit
Fee Income
Fees (Increase)
Fees Earned (Increase)
Receivable Type
Fees
Associated Transaction 252 – Credit Line Advance Fee Payment
153
Rev. Credit Line Advance Fee
Debit
Fee Income
Credit
Accrued Fees
Fees (Decrease)
Fees Earned (Decrease)
Receivable Type
Fees
Associated Transaction 252 – Credit Line Advance Fee Payment
154
Credit Line Overdraft Fee
Debit
Accrued Fees
Credit
Fee Income
Fees (Increase)
Receivable Type
Fees
Associated Transaction
254 – Credit Line Overdraft Fee Payment
155
Rev. Credit Line Overdraft Fee
Debit
Fee Income
Credit
Accrued Fees
Fees (Decrease)
Receivable Type
Fees
Associated Transaction 254 – Credit Line Overdraft Fee Payment
196
User Guide
Setup
170
Impound Assessment
Debit
None
Credit
None
N/A
N/A
Receivable Type
Impound
Associated Transaction 270 – Impound Payment
171
Reverse Impound Assessment
Debit
None
Credit
None
N/A
N/A
Receivable Type
Impound
Associated Transaction 270 – Impound Payment
180
NSF Fee
Debit
Accrued Fees
Credit
Fees Income
Fees (Increase)
Receivable Type
Fees
Associated Transaction 280 – NSF Fee Payment
181
Reverse NSF Fee
Debit
Fees Income
Credit
Accrued Fees
Fees (Decrease)
Receivable Type
Fees
Associated Transaction 280 – NSF Fee Payment
197
User Guide
Setup
190
Amortized Fee
Debit
None
Credit
None
Loan Balance Affected Amortized Fees Total (Increase)
191
Reverse Amortized Fee
Debit
None
Credit
None
Loan Balance Affected Amortized Fees Total (Decrease)
192
Amortization of Fee
Debit
None
Credit
None
Loan Balance Affected Amortized Fee Amortization (Increase)
193
Reverse Amortization of Fee
Debit
None
Credit
None
Loan Balance Affected Amortized Fee Amortization (Decrease)
200 - 297
200
Principal Payment
Debit
Cash Account
Credit
Loan Asset
Loan Balance Affected Principal (Decrease)
Principal Paid (Increase)
Payment Type
Principal
198
User Guide
Setup
201
Reverse Principal Payment
Debit
Loan Asset
Credit
Cash Account
Loan Balance Affected Principal (Increase)
Principal Paid (Decrease)
Payment Type
Principal
202
Interest Payment
Debit
Cash Account
Credit
Accrued Interest
Loan Statistics Affected Interest Paid (Increase)
Payment Type
Interest
203
Reverse Interest Payment
Debit
Accrued Interest
Credit
Cash Account
Loan Statistics Affected Interest Paid (Decrease)
Payment Type
Interest
204
P + I Principal Payment
Debit
Cash Account
Credit
Loan Asset
Payment Type
Principal
205
Reverse P + I Principal Payment
Debit
Loan Asset
Credit
Cash Account
199
User Guide
Setup
205
Reverse P + I Principal Payment
Loan Statistics Affected Principal Paid (Decrease)
Payment Type
Principal
206
P + I Interest Payment
Debit
Cash Account
Credit
Accrued Interest
Payment Type
Interest
207
Reverse P + I Interest Payment
Debit
Accrued Interest
Credit
Cash Account
Payment Type
Interest
208
Principal Balloon Payment
Debit
Cash Account
Credit
Loan Asset
Loan Statistics Affected Principal Paid (Increase)
Payment Type
Principal
209
Reverse Principal Balloon Pmt.
Debit
Loan Asset
Credit
Cash Account
Payment Type
Principal
200
User Guide
Setup
210
Interest Balloon Payment
Debit
Cash Account
Credit
Accrued Interest
Payment Type
Interest
211
Reverse Interest Balloon Pmt.
Debit
Accrued Interest
Credit
Cash Account
Payment Type
Interest
212
Deferred Interest Payment
Debit
Cash Account
Credit
Accrued Def Interest
Deferred Interest (Decrease)
Deferred Interest Paid (Increase)
Payment Type
Deferred Interest
Associated Transaction 130 – Deferred Interest Billing
213
Reverse Deferred Interest Payment
Debit
Credit
Cash Account
Deferred Interest (Increase)
Deferred Interest Paid (Decrease)
Payment Type
Deferred Interest
Associated Transaction 130 – Deferred Interest Billing
201
User Guide
Setup
214
Rule of 78s Actuarial Payment
Debit
None
Credit
None
N/A
215
Reverse Rule of 78s Actuarial Payment
Debit
None
Credit
None
N/A
220
Principal Reduction
Debit
Cash Account
Credit
Loan Asset
221
Reverse Principal Reduction
Debit
Loan Asset
Credit
Cash Account
222
Interest Reduction
Debit
Cash Account
Credit
Accrued Interest
202
User Guide
Setup
223
Reverse Interest Reduction
Debit
Accrued Interest
Credit
Cash Account
224
Fee Reduction
Debit
Cash Account
Credit
Accrued Fees
Loan Balance Affected Fees (Decrease)
Loan Statistics Affected Fees Paid (Increase)
225
Reverse Fee Reduction
Debit
Accrued Fees
Credit
Cash Account
Loan Balance Affected Fees (Increase)
Loan Statistics Affected Fees Paid (Decrease)
226
Late Fee Reduction
Debit
Cash Account
Credit
Accrued Late Fees
Loan Balance Affected Late Fees (Decrease)
Loan Statistics Affected Late Fees Paid (Increase)
227
Reverse Late Fee Reduction
Debit
Accrued Late Fees
Credit
Cash Account
Loan Balance Affected Late Fees (Increase)
Loan Statistics Affected Late Fees Paid (Decrease)
203
User Guide
Setup
228 – 246
UDB1-10 Reduction
Debit
Cash
Credit
Accrued Fees
Loan Balance Affected UDF# - User Defined Balance (Decrease)
229 – 247
Reverse UDB1-10 Reduction
Debit
Accrued Fees
Credit
Cash
Loan Balance Affected UDF# - User Defined Balance (Increase)
248
Deferred Interest Reduction
Debit
Cash Account
Credit
Loan Balance Affected Deferred Interest (Decrease)
249
Reverse Deferred Interest Reduction
Debit
Credit
Cash Account
Loan Balance Affected Deferred Interest (Increase)
250
Late Fee Payment
Debit
Cash Account
Credit
Accrued Late Fees
Loan Statistics Affected Late Charges Paid (Increase)
Payment Type
Late Charges
251
Reverse Late Fee Payment
Debit
Accrued Late Fees
204
User Guide
Setup
251
Reverse Late Fee Payment
Credit
Cash Account
Loan Statistics Affected Late Charges Paid (Decrease)
Payment Type
Late Charges
252
Credit Line Advance Fee Payment
Debit
Cash
Credit
Accrued Fees
Payment Type
Fees
253
Rev. Credit Line Adv. Fee Pmt.
Debit
Accrued Fees
Credit
Cash
Payment Type
Fees
254
Credit Line Overdraft Fee Payment
Debit
Cash
Credit
Accrued Fees
Payment Type
Fees
255
Rev. Cred-Line Overdraft Fee Pmt.
Debit
Accrued Fees
Credit
Cash
205
User Guide
Setup
255
Rev. Cred-Line Overdraft Fee Pmt.
Payment Type
Fees
260
Down Payment
Debit
Cash Account
Credit
Loan Asset
261
Reverse Down Payment
Debit
Loan Asset
Credit
Cash Account
270
Impound Payment
Debit
Cash
Credit
Impound
Impound (Increase)
N/A
Payment Type
Impound
Associated Transaction 170 – Impound Assessment
271
Reverse Impound Payment
Debit
Impound
Credit
Cash
Impound (Decrease)
N/A
Payment Type
Impound
Associated Transaction 170 – Impound Assessment
206
User Guide
Setup
280
NSF Fee Payment
Debit
Cash Account
Credit
Accrued Fees
Payment Type
Fees
281
Reverse NSF Fee Payment
Debit
Accrued Fees
Credit
Cash Account
Payment Type
Fees
290
Interest Income
Debit
Cash Account
Credit
Interest Income
Statistics Affected #1
Interest Earned (Increase)
Interest Paid (Increase)
291
Reverse Interest Income
Debit
Interest Income
Credit
Cash Account
Interest Earned (Decrease)
Interest Paid (Decrease)
292
Discount Income
Debit
Cash Account
Credit
Interest Income
207
User Guide
Setup
292
Discount Income
293
Reverse Discount Income
Debit
Interest Income
Credit
Cash Account
294
Short Term Capital Gain
Debit
Cash Account
Credit
Interest Income
295
Reverse Short Term Capital Gain
Debit
Interest Income
Credit
Cash Account
296
Long Term Capital Gain
Debit
Cash Account
Credit
Interest Income
208
User Guide
Setup
297
Reverse Long Term Capital Gain
Debit
Interest Income
Credit
Cash Account
306 - 391
306
Capitalize Overpaid Interest
Debit 1
Accrued Interest
Credit 1
Cash Account
Debit 2
Cash Account
Credit 2
Loan Asset
Loan Balance Affected 1 Interest (Increase)
Loan Statistics Affected 1 Interest Paid (Decrease)
Loan Balance Affected 2 Principal (Decrease)
Loan Statistics Affected 2 Principal Paid (Increase)
307
Rev. Capitalize Overpaid Interest
Debit 1
Cash Account
Credit 1
Accrued Interest
Debit 2
Loan Asset
Credit 2
Cash Account
Loan Balance Affected 1 Interest (Decrease)
Loan Statistics Affected 1 Interest Paid (Increase)
Loan Balance Affected 2 Principal (Increase)
Loan Statistics Affected 2 Principal Paid (Decrease)
308
Unearned Addon Int. Reduction
Debit
Accrued Interest
Credit
Accrued Interest
Loan Balance Affected Add-on Interest Remaining (Decrease)
209
User Guide
Setup
309
Rev. Unearned Addon Int. Red.
Debit
Accrued Interest
Credit
Accrued Interest
Loan Balance Affected Add-on Interest Remaining (Increase)
310
Unearned Addon Int. Addition
Debit
Accrued Interest
Credit
Accrued Interest
Loan Balance Affected Add-on Interest Remaining (Increase)
311
Rev. Unearned Addon Int. Add.
Debit
Accrued Interest
Credit
Accrued Interest
Loan Balance Affected Add-on Interest Remaining (Decrease)
312
Capitalize Interest
Debit
Loan Asset
Credit
Accrued Interest
Loan Balance Affected 1 Interest (Decrease)
Loan Balance Affected 2 Principal (Increase)
313
Reverse Capitalize Interest
Debit
Accrued Interest
Credit
Loan Asset
Loan Balance Affected 1 Interest (Increase)
Loan Balance Affected 2 Principal (Decrease)
314
Compound Interest Balance Adj.
Debit
None
Credit
None
Loan Balance Affected Compounding Interest Balance (Increase)
210
User Guide
Setup
315
Rev. Comp. Int. Bal. Adj.
Debit
None
Credit
None
Loan Balance Affected Compounding Interest Balance (Decrease)
316
Capitalize Deferred Interest
Debit
Loan Asset
Credit
Loan Balance Affected #1 Deferred Interest (Decrease)
Loan Balance Affected #2 Principal (Increase)
317
Reverse Capitalize Deferred Interest
Debit
Credit
Loan Asset
Loan Balance Affected #1 Deferred Interest (Increase)
Loan Balance Affected #2 Principal (Decrease)
318
Capitalize Overpaid Deferred Interest
Debit
Credit
Loan Asset
Loan Balance Affected #1 Deferred Interest (Increase)
319
Rev. Cap. Overpaid Deferred Interest
Debit
Loan Asset
Credit
Loan Balance Affected #1 Deferred Interest (Decrease)
211
User Guide
Setup
320
Servicing Fee
Debit
Accrued Fees 2
Credit
Late Fees Income 2
Loan Balance Affected Servicing Fees (Increase)
Statistics Affected
N/A
321
Reverse Servicing Fee
Debit
Late Fees Income 2
Credit
Accrued Fees 2
Loan Balance Affected Servicing Fees (Decrease)
Statistics Affected
N/A
322
Debit
Accounts Receivable
Credit
Accrued Fees 2
Statistics Affected
N/A
323
Reverse Servicing Fee Receivable
Debit
Accrued Fees 2
Credit
Accounts Receivable
Loan Balance Affected Servicing Fees (Increase)
Statistics Affected
N/A
324
Impound Adjustment
Debit
Impound Account 2
Credit
Impound Account 1
Loan Balance Affected Impound (Increase)
Statistics Affected
N/A
212
User Guide
Setup
325
Reverse Impound Adjustment
Debit
Impound Account 1
Credit
Impound Account 2
Statistics Affected
N/A
326
US Rule Carry Interest
Debit
None
Credit
None
327
Reverse US Rule Carry Interest
Debit
None
Credit
None
360
Restructure Principal Transfer
Debit
Loan Asset
Credit
Suspense
361
Reverse Restructure Principal Transfer
Debit
Suspense
Credit
Loan Asset
362
Restructure Interest Transfer
Debit
Accrued Interest
Credit
Suspense
213
User Guide
Setup
363
Reverse Restructure Interest Transfer
Debit
Suspense
Credit
Accrued Interest
364
Restructure Deferred Interest Transfer
Debit
Accrued Interest
Credit
Suspense
365
Rev. Restructure Def. Interest Transfer
Debit
Suspense
Credit
Accrued Interest
366
Restructure Fees Transfer
Debit
Accrued Fees
Credit
Suspense
367
Reverse Restructure Fees Transfer
Debit
Suspense
Credit
Accrued Fees
368
Restructure Late Fees Transfer
Debit
Accrued Late Fees
Credit
Suspense
214
User Guide
Setup
369
Reverse Restructure Late Fees Transfer
Debit
Suspense
Credit
Accrued Late Fees
370 – 388
Restructure UDB Transfer 1–10
Debit
None
Credit
None
Loan Balance Affected UDB 1–10 (Increase)
371 – 389
Reverse Restructure UDB Transfer 1–10
Debit
None
Credit
None
Loan Balance Affected UDB 1–10 (Decrease)
390
Restructure Suspense Transfer
Debit
None
Credit
None
Loan Balance Affected Suspense (Increase)
391
Reverse Restructure Suspense Transfer
Debit
None
Credit
None
Loan Balance Affected Suspense (Decrease)
400 - 489
400
Beg Bal Principal Advance
Debit
Loan Asset
Credit
Loan Asset
Loan Balance Affected Loan Amount (Increase)
Loan Statistics Affected Principal Advanced (Increase)
215
User Guide
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401
Rev. Beg Bal Principal Adv.
Debit
Loan Asset
Credit
Loan Asset
Loan Balance Affected Loan Amount (Decrease)
Loan Statistics Affected Principal Advanced (Decrease)
408
Beg Bal Down Payment
Debit
Loan Asset
Credit
Loan Asset
409
Rev. Beg Bal Down Payment
Debit
Loan Asset
Credit
Loan Asset
410
Beg Bal Principal Payment
Debit
Loan Asset
Credit
Loan Asset
411
Rev. Beg Bal Principal Payment
Debit
Loan Asset
Credit
Loan Asset
216
User Guide
Setup
412
Beg Bal Interest Payment
Debit
Accrued Interest
Credit
Accrued Interest
413
Rev. Beg Bal Interest Payment
Debit
Accrued Interest
Credit
Accrued Interest
420
Beg Bal Late Fee
Debit
Accrued Late Fees
Credit
Accrued Late Fees
Loan Statistics Affected Late Charges Earned (Increase)
421
Rev. Beg Bal Late Fee
Debit
Accrued Late Fees
Credit
Accrued Late Fees
Loan Statistics Affected Late Charges Earned (Decrease)
422
Beg Bal Late Fee Payment
Debit
Accrued Late Fees
Credit
Accrued Late Fees
Loan Statistics Affected Late Charges Paid (Increase)
217
User Guide
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423
Rev. Beg Bal Late Fee Payment
Debit
Accrued Late Fees
Credit
Accrued Late Fees
Loan Statistics Affected Late Charges Paid (Decrease)
424
Beg Bal Deferred Interest Payment
Debit
Credit
Loan Statistics Affected Deferred Interest Paid (Increase)
425
Rev Beg Bal Deferred Interest Payment
Debit
Credit
426
Beg Bal Impound
Debit
Impound Account
Credit
Impound Account
N/A
427
Reverse Beg Bal Impound
Debit
Impound Account
Credit
Impound Account
Loan Balance Affected Impound (Decrease)
N/A
218
User Guide
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440
Write Off Principal
Debit
Write-off, Principal
Credit
Loan Asset
441
Reverse Write Off Principal
Debit
Loan Asset
Credit
Write-off, Principal
444
Write Off Interest
Debit
Write-off, Interest
Credit
Accrued Interest
445
Reverse Write Off Interest
Debit
Accrued Interest
Credit
Write-off, Interest
448
Write Off Late Fees
Debit
Write-off, Late Fees
Credit
Accrued Late Fees
449
Reverse Write Off Late Fees
Debit
Accrued Late Fees
Credit
Write-off, Late Fees
219
User Guide
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452
Write Off Fees
Debit
Write-off, Fees
Credit
Accrued Fees
453
Reverse Write Off Fees
Debit
Accrued Fees
Credit
Write-off, Fees
454
Write Off Deferred Interest
Debit
Write-off, Deferred Interest
Credit
455
Reverse Write Off Deferred Interest
Debit
Credit
Write-off, Deferred Interest
460
Suspense
Debit
Cash
Credit
Suspense
461
Reverse Suspense
Debit
Suspense
Credit
Cash
220
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462
Suspense Distribution
Debit
Cash Account
Credit
Suspense
463
Reverse Suspense Distribution
Debit
Suspense
Credit
Cash Account
464
Suspense Refund
Debit
Suspense
Credit
Accounts Payable
465
Reverse Suspense Refund
Debit
Accounts Payable
Credit
Suspense
466
Impound Distribution
Debit
Impound Account
Credit
Accounts Payable
467
Reverse Impound Distribution
Debit
Accounts Payable
Credit
Impound Account
221
User Guide
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468
Impound Refund
Debit
Impound Account
Credit
Accounts Payable
469
Reverse Impound Refund
Debit
Accounts Payable
Credit
Impound Account
470 – 488
Write Off User Def. Balance 1–10
Debit
None
Credit
None
Loan Balance Affected UDF# - User Defined Balance (Decrease)
471 – 489
Rev. Write Off User Def Bal 1–10
Debit
None
Credit
None
Loan Balance Affected UDF# - User Defined Balance (Increase)
Late Loan Events
Automated late fee and late notice processing is handled in NLS by Late Loan Codes. Each
Code consists of one or more events that occur when any payment becomes a specified number of days past due. An event can consist of the assessment of a late fee or the processing of
a late notice.
These Codes are configured on the Late Loan Events tab of Loan Setup.
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Adding an Event Schedule
To add a new event schedule, click Add
. A code number for the new late loan schedule
will be selected automatically. Enter a description for that schedule, and click OK.
Adding an Event Object
To add a new event to an existing schedule, make sure that you have the right schedule selected from the list, then click Add located at the lower left corner of the Late Loan Events tab of the
Loan Setup screen.
On the Add Events window, enter a value in the Number of Days Past Due field. This value will
determine when the event will be automatically executed. If a payment on a loan with this Late
Loan Schedule reaches the required number of days past due during daily accrual processing, then this event will be executed on that loan.
Enter a description for that event, and click OK.
Event Tab
The setup of each event on a Late Loan Schedule is shown on the Event sub-tab.
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Description
This field displays the description for the event as entered on the Add Events window.
This field allows selection between the values Execute Once and Execute Daily.
If set to Execute Once, the event will occur one time when the past due con-
Execute
dition is met. If set to Execute Daily, the event will occur every day until the past
due payment is brought current. This may be used for the purpose of assessing
a late fee that accrues like extra interest, but be cautioned that this can create a
large number of receivable entries on the loan.
Days Past
When any billing is past due by this number of days, this event will execute. This
Due
number was specified on the Add Events window.
These selections determine how the event will interact with other existing past
due receivables.
EXAMPLE
If you have an event that sends a reminder notice when a payment is 10
Execute
Event
When
days late, and another event sends a more sternly worded message when a
payment is 30 days late, you will not want your customer to get the reminder
notice again when the payment is 40 days late. But, on a monthly loan, a
second payment may become 10 days late when the first is reaching 40
days. These selections allow you to instruct the event for the reminder notice
to not be executed for the second payment in cases where the sternly
worded notice has already been sent on the first payment, and that payment is still past due.
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No Other Pay-
The event will only execute if the receivable which is trig-
ments in Arrears
gering it is the only past due receivable.
This event will execute if there are no other past due receivables, and also if there are other past receivables with a
When No Older
Arrearages Exist
lesser number of days past due than the one which is triggering the event. If there are any other past due receivables with a number of days past due greater than the
number of days past due of the receivable triggering the
event, the event will not execute.
Other Arrearages
This event will not execute if the receivable which triggers it
Exist
is the only past due receivable.
Execution of this event is in no way dependent on the exist-
Always
ence of any past due receivable other than the one that
triggered the event.
Assess Fee
Print Notice
If this checkbox is selected, the event is a fee assessment event, and the Fee
Assessment tab will be activated for this event.
If this checkbox is selected, the event is a late notice generating event, and the
Notice tab will be activated for this event.
Threshold Tab
When a partial payment has been made, you may not wish to assess a late fee, or send a
notice on the remaining unpaid portion of the payment. The threshold feature allows you to
set up conditions under which the system will not execute the event if a partial payment meets
the conditions of the threshold that you have configured. This feature is configured on the
Threshold sub-tab.
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Dollar
Depending on the attribute chosen, this is the minimum amount of the past
Amount
due payment which must remain unpaid in order for the event to execute.
Percentage
Depending on the attribute chosen, this is the minimum percentage of the past
due payment which must remain unpaid in order for the event to execute.
The attribute setting determines if the threshold is defined by the specified dollar
amount, the specified percentage, by the greater of the two, or by the lesser of
the two.
Both Dollar
and Percentage
Attribute
Either Dollar or Percentage
Dollar
If the remaining payment amount is greater than the specified
dollar amount, and the remaining payment amount is greater
than the specified percentage of the total payment due, then
the late event executes.
dollar amount, or the remaining payment amount is greater
than the specified percentage of the total payment due, then
the late event executes.
dollar amount, then the late event executes.
Percentage percentage of the total payment due, then the late loan event
executes.
Fee Assessment Tab
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If an event is a fee assessment, the type and amount of the late fee will be defined on the Fee
Assessment sub-tab.
This drop down list defines if the amount of the fee will be determined by a specified fixed amount, or by a percentage of some balance. If it is a percentage,
then what it is a percentage of is specified below.
None
Percentage of
Percentage
Total Payment
Fee Type
Percentage
The fee is a fixed amount and is not determined by a percentage at all.
The amount of the fee is determined by multiplying the total
amount of the past due payment by the specified percentage.
Percentage of
The amount of the fee is determined by multiplying the
Unpaid Pay-
unpaid amount of the past due payment by the specified per-
ment
centage.
Percentage of
The amount of the fee is determined by multiplying the cur-
Principal
rent principal balance by the specified percentage.
Percentage of
The amount of the fee is determined by multiplying the total
Loan Amount
loan amount by the specified percentage.
The specified percentage by which the Total Payment, Unpaid Payment, or Principal will be multiplied to determine the fee.
Fixed
The amount of a payment that is not specified by a percentage. Also this
Amount
amount can be compared to the amount derived from the percentage using
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the Greater, Lesser, or Both selections below.
The amount of the fee is calculated using the Percentage Fee Type. This fee is
Greater
then compared to the fixed amount, and the greater of the two is the actual
amount assessed.
The amount of the fee is calculated using the Percentage Fee Type. This fee is
Lesser
then compared to the fixed amount, and the lesser of the two is the actual
amount assessed.
Both
The total fee is the sum of the amount computed with the Percentage Fee Type
and the specified Fixed Amount.
Min
If the total fee is less than the Min Amount, then the Min Amount becomes the
Amount
amount of the fee.
Max
If the total fee exceeds this amount, then the assessment is lowered to the Max
Amount
Amount.
This drop down list contains all available fee receivable transaction codes. The
Transcode
standard transaction code for late fees is: 150 – Late Fee. Using this menu, you
may select one of your own manual transaction codes for the fee.
The late payment that triggered the late fee could have had more than one
Late Fee
part, such as principal and interest. All payments also have a Total Payment
Integral to
record which is the sum of the parts that are lumped together to make up that
Payment
payment. If a late fee is assessed that is integral to the payment, it becomes a
part of that payment, and the Total Payment record is increased to include it.
One Late
Fee Entry
Per Payment
If the event is set to Execute Daily, and this checkbox is selected, then each day,
instead of creating a new receivable for that day’s late fee assessment, the existing receivable will simply be increased by the appropriate amount.
Notice Tab
If an event is a late notice printing event, the statement code for the late notice is specified on
the Notice sub-tab.
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All valid Late Notice Codes will appear in this drop down menu. The late notice code selected
will determine the format of the late notice. NLS ships with one Late Notice Code: STANDARD
LATE NOTICE, but others can be custom programmed. Once installed on the system, the new
late notice must be configured in statement setup. After that, its late notice code will appear
here in the drop down list.
Task Tab
A late loan event can cause a Task or Work Packet to be initiated. To configure a Task or Work
Packet to be triggered by the late loan event, select the Task Manager checkbox on the Event
tab. Then choose a Work Packet Template or Task Template on the Task tab.
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Notes Tab
Comments on this particular event may be placed on the Notes sub-tab.
Collateral
Before collateral items can be entered on any loans, Collateral Codes must be configured on
the Collateral tab of Loan Setup.
To add a new Collateral Code, click Add
.
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Enter a name and description for the Collateral Code then select any of the following that you
wish to appear on that Collateral Code:
l
l
l
l
l
Show Vehicle Tab
Show Location Tab
Show Insurance Tab
Show Taxes Tab
Show Comments Tab
You may choose to transfer the user-defined field setup from an existing collateral code selecting the Copy User Defined Fields setup from checkbox and choosing a collateral code from the
drop down list. Click OK to save the new code.
Description
30 user-defined fields may be defined on the Description sub-tab of the Collateral tab of Loan
Setup.
Vehicle
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The Vehicle sub-tab of the Collateral tab of Loan Query contains data fields specific to vehicles
and necessary to the business practices of auto-lenders. NLS maintains a database of codes
to decipher the VIN, so if the VIN is entered in the Vehicle tab, the other fields will auto populate.
If you do not have a valid VIN, or the VIN you have is not recognized by the database, you can
unlock the fields that auto-populate for manual entry by entering a dash in the VIN field, or just
preceding your VIN with a dash.
Location
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The Location sub-tab of the Collateral tab of Loan Query contains fields for Address information, and 13 user-defined fields. These user-defined fields are configured on the Location subtab of the Collateral tab of Loan Setup.
Insurance
The Insurance sub-tab of the Collateral tab of Loan Query contains fields for agent and policy
information, and 14 user-defined fields. These user-defined fields are configured on the Insurance sub-tab of the Collateral tab of Loan Setup.
Taxes
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The Taxes sub-tab of the Collateral tab of Loan Query contains fields for assessed value and
property tax payment information, and 14 user-defined fields. These user-defined fields are
configured on the Taxes sub-tab of the Collateral tab of Loan Setup.
Comments
If Comments are enabled for a collateral code, then comments may be added directly to the
collateral record on the loan in addition to on the loan itself.
Statement
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User Guide
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The standard report pack included with NLS contains two statement formats and one late
notice format. Before these formats may be used to generate statements on loans, the Statement and Late Notice codes must be configured. These codes will link the Actuate report
formats for the statements or late notices to a Statement Code or Late Notice Code object that
may be added to a loan account.
Statement Code
Statement Codes are configured on the Statement Code sub-tab of the Statement tab of Loan
Setup.
To add a new Statement Code, click Add
then enter a code and description in the dialog
box. Click OK.
To delete an existing Statement Code, select the Statement Code and click Delete
. You
may only delete a Statement Code if it is not currently referenced by any loan account.
Click Modify
to change the description for the statement code. The other parameters for
the statement code are set and modified on the Statement Details and Statement Addresses
tabs.
Statement Details
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User Guide
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The parameters that determine the conditions under which a statement will be generated are
set on the Statement Details sub-tab of the Statement Code sub tab of the Statement tab of
Loan Setup.
All Actuate Report Formats which are defined as being statements, and that
have been installed through report pack installation will be available from this
drop down list. The statement file selected will determine the look of the statement and the data that is presented on the statement.
Statement
File
The three statement formats included with the standard Report Pack of NLS are
Loan Statement 1, Loan Statement 2, and Loan Statement 3. Loan Statement 1
shows a listing of all outstanding receivable billings. Loan Statement 2 shows the
same, and in addition, a listing of all transactions that have been processed in
the statement period, along with a running principal balance. Loan Statement 3
is a configurable statement with features to allow it to be used as a credit card
statement.
If the statement code is designated as a billing statement, then the statement will
Billing
Statement
1
be generated whenever a payment is billed. The date of statement generation
will be determined by the due date of the payment and the statement cutoff
parameter of the loan.
If the statement code is designated as a periodic statement, then the statement
will be generated at a predetermined increment and not determined by the
billing of payments.
Period
This drop down list allows you to set the period for a periodic statement.
Periodic
# of
If the period is set to Days, then the number of days value will determ-
Statement
Days
ine how many days constitutes one period.
2
This parameter determines which day, within the period designated,
shall be the statement generation day.
Force to
this day
EXAMPLE
If you want a statement to generate on the 15th of each month,
select a Period of Monthly and a Force to this day value of 15.
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If the Statement Code is Periodic, this item simply tells it to continue generating
Generate
after the maturity date of the loan. If the Statement Code is a billing statement,
After
then this item will make the statement automatically become a periodic state-
Maturity
ment after the maturity, with a period equal to the former payment period of the
loan.
Generate
on Zero
Balance
If this checkbox is selected, a Periodic Statement will be generated even if the
loan is completely paid off (as long as it is not closed).
Statement Addresses
Addresses for your company, which are to appear on the statement, should be entered on the
Statement Addresses sub-tab of the Statement Code sub-tab of the Statement tab of Loan
Setup.
Logo
Add a logo to your statement with a JPG graphics file.
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Click …
then click Attach File
. Select the file to add then click OK. Set the width and
height of the logo in inches and the horizontal and vertical position of the logo in inches.
Check Align Center to center justify the logo.
Late Notice Code
Late Notice Codes are configured on the Late Notice Code sub-tab of the Statement tab of
Loan Setup.
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The configuration of the Statement Details and the Statement Addresses tabs of the Late Notice
Code are done in the same way as the corresponding tabs for the Statement Code.
Consolidated Statement Code
Consolidated Statement Codes are configured on the Consolidated Statement Code sub-tab
of the Statement tab of Loan Setup. Consolidated Statements are used to create a combined
statement for all of the loans under a commitment.
The configuration of the Statement Details and the Statement Addresses tabs of the Consolidated Statement Code are done in the same way as the corresponding tabs for the Statement Code.
Task Setup
The Task Setup is accessed by selecting View > Setup menu item or clicking
Setup on the
Main slider of the Shortcut bar.
Work Queue
On the task management screen, existing tasks are grouped by Work Queue. When a task is
created, it is assigned to a specific Work Queue, and all users who are responsible for the
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completion of the tasks in that particular Queue may find their tasks by opening that Work
Queue.
To set up a new Work Queue, select the Work Queue tab from Task Setup.
The buttons on the Work Queue tab are:
Click to add a new Work Queue to the list.
Add
Click to delete an existing Queue. A Queue cannot be deleted if any task (open or
closed) is assigned to that Queue. Delete all old tasks in the Queue, or move them
Delete
to a different Queue if you wish to delete the Queue.
Click to change the code and / or the description of the Work Queue.
Modify
This security feature allows you to lock a Work Queue so that it may only be
Trustee accessed by certain users.
Task Status
Status Codes for use with the Task Manager are configured from the Task Status tab of the Task
Manager Setup.
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To add a new Task Status Code, click Add
.
In the Add Task Status Code window, enter your new Code and Description. The code may be
any alphanumeric text of up to 25 characters. The length of the description text is not limited.
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To delete the selected Task Status Code, click Delete
. A Task Status Code may not be
deleted if that Code is in use on any existing task.
Both the Code and description of an existing Task Status Code may be modified by clicking
Modify
.
Task Priority
Priority Codes for use with the Task Manager are configured from the Task Priority tab of the Task
Manager Setup.
To add a new Task Priority Code, click Add
.
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In the Add Task Priority Code window, enter your new Code and Description. The code may be
any alphanumeric text of up to 25 characters. The length of the description text is not limited.
To delete the selected Task Priority Code, click Delete
. A Task Priority Code may not be
deleted if that Code is in use on any existing task.
Both the Code and description of an existing Task Priority Code may be modified by clicking
Modify
.
Task Template
Much of the information required to enter a task may be common among all the tasks of a certain type. To save time and minimize the chance of errors during data entry, NLS allows you to
configure Task Templates. These templates contain much of the information that would usually be entered on a task, and they allow an operator to bypass the entry of that information by
simply selecting the appropriate task template during the task entry process.
Task Templates are entered from the Task Template tab of Task Setup.
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The buttons along the top of the Task Template Setup screen are:
Click to set up a new Task Template. The template is then configured through the
Add
tabs: Main, Status Codes, Priority Codes, UDF, and Script.
Deletes the selected Task Template. A task template may only be deleted if there
Delete
are no existing tasks in the database that was built using that template.
Click to modify the code and the description.
Modify
Move
Moves the focus up one template on the list.
Up
Move
Moves the focus down one template on the list.
Down
Allows you to set security on a user level for the Task Templates.
Trustee
Main Tab
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The Main tab of the Task Template setup contains information on what type of task may be set
up with that template, as well as default settings for the task that may be changed or overridden when the task is created.
Template Type:
All Types
This template may be used to generate any type of task within NLS.
Message
This template may be used to generate a task that sends a message to another
Task
NLS user.
Contact
This template may be used to generate tasks that are linked to Contact
Task
accounts.
Loan Task
This template may be used to generate tasks that are linked to Loan accounts.
Collateral
Task
This template may be used to generate tasks that are linked to Collateral items.
Late Loan
This template may be used to generate tasks that are generated automatically
Task
by a late loan event.
Default
The user selected drop down list will be the owner of any task created with this
Owner
template, unless the owner is changed at the time the task is created.
Work
If a Work Queue is selected, then any task created with this template will, by
Queue
default, be assigned to that Work Queue.
Notification If a Notification Handler is selected, then that Notification handler will, by
Handler
Subject
Notes
default, be assigned to any task created with this template.
The text entered in this field is placed as the default Subject Text on all Tasks created with this template.
The text entered in this field is placed by default in the Notes Text field on all
Tasks created with this template.
Status Codes Tab
Not all of the status codes that have been configured through the Task Status Setup may be
appropriate for every type of Task. Therefore, NLS allows you to configure a subset of the total
list of Status Codes on a Task Template. One of the Status Codes in this set may be designated
as the default for the Tasks that are created with the template. At the time of task creation, or
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any time the task is modified, the default status may be overridden with another status code,
but that status code must come from the list of available status codes for the template.
Priority Codes Tab
Not all of the priority codes that have been configured through the Task Priority Setup may be
appropriate for every type of Task. Therefore, NLS allows you to configure a subset of the total
list of Priority Codes on a Task Template. One of the Priority Codes in this set may be designated
as the default for the Tasks that are created with the template. At the time of task creation, or
any time the task is modified, the default priority may be overridden with another priority code,
but that priority code must come from the list of available priority codes for the template.
UDF Tab
Each Task Template has its own set of 30 User-Defined Fields, which are configured on a Template by Template basis. The UDF setup (field types and labels) is determined by the Template,
but the actual field data is entered on each individual task.
For information on how to set up User-Defined Fields, see User Defined Field Setup.
Script Tab
VB scripts (Visual Basic) may be used to manipulate User-Defined Fields on Contacts and
Loans, and may also be used for controlling the execution of tasks in the Task Manager.
A VB script that is configured on a Task Template will automatically be on any task that is created under that template. The execution of that script code is governed by the instruction associated with the script, as follows:
The script is executed upon creation of a new task or modiBefore Save
fication of an old task, prior to saving that task to the database.
The script is executed whenever the task is accessed from
Before Activate
the Task Manager main window or from a Contact, Loan,
or Collateral item that it is attached to.
The script is executed when the task is saved, but only if it is
Before Create
a new task. The script is not executed upon the modification of an existing task.
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On Delete
The script is executed when a task is deleted from the loan
system.
The script is executed upon creation of a new task or modi-
After Save
fication of an old task, after the task is saved to the database.
The script is executed upon creation of a new task, after
After Create
the task is saved to the database. The script is not executed
after modification of an existing task.
Work Packet Status
Status Codes for use with Work Packets are configured from the Work Packet Status tab of the
Task Manager Setup.
To add a new Work Packet Status Code, click Add
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In the Add Work Packet Status Code window, enter your new Code and Description. The code
may be any alphanumeric text of up to 25 characters. The length of the description text is not
limited.
To delete the selected Work Packet Status Code, click Delete
. A Work Packet Status Code
may not be deleted if that Code is in use on any existing Work Packet.
Both the Code and description of an existing Work Packet Status Code may be modified by
clicking Modify
.
Work Packet Priority
Priority Codes for use with Work Packets are configured from the Work Packet Priority tab of the
Task Manager Setup.
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To add a new Work Packet Priority Code, click Add
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In the Add Work Packet Priority Code window, enter your new Code and Description. The code
may be any alphanumeric text of up to 25 characters. The length of the description text is not
limited.
To delete the selected Work Packet Priority Code, click Delete
. A Work Packet Priority Code
may not be deleted if that Code is in use on any existing Work Packet.
Both the Code and description of an existing Work Packet Priority Code may be modified by
clicking Modify
.
Work Packet Template
Much of the information required to enter a Work Packet may be common among all the Work
Packets of a certain type. To save time, and minimize the chance of errors during data entry,
NLS allows you to configure Work Packet Templates. These templates contain much of the
information that would usually be entered on a Work Packet, and they allow an operator to
bypass the entry of that information by simply selecting the appropriate Work Packet template
during the Work Packet entry process.
Work Packet Templates are entered from the Work Packet Template tab of Task Setup.
The buttons along the top of the Work Packet Template Setup screen are:
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Click to set up a new Work Packet Template. The template is then configured
Add
through the tabs: Main, UDF, and Script.
Deletes the selected Work Packet Template. A Work Packet template may only be
deleted if there are no existing Work Packets in the database that was built using that
Delete
Template.
Click to modify the code and the description.
Modify
Move
Moves the focus up one template on the list.
Up
Move
Moves the focus down one template on the list.
Down
Allows you to set security on a user level for the Work Packet Templates.
Trustee
Right click on a work packet template and select Export to file to save the work packet to an
XML file or select Import from file and choose an XML file from which to import.
Main
The Main tab of the Work Packet Template setup contains information on what type of Work
Packet may be set up with that template, as well as default settings for the Work Packet that
may be changed or overridden when the Work Packet is created.
Template Type:
All Types
This template may be used to generate any type of task within NLS.
Message
This template may be used to generate a task that sends a message to another
Task
NLS user.
Contact
This template may be used to generate tasks that are linked to Contact
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Task
accounts.
Loan Task
This template may be used to generate tasks that are linked to Loan accounts.
Collateral
This template may be used to generate tasks that are linked to Collateral items.
Task
Late Loan
This template may be used to generate tasks that are generated automatically
Task
by a late loan event.
Other Fields
Default
The user selected in this field will be the owner of any task created with this tem-
Owner
plate, unless the owner is changed at the time the task is created.
Subject
Notes
The text entered in this field is placed as the default Subject Text on all Tasks created
with this template.
The text entered in this field is placed by default in the Notes Text field on all Tasks
created with this template.
UDF
Each Work Packet Template has its own set of 30 User-Defined Fields, which are configured on
a Template by Template basis. The UDF setup (field types and labels) is determined by the Template, but the actual field data is entered on each individual Work packet.
For information on how to set up User-Defined Fields, see User Defined Field Setup.
Script
VB scripts (Visual Basic) may be used to manipulate User Defined Fields on Contacts and
Loans, and may also be used for controlling the execution of tasks and Work Packets in the
Task Manager.
A VB script that is configured on a Work Packet Template will automatically be on any Work
Packet that is created under that template. The execution of that script code is governed by the
instruction associated with the script, as follows:
Before
The script is executed upon creation of a new task or modification of an old task,
Save
prior to saving that task to the database.
Before
The script is executed whenever the task is accessed from the Task Manager main
Activate window or from a Contact, Loan, or Collateral item that it is attached to.
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Before
The script is executed when the task is saved, but only if it is a new task. The script is
Create
not executed upon the modification of an existing task.
On
Delete
The script is executed when a task is deleted from the loan system.
After
The script is executed upon creation of a new task or modification of an old task,
Save
after the task is saved to the database.
After
The script is executed upon creation of a new task, after the task is saved to the
Create
database. The script is not executed after modification of an existing task.
Workflow Overview
A Workflow is a process by which a task may be passed through a pre-determined set of possible actions and outcomes.
If a task template has a workflow assigned to it, the current ownership of the task, either by individual or group, is determined by the setup of the workflow.
At the conceptual stage, a workflow generally begins as a flowchart on paper. Each possible
action that may be taken by users with regard to the task must be configured as an Action
Code. Each possible result of those actions must be configured as a Result Code. The Workflow Setup combines the actions and results, defining which possible results are appropriate to
a specific action, what new action each result leads to, and who should be assigned the ticket
at that point. This workflow setup is in many ways similar to the flowchart from which the workflow began.
When the workflow setup is complete, the workflow may be assigned to a task template. When
a task is created with that template, the workflow will originate with the initial action as specified in the workflow setup.
An example of a customer service workflow is provided to help you with the workflow development process.
Workflow Setup
Workflows can be set up in the Workflow tab of Task Setup.
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The setup of a workflow consists of three separate components:
Workflow Actions
Workflow Action Codes are related to each task that can be done on a workflow.
To add an action code for workflow select the Actions tab and click Add
.
Give a name to the Workflow Action and enter a Description. If the name of the action is sufficiently descriptive, the description can be simply a repeat of the name, but a more specific
description may be entered.
Click OK to save any action codes that you have entered.
Workflow Results
Workflow Result Codes are related to each of the possible outcomes of any particular action.
To add a results code for workflow select the Results tab and click Add
.
Give a name to the Workflow Result, and enter a Description. If the name of the result is sufficiently descriptive, the description can be simply a repeat of the name, but a more specific
description may be entered.
Click OK to save any result codes that you have entered.
The Workflow
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The Workflow specifies the order of the actions, which results are possible for each action, what
subsequent action should arise because of the result, and to whom the ticket should be
assigned at each point along the way.
To configure a workflow select the Workflow tab.
The upper section contains the list of available Workflows. The lower section contains the setup
of the workflow that is currently selected in the upper section.
To add a new workflow, click Add
Name
First Action
in the upper section.
This is the unique name assigned to the workflow.
This is the action code that will always be initially activated whenever a task with
this workflow is initiated.
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Determines the starting ownership of the workflow based on one of the following four methods:
Current
User
The user who is adding the task will always be the initial owner of the
Logged
task.
In
User
figured through Security with NLS login accounts.
This allows you to select one of the groups that are defined in your
Initial
Owner
This allows you to select from the list of available users who are con-
Group
NLS security. The task will be jointly owned by all users who are members of that group, and any one of them will see the task in his or her
queue.
A VB script or C script is used to determine the owner. The default
user and group settings are used in the event that the script does
Decide
not return a valid user or group.
thru
After the decision making code, the script must call the function: Ini-
Scripting tialWorkFlowOwner (int owner, bool is_group) where the parameters passed to the function are owner = the user or group id of
the owner, and is_group if true is a group, otherwise is a single user.
Options
Description
Show Time on
If selected, the time of day for the creation of the workflow
Creation Date
will be included in the date stamp.
Show Time on
If selected, the time of day for each result code will be
Result Date
included in the date stamp for that result.
This is an optional internal text field, used to describe what the workflow is for
and how it is intended to be used.
Workflow Setup Examples
The following example shows the setup of a workflow from conception to completion.
The workflow in the example is a customer call ticket for a software company. When a customer has a problem a ticket is opened. A customer support technician will help the customer
with the problem, possibly referring the problem to development for a solution. Eventually a
solution is provided and the ticket waits for confirmation from the customer.
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The designer of the workflow begins by flowcharting the decision making process of this workflow.
Adding the Action Codes
The Action Codes in a workflow represent the points of decision at which a number of results
could be possible. Sometimes, there will only be one possible result, but in this case, the
decision is timing; the decision is when to move the workflow along or whether to let it stay at its
present state. Since the action codes represent these points of decision, they are represented
in the flowchart by the decision diamonds.
We need an action code to be configured for each of the decision diamonds, and therefore,
our list of required action codes is:
Assign to Rep
Work Ticket
Waiting for Cust Confirmation
Waiting for Cust Info
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Waiting on Dev
Go to the Actions tab under Workflow setup in the Task Setup menu.
Click Add
and add each of these five Action Codes.
Adding the Results Codes
The Result Codes represent all of the possible results of the various points of decision in the
work flow. Each result will then route the workflow to its next point of decision and assign it to a
user or group of users. In the flowchart, the Result Codes are represented by the rectangular
boxes. Therefore, the complete list of Result Codes that must be configured for this workflow is:
Assign
Need Info From Customer
Solution Given
Waiting on Dev
Resolved
Closed Per Customer
Closed Per Software Vendor
Cancel
Received
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Not Received
Solution Failed
Customer Confirmed
No Customer Response
Software Vendor Confirmed
Cancel Wait
Development Completed
To add these Result Codes, go to the Results tab under Workflow setup in Task Setup.
Click Add
and add each of the Result Codes.
Configuring the Workflow and Adding the Actions
Now that all the action and result codes needed for our workflow are added, we need to add
the workflow itself and then configure the flow.
Go to the Workflow tab and click Add
at the upper section of the window.
Name the workflow: Call Ticket.
Set the first action to: ASSIGN TO REP.
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Set the initial owner as a group: Customer Support (A group of this name must be configured
in security).
Click OK.
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Next we will configure the flow by adding all of the actions to the flow. The add button for the
flow is context sensitive. If the “Flow” is selected and Add
added. If An Action is selected and Add
selected and Add
ted and Add
is clicked, an Action Code will be
is clicked, then a Result will be added. If a Result is
is clicked, a routing to a new Action will be added. If a routing is selec-
is clicked, then a user or group assignment is added.
To add the Action Codes, click Add
and select the first Action Code. Then to add the
second Action Code, click on “Flow” and click Add
again. Repeat this until all five Action
Codes are added to the Flow.
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Adding the Results to the Flow
Now, click on each Action Code and click Add
to select the Result Codes that should be
added to that Action.
From the flowchart, we can see that the possible results for each Action are:
Action
Possible Result
Assign To Rep
Assign
Work Ticket
Solution Given
Waiting on Dev
Resolved
Closed Per Customer
Closed Per Software Vendor
Cancel
Waiting For Cust Info
Received
Not Received
Waiting For Confirmation Solution Failed
Customer Confirmed
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Action
Possible Result
Software Vendor Confirmed
Waiting on Dev
Cancel Wait
After each of the possible results are added to the flow under the appropriate actions, the flow
will look like this:
Routing to New Actions
Every Result Code that is not intended to end the flow (and ultimately close the ticket) must be
routed back to an existing action code.
From the flowchart, we can see that the routings from the Result codes should be:
Result Code
Routes To
Assign
Work Ticket
Waiting for Cust Info
Solution Given
Waiting for Confirmation
Waiting on Dev
Waiting on Dev
Resolved
END
Closed Per Customer
END
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Result Code
Routes To
Closed Per Software Vendor END
Cancel
END
Received
Work Ticket
Not Received
Work Ticket
Solution Failed
Work Ticket
Customer Confirmed
END
Work Ticket
Software Vendor Confirmed END
Cancel Wait
Work Ticket
Work Ticket
To add these routings, click on each of the result codes in the flow and then click Add
.
Select the Action Code that you are routing back to.
Assigning Ownership of the Workflow
For each instance where a result is routed back to an action, the ownership assignment of the
workflow must be defined. This allows the workflow (and consequently the call ticket) to be
routed to different users and departments depending on the sequence of events and
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decisions.
To assign ownership to a routing, click on that routing and click Add
. Click Groups and
select the group to assign ownership to. You can also select a specific user.
In our example, the call ticket will remain with the Customer Service Department (a separate
Dev ticket is opened when the call ticket is waiting on Development), so we now do this for all
nine of the routings in our workflow.
Terminating the Workflow
The final step of the workflow configuration is to make those result codes that end the work
flow automatically close the call ticket. We can accomplish this by making use of a simple
VBScript.
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Begin by selecting the first of the Result Codes that does not route anywhere (Resolved) then
click
.
Click …
next to Script.
Use the Event: When Result Field Changed.
Type in the following two lines of VBScript:
VBSCRIPT
NLSApp.SetField "TASK_STATUS", "COMPLETE"
NLSApp.SetField "TASK_COMPLETED", CStr(Year(Date)) + "/" + Right
(("0"+CStr(Month(Date))),2) + "/" + Right(("0"+CStr(Day(Date))),2)
For this to work, you must have a task status code of “Complete.”
The first line of the script sets the status code of the task to complete.
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The second line sets the task completed date to the present date, and the presence of a date
in this field causes the completed checkbox on the task to be selected. This effectively automates the closing of the task.
Using Workflow in Tasks
Once a workflow has been configured, it must be assigned to a task template in order to be
used.
Access the Task Template tab under Task Setup. Select the template that you want to assign
the workflow to. At the bottom of the template there is a workflow drop down list from which
you may select from your list of available workflows.
When a task is added, there will be a section of the task window for the workflow. You may
manipulate the size and position of the workflow section by clicking Advance
.
Select Workflow from the Field drop down list.
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The Static Position represents the position and size of the area reserved for the field label. The
field position represents the position and size of the workflow box itself. For more information
on formatting the size and position of these fields, see User Defined Field Setup.
Collector Setup
The Collector Setup is accessed by selecting View > Setup menu item or clicking
Setup on
Action Code
The Action code is used to define the kinds of actions a collector can take in attempting to collect. When the collector is working, the action being taken can be selected from the action
code drop down list. The options available in that drop down list are defined in the Action
Code setup.
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The buttons along the top of the Collection Action Code Setup screen are:
Adds a new action code to the list.
Add
Removes the action code from the list. If the action code is used in a Collection
Delete
code definition, it cannot be deleted.
Allows you to change both the code and the description of an action code.
Modify
Prints a list of all action codes and their descriptions.
Print
Result Code
The result code is used to define the type of responses that the collector receives from the borrower during a collection action. The collector will select the collection result from a drop down
list. The options available in that drop down list are defined in the Result Code Setup.
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The buttons along the top of the Collection Result Code Setup screen are:
Adds a new result code to the list.
Add
Removes the result code from the list. If the result code is used in a Collection code
Delete
definition, it cannot be deleted.
Allows you to change both the code and the description of a result code.
Modify
Prints a list of all result codes and their descriptions.
Print
Collection Code
The Collection Code defines the type of actions to be taken by the loan system based on the
Action and Result codes that were selected from the drop down lists during the collection process.
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Each collection code must be defined with a unique combination of Action Code and Result
Code. When that combination is selected during the collection process, the actions associated with this Collection Code (Secondary Dialogs, Promise to pay, and Scripting) will automatically be executed.
The collection comments for this collection code will be specified in the comments and documents folder specified in the Category Folder field.
The buttons along the top of the Collection Code Setup screen are:
Adds a new Collection Code to the list.
Add
Removes the Collection Code from the list. If the result code is used in a Collection
Delete
code definition, it cannot be deleted.
Allows you to change both the code and the description of a Collection Code.
Modify
Prints a list of all Collection Codes and their descriptions.
Print
Main
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The Main tab of Collection Code setup contains the Action and Result Code combination
which causes this Collection Code to be executed, checkboxes for Secondary dialog and
Promise to pay, and a field for a description for the secondary dialog (if that checkbox is selected).
If Secondary dialog is selected, then during the collection process, any time this Collection
Code is executed (by the selection of the appropriate Action and Result Codes) a secondary
dialog will pop up to allow the user to enter information required for this collection action. The
fields on the secondary dialog are defined on the UDF’s tab.
If Promise to pay is selected, then during the collection process, any time this Collection Code
is executed (by the selection of the appropriate Action and Result Codes) a special promise to
pay dialog will pop up. This will allow the entry of date and amount for the Promise to pay, as
well as allow the promise to be linked to an existing receivable.
Examples of Secondary dialogs and Promises to pay will both be shown in action in Collector
Mode.
UDF’s
The UDF’s tab of the Collection Code setup is where the fields on a secondary dialog are configured.
These user-defined fields are configured similarly to other user-defined fields in NLS.
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For more information on the practical use of a Secondary Dialog, see Collector Mode.
Options
Update Last
Contact Date
The last contact date field of the collection status for this account is updated
to today’s date whenever a collection code with this checkbox selected is
activated.
If this checkbox is selected, a Next Contact Date must be selected before the
collection action can be completed. It may be selected automatically by the
Next Contact Date Default Value, but if there is no default value setting, then
it must be entered by the user.
Force Next
Contact Date
NOTE
A setup combination where Force Next Contact Date is selected, Next
Contact Date Modifiable by User is NOT selected, and there is no default
value would be an invalid combination as it would make it impossible to
save a collection action under any circumstances.
Next Contact
Date Modifiable by User
The next contact date, as defined by the default settings, may be overridden
by the user.
Promise-toPay Date
The promise to pay date, as defined by the default settings, may be over-
Modifiable by ridden by the user.
User
Category
Modifiable by
User
All collection comments will go into the collection comments folder as well
as one normal comment category as defined on the main tab of the collection code. This option allows the user to override which comment category the particular collection action’s comment is stored in.
Fields for phone name and phone number are displayed prominently at the
Show Phone
bottom of the form that will pop up for the collector to fill out. The contact
Name and
phone number field will be blank unless Automatically Fill in Phone Number
Phone Num-
is also selected. If Phone Number Modifiable by User is selected, the field will
ber
be open for the user to fill in the phone number.
NOTE
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A setup where the Phone Number field is shown, but NOT automatically
filled in, and where the phone number is NOT modifiable by the user will
result in a blank field in which the user cannot enter any data (i.e. a useless field).
Automatically The previous checkbox must also be selected for this to have any effect. The
Fill in Phone
phone number field which is shown will be populated with the primary
Number
phone number from the contact.
Phone Number Modifiable by User
The option to show contact name and phone number must be selected for
this to have any effect. Selecting this option allows the phone number to be
entered into the field, and if the field was automatically filled in, allows the
user to override that phone number.
Automatically When the collector comment is saved, the phone number will be placed in
Put the Phone
the comment. If the phone number was shown on the collection and if the
Number in
user was allowed to modify it, the phone number placed in the comment will
the Comment be as modified by the user.
Reject if Active Promises
Exist
If there is an unexpired promise to pay on the loan, this combination of
action and result code will not be allowed.
Script
Visual Basic scripting can be added directly to a Collection Code. If VB Scripting exists on a
Collection Code, the program sequence defined by that script would be executed whenever a
collection action using this Collection Code is run (by the existence of Action and Result
Codes in the proper combination).
For detailed information on scripting, see Scripting.
Collection UDF
The NLS Collection Mode contains 28 User-Defined Fields, but these fields are more powerful in
their functionality than standard User-Defined Fields in NLS. These are loan display fields, and
you do not simply specify the label and type of information to be displayed. You may, in fact
grab specific values for the loan in question from the tables of the NLS database. In addition,
you may display the results of advanced SQL queries.
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The first 20 of these User-Defined Fields are pre-configured for you. The remaining eight are
blank by default, but can be used to display any loan information you wish to query. If you
need more than eight fields, any of the reconfigured 20 fields can be modified to show data
other than as determined by its default settings.
If you need help determining the table and field for a particular piece of loan data, please contact Nortridge Software customer support.
Derive Values From Default
If the value you need is a single value that is stored in the NLS database, you can pull it by specifying the Table and Field for the value.
Because it must be a value with a one to one relationship to the loan in question (e.g., it could
not be a value taken from transaction history because a field in the transaction history table
would return many rows for any one loan) the value must exist in one of the following tables:
loanacct
loanacct_setup
loanacct_payment
loanacct_detail
loanacct_detail2
loanacct_statistics (Year to Date)
loanacct_statistics (Life to Date)
cif
cif_detail
cif_demographics
cif_financials
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Any field from the available tables can be selected and its contents will be shown in the appropriate field of the Collector Screen. The data will be automatically formatted according to the
data type of the database field.
NLS Custom
For the purpose of allowing access to various pieces of data that you may need to show, but
which are not stored in a specific table in the database, there is a selection in the drop down
list called NLS Custom. The table below describes the options available from NLS Custom and
details what each of those options returns.
First Payment
Date
Returns the earlier of the First Principal Payment Date or the First Interest Payment
Date. Loans with a payment period of N/A can return a blank.
Paid
If there is a valid Principal Paid Thru Date and a valid Interest Paid Thru Date, returns
Thru
the earlier one. If only one is valid, returns that one. If neither has a valid date,
Date
returns NULL.
Due
Date
BP / Last
KP / Last
If there is a billing outstanding, returns the due date of the earliest Principal or
Interest Billing. If there is no billing outstanding, returns the earlier value of the Next
Principal Due Date or Next Interest Due Date.
Returns the broken promise counter from statistics and the latest broken promise
date. Returns blank date if there has never been a broken promise.
Returns the kept promise counter from statistics and the latest kept promise date.
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Returns blank date if there has never been a kept promise.
NSF /
Returns the NSF counter from statistics and the latest NSF date. Returns blank date
Last
if there has never been an NSF.
Term /
Returns the term and specifies if that term is defined in the loan setup as Days,
Period
Months, or Payments.
Advanced (SQL Statement)
You may select data other than what is available from single database fields, either for the purpose of displaying some piece of global data (such as a gl account associated with the loan’s
group), for displaying a calculation based on several data points, or for displaying multiple
data points in a single field. This is done using SQL (structured query language).
If you need help in creating a SQL query to get a particular piece of data, please contact Nortridge Software’s customer support department.
The following are examples of the SQL queries used on some of the default Collector Mode
fields, with explanations and examples of data shown in the fields.
Example #1 SQL Query
Field Name: Loan Term
SELECT term,' ',term_char FROM loanacct_setup WHERE acctrefno = NLS_ACTIVE_ACCTREFNO
Output Example
12 M
Explanation
The term of a loan in NLS is defined by two different database fields, the term type and the term.
The term type can be months, days, or payments. The term is the number of months, days, or
payments. The field “term” in table “loanacct_setup” contains that number. The term type is
stored in the field “term_char” in the same table. The text: (,' ',) between them indicates that a
space should be inserted between the term and term type. The where clause: “WHERE acctrefno = NLS_ACTIVE_ACCTREFNO” allows NLS to return the data for just the loan currently queried.
“NLS_ACTIVE_ACCTREFNO” is the account reference number of the currently selected loan.
Field Name: Curr/10/30
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SELECT '* / ', days_late_10,' / ', days_late_30 FROM loanacct_statistics WHERE master_record=0
AND acctrefno=NLS_ACTIVE_ACCTREFNO
Output Example
*/1/2
Explanation
This is an example of a complex query used to show multiple data items on one line. It shows
the number of times this loan was 10 or 30 days past due. These figures are stored in the life to
date statistics. In the loanacct_statistics table, a statistics record is specified as being the life to
date statistics record for the loan by the designation of its “Master Record.” When master_
record = 0, the statistic entry is life to date.
Field Name: NSF / Last
SELECT nsf_payments, ' /', last_nsf_date FROM loanacct_statistics, loanacct_payment WHERE
loanacct_statistics.acctrefno=loanacct_payment.acctrefno AND loanacct_statistics.master_
record=0 AND loanacct_payment.acctrefno=NLS_ACTIVE_ACCTREFNO
Output Example
1 /05/13/04 00:00:00.000
Explanation
The number of NSF payments and the date of the last NSF payment are two separate fields
recorded in two separate tables. This query merges the two tables. The first WHERE clause:
“loanacct_statistics.acctrefno=loanacct_payment.acctrefno” ensures that only those entries
in the resulting merged table where the loan is identical are returned. Otherwise, the number of
NSFs from one loan with the date from another loan will be returned. The second WHERE clause
makes sure that the life to date statistics is being looked up. The third selects the loan that is currently up in the query to be the only loan for which values are returned.
Alignment
The alignment checkbox determines if the output data is left justified, right justified, or centered
within the output field.
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Disbursement / Trust Setup
The Nortridge Loan System has the ability to generate vouchers and print checks. These checks
can be used for loan disbursements, to pay taxes and insurance through the Escrow Module,
to refund overpayments, and to pay other vendors.
Before checks can be printed, general setup related to your checking account and check
stock must be configured. To access the global configuration for disbursements, select the Disbursement/Trust Setup item.
Disbursement/Trust Setup consists of three areas:
Trust Account
Information on your checking account and your check stock is configured on the Trust
Accounts Setup screen.
Click Add
and enter an account name and description for your disbursement account
then click OK.
Account Tab
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Enter the Account Number and ABA number for your checking account.
Check Spec Tab
Select the appropriate entries in the Check File and Form Type drop down lists. NLS has been
pre-configured to include a number of check formats, and is also capable of using pre-printed checks. If your check stock is not included, and you would like your system customized to
include your check stock, contact Nortridge Software.
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You can attach graphics files for a company logo and signature.
Check
Detail
Typically your company name
Line 1
Check
Detail
Typically your company address
Line 2
Check
Detail
Typically the city, state, zip of your company address
Line 3
Check
Info 1
Check
Info 2
Typically the ABA number
Typically the first four digits of the routing number
Check
Depending on your check stock, this line may be blank or may contain a reprint of
Info 3
the account number.
Current
Check
The check number of the next check to be printed out of NLS
Number
Default
For Security Purposes, it is possible to force all checks to go through a specific
Check
printer designated in the setup. This is to prevent a user from sending a check to an
Printer
unauthorized network printer which is out of audit controls.
Vendor Type
In the Vendor Type tab of Disbursement/Trust Setup, add the vendor codes and descriptions
(e.g. Accounts Payable, Insurance Companies, Tax Authorities) so that these codes will be
available for use when creating a voucher or setting up an Escrow Account.
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Voucher Type
In the Voucher Type tab of Disbursement/Trust Setup, create your Voucher Codes so that they
will be available for use when you later generate a voucher or configure an Escrow Setup.
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Main Features
Working with Contacts
The contact information is the main storage area for the customer information in your lending
institution. This screen contains names, addresses, demographics, and relationship information. A contact info must be entered for each customer before any loans can be entered on
the system for that customer. Multiple loans may be entered on a single contact.
Adding a Contact
To add a new contact, click Contact
toolbar and click Add
on the NLS Shortcut bar or select Contact from the
on the Toolbar or click
and select Add Contact from the menu.
Enter information in all appropriate fields (as defined below), using your Tab key or your
mouse to move from field to field.
When you have finished entering your data, click Save
to save the new contact.
TIP
When adding a new contact, the save button
in the toolbar will be active. The save but-
ton is not active on the contact query screen.
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Contact
This reference number is assigned by the system automatically. This field is not
Ref #
user editable.
You must enter a unique alphanumeric code for the contact’s account num-
Contact
ber. It may be up to 25 characters in length. If Enable Auto Numbering is selec-
Number
ted in Contact Setup > Contact Type this field will be filled in automatically
when the contact is saved.
The shortname is used to aid in the Contact search and is also used on some
loan reports (which may not have enough space for a full name). It is usually
Shortname entered as a combination of the customer’s last name with first initials added at
the end, but there are no specific requirements. You may enter any variation or
nickname up to 20 characters in length.
Contact
Drop down list to select contact type as defined in Contact Setup > Contact
Type
Type. <Default> is selected by default.
Select one of your predefined Entity Codes from the drop down list. The selected
Entity
Entity Code will determine the icon which will represent this Contact on the
search tree, as well as the arrangement of the Company / Name section of the
Contact.
The list of NLS system users from the Security Profiles will be available on this drop
Officer
down list. The system will automatically default this selection to the user currently signed on.
Setup Date
This date value is assigned by the system at the time the Contact is entered. This
field is not user editable.
TIN stands for Tax ID Number. This is an individual’s Social Security Number or a
TIN 1
Corporate Entity’s TIN. SS#s are generally typed in the format xxx-xx-xxxx. TIN#s
are generally typed in the format xx-xxxxxxx.
TIN 2
This field is available only if the Entity Code is Joint or Company type entity. The
second individual’s SS# may be entered in this field.
The Date of Birth field is a required identifier for credit bureau reporting. Click
DOB 1
to enter a date using the popup calendar. A DOB 2 field will be available if
the Entity code is Joint or Company type entity.
Company
Name
This field only appears if the selected Entity Code is a Company type entity. Enter
the Company Name in this field.
Enter the full name of the customer in this field. The name will be broken down
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by NLS into first, middle, and last names based on the location of the spaces. To
view this breakdown, or to override this automatic breakdown, click
.
Enter the full address in this field. The address will be broken down by NLS into its
component parts according to the location of spaces and carriage returns. To
Address
view this breakdown, or to override this automatic breakdown, click
.
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The field name here changes based on which of the various phone numbers
stored for the Contact is currently selected. The default Phone number type is
Home. Click
at the right side of the field to see a drop down list of phone num-
ber entries for this account. Select Edit Phone… from the drop down list to add a
new phone entry. You can set any phone number to be the default (called
Phone
Primary) phone number for this Contact. There is also a Do Not Call Flag which
may be set to indicate a phone number that should not be used.
Right-click on the phone number and select Edit TAPI Settings to set up NLS to
communicate with TAPI devices which have been configured and registered
with your operating system. Please refer to the documentation provided with
your TAPI device or phone system to configure the TAPI device.
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Through this setup dialog, you may configure your telephony equipment.
Once NLS has been configured to work with your TAPI device, TAPI will handle
the outbound dialing through the configured telephone device when you
double click on any phone number field in NLS.
Enter the email address of the Contact in this field. An Email 2 field will be availEmail 1
able if the Entity code is Joint or Company type entity. The Email 1 field is the
default selection in a drop down list that includes an Email 1 and an Email 2 in
the list.
Web
Address
If your customer has their own web page, you may enter its address in this field.
The lower portion of the Contact screen is dependent on which Contact tab is currently selected. Each of these Contact tabs is detailed separately.
Telephone Editor
The telephone number options in NLS provide for complying with the Telephone Consumer Protection Act (TCPA) provisions.
To bring up the telephone editor, click
next to the phone number field, and select Edit
Phone….
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Primary
Phone
Label
Phone
Number
Selected item will be the default phone number for the Contact.
A label for the phone number. Labels can be modified by clicking on the label
and entering your own text.
Field for area code + 7-digit number.
Mobile
Phone
Check this option to indicate if the number is a mobile phone number.
Flag
Do Not
Check this option to mark the number as a do not call number. A
Call Flag
be shown next to the phone number with this flag set.
Bad Number Flag
No Dialer
Flag
icon will
Check this option to mark the number as a bad number.
Used to determine how external dialers should process the number.
NLS
4. 10. 4
AN D
LATE R
When selected, the phone number will be marked as a do not text number. This
option is available only when the Mobile Phone Flag is selected.
Do Not
Text Flag
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To bring up an alternate phone editor that allows for the entry of country/region, extension
number, comments, and consent date, right-click on the phone number field and select Edit
Phone.
Phone Desc
A drop down list of predefined labels for the phone number.
Country/Region A drop down list for choosing a country or region of the phone number.
City/Area Code
Field for area code or city code.
Local Number
Field for the phone number.
Extension
Field for an extension to the phone number.
Primary Flag
Selected item will be the default phone number for the Contact.
Do Not Call Flag
Check this option to mark the number as a do not call number. A
icon
will be shown next to phone numbers with this flag set.
Bad Number
Flag
No Dialer Flag
Check this option to mark the number as a bad number.
Used to determine how external dialers should process the number.
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Mobile Number
Flag
Check this option to indicate if the number is a mobile phone number.
N LS 4. 10. 4 AN D
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When selected, the phone number will be marked as a do not text num-
Do Not Text
ber. This option is available only when the Mobile Number Flag is selected.
Flag
Comments
Consent Date
Field for any notes or comments for the entry.
Date field for a consent date to use the phone number. Click
to
enter a date using a popup calendar.
Input Date
Scrub Date
Field displaying the date the phone number was initially entered into the
system.
When a third party is used to scrub phone numbers, the scrub date will be
displayed.
NOTE
If the phone number or the Mobile Number Flag is modified, the consent date and scrub
date will automatically become NULL.
Contact Query
To locate a specific contact record, you may enter a search criteria for the contact, or you may
select the contact that you want from the contact tree bar.
To load all contacts into the tree bar, click
. A list of every contact in the database will be
loaded into the contact tree bar. Click on any one of the contacts listed in the tree bar to display information for that particular contact.
You can run a narrower search by using a search criteria. First click
or hit [F5] on the key-
board to clear out the tree bar. Next, enter a search criteria in to any of the fields of the contact.
Click
to find all contacts matching the search criteria.
EXAMPLE
To run a query of all contacts where the last name begins with the letter A, click the Name
button and enter A in the Last name field of the Full Name window. Click OK. Click
to
bring only those contacts where the Last Name begins with A into the tree bar.
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For more information on increasing the efficiency of your contact searches, see Search Criteria
Metacharacters.
Search Criteria Metacharacters
A metacharacter is a character that has a special meaning when it is entered as a search criteria. Metacharacters allow you to customize your search parameters to help refine the set of
records selected as a result of your search.
The following Metacharacters are supported by all search options within NLS, provided that
they are entered into fields with a data-type appropriate to that operation.
Used to select a range of values. The tilde may be used to select a range in a
date field, a string field, or an amount field. The date must be entered in the
format mm/dd/yyyy.
EXAMPLE
Entering 05/12/2010~08/22/2010 into the Setup Date field, and clicking
, will bring up a selected set of contacts (or loans if you are on the loan
~ (Tilde)
query screen) that were entered into the system between May 12, 2010
and August 22, 2010.
EXAMPLE
Entering 10000~100000 into the Principal field of Loan Query and clicking
will bring up a selected set of loans with a current principal balance
between $10,000 and $100,000.
Used to select a list of values. This allows you to enter several dates or
amounts into a field to be used as search parameters.
| (Vertical
Bar)
EXAMPLE
Entering 07/05/2010|07/17/2010 into the Setup Date field and then clicking
will bring up a set of Contacts or Loans that were entered into the
system on July 5, 2010 or July 17, 2010.
The greater than sign is used to select all values greater than a specified
> (Greater
value.
Than)
EXAMPLE
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Entering >10000 into the Principal field of Loan Query and clicking
will
bring up a selected set of loans including all loans with a current principal
balance which is greater than $10,000.
< (Less Than) The less than sign is used to select all values less than a specified value.
The greater than or equal to sign is used to select all values greater than a specified value or equal to a specified value. It is a greater than sign which
includes the specified value in the selected set instead of limiting the selected
>= (Greater
set to those values which are definitely greater than the specified value.
Than or
Equal to)
EXAMPLE
A loan with a principal balance of exactly $10,000 would not be included
in the selected set for a search that was based on the search parameter
>10000. It would be included if the search parameter was >=10000.
<= (Less
Than or
Equal to)
The less than or equal to sign is used to select all values less than a specified
value or equal to a specified value.
The underscore is used in searches on text string fields to represent a single
character.
_ (Underscore)
EXAMPLE
If you want to search for all contacts where the second letter in the last
name is O, enter _O in the Last Name field. The underscore represents the
first character, allowing it to have any value, and the second character
must be O in order to match the criteria for the search.
The wildcard is used in searches on text string fields to represent one or more
characters.
EXAMPLE
When searching for a contact using the Last Name field, entering B% and
% (Wildcard)
clicking
will bring up a selected set of contacts with last names begin-
ning with B.
EXAMPLE
The same search using the parameter BU% would include the names Buckner and Busch, but would not include Bailey or Bonner.
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NOTE
If the Enable Auto Wildcard option is enabled (in the Actions menu) you
do not need to place % after the B to get all names beginning with that letter. It is automatically assumed to be at the end of all string searches. The
wildcard would still be required for the search: B%R, which would return
Buckner and Bonner, but not Busch or Bailey. By default, the Auto-Wildcard
is on.
Type ISNULL into any field and click
ISNULL
to receive a selected set including all
records where that field has no value.
NOTE
Zero is a value and is not null.
ISNOTNULL
Type ISNOTNULL into any field and click Get Query to receive a selected set
including all records where that field has any value.
Detail
The contact detail tab displays 50 user-defined fields and their entries for the currently selected
contact.
Information for the selected contact may be entered into any of these user-defined fields.
User-Defined Field – Layout Editor
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The layout editor allows for easy, on screen editing of the layout of the user-defined field setup
for a particular Contact type or loan portfolio. To use the editor, it is necessary to be in update
mode (i.e. to have already queried an account). This is necessary so that the system will know
for which Contact Type code or Loan Portfolio the modifications are to be applied. The contact
type of the contact currently queried (or Loan Portfolio of the loan currently queried) is the
code to which the modifications must be applied.
Entering the Editor Mode
Once a contact or loan is queried, right-click on any user-defined field and select Edit Screen
Layout.
l
l
l
l
l
l
l
Select any field label or field by clicking it.
Select multiple fields or labels by holding down <Ctrl> while clicking fields.
Double clicking a label will allow you to type a new label name.
Double clicking a field will display the User-Defined Field Setup… window for that field.
Move any field or label by grabbing it with the left mouse button and dragging it where
you want it to go.
Selected objects can also be moved using the arrow keys on the keyboard.
You can resize any field or label by grabbing its edge or corner.
Tab Order
To set the tab order of the user-defined fields, right-click and select Tab Order.
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Initially, the value for tab order is set to “-1” for all of the user-defined fields. This means that it is
“unset.” To set the tab order, simply click the blue button for the user-defined fields in the order
that you want to set. The first one that you click will be designated “1,” the second “2,” etc.
Right-click and select Tab Order to exit the tab ordering function.
Select All
To select all of the labels and fields on the screen, right-click and choose Select All.
Click on any empty space to deselect all the fields.
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Show Outlines
Right-click and select Show Outlines to graphically display the edges of all the field or label
objects.
Hide Outlines
Right-click and select Hide Outlines to turn off the graphically displayed edges of the field and
label objects.
Align Left
To align objects along their left edges, select the objects to be aligned then right-click and
select Align Left.
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Some of the fields in the illustration below have been moved so that their positions are out of
alignment.
Hold down the <ctrl> key while selecting the fields.
Right-click on the ID=UDF #1 field and select Align Left.
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NOTE
The object that is right-clicked on will be the reference point for all align and resize functions.
Align Top
In the example shown here, several of the fields and labels along the top row have been
moved down by various amounts, knocking them out of alignment, and ruining the visual layout.
To realign these fields, hold down the <ctrl> key while selecting fields and the User Defined
label.
Right-click on the User Defined label and select Align Top.
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Align Right
If you have resized fields to different widths, you may have a situation in which you want to
make the right edge of those fields line up.
Hold down <ctrl> while selecting the fields.
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Right-click on the ID=UDF #1 field and select Align Right.
Align Bottom
In the example shown here, the labels and fields in the lowest row have been moved out of
alignment.
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Right-click on the top most User Defined label and select Align Bottom.
Same Width
In the example below, several fields have been resized.
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To make the width of these fields the same width, hold down <ctrl> while selecting the fields.
Right-click on a selected field to be used as the reference size and select Same Width.
The width of the fields has been made the same without changing the position of the left edge
of the fields. Right-click on a field and select Align Left to adjust their positions.
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Same Height
Couple of the fields in the bottom row of the example below have been stretched vertically.
Right-click the ID=UDF #17 field and select Same Height.
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To Front
In the example shown below, fields #18 and #19 are partially overlapped. The fact that they are
not completely overlapped allows the field behind to still be selected.
Right-click the field behind and select To Front.
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Properties
You can bring up the setup parameters of an individual user-defined field, by right-clicking
that field and selecting Properties.
To Back
In the example below, five user-defined fields have been selected and then the Align Top
option was used. This has resulted in five fields being stacked directly on top of each other resulting in four fields that are completely inaccessible to being selected by the mouse.
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One possible way to access the covered fields would be to right-click the only accessible topmost field, and select To Back. This will push that field to the bottom of the stack, allowing
another one of the fields to be on top. Click an empty space to see the result of the change.
Show/Hide Hidden Objects
Click this button to toggle the display to show or hide any hidden objects in the user-defined
field setup.
Exiting the Editor Mode
Save
Click the Save button to exit the editor mode saving all changes to the user-defined field setup.
Cancel
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Click the Cancel button to exit the editor mode without saving any changes to the userdefined field setup.
Comments and Documents
The Comments & Documents tab allows access to the contact commenting and Document
Storage system.
The functions of the buttons (listed from left to right).
This button allows you to log a new comment. The comment will be automatically
Add
stamped with the date, time, and your User ID number.
This button will remove the highlighted comment if you have the privilege to delete
Delete
comments.
This button will allow you to edit an existing comment if you have the privilege to
Modify modify comments.
This button will print out all of the existing comments on the currently selected conPrint
tact.
This button allows you to search the database comments for key words. The search
Search may include just the currently selected contact, or may search the entire table.
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This button toggles between showing or hiding of the content in the list.
Wrap
When a comment is opened for editing by double clicking the comment in the comment list or
by clicking
, you can send that comment to the printer by right clicking the open comment
screen and selecting Print from the context menu.
Priority Comments
Priority Comments are “sticky” comments that need to be shown to all users upon viewing a
contact and loan record. They have some of the features of regular comments and some of
the features of Temporary Notes.
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If the View Priority Comments in the View menu is selected and the Priority checkbox is selected
for a comment, the comment will be displayed as a green temporary note on the loan or contact. Regular Temporary Notes are yellow.
Email
Emails sent out that are associated with the loan are stored in an XML format. Double click an
item to view the item in its formatted state.
SMS
SMS1 messages sent that are associated with the loan are stored in an XML format. Double
click an item to view the item in its formatted state.
Collector Comments
All comments added in Collector Mode is displayed under Collector Comments. New comments cannot be added here and must be added while in Collector Mode.
Related Comments
1 Short Message Service is a text messaging service commonly used with mobile phones that uses standardized com-
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In the Comments and Documents tree, there will always be a folder called Related Comments.
When this folder is opened in a contact, it will show all comments and documents on all of the
loans under that contact. When it is opened on a loan, it will show all comments and documents on the parent contact to which that loan belongs.
Documents
If a comment has a document attached to it, you may double click the document icon to
open that document. If the document is a PNG, JPG, or BMP file, you can print the document
without opening it from one of the thumbnail views.
Scanner
Set up a scanner to use to scan documents directly as an attachment.
Setup
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Scan
Images
Scans an image directly as an attachment using the Scanner Setup settings.
Attach File
Opens a standard open file dialog for selecting a document to attach.
Delete
Delete the selected document.
View
Open the selected document in an external viewer.
Drop down list for selecting different ways to display documents.
Views
Large Icons
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Small Icons
Details
Thumbnails
Print
Menu
Drop down list with various options for printing
the selected document.
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Fit To
Thumbnails
with Pre-
Screen
views
Scale and fit the entire document to be visible
in the right preview pane.
Zoom Zoom in on the document in the right preview
pane.
In
Zoom Zoom out of the document in the right preview
pane.
Out
Drop down list for rotating and flipping the disTransform played document.
Print
Menu
Drop down list with various options for printing
the selected document.
Demographics
The Contact Demographics tab displays 50 user-defined fields and their entries for the currently
selected contact.
Information for this contact may be entered into any of these user-defined fields.
Financials
The Contact Financials tab displays 50 user-defined fields and their entries for the currently
selected contact.
Information for this contact may be entered into any of these user-defined fields.
Relationships
The Relationship tab allows you to add a contact relationship, a contact - loan relationship, or
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an address book entry.
To create a relationship between two Contacts, between a contact and a loan, or to create
an address book entry, query one of the contacts and select the Relationships tab.
Click
.
On the Add Relationship window, choose whether this is a Contact Relationship or an Addressbook entry. If adding a relationship, click
next to the Contact Number field to look up the
Contact that you want to link to the currently selected Contact. Enter a search criteria on the
Find Contact window then click the Find Now button.
The Contacts that meet your criteria will be loaded onto a list at the bottom of the Find Contact
window. Double-click the correct contact.
You will be returned to the Add Relationship window, and the Contact number will automatically be entered into the Contact Number field. Select a Relationship code from the drop
down list then click OK to save the new Contact relationship. A relationship will be added to
both Contacts.
Portfolio
The Contact’s Portfolio tab shows a listing of all of the loans that are on the currently selected
Contact.
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The functions of the buttons are:
Clicking this button will send the information shown on this tab to the printer.
Print
Clicking this button will reload the data to reflect any changes that have been
made to any of the listed loans since you initially queried this contact. This prevents
Refresh you from being forced to clear the query and re-query the contact in order to see
Record changes that may have been made by another user while you were viewing this
contact.
Task
A list of Tasks or Work Packets associated with the selected contact can be viewed from the
Task tab.
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Print
Clicking this button sends the displayed list of tasks or work packets to the printer.
Clicking this button reloads the selected list so that it will include any tasks or
Refresh
work packets that have been added or modified by other users.
Record
Collateral
In addition to the standard practice of linking collateral objects to loans, collateral may be
linked directly to the Contact.
The functions of the buttons (listed from left to right) are:
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Add
Allows you to create a new collateral item on the contact.
Modify Allows you to modify the description of the collateral item
Delete
Removes the collateral item from the contact and deletes it from the database.
The definitions and data types of the collateral user-defined fields, as well as the presence or
absence of the Values, Location, Insurance, and Taxes tabs is dictated by the setup of the collateral code.
The Disbursement Account tab lists the vendor accounts associated with the Contact.
If a vendor is a Taxing agency or an insurance company who may be associated with more
than one borrower, it is generally preferable to give that entity its own contact account, with
the vendor information entered on the Vendor Accounts tab. This will allow that single vendor
account to manage all the disbursements to that entity, rather than have multiple vendor
accounts set up on divergent contact representing the same company.
Credit Profile
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If you have requesting credentials with a credit bureau, you may pull a client’s credit report directly into the Credit Profile tab of the contact.
Configure your requesting credentials in Loan Setup - Credit Bureau.
Query the client for whom you wish to pull the credit bureau report.
Click
to pull a new credit report. A dialog will appear to select the credit bureau from which
to pull the report.
Select one or more credit bureaus and click OK.
The system will use the data in the requesting credentials to authenticate with the credit bureau
and will then send the following data: First Name, Last Name, Middle Name, Street Address,
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City, State, Zip Code, and Social Security Number. The returned data will be saved to the
Contact.
Click
to toggle between different views for the credit report.
History
The Contact History tab shows a list of any modifications that have been made to the fields of
the selected Contact since that Contact was first saved.
Clicking this button will send the information shown on this tab to the printer.
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Print
Filter
Clicking this button will bring up a window that will allow you to search the database’s entire modification history.
Query
Clicking this button will reload the data to reflect any changes that have been
made to the contact since you initially queried it. This prevents you from being
Refresh
Record
forced to clear the query and re-query the contact in order to see changes that may
have been made by another user while you were viewing this contact.
Contact Import
Contact accounts can be imported onto the loan system through the use of text files. For
information on setting up a Contact import file, see the document Contact Import File Specifications in the Import File Formats folder. If you have installed NLS to the default directory on
your computer, the path to this directory will be C:\Program Files\Nortridge Software\NLS\Import File Formats.
If you downloaded your version of NLS from the Nortridge Software website, the Import File
Formats folder will be installed to your local drive if you do a Complete Install.
Once the file is ready, go to your Contact screen and select File > Import/Export > Import CIF
menu item.
Click Browse… to select your import file. Click Test to have the loan system check the file to
make sure that each Contact will import correctly. Click Process to begin the actual import process.
If Contacts are being rejected, and you cannot determine the reason, call Nortridge Software
Technical Support for help.
Notifications
Notifications are simple reminders that may be attached to Contacts, Loans, or Collateral to
remind users of events or tasks. Notifications may also be created without being attached to
any NLS object. In that case, they are simply messages that will pop-up for a certain user at a
certain time (like timed email).
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To add a new notification, click
New Notification on the toolbar. Assign an owner, enter a
due date, subject, and notes. Select Attach this notification to… to attach the notification to
the currently selected Contact, Loan, or Collateral.
Once a notification has been created, a notification window will appear for the specified user
at the Due On time (or the next time the user logs in). The window may contain multiple notifications.
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If the notification window is simple closed, the notification will re-appear at the top of the next
minute. To be notified at a later time, select the desired amount of time to elapse before being
notified from the drop down list and click Snooze.
Right click on the subject of a notification to display the options for that notification:
Delete
Delete the notification permanently.
Opens a window for reading and editing the notification.
Modify
Select Complete this notification to mark the notification as completed.
Select Delete this notification to permanently delete the notification. This option is
only available for completed notifications.
Complete
This will mark the notification as complete and you will no longer be notified but
the notification will remain in your notification list.
The Inbox lists all notifications for all users. Use the Query Filter section to find notifications.
Double-click on a notification to open the Modify Notification window.
View Web Credentials
NLS may be integrated with your website through web services. The log in information for the
individuals who are able to log on to your website may be maintained in the Contact
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Manager. On the contact screen, select View > Web Credentials menu item.
From here, you may enter the user name and password for this individual’s log in to your website as well as hint questions and answers for identifying a user who has forgotten the password.
Loan Input Examples
The process of entering a loan cannot be easily defined in general terms. There are simply too
many variations of the kinds of loans that may be entered in the Nortridge Loan System.
Rather than attempt to give information on the general practice of entering loans, information
that would not be functionally useful when applied to specific cases, we will provide examples
of entering several common loan types. Each of these examples will be shown with the
assumption that Loan Templates are NOT used. This way we will be showing all of the loan
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input parameters and avoiding the confusion that could be introduced by having incomplete
information.
These examples must not be assumed to be complete and comprehensive. There are many
more types of loan configurations supported by the Nortridge Loan System than could be
detailed in any book or help system. If the specific examples do not easily adapt to the types of
loans that you book, your Nortridge Software Sales Representative will work with your Nortridge
Software Technical Support Consultant to determine the best configuration of parameters to fit
your loans.
The loan input examples that will be detailed include:
l
Mortgage Loan
l
Single Payment Loan
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Consumer Installment Loan
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Add on Interest Loan
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Revolving Credit Line
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Non Revolving Credit Line
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Irregular Payment Schedule
Entering a Loan
The following examples are a complete step by step walk through of common loan types.
Mortgage Loan
This example is a complete walk through of all of the steps required to enter a simple, fixed
amortized1 , mortgage loan. The example uses specific amounts and dates, and so care must
be taken to make the appropriate adjustments if using the example to aid in entering real mortgage loans.
Assume the following situation:
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On July 18, 2015, a bank loaned $80,000 for a refinance of a single family home. It is a 30 year
fixed amortized mortgage with an interest rate of 10.5%. The assessed value of the home was
$190,000. The loan will be repaid in 360 equal amortized payments as calculated by the loan
system using the standard amortization equations (See the Equations and Procedures article
in the Appendix of the NLS Help System).
Begin by querying your list of contacts for the borrower and click to highlight the contact in the
contact list. Click
next to
on the Toolbar and select Add New Loan from the drop down
menu. A new loan will be added to the currently selected contact.
In the Add New Loan window that opens, enter a loan number. Other parameters, such as
account name and TIN, will be filled in automatically from the current contact’s existing information.
Main Tab
An Amortized Mortgage loan is a type of Term Loan 1 , so we will leave the Loan Type as Term.
Enter 80,000 in the Net Loan Amount field.
Select Fixed Amortization from the Interest Method drop down list.
Enter 10.5 in the Interest Rate field.
Set Payment Period to Monthly.
Enter 07/18/2015 in the Origination Date field.
Leave the Term Type field set to Months.
Set the Term to 360.
Set the Term Due also to 360.
The Maturity Date field will automatically be updated accordingly.
Select the Collateral checkbox . This will add a Collateral tab on which we will later be able to
enter information about the value of the home.
The Payment Amount field has been automatically filled in based on the 360-month amortization of $80,000 at 10.5%.
The Main tab should now look like the following example:
1 Type of loan with a specifically defined origination and maturity dates and a defined schedule of payments.
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Classification Tab
Select the proper Loan Group, Loan Classes, and Officers for your loan. Your lending institution should have procedures in place to determine which are used for this loan. Their settings
are not relevant to the discussion of setting up different types of loans, other than to note that
they should be entered at this point in the process.
Statements Tab
Select the billing cutoff1 . This will determine the day on which a payment is billed.
EXAMPLE
If the billing cutoff is –10, and the next payment is due on August 18, then that payment will
bill on August 8.
Select the statement code (or codes) and the late fee code that your company procedures
have determined shall be used for this type of loan.
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Re-payment Tab
Generally the default payment distribution should be left as your system administrator has
defined it, so you should not need to make any modifications on this tab.
Collateral Tab
Click Add and select the Collateral Code that represents real estate (if you are doing real
estate loans, then your system administrator has probably set up such a collateral code).
Click over to the Values sub-tab and enter the value of the real estate collateral.
Detail 1 & 2
The Detail tabs contain the user-defined fields for the loan account. No user-defined fields are
required for this example.
Click OK to save the loan.
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Single Payment Loan
This example is a complete walk through of the steps required to enter a simple, short term,
Single Payment Loan, or “Consumer Time Loan.” The example uses specific amounts and
dates, and so care must be taken to make the appropriate adjustments in using the example
as an aid in entering real loans.
On November 1, 2014, a bank loaned $10,000 for 45 days at a simple interest1 rate of 14% a
year, to be repaid at the end of 45 days (December 16, 2014) with a single payment. The daily
interest rate is to be calculated based on a 360-day year. For information on “Interest Year Calculations,” see the appendix of the NLS Help System.
contact list. Click
next to
1Type of interest method where the loan will always accrue daily on the current principal balance.
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Main Tab
A Consumer Time Loan is a type of Term Loan, so we will leave the Loan Type as Term.
Click
next to Interest Method to bring up a pop-up window with more in-depth Interest
Method information.
Interest Method
Set Interest Year to ACT/360. This will cause our loan to assess interest every day at a per diem
rate that assumes that there are only 360 days in a year. In effect, the daily interest assessed is
equal to the Principal times the annual interest rate divided by 360.
Once that change has been made, the Interest Method pop-up window should look like the
one shown below.
Click OK.
Enter 14 in the Interest Rate field.
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Click
next to Payment Period to bring up a pop-up window with more in-depth Payment
Period information.
Payment Period
Since we have a single payment for the entire loan, we set the Amort Method to Not Applicable
and we set both the Interest Period and Principal Period to Maturity.
Once those changes have been made, the Payment Period pop-up window should look like
the one shown below.
Click OK.
Set the Term Type field to Days.
Set the Term to 45.
Set the Term Due to 45.
The Main tab should now look like the example shown below:
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Classification Tab
Statements Tab
Select the billing cutoff. This will determine the day on which a payment is billed.
EXAMPLE
If the billing cutoff is –10, and the next payment is due on December 16, then that payment
will bill on December 6.
Re-payment Tab
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Detail 1 & 2
Consumer Installment Loan
This example is a complete walk through of all the steps required to enter a simple interest consumer installment loan. The example uses specific amounts and dates, and so care must be
taken to make the appropriate adjustments if using the example to aid in entering real mortgage loans.
On January 2, 2015, a bank loaned $10,000 for 12 months at a simple interest rate of 12% a
year, to be repaid in 12 equal monthly installments. The monthly interest rate is 0.12 ÷ 12 = 1%.
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contact list. Click
next to
Main Tab
A Consumer Installment loan is a type of Term Loan, so we will leave the Loan Type as Term.
Select Simple Interest from the Interest Method drop down list.
Set Term Type to Months.
Set the Term to 12.
Set the Term Due to 12.
The Payment Amount field has been automatically filled in based on the 12-month amortization of $10,000 at 12%.
The Main tab should now look like the example shown below.
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Classification Tab
Statements Tab
EXAMPLE
bill on August 8.
Re-payment Tab
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Detail 1 & 2
Add on Interest Loan
This example is a complete walk through of all of the steps required to enter an add on interest
loan. The example uses specific amounts and dates, and so care must be taken to make the
appropriate adjustments if using this example to aid in entering a real line of credit.
On January 1, 2015, a bank loaned $11,025 to be repaid in 12 equal monthly installments.
The dollar amount of the interest is $975. Interest is added to the amount borrowed to arrive at
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the principal amount of the loan ($11,025 + $975 = $12,000). The quoted interest rate is
8.84355%.
contact list. Click
next to
Main Tab
An add on interest loan is a type of Term Loan, so we will leave the Loan Type as Term.
Select Rule of 78s - Add On from the Interest Method drop down list.
Set the Term Type field to Months.
Set the Term to 12.
The Payment Amount field has been automatically filled in based on applying the Rule of 78s
to the amount of $11,025 at 8.8435%.
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Classification Tab
Statements Tab
EXAMPLE
bill on August 8.
Re-payment Tab
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Detail 1 & 2
Revolving Credit Line
This example is a complete walk through of all of the steps required to enter a revolving credit
line. The example uses specific amounts and dates, and so care must be taken to make the
appropriate adjustments if using this example to aid in entering a real line of credit.
On April 1, 2015, a consumer applied for and received a credit card. The credit card has a limit
of $1,000.00. Payments will be due on the 1st of each month, and the minimum payment will
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consist of any accrued interest, plus 2% of the accumulated principal. The interest rate is 18%
and the credit card will expire after four years.
contact list. Click
next to
Main Tab
Set Loan Type to Revolving.
Set Credit Line to 1,000.00.
Leave Net Loan Amount set to 0.00. There will be no principal advance until the borrower uses
the credit card.
Leave the Interest Method set to Simple Interest.
Set the Interest Rate to 18%.
Click
next to Payment Period to bring up a pop-up window with in-depth Payment Period
information.
Payment Period
Set Amort Method to Not Applicable.
Set Interest Period to Monthly.
Set Interest Payment Method to All Interest Due at payment less accrual cutoff.
Set Principal Period to Monthly.
Set Principal Payment Method to Percentage of Principal.
Set Percentage to 2%.
Once these changes have been made, the Payment Period pop-up window should look like
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Click OK.
Leave Term Type set to Months.
Set Term and Term Due both to 48.
The Maturity Date field will be updated automatically.
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Classification Tab
Statements Tab
EXAMPLE
If the billing cutoff is –10, and the next payment is due on May 1, then the payment will bill
on April 21.
Re-Payment Tab
Detail 1 & 2
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Non Revolving Credit Line
This example is a complete walk through of all of the steps required to enter a non-revolving
line of credit (in this case, a construction loan). The example uses specific amounts and dates,
and so care must be taken to make the appropriate adjustments if using the example to aid in
entering a real line of credit.
On June 4, 2015, a bank approved a construction loan for a commercial real-estate
developer. The funds will be drawn only as needed, so the loan will be entered as a nonrevolving line of credit. The total credit line includes funds for construction, fees, appraisal, and
interest. Interest will be accrued at 8% on funds that have been drawn, and the accrued
interest will be due on the 4th of each month, but will be paid automatically with an advance
from the credit line. Therefore, we will set the credit line up for all payments on maturity, but we
shall capitalize all outstanding interest on the 4th of each month. The total amount of this line
of credit will be $1,350,000.00. At the end of the one year period of construction, the entire
loan is to be repaid (possibly from the proceeds of a regular mortgage loan on the property).
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contact list. Click
next to
Main Tab
Set Loan Type to Non Revolving.
Enter 1,350,000 in the Credit Line Field.
Set Net Loan Amount to 0.
Set Interest Method to Simple Interest.
Enter 8% in the Interest Rate field.
Click
Period Information.
Payment Period
Set Interest Period to Maturity.
Set Principal Period to Maturity.
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Click OK.
Set both Term and Term Due to 12.
Select the Recurring Transactions checkbox.
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Classification Tab
Statements Tab
EXAMPLE
If the billing cutoff is –10, and the next payment is due on June 4, then the payment will bill
on May 25.
Re-Payment Tab
Recurring Transaction Tab
Click Add
.
Event Tab
Enter Interest Capitalization in the Description field.
Select Periodic from the Event drop-down list.
Change the Start Date to 07/04/2015.
Set the Expire Date to 06/04/2016.
Leave the Period set to Monthly.
Leave # of Periods set to 1.
Set Max Repeat to 12.
Set the Statement Cutoff to 0.
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When these changes have been entered, the Event tab should look like the example shown
below.
Transaction Tab
Leave the Transaction Type field set to Transaction Code.
Select Transaction Code 312-Capitalize Interest from the Transaction Code drop down list.
Change Amount Type to Percentage of Current Interest.
Set Percentage to 100.
When these changes have been entered, the Transaction tab should look like the example
shown below.
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Detail 1 & 2
Irregular Payment Schedule
This example is a complete walk through of all of the steps required to enter a loan with an irregular payment cycle. The example uses specific amounts and dates, and so care must be
taken to make the appropriate adjustments if using this example to aid in entering a real loan.
On March 1, 2015, a bank loaned $45,000 to a commercial fishing company for the purchase
of a new boat and equipment. The money is to be loaned at an interest rate of 5% for a term of
5 years. Because the fishing company will not be in operation during the winter months, only
nine monthly payments will be due each year, on the first day of each month from the first of
April through the first of December. Each payment will consist of $1,000 to be applied toward
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reducing the $45,000 principal, plus all current accrued interest. The first payment of each year
(April 1) can be expected to be the largest payment of the year, as it will include four months
worth of interest. Coming due right after the lucrative first fishing expedition of the season, the
fishing company finds these terms acceptable.
contact list. Click
next to
Main Tab
Leave Loan Type set to Term.
Enter 45,000.00 in the Loan Amount field.
Set the Origination Date to 03/01/2015.
Set the Term and Term Due fields both to 60.
Select the Custom Payment Schedule checkbox.
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Classification Tab
Statements Tab
EXAMPLE
If the billing cutoff is –10, and the next payment is due on May 1, then the payment will bill
on April 2.
Re-Payment Tab
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Custom Payment Tab
Click Add
.
Set Payment Type to Fixed Principal payment plus accrued interest.
Leave the Due Date Type set to Relative from Previous payment. For the first payment, this will
automatically be relative from the Origination Date.
Leave Due Date Period set to Monthly.
Leave Number of Periods set to 1. We want the first nine payments to occur at 1-month intervals.
Leave Due Date Value set to 1.
Set Repeat to 9. This will set the dates for the first nine payments.
Set Amount Type to Fixed Amount.
Set Amount Fixed to 1,000.00.
Select a Late Fee Schedule if desired.
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Click OK to add payments 1–9 (April 1, 2015–December 1, 2015).
To add the next payment (April 1, 2016), click Add
again.
Make all of the settings the same as last time except Number of Periods, which should be set to
4 (as we want to skip 3 months), and Repeat, which should be set to 1 (as we only want to skip
three months one time).
Click OK to add payment 10 (April 1, 2016).
To add payments 11–18, repeat the process, once again setting Number of Periods to 1, and
this time setting Repeat to 8.
Click OK to add payments 11–18 (May 1, 2016–December 1, 2016).
Once again we skip three months by setting Number of Periods for the next payment to 4, and
setting Repeat to 1. Click OK to add payment 19 (April 1, 2017).
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Once again we enter the following eight payments by setting Number of Periods to 1, and
Repeat to 8. Click OK to add payments 20–27 (May 1, 2017–December 1, 2017).
Although the loan is not officially mature for another three months, that 45th payment should
have paid off the entire Principal.
Once all of the payments have been added, the Custom Payment tab should look like the
example shown below.
At this time, it may be a good idea to check to make sure that each payment listed in the custom payment schedule shows the proper date, type, and amount. This will allow you to capture any entry errors before these payments actually bill.
Detail 1 & 2
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Entering a Conversion Loan
The process of entering a conversion loan cannot be easily defined in general terms. There are
simply too many variations of the kinds of loans that may be entered in the Nortridge Loan System.
Rather than attempt to give information on the general practice of entering conversion loans,
information that would not be functionally useful when applied to specific cases, we will
provide examples of entering conversion loans of several common loan types. Each of these
examples will be shown with the assumption that Loan Templates are NOT used. This way we
will be showing all of the loan input parameters and avoiding the confusion that could be
introduced by having incomplete information.
These examples must not be assumed to be complete and comprehensive. There are many
more types of loan configurations supported by the Nortridge Loan System than could be
detailed in any book or help system. If the specific examples do not easily adapt to the types of
loans that you book, your Nortridge Software Sales Representative will work with your Nortridge
Software Technical Support Consultant to determine the best configuration of parameters to fit
your loans.
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Each example will be identical to the corresponding example of entering a new loan, but with
the assumption that we are converting the loan at some point after it has already been
booked and begun to accrue interest (and possibly payments).
The loan input examples that will be detailed include:
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l
l
l
l
l
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Converting a Mortgage Loan
Converting a Single Payment Loan
Converting a Consumer Installment Loan
Converting an Add On Interest Loan
Converting a Revolving Credit Line
Converting a Non-Revolving Credit Line
Converting an Irregular Payment Schedule
Conversion Loan Examples
Converting a Mortgage Loan
This example is a complete walk through of all of the steps required to convert a simple, fixed
amortized1 , mortgage loan. The example uses specific amounts and dates, and so care must
be taken to make the appropriate adjustments if using the example to aid in converting a real
mortgage loan.
On July 18, 2014, a loan was entered onto an old Loan System. That loan was an $80,000
amortized mortgage with an interest rate fixed at 10.5% for 30 years. On January 28, 2015, the
lending institution began to convert all of its loans to the Nortridge Loan System.
As of January 28, 2015, the loan had been accrued through January 27, 2015, and the
interest balance (accrued since the last payment date) was $225.26. After several payments
had been paid the principal balance remaining was $79,805.03 and the next payment date
was February 18, 2015.
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contact list. Click
next to
In the Add New Loan window that opens, select Conversion from the Add Loan As drop down
list then enter a loan number in the Loan Number field. Other parameters, such as account
name and TIN, will be filled in automatically from the current contact’s existing information.
Main Tab
Select Fixed Amortization from the Interest Method drop down list.
Click
next to Origination Date to open a pop-up window with more date parameters for this
loan.
Date Parameters
Set Processing Start Date to 07/18/2014.
Set Interest Accrued Thru Date to 01/28/2015.
Leave First Principal Payment to 08/18/2014.
Set Next Principal Payment to 02/18/2015.
Once those changes have been made, the Date Parameters window should look like the
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Click OK.
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Classification Tab
Statements Tab
Select the billing cutoff1 . This will determine the day on which a payment is billed.
EXAMPLE
bill on August 8.
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Re-Payment Tab
Balances Tab
Enter 79,805.03 for Curr Princ Amount.
Enter 225.26 for Curr Interest Amount. This amount must correspond with the Interest Accrued
Thru Date that was entered previously. The interest balance was 225.26 as of 1/28/2015.
Enter 80,000 for Total Princ Advanced.
Enter 0 for YTD Principal Advanced.
Enter 33.21for YTD Princ Paid.
Enter 4,195.77 for Total Interest Paid.
Enter 698.58 for YTD Interest Paid.
Enter 6 for each of # of Payments Principal / Interest / Total Paid.
Detail 1 & 2
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Converting an Installment Loan
This example is a complete walk through of all of the steps required to convert a consumer
installment loan. The example uses specific amounts and dates, and so care must be taken to
make the appropriate adjustments if using the example to aid in converting a real consumer
installment loan.
On January 2, 2015, a loan was entered onto an old Loan System. That loan was $10,000 for
12 months at a simple interest1 rate of 12% a year, to be repaid in 12 equal monthly installments. On February 3, 2015, the lending institution began to convert all of its loans to the Nortridge Loan System.
As of February 3, 2015, the loan had been accrued through February 2, 2015, and the interest
balance was $6.05 after the first payment had been entered on February 1, 2015. The principal
balance was $9,210.14, and the next payment date was March 2, 2015.
1Type of interest method where the loan will always accrue daily on the current principal balance.
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contact list. Click
next to
Main Tab
Leave Interest Method set to Simple Interest.
Leave Payment Period set to Monthly.
Click
next to Origination Date to bring up a pop-up window with more date parameters for
this loan.
Date Parameters
Set Processing Start Date to 01/02/2015.
Set First Principal Payment to 02/02/2015.
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Click OK.
Set Term Type to Months.
Set Term and Term Due to 12.
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Classification Tab
Statements Tab
EXAMPLE
If the billing cutoff is –10, and the next payment is due on September 2, then that payment
will bill on August 23.
Re-Payment Tab
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Balances Tab
Enter 9,210.14 for Current Princip Amount.
Enter 6.05 for Current Interest Amount (this amount must correspond with the Interest Accrued
Thru Date that was entered previously—the interest balance was 6.05 as of 2/2/10).
Enter 10,000 for Total Princ Advanced.
Enter 10,000 for YTD Princ Advanced.
Total Princ Paid should automatically update to 789.86.
Enter 789.86 for YTD Princ Paid.
Enter 98.63 for Total Interest Paid and YTD Interest Paid.
Enter 888.49 for Last Payment Amount.
Enter 02/02/2015 for Last Payment Date.
Enter 1 for each of the fields next to # of Payments Principal/Interest/Total Paid.
NOTE
These fields tell the system the number of payments that have been made on the loan. For a
simple interest loan these entries are not critical, since payment amounts are determined
based on the current balances, however certain other types of loans will not accrue properly without this information.
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Payment History Tab
On your conversion loans, you may enter the past payment history as memo entry items.
Click Add
.
Enter a payment number, due date, description, and amount.
Click OK.
Repeat the process for the Principal Portion of Payment #1.
NOTE
The entry of Payment History on a Conversion Loan is entirely optional.
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Detail 1 & 2
Converting an Add on Interest Loan
This example is a complete walk through of all of the steps required to convert an existing add
on interest loan. The example uses specific amounts and dates, and so care must be taken to
make appropriate adjustments if using this example to aid in converting a real loan.
On January 1, 2015, a bank loaned $11,025 to be repaid in 12 equal monthly installments.
The dollar amount of the interest is $975. Interest is added to the amount borrowed to arrive at
the principal amount of the loan ($11,025 + $975 = $12,000). The quoted interest rate is
8.8435%.
On February 5, 2015, the bank was required to convert this existing loan onto the Nortridge
Loan System from their old lending software. As of that day, the loan had been accrued
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through February 4, 2010. One of the 12 monthly payments had already been made. The principal remaining was $10,175.00, and the interest balance was $19.64.
contact list. Click
next to
Main Tab
Select Rule of 78s - Add On from the Interest Method drop down list.
Click
next to Origination Date to bring up a pop-up window with date parameters.
Date Parameters
Enter 02/04/2015 for Interest Accrued Thru Date.
Enter 03/01/2015 for Next Principal Payment.
Once these changes have been made, the Date Parameters pop-up window should look like
the example shown below:
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Click OK.
Set the Term Type to Months.
Set the Term to 12.
The Maturity Date field will be automatically updated.
The Payment Amount field has been automatically filled in based on applying the Rule of 78s
to the amount of $11,025 at 8.8435%.
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Classification Tab
Statements Tab
EXAMPLE
If the billing cutoff is –10, and the next payment is due on February 1, then that payment will
bill on January 22.
Re-payment Tab
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Balances Tab
Set Curr Princ Amount to 10,175.00.
Set Curr Interest Amount to 19.64.
Set Total Princ Advanced to 11,025.00.
Set YTD Princ Advanced to 11,025.00.
Set YTD Princ Paid to 850.00.
Set YTD Interest Paid to 150.00.
Set Total Interest Paid to 150.00.
Set Last Payment Amt to 1,000.00.
Set Last Payment Date to 02/01/2015.
Enter 1 in each of the three # of Payments fields.
The Balances tab should now look like the example shown below:
Payment History Tab
On your conversion loans, you may enter the past payment history (as memo entry items).
Click Add
.
Enter a payment number, due date, description, and amount, as shown below:
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Click OK.
Repeat the process for the Principal Portion of Payment #1.
After entering the interest and principal payments, the Payment History tab should look like the
example shown below:
NOTE
The entry of Payment History on a Conversion Loan is entirely optional.
Detail 1 & 2
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Converting a Revolving Credit Line
This example is a complete walk through of all of the steps required to convert an existing
revolving credit line. The example uses specific amounts and dates, and so care must be
taken to make the appropriate adjustments if using this example to aid in converting a real line
of credit.
On April 1, 2014, a consumer applied for and received a credit card. The credit card has a limit
of $1,000.00. Payments will be due on the 1st of each month and the minimum payment will
consist of any accrued interest, plus 2% of the accumulated principal. The interest rate is 18%
and the credit card will expire after four years.
On February 5, 2015, the bank converted this loan to the Nortridge Loan System. As of that
date, the current balances of the loan were $568.60 in principal, and $1.12 in interest
(accrued since the last payment was made on February 1). The total amount borrowed on this
credit card was $600.00 with total principal payments of $31.40 reducing the balance to its current figure of $568.60. The total interest accrued was $20.36, with interest payments of $19.24
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reducing the interest to its current balance of $2.24. The last payment was made on February
1, in the amount of $20.48.
contact list. Click
next to
Main Tab
Set Loan Type to Revolving.
Set Credit Line to 1,000.00.
Set Net Loan Amount to 600.00 (the total amount advanced).
Set Interest Method to Simple Interest.
Set the Interest Rate to 18%.
Click
next to Payment Period to bring up a pop-up window with in-depth Payment Period
information.
Payment Period
Set Interest Period to Monthly.
Set Interest Payment Method to All Interest Due at Payment Less Accrual Cutoff.
Set Principal Period to Monthly.
Set Principal Payment Method to Percentage of Principal.
Set Percentage to 2%.
the example shown below.
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Click OK.
Click
next to Origination Date to bring up a pop-up window with Date Parameters.
Date Parameters
Leave First Principal Payment date and First Interest Payment date set to 05/01/2014.
Set Next Principal Payment date and Next Interest Payment date to 03/01/2015.
Once these changes have been made, the Date Parameters window should look like the
example below.
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Click OK.
The Maturity Date field will be updated automatically.
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Classification Tab
Statements Tab
EXAMPLE
Re-Payment Tab
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Balances Tab
Set Curr Princ Amount to 568.60.
Set Total Princ Advanced to 600.00.
Set YTD Princ Advanced to 0.00.
Total Princ Paid has been automatically calculated (Total Princ Advanced – Curr Princ
Amount).
Set YTD Princ Paid to 31.40.
Set Total Interest Paid to 19.24.
Set YTD Interest Paid to 19.24.
Set Last Payment Amount to 20.48.
The Balances tab should now look like the example shown below.
Payment History Tab
The payments that have been previously entered on the loan may be entered here as memo
entries. This is not required for the loan conversion to work, and so it is entirely optional. Your
company may require the entry of this data so that all payment history is stored in one place.
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Detail 1 & 2
Click OK to save the loan. The query screen for the loan is shown below.
Converting a Non-Revolving Credit Line
This example is a complete walk through of all of the steps required to convert an existing nonrevolving credit line. The example uses specific amounts and dates, and so care must be
taken to make the appropriate adjustments if using this example to aid in converting a real line
of credit.
On June 4, 2014, a bank approved a construction loan for a commercial real-estate
developer. The funds will be drawn only as needed, so the loan will be entered as a nonrevolving line of credit. The total credit line includes funds for construction, fees, appraisal, and
interest. Interest will be accrued at 8% on funds that have been drawn, and the accrued
interest will be due on the 4th of each month, but will be paid automatically with an advance
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from the credit line. Therefore, we will set the credit line up for all payments on maturity, but we
shall capitalize all outstanding interest on the 4th of each month. The total amount of this line
of credit will be $1,350,000.00. At the end of the one year period of construction, the entire
loan is to be repaid (possibly from the proceeds of a regular mortgage loan on the property).
On Feb 12, 2015, the bank converted this loan to the Nortridge Loan System. As of that date,
the current balances of the loan were $180,477.75 in principal, and $315.25 in interest
(accrued since interest was last capitalized on February 4). No payments have been made
since the balance is due at maturity.
contact list. Click
next to
Main Tab
Set Loan Type to Non Revolving.
Set Credit Line to 1,350,000.
Set Net Loan Amount to 180,477.75.
Leave Interest Method set to Simple Interest.
Click
Period Information.
Payment Period
Set Interest Period to Maturity.
Set Principal Period to Maturity.
Once these changes have been made, the Payment Determination pop-up window should
look like the example shown below.
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Click OK.
Click
next to origination date.
Click OK.
Leave Term and Term Due both set to 12.
Select the Recurring Transactions checkbox.
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Classification Tab
Statements Tab
EXAMPLE
If the billing cutoff is –10, and the next payment is due on June 4, then the payment will bill
on May 25.
Re-Payment Tab
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Recurring Transactions Tab
Click Add
.
Event Tab
Enter Interest Capitalization in the Description field.
Select Periodic from the Event drop-down list.
Change the Start Date to 03/04/2015.
Set the Expire Date to 06/04/2015.
Leave the Period set to Monthly, and leave # of Periods set to 1.
Set Max Repeat to 4.
Set the Statement Cutoff to 0.
When these changes have been entered, the Event tab should look like the example shown
below.
Transaction Tab
Leave the Transaction Type field set to Transaction Code.
Select transaction code 312-Capitalize Interest from the Transaction Code menu.
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Change Amount Type to Percentage of Current Interest.
Set Percentage to 100.
When these changes have been entered, the Transaction tab should look like the example
shown below.
Balances Tab
Enter 180,477.75 for Curr Princ Amount.
Enter 315.25 for Curr Interest Amount.
Enter 180,477.75 for Total Princ Advanced.
The Balances tab should now look like the example shown below.
Payment History Tab
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The payments that have been previously entered on the loan may be entered here as memo
entries. This is not required for the loan conversion to work, and so it is entirely optional. Your
company may require the entry of this data so that all payment history is stored in one place.
Detail 1 & 2
Converting an Irregular Payment Schedule
This example is a complete walk through of all of the steps required to convert a loan with an
irregular payment cycle. The example uses specific amounts and dates, and so care must be
taken to make the appropriate adjustments if using this example to aid in converting a real
loan.
On March 1, 2014, a bank loaned $45,000 to a commercial fishing company for the purchase
of a new boat and equipment. The money is to be loaned at an interest rate of 5% for a term of
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5 years. Because the fishing company will not be in operation during the winter months, only
nine monthly payments will be due each year, on the first day of each month from the first of
April through the first of December. Each payment will consist of $1,000 to be applied toward
reducing the $45,000 principal, plus all current accrued interest. The first payment of each year
(April 1) can be expected to be the largest payment of the year, as it will include four months
worth of interest. Coming due right after the lucrative first fishing expedition of the season, the
fishing company finds these terms acceptable.
This loan was entered on to the bank’s old loan system on March 1, 2014. By February 18,
2015, the bank is converting all of the loans on its old system to the Nortridge Loan System. As
of that date, nine payments have been made. The remaining principal is $36,000. The current
interest is $394.52. The total interest paid so far is $1,544.78. The last payment was made on
December 1, 2014 for $1,152.05, and the next payment is due on April 1, 2015.
contact list. Click
next to
Main Tab
Set the Origination Date to 03/01/2014.
Click
next to Origination Date to bring up the Date Parameters pop-up window.
Date Parameters
Set First Principal Payment to 03/08/2014.
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Once this change has been made, the Date Parameters pop-up window should look like the
Click OK.
Set the Term and Term Due fields both to 60.
Select the Custom Payment Schedule checkbox.
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Classification Tab
Statements Tab
EXAMPLE
Re-Payment Tab
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Custom Payment Tab
For the conversion loan, we will only be adding custom payments that are due after the conversion date.
Click Add
.
Set Payment Type to Fixed Principal payment plus accrued interest.
Select Use actual due date.
Set Actual Due Date to 04/01/2015.
Set Amount Type to Fixed Amount.
Set Amount Fixed to 1,000.00.
Select a Late Fee Schedule if desired.
Click OK to add payment 10 (April 1, 2015). [In the custom payment schedule for the conversion loan this will be shown as payment #1.]
To add payments 11–18, click Add
then use Due Date Type of Relative from Previous pay-
ment. Set Number of Periods to 1, and wet Repeat to 8. Enter the amount type and fixed
amount just as you did on the last one.
Click OK to add payments 11–18 (May 1, 2015–December 1, 2015). [payments 2–9]
Now we skip three months by setting Number of Periods for the next payment to 4, and setting
Repeat to 1. Click OK to add payment 19 (April 1, 2016). [payment 10]
Repeat to 8. Click OK to add payments 20–27 (May 1, 2016–December 1, 2016). [payments
11–18]
setting Repeat to 1. Click OK to add payment 28 (April 1, 2017). [payment 19]
20–27]
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setting Repeat to 1. Click OK to add payment 37 (April 1, 2018). [payment 28]
29–36]
Although the loan is not officially mature for another three months, that 45th payment should
have paid off the entire Principal.
Once all of the payments have been added, the Custom Payment tab should look like the
At this time, it may be a good idea to check to make sure that each payment listed in the custom payment schedule shows the proper date, type, and amount. This will allow you to capture any entry errors before these payments actually bill.
Balances
Set Curr Princ Amount to 36,000.
Set Total Princ Advanced to 45,000.
Set YTD Princ Advanced to 0.
Leave Total Princ Paid set to 9,000.
Set YTD Princ Paid to 0.
Set Total Interest Paid to 1,544.78.
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Set YTD Interest Paid to 0.
Set Last Payment Amt to 1,152.05.
Enter 9 in each of the three # of Payments boxes.
The Balances tab should now look like the example shown in below.
Detail 1 & 2
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Loan Query
Once a loan has been entered, information for that loan as well as many of the loan’s processing functions may be accessed from the Loan Query Screen. This section shows how to
look up loans that have already been added to the portfolio, and details each one of the
informational tabs that is available to the user. The chapter will also describe how to export
your portfolio setup and individual loans so that they may be sent (usually via email) to Nortridge Software’s Technical Support department in case there is a problem with a loan that you
need to have a support technician examine.
Viewing a Loan
Loans can be accessed from the Loan Query Screen.
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To locate a specific loan record, you may enter asearch criteria for the loan, or you may select
the loan that you want from the Search Tree.
To load all of the loans into the Search Tree, click
.
You may select any loan in the Search Tree by clicking on it. This will cause the information for
that particular loan to be loaded onto the Loan Query Screen and all of its tabs.
The search can be narrowed by using a search criteria. To run a search using a search criteria,
first click
or hit [F5] on the keyboard. Enter your search criteria in any of the fields of the
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Loan Query Screen. Then click
. Only the loans that match all of the specified criteria will be
loaded into the Search Tree.
For information on increasing the efficiency of your searches using Metacharacters, see the
section on the Contact Manager.
Main
The Main tab of the Loan Query displays all of the relevant dates for the loan setup, as well as
current loan balances, projected next billings, and past due amounts.
Open Date
The Origination Date of the Loan.
The origination of the current term of the loan. This will only be different from
Curr Date
the Open Date if the loan has been renewed. Generally, renewal should
only be done on lines of credit. Term loans1 should have their terms Modified
or Extended.
Maturity Date
The date on which the loan is expected to mature if there are no renewals or
extensions.
Payoff/Closed The date on which the loan was paid off. This will be blank on an active
Date
loan.
Last Activity
The date of the last transaction entry or modification.
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Int Accr Thru
Int Paid Thru
Prin Paid Thru
Next Stmt
Accr Cut Off
The date of the most recent daily interest accrual recorded for this loan.
The due date of the last interest receivable, billed by NLS, that has been paid
in full.
The due date of the last principal receivable, billed by NLS, that has been
paid in full.
The date on which the next statement is to be sent to the print queue. It is calculated by the next payment date and the billing cutoff1 .
The date through which the interest accruals are to be included on the next
billing.
Loan Type
Tells if the loan is a Term loan, Add on interest loan, or a line of credit.
Int Type
Tells if the loan is simple interest2 or some form of fixed amortization 3 .
Curr Rate
The current interest rate of the loan. This is effective as of the interest accrued
through date.
Term Type
Tells if the loan term is calculated using Months, Payments, or Days.
Term
The number of Months, Days, or Payments in the term.
On some amortized loans, the loan can be amortized over a certain term,
Due
but actually due in a shorter period than the amortization term. In this case,
this field will be used to determine the actual maturity date.
Credit Line
If the loan is a line of credit, this is the maximum balance that may be
Limit
advanced.
The total amount of the loan. This value is increased when principal is
Curr Loan Amt advanced only if the new value exceeds the old value. It is never decreased
except in the case of a reverse of an advance that caused it to increase.
Principal Bal
The actual principal currently outstanding on the loan.
Interest Bal
The balance of all accrued but unpaid interest.
Fees Bal
The balance of all assessed but unpaid fees (not counting late charges).
Late Charges
The balance of all assessed but unpaid late charges.
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Bal
User Def Total
Bal
The sum of the current balances of the 10 user-defined Loan Balances.
The sum of the Current Principal Amount, the Current Interest Amount, The
Current Fees, the Current Late Charges, and the Current User Defined Total.
Due to the combination of First/Last day accrual and Beginning/End of day
accrual parameters on the loan, this may not be equal to the amount of the
payoff (as derived by a payoff notice) on the loan for the current date.
Total Balance
EXAMPLE
If the loan is End of day accrual, then accruals for the current date have
not yet posted. If the loan is also Last day accrual, the accruals for the
date of payoff must be included in a payoff amount. Since today’s
accrual has not yet posted, the current Total Balance is not including this
last day of accrual.
Only used for Add On Interest Loans. On these loans, the interest for the
Add on
entire life of the loan is calculated and added on at the origination of the
Interest
loan. As interest is paid, it is deducted from this balance. It shows all interest
that remains to be paid over the life of the loan.
Loan Remaining
The sum of the Current Principal Amount and the Add on Interest.
The amount by which the loan has been overpaid. Certain combinations of
Suspense
payment application default settings can also cause a portion of a payment to go into suspense.
The total amount of outstanding future dated transactions. These will be pos-
Pending
ted to the loan automatically during the accrual process of the date for
which they are effective.
Per Diem
The current daily interest accrual on the loan.
Unamortized
The sum of all the setup amounts for amortized fees on the loan, less the
Fees
sum of all fee amortizations to date.
This field contains the sum of Off Loan Balance User Defined Fields # 1, 2,
Off Loan Bal-
and 3. These three user-defined loan balances represent balances that are
ance
increased and decreased through manual transaction codes for funds
which the lender needs to track on an individual loan, which are not part of
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the loan’s payoff.
Balloon Payment
Next Principal
Billing
Next Interest
Billing
Next Tot/Reg
Payment
The amount and date of the scheduled Balloon Payment (if any).
The amount and date of the next scheduled, unbilled, Principal Payment.
The amount and date of the next scheduled, unbilled, Interest Payment.
On fixed payment loans, this is the regular payment amount. On loans that
have fluctuating payment amounts, this is the sum of the next principal due
and next interest due.
The amount and date of the last payment that was made on the loan. The
Last Payment
date is the date entered, and this field does not revert back to a previous
value when a transaction is reversed.
Total Past Due
The sum of all outstanding billed payments that have due dates earlier than
today’s date.
Total Curr Due The sum of all outstanding billed payments.
Detail 1
The Detail 1 tab holds the data for 50 user-defined loan fields. To add user-defined information,
simply type the information into the appropriate field and click
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Detail 2
The Detail 2 tab holds the data for an additional 50 user-defined loan fields. To add userdefined information, simply type the information into the appropriate field and click
.
Comments & Documents
The Comments & Documents tab allows access to the Loan commenting and document storage system.
This button allows you to log a new comment. The comment will be automatically
Add
stamped with the date, time, and your User ID number.
This button will remove the highlighted comment if you have the privilege to delete
Delete
comments.
Modify modify comments.
This button will print out all of the existing comments on the currently selected
Print
Contact.
This button allows you to search the database comments for key words. The search
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Search may include just the currently selected Contact, or may search the entire table.
Clicking this button will cause the text of the comments to be displayed on multiple
Wrap
lines, allowing all of the comments to be read from the list in their complete form.
Text
Relationships
The Relationships tab of the Loan Query provides access to all of the Contact-Loan relationships for the currently selected loan.
For information on adding relationships, see Contact Manager.
Payments Due
The Payments Due tab of Loan Query provides access to a list of all currently outstanding
receivables on the loan.
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This button will print out the full list of outstanding payments.
Print
This button will allow you to edit existing receivables. If the amount of the receivable
is reduced so that the Amount Remaining is equal to zero, the receivable will be
Modify
deleted.
Payment History
The payment History tab displays a record of all payments that have been made on this loan
account. Only payment transactions are shown here, and if a payment is reversed, the payment record is removed from the list.
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Print This button will print out the full list of the payment history.
Loan History
The Loan History is a running list of transactions and balances by effective date. It is designed
to give a picture of the transaction history of the loan from the borrowers point of view, showing the principal balance at all times, and the transaction history that justifies those balances.
Show
Toggles between showing payments that were made at one time as
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Detailed/Summarized one line (summarized) and broken out into their various interest,
Payment
Print
principal, and fee components.
This button will print out the full list of the loan history.
Transactions
All transactions are listed in the Transaction History. The date and time of the actual moment of
transaction entry are recorded along with the user ID. The effective date is the date entered by
the user at the time of transaction entry.
When a transaction is reversed, it is not taken off of Transaction History, but a reversing transaction is added. The Transaction History, therefore; will show a complete history of every event
that has happened on the loan except for interest accruals, rate changes, and modifications
to the loan setup.
Show/Hide
Reversed Trans-
Button toggles the list to hide or show reversed transactions.
actions
Print
Comments
This button will print out the full list of the transaction history.
Clicking this button brings up a comments window which will allow you
to add comments that are linked directly to individual transactions.
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Statistics
Complete statistical data for each loan is available through the statistics tab.
The statistics are shown for the loan Life to Date, for each calendar year of the loan’s existence,
and for each month of the loan’s existence.
Principal
The sum of all Principal Advance Transactions made during the statistical
Advanced
period.
Principal Paid
The sum of all principal payments made during the statistical period.
The sum of all interest accruals and interest adjustments during the stat-
Interest Earned
istical period. As interest adjustments may be positive or negative, any negative interest adjustments during the statistical period will reduce the total
Interest Earned.
Interest Paid
Late Charges
Earned
Late Charges
Paid
The sum of all Interest Payments made during the statistical period.
The sum of all late charges assessed during the statistical period.
The sum of all late fee payments made during the statistical period.
Misc Fees
The sum of all fees (other than late fees) assessed during the statistical
Earned
period.
Misc Fees Paid
Escrow Interest
The sum of all fee payments (other than late fees) made during the statistical period.
This statistic is not currently in use.
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Earned
Escrow Interest
Paid
Average Bal-
The sum of all daily balances during the statistical period, divided by the
ance
number of days in the period.
High Balance
The greatest single daily balance for the loan in the statistical period.
Low Balance
The lowest single daily balance for the loan in the statistical period.
A counter of the number of distinct billings that have gone one, two, three,
Past Due
or four or more months past due. When a payment becomes 60 days past
30/60/90/120+ due, its counter is taken off 30. The sum of these counts should not exceed
the total number of payments that have ever been past due.
Promises Made
The number of times that a Promise to Pay was logged in through the collections module.
The number of times that a Promise to Pay was logged in through the col-
Promises Kept
lections module, and an amount equal to or exceeding the amount of the
promise was entered as a payment prior to the expiration of the promise.
Promises
Broken
User Def # 1–25
The number of times that the expiration date of a Promise to Pay was
reached before payments in amounts equal to or exceeding the amount
of the promise were made.
These statistics are defined by the system administrator, and may be
updated by user-defined transactions.
Interest Accruals
The Interest Accruals tab provides access to all of the daily accruals that have been earned on
the loan.
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This button is only available if the list is expanded to daily accruals. It adds
Show/Hide
daily accruals that have been superseded by correcting entries back into the
Corrections
list.
Print
This button will print out the full list of the accrual history, either the monthly
aggregates or the daily accruals for the selected month.
Daily Trial Balance
The Daily Trial Balance tab provides access to the Actual Trial Balance Entries (what the balance on the loan was on any given day) and the Effective Trial Balance Entries (balance adjusted to take backdated transactions into account so as to show what the balance would have
been if those transactions had actually been entered on those days). In addition, a third set of
balances, the GL Balances is identical to the effective balances, but uses the GL date of the
transactions instead of the effective date for determining the adjustments.
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Show/Hide
This button is only available if the list is expanded to daily trial balance
User Defined
entries. It adds the user-defined loan balance entries to the trial balance
Fields
view.
Print
This button will print out the full list of the trial balance history for the selected
month.
Task
The Task tab of Loan Query lists any Tasks, Work Packets, or Notifications that are associated
with this loan.
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Print
Clicking this button sends the displayed list of tasks, work packets, or notifications to the printer.
Clicking this button reloads the selected list so that it will include any tasks or
Refresh
work packets that have been added or modified by other users.
Record
Participants
This tab is only present when the loan is a participation loan. It shows a quick view of all pertinent information related to all participants on the loan.
Collateral
The collateral tab provides access to any collateral items that have been added to the loan.
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For information of the configuration and use of Collateral Codes, see Loan Setup.
Allows you to add a new collateral item to the loan.
Add
Allows you to switch an existing piece of collateral from one Collateral Code to
another. You must be sure to check the information on your collateral user-defined
Modify fields to be sure it is still valid, as the fields may have different data types on the new
code.
Removes the selected collateral item.
Delete
Field History
The Field History tab provides access to the history of all modifications that have been made to
the loan setup.
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This button will print out the full list of the modification history.
Print
This button allows you to add or modify notes about the currently selected Loan
Modify Setup Modification History item.
Fil-
By default, the field history shows the complete list of modifications for the currently
ter
selected loan. By clicking this button, you can run a search on all of the modi-
Query
fication history in the database.
Clicking this button will reload the modification history for the current loan. This will
allow you to view any modifications that you have just made to the loan, or any
Refresh
Record
modifications that have been made to this loan by other users since you originally
queried the loan.
Binary Import / Export
To allow our customer support department to better serve you, and to facilitate the
troubleshooting of problem loans, we have added a binary import/export feature to The Nortridge Loan System. This feature is designed expressly for the purpose of allowing you to email
individual loans to our support technicians so that we may load them up on a local database
for review and possibly any necessary debugging of problems that may have arisen. The feature is not designed for the purpose of transferring loans between two of your databases.
Since the import requires that the setup of the database be identical to the one from which the
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loan was exported, its utility in this regard is limited.
Setup
Because the database into which a loan is being imported must have a setup identical to the
one from which the loan was exported, when sending a loan to Nortridge Software tech support, it is also necessary to export and send your setup. If you are sending a batch of several
loans, the setup need only be sent once, but because any changes to any setup parameters
in your database will make loan import fail, it is necessary to send the setup each time that you
send any loans. Our tech support department does not keep your setup exports on file.
The setup consists of your currently loaded reports, correspondence, and comment categories; contact user-defined fields, entities, and relationship codes; loan user-defined fields,
transaction codes, late loan events, collateral codes, statement codes, payment method,
status, and risk rating codes; field labels, GL accounts, classes, groups, templates, interest
plans, and base rate schedules.
To export the setup, first go to the Loan Query screen. As the setup is the portfolio wide setup, it
is not necessary to query any loan. Select the menu item File > Import/Export > Export Setup to
Binary File.
Click Browse… and choose a location where you would like to save the setup file. Specify a file
name and click Save. Your setup file will be saved to the directory you have selected. Its file
extension will be .lsf, which stands for Loan Setup File.
Loan
To export an individual loan, first go to the Loan Query screen and query the loan that you
want to export. Select the menu item File > Import/Export > Export Loan to Binary File.
Click Browse… and choose a location where you would like to save the loan file. Specify a file
name and click Save. Your loan file will be saved to the directory you have selected. Its file
extension will be .lbf, which stands for Loan Binary File.
Restructure
The restructure feature is used for modifications to loans for which the complexity of the modification goes beyond what can be done through a simple modification of a parameter in loan
setup. It is not required for such things as modifications to the interest rate setup, modifications
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to the next payment due date, un-billing of outstanding billed payments (in effect tacking
them on to the end of the loan), or modification to the fixed payment amount. It is required
any time a fixed amortized1 loan needs to be changed to any other type of loan, any time a
non-fixed amortized loan is to be changed into a fixed amortized loan, a temporary cessation
of payments or interest only period is to be imposed in the middle of a loan, or any time that
two or more loans are to be combined and rewritten as one loan.
The following loan is an example of a case where a loan might be restructured:
A home buyer borrowed $250,000 at 4% on a 30 year mortgage five years ago. All payments
on the loan were made on time until six months ago, at which time the homeowner became
unemployed. Payments were continued to be made on time for the next three months, but
was unable to make any further payments, and at this time the loan is 96 days past due. Now
having secured new employment, in order to bring the loan current, three months of past due
payments must be made, one full payment for the current month, and pay $179.04 in late
charges for a total of $4,953.20. The borrower, now employed, is capable of making the
monthly payment, but is not capable of bringing the loan current. The bank is eager to avoid
foreclosing on a borrower who is capable of making a monthly payment, but is not willing to
take a loss on the past due interest and late charges which have already been accounted for
as income. The bank agrees to a modification of the loan under the following terms:
1. Outstanding interest and late charges shall be financed into the modified loan as principal.
2. The term shall be extended to 30 years from the time of the modification.
3. The first six months of the modified loan shall be interest only.
4. The amortized payment amount shall be modified so as to pay off the loan in the 30
years from the date of modification. Taking the interest only period into account, the balance is being amortized over 29.5 years. If the interest and late fees being capitalized
exceed the amount of principal that has been paid down over the last five years, this
could result in a slight increase in the monthly payment amount.
5. The interest rate of the loan is unchanged.
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Because a loan number in the Nortridge Loan System must be unique, and the old loan is kept
on the system as a “Restructured” loan for historical reference purposes, the servicer begins by
modifying the Loan Number. An “R” for restructure is appended to the end of the loan number.
The servicer selects the menu Actions > Restructure Loan.
The servicer now has the option of adding additional loans that are to be combined in the
restructure. In this case, the servicer is restructuring one loan only.
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The Servicer clicks Proceed…
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The loan number is entered. Clicking
next to Net Loan Amount shows that the amount of
the restructured loan is composed of a combination of the outstanding principal, outstanding
interest, and outstanding late charges. It appears that this does not exceed the original
amount of the loan and it is likely that the extension of the term will actually result in a reduction of the monthly payment amount.
The interest only period is entered in the date parameters.
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The rest of the loan parameters are filled in as usual and the loan entered.
The borrower now has the benefit of six months with monthly payments of approximately $750
(about $330 less than the former monthly payment), followed by a remaining term with a payment of approximately $80 less than what was formerly being paid. In return for this benefit, the
loan will be extended for an additional five years.
Queue On Demand Statement
A statement in NLS is generally queued automatically, based on parameters in the loan setup.
And on a periodic basis, the loan servicer will print out the statements that are currently in the
queue. This is often a daily process.
It may sometimes be necessary to modify an outstanding billing on a loan and then send out
a new statement that will reflect this modification. A reprint of the original statement will not be
sufficient, as a reprint is an identical image to the original statement which was generated. A
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brand new statement needs to be queued based on the values currently present on the loan.
This can be accomplished by queueing an on demand statement.
Query the loan on which the payments due have been modified. Select the menu Actions >
Queue On-Demand Statement. NLS will generate data to the statement queue table in the
database which will be similar to the original statement, but which will take into account any
changes that have been made to the loan since that old statement was queued.
Since an on-demand statement represents an instance in time, it has no statement period the
way a standard statement does. This means that if you are using a statement code which contains transaction history for a period, there may be no such history on the on-demand statement, as there is no period in which to reflect the history.
Once the on-demand statement has been queued, it may be printed normally from the Statement Queue.
For information on printing statements, see Statements.
XML File Import
Contacts, Loans, and Transactions may be imported into NLS through XML. For a list of all available XML tabs and notes on their formatting, refer to the file which was automatically installed
to the standard path C:\Program Files\Nortridge Software\NLS\Import File
Formats.
To import an XML file, query either a Contact or a Loan
Select the menu File > Import/Export > Import XML.
Use the browse button to locate the XML file that you have prepared.
Click Test to test the import. NLS will verify its ability to successfully import all parts of the file and
will show the error codes for any records that would be rejected. In any case, there will be no
actual change to the database. This is to allow you to make fixes to the file before re-importing
without any danger of importing the same Contact, Loan, or Transaction twice.
The error file will automatically be created in the same directory from which the XML file was
accessed.
Click Done. If the test was successful, restart the process, this time click Process instead of Test.
Once the process is complete, click Done.
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Processing
Transaction
Click the Processing slider on the Shortcut Bar to bring up the transaction batch-processing
screen.
From this screen, you can enter payments through a batch process or through an import file.
Batch entry is useful when you have payment stubs that include the Loan Number. If you do
not have the loan number handy, you can query for the loan number by clicking
next to
the Loan Number field and entering a search criteria. This will generate a list of loans from
which you may pick the loan that you are looking for.
The toolbar buttons shown in below are unique to the Batch Processing Screen:
The parameters that have been entered for the payment are instantly and immeCommit
diately committed and the payment is processed according to the default distribution setup of the loan.
The payment is partially processed with the entered parameters. A distribution
Distribute
screen will come up so that you may view the default distribution, and if necessary, modify the distribution before committing the payment and completing the
processing.
Any payment parameters that have been entered in the Loan Number, Refer-
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Clear
ence, Payment Method Reference, and Amount fields are cleared out. The Date,
Transaction Type, and Payment Method fields remain as you have set them.
A report of the batch transactions in the list is sent to the printer and the list is
Done
cleared.
Clicking this button allows you to browse your computer to select a payment pro-
Import
cessing batch file to import.
Clicking this button allows you to browse your computer to select a payment processing batch file. That file is then scanned to check that the format of each pay-
Test
Import
ment is correct. The payments are not actually entered, but from the test you will
know if the system will be able to successfully import every payment in the file. This
allows you to fix any improperly formatted payments and ensure a good payment-processing file before you attempt the actual import.
Accrual
Accrual Processing on NLS should be run at the end of each day.
Every loan has a setting which determines if that loan’s accruals are to be run at the beginning
or at the end of the day. In actuality, all accrual processing should be run at the end of the
day. Loans which have beginning of day settings will run the accruals for the next day. Loans
which have end of day accrual settings will run their accruals for the day just concluded.
EXAMPLE
A portfolio has 50 loans numbered 1 - 50. Loans 1 - 25 are set to Beginning of Day Accruals
and loans 26 - 50 are set to End of Day Accruals. On May 26th, after all payments have been
entered for the day, the interest accrual run is started. Loans 1 - 25 run their interest accruals
for the 27th. Loans 26 - 50 run their interest accruals for the 26th.
During the accrual processing run, the following events occur for each loan:
1. Pending Transactions scheduled for the current accrual date are posted as payments if
the loan is set to beginning of day accruals.
2. Daily Trial Balance Entries are created for the loan if it is set to Beginning of Day Accruals,
as the loan accrued today’s accrual during last night’s processing run.
3. Pending Transactions scheduled for the current accrual date are posted as payments if
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the loan is set to end of day accruals.
4. Impound payments are processed.
5. The system checks the loan’s list of interest steps, variable rate information, and base
rate schedules, and executes a rate change if one is called for.
6. The system checks the loan’s list of recurring transactions and executes any events that
are scheduled for the current date if the recurring transaction is flagged to occur “Before
Accrual.”
7. If the Next Billing Date for the loan is the current accrual date, the next payment is billed
and the projection for the following payment calculated.
8. If there is a custom payment schedule, it is checked to see if any special billings are
scheduled for this day.
9. If the Next Statement Date for the loan is the current accrual date, a loan statement is
sent to the print queue.
10. The list of past due payments on the loan is checked against the loan’s late fee schedule
to see if any past due events have been triggered.
11. Interest is compounded on loans with a compound interest rate if the current accrual
date is the scheduled date of compounding.
12. If a promise to pay exists with an expiration date on the current accrual date, and the
promise has not been satisfied, the promise is flagged as broken.
13. One day’s interest is accrued on the loan. If the loan is set to End of Day Accruals,
today’s interest is accrued. If the loan is set to Beginning of Day Accruals, tomorrow’s
interest is accrued.
14. The loan’s statistics are updated.
15. The system checks the loan’s list of recurring transactions and executes any events that
are scheduled for the current date if the recurring transaction is flagged to occur “End of
Accrual.”
16. Amortize fees are processed if scheduled to do so on the current accrual date.
17. Daily Trial Balance entries are created for the loan if it is set to End of Day Accruals.
To run the daily accrual processing, begin by clicking the Processing slider on the Shortcut Bar.
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Click the Accrual icon.
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The Date to Accrue Through field is automatically set to the current date. When you process
these accruals, the system activity will be finished for the day, so it is important that your data
entry be complete for the day before running the end of day processing.
To process the accruals, click Process.
The Accrual Rate (per hour) is calculated by the following formula:
(Accruals processed / Elapsed time in seconds) * 3600
When the accrual processing is finished, click Done.
Modify GL
The Modify GL screen allows the user to change the General Ledger accounts posted to for
past transactions stored in the system.
To modify the GL accounts, begin by clicking the Processing slider on the Shortcut Bar then
click
Modify GL. This will bring up the Modify GL screen.
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Enter the desired search criteria into the Query Filter section to find the desired transactions.
EXAMPLE
If the transaction is known to have occurred between July 1st and July 5th 2002, enter
07/01/2002 in the Transaction Date field and 07/05/2002 in the Transaction To field.
If NLS is interfaced to an external General Ledger accounting package, you may select the
Transferred Flag checkbox to query only transactions that have been transferred to the GL
accounting package.
The number of transactions returned by the query may be limited by entering a number in the
Maximum Number of Results to Return field. The default is 1,000 a maximum of 1,000 transactions returned.
Once all of the desired search parameters are entered click
. The query results will then be
displayed in the grid below the Query Filter area.
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Select the desired transaction from the grid and click
to open the Modify G/L dialog box.
Select the desired debit and credit accounts to which to post the transaction. If you wish to
affect all of the currently queried transactions select the Apply to all transactions using queried
results checkbox.
Click OK to commit the change.
Document Printing
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The Document Printing section consolidates all documents to be printed within NLS. It allows
for printing documents directly to a printer or to send to an external print shop. It can be
accessed from the Processing slider in the Shortcut bar.
All documents that have been saved to the document queue will be shown under the Document Print Queue tab. Select the document(s) to be printed and click Print Locally on the toolbar to print on a local printer or click Send to MailSource to send to MailSource for processing.
Documents that have been printed locally will be shown in the Internal Print History tab and
those that have been sent to MailSource will be shown in the MailSource History tab.
Transaction Entry
To enter a transaction from Loan Query, click
.
If the daily accruals on the loan are not up to date, you will be prompted to run accruals for
this particular loan. This will not affect any other loans in the portfolio. Click Update to run the
accruals.
You will be brought to the Transaction Entry screen.
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Select the transaction from the Transaction Type drop down list.
If today’s date is not the correct date for the transaction, enter the date in the Effective Date
field.
You may select a payment method from the Payment Method drop down list.
The Payment Method Reference field is handy for entering identifiers such as check or money
order number.
Enter the amount of the payment in the Amount field. You will be entering the amount the customer is actually paying, not the amount due. The system will account for overpayments or
underpayments according to the loan’s default distribution. When you hit <Enter> the payment will be distributed between Principal, Interest, Late Charges, Fees, and Miscellaneous balances; and between Past Due Receivables, Current Receivables, and unbilled balances.
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You can enter any other desired payment reference information in the Reference field.
The default distribution may be overridden by changing the numbers in the 15 Payment Distribution fields. You will not be able to finalize the payment until the payment is in balance, so
if you reduce the amount in one field, another field must be increased by the same amount.
You can never distribute more money to one of these fields than is available in the corresponding billing field to the left, so you can not distribute to Past Due Interest if there is no
existing Interest Receivable past due.
If there is more than one billed payment outstanding, and you need to control which specific
payment is affected, you can do so by clicking the Detail tab.
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From here, you can control the distribution on an individual payment level.
When you are satisfied that the distribution is correct, click OK.
Your payment may be viewed on either the Payment History tab or the Transaction History tab
of Loan Query.
If a late billing generated a late fee, and a payment which is applied to that billing is backdated to prior to the expiration of the grace period, the late fee will be reversed automatically
by the system.
Transaction Types
The transaction type is entered in the Transaction Entry screen with the Transaction Type drop
down list. The following is the list of available transaction types.
Payments
The standard Payment transaction is designed to use the appropriate transaction codes that
will satisfy the billed receivables according to the loan’s payment application defaults.
This payment will often result in the employment of multiple transactions that use separate
transaction codes.
EXAMPLE
If the loan has a payment due that includes $400 of principal, $100 of interest, and a $25
fee, and if a payment of $525 is entered, the standard Payment will break the $525 down
and apply three separate transactions for Principal, Interest, and Fee Payments.
Principal Reduction
The Principal Reduction Transaction is a payment that is outside the normal schedule of payments. It does not satisfy any billed receivables, but it does reduce the principal balance of the
loan. If the loan uses a fixed amortized1 payment and the loan’s re-amortize options are set to
re-amortize the loan on Principal Reductions, this principal reduction will cause the interest
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accrued, according to the amortization schedule, to be adjusted based on the lower principal
value of the loan. This will result in the interest to principal ratio of all subsequent payments to
be recalculated. The payment amount remains fixed, so the loan will pay off early, unless the
re-amortize options of the loan are also set to re-amortize the payment on Principal Reductions. In this case, the payment amount will be recalculated.
Since this transaction always affects Principal, there will be no distribution screen.
Interest Reduction
The Interest Reduction transaction is an interest only payment that is outside the regular payment sequence and does not satisfy any interest billing receivables.
Since the transaction always affects interest, there will be no distribution screen.
Advance Principal
The Advance Principal transaction is used for the recording of disbursements of funds to the
customer, subsequent to the origination of the loan.
On an amortized loan, this transaction will result in both a recalculation of the payment
amount, and the amortization schedule, if those options are selected in the re-amortize
options of the loan’s setup.
For the transaction, you can use the Payment Method field to record the mode of the disbursement.
Reverse Payment
The Reverse Payment transaction is used to roll back payments that have been made in error.
When Reverse Payment is selected from the transaction type drop down list, a list of payments
for the loan will be displayed. To reverse any one of them, select that payment’s Reverse checkbox.
When a payment is reversed, it is removed from the loan payment history. It remains in the loan
transaction history, and a reversing entry, or entries, is added as well.
If a payment is reversed after the payment’s grace period is over, a late fee will be automatically assessed if the loan is set up for a late fee.
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If a payment is reversed, and that payment is not the last payment, all subsequent payments
will automatically be reversed and re-assessed so that they will be applied as if the reversed
payment had never been entered.
NSF Payment
The NSF payment transaction is used to reverse a payment where the check came back due to
insufficient funds. It differs from a regular reversal in the following ways:
l
When a regular payment is reversed, it is removed from payment history, but an NSF payment remains in payment history along with its reversal.
l
An NSF fee is automatically assessed against the loan according to the setup defined
under the NSF code that is set on the loan.
l
One is added to the NSF counter in loan statistics.
When you select NSF Payment as your transaction type, you will get a list of the payments eligible to be reversed. Check the one that needs to be reversed due to non-sufficient funds.
Information about the NSF fee to be added appears at the bottom of the window. The amount
field is automatically filled in according to the setup of the NSF code, but this amount may be
modified at this time.
If a payment was found to be reversed as an NSF in error, in order to reverse that reversal, you
need to locate it in the payment history. An NSF payment will be shown in the history as grayed
out. Right-click on the grayed out record and select Reverse NSF PAYMENT. This will remove the
NSF Fee, and lower the NSF counter in statistics, effectively converting the NSF into a reversal.
The original payment can then be reentered.
Adjust Interest
The Adjust Interest transaction is used to make adjustments directly to the balance of the
accrued interest. The transaction is posted to the interest accruals record, along with the daily
interest accruals, instead of being posted to transaction history.
If the adjustment is to reduce the interest balance, use a negative number for the amount.
If you are making your adjustment to the deferred interest balance of the loan, enter the positive or negative adjustment amount in the adjustment field next to Deferred Interest Accrued.
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Manual Transaction
The Manual Transaction is used to directly activate any transaction code on NLS, including
transaction codes that were user-defined.
After selecting the manual transaction type, select the specific transaction code from the
Transcode drop down list.
The functionality of the manual transaction code is dependent on the configuration of that
transaction code. For more information on setting up transaction codes, see Transaction
Code Setup.
Reverse Manual Transaction
Every standard transaction configured in NLS has an even-numbered transaction code. Each
transaction has a specific transaction code that is designated as its reverse. This transaction is
designated by an odd numbered trans code that is exactly one number higher than the transaction that it reverses.
To activate the odd numbered transaction codes, select Reverse Manual Transaction from the
transaction type drop down list.
Select the type of transaction from the Transcode drop down list. A list of transactions of the
appropriate type to be reversed is displayed.
Click on the transaction that you wish to reverse so that it is highlighted then click OK.
Refund
The Refund Transaction is used for resolving funds in the suspense account, and does so by
generating a voucher. This voucher can later be used to print a check.
After Selecting Refund from the Transaction Type drop down list, you must select a vendor
account for the payee of the refund. The refund transaction will reduce the suspense balance
of the loan, allowing the loan to be closed if desired. In addition, if you have configured the
loan system for check printing, you will have a voucher to process.
Batch Processing
Batch entry is useful when you have payment stubs that include the Loan Number and the
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payment amount. With payments in that format, you can process a large number of payments much more quickly than can be done through the Loan Query screen. See the section
on Batch Transaction Processing.
By setting the loan default Transaction Entry Batches to Force Batch or Prompt for Batch, you
can enable the Transaction Entry Batches. This activates three buttons on the processing
screen.
Opens a Create New Batch entry screen. You will enter a reference number for the
Create batch, a batch date, and a deposit date. All transactions entered subsequently
Batch through the batch transaction entry screen will be logged as part of that batch.
Opens a Find Batch screen for finding past batches. After selecting a batch from the
Edit
list, you can edit the batch reference number, the batch date, and the deposit date.
Batch
Opens a Find Batch screen for finding past batches. After selecting a batch from the
Reload list, the entire contents of the batch will be reloaded onto the batch entry screen.
Batch
File Processing
NLS supports the processing of payments through a text file (also known as flat file processing), which is read into the loan system and interpreted into a payment-processing
format.
The Transaction Processing Batch Interface will allow the use of a flat file containing payment
transactions to be applied to the Nortridge Loan System. This flat file can be executed manually in the system or via a command line argument allowing unattended operation.
When this file is run against NLS, the sequence of events is as follows:
l
The file format is verified and footer record is crossed with the number and the amount of
the detail records.
l
Loan numbers are cross-referenced to verify existence. If loan number does not exist in
NLS, record is flagged as invalid and record is copied to an exception file.
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l
File is processed as transactions into NLS, any errors will be written to an error file along
with the record that caused the error.
l
Report is generated of payments successfully added to NLS.
l
When using the Amount Applied fields, they must add up to the payment amount or
record is flagged as invalid and record is copied to an exception file.
Credit Card Processing
To process an automated credit card payment, you must first have a payment gateway configured. If you have not already done this, see Payment Gateway in System Setup.
Once the payment gateway is configured, you must have it enabled in the Loan Group on the
Servicing Options tab.
To enter a credit card payment, begin by going to the transaction entry screen.
Select Credit Card Payment from the Transaction Type drop down list.
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Fill out the fields in the credit card sale form. In the example shown, the fields are filled in with
test data provided by the gateway servicer.
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Click Process $xxx.xx.
On the transaction entry screen, the Amount field is now locked down. It cannot be changed
from the amount of the credit card transmission that has been approved by the gateway. Additionally, the Cancel button has been replaced with Void CC Payment. Now that a credit card
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payment has been sent to the gateway, it cannot be canceled. It must be completed (OK) or
voided.
Make any necessary modifications to your distribution as usual for a payment.
Click OK.
Credit Card Tokenization
When using Merchant Partners for credit card processing, all credit cards are tokenized (credit
card information stored in Merchant Partners vault and a unique ID stored in NLS). This allows
for re-using previous credit cards used on a loan without having to re-enter the credit card
information.
A Credit Card Selection Dialog will appear when a credit card transaction is entered on a loan.
The dialog shows the date of last use, number of times used, last four digits of the credit card,
and its expiration date. Double click the credit card on the list to retrieve the credit card information from Merchant Partners for use in the current transaction.
To remove the credit card so that it no longer appears on the list, click Remove.
NOTE
Expired credit cards are automatically removed from the list.
Global Suspense
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To create a suspense entry, click the Processing slider on the Shortcut Bar, click
Trans-
action (or select Processing > Transaction from the navigation menu) then click
on the
toolbar.
NOTE
A suspense account must be set up in order to create a suspense entry. See Suspense
Account on how to create a suspense account.
In the Global Suspense dialog, set the loan group to which this suspense item belongs, the
effective date, GL date, payment method, payment method reference, and amount. Use the
Notes field for any pertinent information for the suspense item. Click Attach Image to choose
any images of the suspense item.
Transaction Entry
The suspense item can be used in a transaction entry by selecting From Global Suspense from
the Payment Method drop down list. A list of all available suspense items will be displayed.
Click to highlight the item to use and click OK to apply the item to the loan.
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When the transaction is applied to the loan, the original effective date, GL date, payment
method, and payment method reference will be transferred to the payment.
Transactions for Disbursements
The general process for creating a check is to first run a transaction of a type where the transaction code is configured to generate a voucher. Once the voucher exists, it may be processed, and a check printed.
Examples of the types of transaction codes which would be likely to generate a voucher
include:
Advance Principal
When principal is advanced on an existing loan, the Advance Principal function in transaction
entry will provide the user with a checkbox to generate a voucher. By selecting this checkbox ,
you can make the system cut a check for the advance of the principal.
Query the loan on which you want to advance principal. Click
and select Advance Prin-
cipal from the Transaction Type drop down list. Enter the amount and effective date of the
advance. Select the Create Voucher checkbox. The vendor account field will be automatically
filled in with a default setting of the borrower. If the check is to be made to another party, you
may select Other Vendors from the vendor drop down to open a Vendor Lookup window.
Clicking OK will both add the advance of principal to the loan, and add the voucher to the
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queue of vouchers to be printed as checks.
Payoff Refunds
When a loan is paid off, the system will automatically write-off any balances in excess of the
amount of the payment (if the payoff option has been selected on the payment) and if the
payment is in excess of the payoff amount, the excess will go to suspense. After a loan has
been paid off, it will either have all zero balances or will be left with nothing but a balance in
suspense. The suspense balance represents an overpayment by the borrower and the money
must be either refunded, or in some other way moved out of suspense before the account
status can be set to closed.
A standard transaction code exists for refunds of payoff overpayments (trans code 464: suspense Refund) and this transaction, when run for the amount of the refund will resolve the suspense balance on the loan (allowing the loan to be closed) and will also create a voucher so
that the refund check can be printed.
To enter a refund transaction on a loan, query that loan. Click
and select Refund Check
from the Transaction Type drop down list. This will automatically use transaction code 464.
Enter the amount that is in suspense as the amount of the transaction. The contact account
will default the payee to the borrower (assuming that is who a refund would go to) but if you
need to select another vendor, you may do so from the Contact Vendor drop down list.
Click OK to apply the refund transaction. If the transaction was applied for the exact amount in
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suspense, the suspense balance should now be zero, and you are able to close the loan. In
addition, a voucher has been added to the queue for check printing.
Payments to Third Parties
Transaction Codes may be configured to generate a Voucher to a third party.
As an example, we will configure a transaction code for a repossession fee which must be
paid by the lender to the repo-man, and which will be passed on to the borrower. For a more
detailed example of creating a transaction code for a fee and payment, see transaction code
setup.
The transaction code for the repo-fee will be configured as a receivable type trans code. This
will force the user configuring the fee to also configure the fee payment transaction code.
Receivable
Payment
Debit
Accrued Fees
Cash
Credit
Accounts Payable Accrued Fees
Loan Controls
Receivable
Payment
Fees (Increase)
Fees (Decrease)
Fees Incurred (Increase) Fees Paid (Increase)
The transaction code wizard will automatically make sure that the Receivable and Payment
transaction are properly linked together as associated transaction codes.
Voucher Processing
The receivable transaction code must be set up for voucher processing. The Payment Transaction code should not be. On the Voucher Processing tab, select the Voucher Type Code,
select the Force Voucher checkbox, and enter any Voucher Reference as needed.
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Complete the Setup of the Transaction code by selecting any of the options on the Options dialog that may apply to your receivable then configure the payment transaction code.
Running the Transaction
To assess this fee on a loan, first, query that loan and click
. From the Transaction Type drop
down list, select Manual Transaction. From the Transcode drop down list, select the transaction code that you configured for this fee. Enter the amount and effective date of your transaction, and since it is a receivable, you may enter a due date for the payment.
Select the Create Voucher checkbox. Choose <Other Vendors…> from the Contact Vendor
drop down list. This will provide you with a Find Vendor dialog which will allow you to select the
vendor account for the repo company.
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Click OK to enter the transaction. This will apply the fee to the loan according to the setup that
you have configured. In addition, it will queue a voucher for check printing with the repo-company as the payee on the check.
Printing Reports and Statements
Reports in the Nortridge Loan System are defined as those documents which may be printed at
any time by accessing the document format from the Reports menu, selecting from a list of
parameters, and executing the report. The integrated report generation tool then pulls all of the
data required for the selected report and the supplied parameters from the database.
The other type of document generated by the loan system is Statements. These documents are
not requested at will. The data for statements is placed in a queue within the database during
the accrual process on a date that was predetermined by the setup of the loan. Then the entire
queue or a portion of it may be generated by the report generation tool and printed. See Statements for more information.
To print reports, click the Reports slider on the Shortcut bar. This slider contains icons for Reports,
Statements, Reprint Statements, and Cash Flow Reports. The Reports screen is displayed by
default when you click the Reports slider.
The reports selection tree will contain a list of all reports currently installed in your database. If
this tree is blank, then you have not installed any reports. See the section on installing report
packs for more information.
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The reports are organized in the tree into logical groupings. Click
next to any heading in the
tree to expand that heading and see any sub-headings or reports that exist below it. When you
have located the report that you want, click on that report.
All of the possible parameters associated with the selected report are loaded onto the main
screen on a parameter selection list. The available parameters for each report are listed below
in the section on that particular report.
After selecting a report and filling in any desired parameters, click
. The report will be gen-
erated and shown on the screen. You may send a copy of the report to the printer by clicking
.
NLS Defintions
STATEMENT: A specific document designed to be used in the NLS statement processing area. A
statement is automatically generated to the statement queue during the nightly accrual process, based on predetermined conditions set up on the loan. These include loan statements,
late notices, and commitment statements.
REPORT: Any printed document that is to be sent either to a borrower or used internally. A report
is printed on demand by an NLS user based on a set of parameters and criteria that the user
enters at the time of printing.
During the nightly accrual process, any statements that are scheduled to generate will be
placed in the queue. Statements in the queue are not automatically sent to a printer. In order
to print the statements, a user must click on the statement icon on the shortcut bar to go to the
statement printing screen. This screen lists the number of statements currently in the queue,
and also lists various parameters that can be used to narrow the list of statements for printing.
All billing and periodic statements1 are printed from the statement tab. There is a separate late
notices tab.
If you wish to print all of the statements currently in the queue, simply click the refresh button to
select all of the statements and then click the print button. The statements will be generated
and sent to the printer, and the queue will be cleared.
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If you wish to only print a certain type of statement, you may click on any of your statement
codes in the tree. Only statements of that type will be selected. Click the print button to print
these statements and they will be removed from the queue once they are printed. Other statements will remain in the queue for later printing.
If you wish to print a subset of statements based on a selection criteria, enter your criteria parameters and click the refresh button. You will be shown how many of the queued statements fall
within the bounds of your criteria. Click
to print these statements and they will be removed
from the queue once they are printed. Other statements will remain in the queue for later printing.
If you want to clear statements from the queue without printing them, click
.
Contact
Reports in the Contact category contain information on individual contact records. If the selection parameters used for the reports are for multiple contact records, information for different
contacts will be displayed on separate pages.
The sub-categories of Contact are:
Contact
Contact report showing standard fields, detail, demographics, and financials
Report
as one page per contact.
Collateral Reports
Reports in the Collateral category show information on collateral entries in NLS which may or
may not be linked to Loans or Contacts. These reports are driven by the collateral objects themselves, while collateral reports in other categories are driven by the contact or loan record.
The sub-categories of Collateral are:
Collateral Insurance
Report showing collateral insurance fields.
Collateral Loan Report Report showing loans attached to collateral items.
Collateral Location
Report showing collateral location fields.
Collateral Report
Report showing collateral items.
Collateral Taxes
Report showing collateral taxes by due date.
Contact Portfolio
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Reports in the Contact Portfolio category contain information on multiple contacts. Unless the
parameters of the report are constrained so that only a single contact is selected, information
relating to multiple contacts may appear on the same page.
The sub categories of Contact Portfolio reports are:
Balance Reports
Reports in this sub-category:
Contact Balance
Shows current principal balances of all loans belonging to each con-
Report
tact record.
Contact Forms
Contact
1098
Register
Shows interest paid by the contact corresponding to amounts reported on
Contact Forms 1098.
Contact
Prints forms 1098 to report interest paid by the contact and creates a file for IRS.
Forms 1098
Parameters entered must conform to IRS Publication 1220.
Contact
Mailing
Prints one label for each contact record using the selected Avery label format.
Labels
Contact Reports
Contact
Credit Line
Report showing credit line limit and current principal.
Report
Contact
Graph
Bar Graph showing number of contacts or contact UDF value (integer) sums
on Y-Axis and contact attributes (entity, contact type, officer, or state) or contact UDF values on X-Axis.
Contact
Portfolio
Report showing standard contact fields.
Report
Contact
Standard customizable contact report using parameters to construct the PDF
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Report
Builder
layout.
Contact
Web Cre-
A report showing which contacts have web credentials and their usernames.
dentials
Relationship Report shows contacts, contact to contact relationships, loans, and contact
Report
Temporary
Notes
to loan relationships.
Report showing the temporary notes added to contacts.
Inbox
Reports in the Inbox category show information on the inbox in NLS.
The sub-categories of Inbox are:
Notifications
Notifications Notifications Report with selections for Type, Creator, and Owner. Date To Use
Report
is Creation Date, Due Date, or Completed Date.
Tasks and Work Packets
Task Detail Report
Task Report
Task Detail Report showing tasks as they appear on the
screen.
Task Report showing tasks as the user selects the fields for PDF
output.
Task Status Report
Task Status Report showing selected fields as desired.
Work Packet Modifications
Work Packet Report showing modification history for work
Report
packets.
Work Packet Report
Work Packet Task Report
Work Packet Report showing work packets as they appear on
the screen.
Report showing work packets and the tasks associated with
them.
Loan
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Reports in the Loan category contain information on individual loans. If the selection parameters used for the report are for multilple loans, then infromation on separate loans will be
shown on separate pages.
The sub-categories of Loan are:
Forms
Commitment Pay- Payoff Notice showing the balances due as of the payoff date entered
off Notice
for all loans under a commitment.
Confirmation Let-
Confirmation Letter showing current principal balance and interest paid
ter
within a specified date range.
Loan Payment Coupon Book showing payments between dates or for
Coupon Book
entire loan term.
Payoff Notice
Payoff Notice showing the balances as of the payoff date entered.
Loan Reports
Amortization Schedule
Amortization Schedule for existing loans.
Report showing standard fields and user-defined detail fields as
Loan Report
one loan per page.
Simple Amortization
Simple Amortization Schedule printed without accessing the Add
Schedule
Loan screen.
Loan Setup Reports
ACH Setup Report Report showing loans set up with ACH within the specified date range.
Credit Bureau
Setup Report
Report showing the setup for loans reporting to credit bureau(s).
Interest Only Term
Report showing the date when regular repayment starts at the end of the
Report
interest only period.
Loan Setup
Report showing loan setup fields.
Report
Recurring Trans-
Report showing how loans are setup for recurring transactions for loans
actions
opened in the date range selected.
Transactions
Loan His-
Loan Transaction History with running principal balance.
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tory
Loan History Summary
Loan Transaction Summary with running principal or loan balance. Each group
of like transactions is summarized into a single line.
Loan Par-
Loan Transaction History showing only participated loans and participant trans-
ticipant
actions with running balance. Loan Group selection denotes participants to be
History
shown.
Loan Portfolio
Reports in the Loan Portfolio category contain information on multiple loans. Unless the report
parameters are selected so as to include only a single loan, information relating to multiple
loans may appear on the same page.
The sub-categories of Loan Portfolio are:
Balance Reports
Accruals
Report
Amortized
Fees
Daily Accruals
Fee Accruals
Precompute
Unearned
Interest
Report showing amounts accrued by loan for a specified date range.
Report showing fees amortized in a selected date range. Includes starting
amortized fees balance, amount of fees amortized, and ending fees amortized balance.
Report showing amounts accrued by loan for a specified date.
Report showing fees accrued by loan for a specified date.
Report showing amounts precompute, accrued, actuarial, and cash basis
interest for Rule of 78s loans as of a date.
Running
Report showing starting balance and ending balance for a specified date
Trial Bal-
range along with a summary of items that affected the balance during that
ance
period.
Trial Balance
Report showing the balances of the loans as of the date requested (or Current
Balance if current balances selected). The Trial Date must be a date for which
the Accrual Processing has been completed.
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Trial Balance 2
Collateral Reports
Loan Collateral Insur- Report of collateral by loan showing insurance fields.
ance
Loan Collateral Loca- Report of collateral by loan showing location fields.
tion
Loan Collateral
Collateral Report showing collateral attached to loans.
Report
Loan Col-
Report of collateral taxes showing loan information including loan number
lateral Taxes and tax id.
Vehicle
Report showing the vehicles attached to loans of a particular status along with
Status
the loan balances as of the status effective date. User must select a Status
Report
Code.
Vehicle Title
Report
Report showing collateral vehicle title status.
Collections
Aging
Report
Report showing total payments currently past due. Note that the “Past Due As
Of” date is for reference to determine the days past due. Any payment made
after that date will have caused the payment to be removed from this list.
Report showing phone number and address of delinquent loans. Note that
Collection
the “Past Due As Of” date is for reference to determine the days past due. Any
Report
payment made after that date will have caused the payment to be removed
from this list.
Collector
Activity
Report showing collections with comments, action codes, and result codes.
Delinquency Summary showing group totals of loans greater than X days late. Also shows
Summary
all past due categories in Excel output.
Past Due
Recap showing summaries of past due loans selected, all past due loans,
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Recap
and all loans.
Report showing the detail of all payments currently past due. Note that the
Past Due
“Past Due As Of” date is for reference to determine the days past due. Any pay-
Report
ment made after that date will have caused the payment to be removed from
this list.
Payment
Report showing promises made, kept, or broken within a specified date
Promises
range.
Escrow
Disbursement Check Register Report showing checks printed.
Impound Report
Report showing current impound status.
Voucher Report
Report showing the individual vouchers used to print checks.
Forms
1098
Register
1098 - E
Register
Shows interest paid corresponding to amounts reported on Forms 1098.
Shows interest paid corresponding to amounts reported on Forms 1098-E.
1099 - C Shows debt canceled (amount charged off) and interest canceled (interest
Register
charged off) reported on Forms 1099-C.
1099 INT
Shows interest paid to investors on Forms 1099-INT.
Register
1099 MISC
Shows amounts disbursed as reported on Forms 1099-MISC.
Register
Forms
1098
Prints forms 1098 to report interest paid and creates a file for IRS. Parameters
entered must conform to IRS Publication 1220. For information on setting Points
and MIP, see Appendix.
Forms
Prints forms 1098-E to report interest paid and creates a file for IRS. Parameters
1098 - E
entered must conform to IRS Publication 1220.
Forms
Prints forms 1099-C to report cancellation of debt and creates a file for IRS. Para-
1099 - C meters entered must conform to IRS Publication 1220.
Forms
Prints forms 1099-INT for interest paid to investors. These do not go to borrowers.
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1099 INT
Forms
1099 MISC
Parameters entered must conform to IRS Publication 1220.
Prints forms 1099-MISC to report payments made to vendors. Parameters entered
must conform to IRS Publication 1220.
Loan
Mailing
Prints one label for each Loan record using the selected Avery label format.
Labels
General Ledger
G/L Daily
Report showing the daily summary of transactions for G/L accounts. Interest
Summary
accrual totals are shown in a separate section if desired.
G/L Interface Report showing the summary transactions generated by a custom G/L interSummary
face.
G/L Posting
Report showing the transactions grouped by G/L account. Interest accrual
Detail
transactions are shown in a separate section if desired.
G/L Posting
Report showing the totals of transactions for each G/L account. Interest
Summary
accrual totals are shown in a separate section if desired.
Loan Reports
Commitment
Report
Credit Line
Detail
Report showing commitment amount and commitment used.
Report showing more detail per loan than the regular Credit Line Report. This
report may be used to show revolving lines of credit, non-revolving credit
lines, or both.
Credit Line
This report is an abbreviated list showing one line per loan and may be used
Report
to show revolving lines of credit, non-revolving credit lines, or both.
Credit Line
Report showing all credit lines associated with loans. Can be grouped by
Reserves
Loan Number to show totals for each loan.
Loan Participant
Report
Report showing regular (non-participated) loans, participated loans, participants, or any combination of these three types.
Loan Port-
Report showing an abbreviated list of loans including Original Amount and
folio Report
Current Principal.
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Loan Rate
Report
Report showing rate setup information.
*** WARNING *** This report may return multiple rows for each loan.
Loan Relationship
Report showing the contacts that the loan is related to.
Report
Loan Report
Standard customizable loan report using parameters to construct the PDF lay-
Builder
out.
Participation
Report
Rate Change
History
Rate Change
Report
Temporary
Notes
Report showing only participated loans and their respective participants.
There is no Loan Group selection because all loans are participation loans.
Selections pertain to loans only.
Report showing rate change history.
Report showing next rate change dates for active variable rate cycles
between selected dates. Fixed rate loans and non-activated future variable
rates will not show.
Report showing the temporary notes added to loans.
Management Reports
CDFI1 Transaction Level
Report
Shows CDFI tabs in PDF format for data entry verification and Excel output for
compliance.
Consolidated Listing of statement table for consolidated (commitment) statements showStatement List- ing pending, printed, or all rows. Allows statement code, print run number,
ing
and sequence in run selections.
Dealer Prof-
Report showing various statistics by dealer. Use Contact Portfolio selection to
itability
denote dealers. Use Status Code selection to denote charged-off loans.
Late Notice
Listing of late notice table showing pending, printed, or all rows. Allows state-
Listing
ment code, print run number, and sequence in run selections.
Loan Graph
Bar Graph showing number of loans, dollar amount, or loan UDF value sums
on Y-Axis and loan attributes (entity, portfolio, group, class, officer, or risk rat-
1 Community Development Financial Institutions Fund.
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User Guide
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ing) or loan UDF values on X-Axis.
Loan Loss
Reserve
Report
Loan Origination
Report
Report showing loan loss reserve amounts based on reserve percentages of
current principal.
Report showing all transactions generated on the day the loan was added
with grand totals of those transactions for the period of loans entered.
Loan State-
Listing of statement table showing either pending, printed, or all rows. Allows
ment Listing
statement code, print run number, and sequence in run selections.
Loan Stat-
Report showing advances, average balances, earned amounts, paid
istics
amounts, and promises for a month, a year, or life-to-date.
Maturity
Report
Report showing loans maturing within a specified date range.
Modification
Report showing changes to Contacts and/or Loans and/or Collateral sorted
History
by date within a user.
New Loan
Report showing loans within a specified date range. The date may be spe-
Report
cified as the date entered, the original open date, or the current open date.
Paid Off
Report showing loans paid off within a date range. Payoff totals come from
Loans
the transaction history using the most recent effective date.
Payoff Report
Report showing loans having payoff balances less than the threshold
entered using the “Balance Less Than” parameter.
Portfolio Aver-
Shows average term, average days to maturity, average rate, average ori-
age Sum-
ginal amount, and average current principal by group. The totals for each
mary
group may be output to Excel.
Portfolio Averages
Shows average term and rate by group.
Risk Rating
Report showing current value based on percentage valuation of current bal-
Report
ance.
User Entry Log Report showing the times users logged in and logged out.
Transactions
Billing
Report showing payments billed and/or payments made within a specified
Report
date range.
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User Guide
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Cash Detail
Report showing transactions within a specified date range depending on
Report
what is selected for Date To Use.
Cash Report
Report showing payment transactions as a single line for each payment.
Loan Billing
Report showing payments billed and/or payments made by loan within a spe-
Report
cified date range.
Payment
Register
Report showing payments made within a specified date range.
Payment
Report showing payment totals by transaction code within a specified date
Summary
range.
Pending
Transactions
Transaction
Register
Transaction
Summary
Report showing transactions pending for a specified date range.
Report showing transactions within a specified date range. The criteria used
for the date range may be specified as the transaction date, the effective
date, or the G/L date.
Report showing transaction totals by transaction code within a specified date
range. The criteria used may be specified as the transaction date, the effective
date, or the G/L date.
Setup
Setup reports contain information on the global configuration of your Nortridge Loan System.
The sub-categories of Setup are:
Setup
Available
List of reports loaded into NLS. Includes standard reports as well as any custom
Reports
reports that have been added.
Contact
List of the contact setup codes along with the contact count for each code.
Setup
Inclusion of each of the two sections is optional. Page break option allows
Codes
each section to be placed on a new page.
Group Privileges
Loan
Groups
Loan Setup
Shows security privileges for Groups.
List of loan groups with GL Placeholders tab and Participation/ACH tab.
List of loan setup codes. The inclusion of each section is optional. Page break
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User Guide
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Codes
option allows each section to be placed on a new page.
Script Loca-
List of scripts associated with events in Contact Types, Contact UDFs, Loan Port-
tion Report
folios, Loan UDFs, and Collateral.
Security Priv- Shows security privileges for Users. Can include sum of user privileges and
group privileges. Can also show all privileges allowed when user is set to DBA1 .
ileges
Transaction
Codes
User
Defined
Fields
User List
List of standard and/or manual transaction codes as specified in Loan Setup.
List of user-defined field definitions. Excel output includes table name and
column name where the user-defined field data can be found.
List showing users, date entered, and user options with date range of date
entered.
Advanced Reports
Reports in this category:
Static
Pool
Report showing delinquency percentages over time for a pool of loans originated in
a specific time period. Delinquency can be defined as days past due or a selected
loan status.
Shows progression of principal for each period going forward for a pool of loans ori-
Static
ginated in a specific time period. Progression includes starting balance, principal
Pool-
payments and other activity, and ending balance for each time period going for-
Aging ward from origination. Also includes MDR and SMM (Marginal Default Rate and
Single Monthly Mortality).
Word Document Interface
You can create your own NLS reports and statements using Mail Merge features in Microsoft
Word. Contact and loan data tags may be embedded in a Word document using the
MERGEFIELD command.
Begin by creating a new document in Microsoft Word. Data to be taken from NLS can be
added by pressing Ctrl-F9 to enter the merge braces {}. Enter the MERGEFIELD command
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followed by the field name of the data you wish to add (e.g. {MERGEFIELD cifnumber}
would place the Contact Number into the Word document when run). Once the form letter
has been created as a Word document, install the form letter as a report in the NLS database
using the NLS Report Manager.
Once the report is installed, you can run the report in either of two ways:
From the Contact screen, you can run it as an individual report and it will automatically insert
the proper contact data from your database into the report.
From the Reports screen, you can run the report as a Multi-Merge Report. The report will be generated with the appropriate information for each contact selected by the parameters that are
chosen on the Reports screen.
Creating a Form Letter
To create a form letter for use as an NLS report, you will create a document in Microsoft Word
using the Mail Merge features.
Any computer from which you intend to run this report must have all necessary fonts installed.
If you use a font in the document, which is not installed on the computer that runs the report,
Microsoft Word will substitute another font, and this may alter the format of your report.
The exact procedure may vary depending on the version of Microsoft Word being used.
To create the Word document, first launch Microsoft Word.
Select the menu File > New….
Click Blank Document.
Now, edit your Word document. To insert a Merge Field, press Ctrl-F9 to enter the merge braces
{}. Enter the MERGEFIELD command followed by the field name of the data you wish to add.
Word has a maximum limit of 63 unique fields per document.
Once the document is complete, save it to an appropriate location.
Next, you will install the form letter as a report in your NLS database.
You can toggle your document to view or hide the mergefields using Alt-F9.
If you need to access a database element that is not available on the pre-set list of mergefields, you can query the database directly using an SQL query in conjunction with the
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COMMENTS command. The syntax is as follows, using Ctrl-F9 to insert the COMMENTS within the
merge field:
{MERGEFIELD fieldname {COMMENTS "sql query"}}
EXAMPLE
{MERGEFIELD nls_noteamt {COMMENTS "select original_note_amount from
loanacct where acctrefno = nls_active_acctrefno"}}
The field name must always begin with nls_.
For the argument of the where clause in the SQL query use nls_active_acctrefno for loan
reports and statements, or use nls_active_cifno for contact reports.
For a list of the fields that are available as predefined mergefields for contact reports, loan
reports, or statements, see Merge Fields.
Installing a Form Letter
Install your Form Letter to your NLS database through the Report Manager.
First, select the Main slider from Shortcut Bar, then click
Setup.
Select the Report Manager tab.
Click Add Report.
Fill in the fields of the Add Report Dialog as follows:
Type
Category
Select CIF from the drop down list.
Select an existing category, or type a name for a new one. If you enter a new
category, you will be creating a new branch of your report tree.
Format Title Enter the title for the report, as you would like it to appear on the report tree.
Description Enter any descriptive information about the report for future reference.
This defaults to your local directory. It specifies the location where the particular
Path
instance of the report will be generated at the time that you run the report. You
can set the report to generate somewhere else if you wish.
Format File
Click
to browse your directories to locate the Microsoft Word Mail Merge doc-
ument that you created in the previous step.
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Click OK to return to the Report Manager screen.
On the Report Manager, click OK to save the report.
You will be prompted to shut down NLS, as the changes that you have made to the report tree
are loaded in from the database at the time the program is launched. Click Yes to restart the
application.
Running Word Reports
Individual Reports
To run a custom report on a single contact, first go to Loan Query and search for the contact
on which you wish to run the report. Click
on the tool bar. From the menu of available
reports, select the mail merge document that you had created and installed. Then, click
.
The report will be displayed in an embedded Microsoft Word window, and its Mail Merge Fields
will be replaced with the appropriate data for those fields, from the selected contact. You may
send the report to the printer by clicking
. The document may also be saved to the con-
tact’s Comments & Documents area.
Multi-Merge Reports
In order to print your report as a Mail Merge document that will pull data fields from multiple
contacts, select the report from the main Report Selection Tree. The available parameters for
this type of report include Contact Number, a range of Contact Numbers, Contact Entry Date,
or a Range of Contact Entry Dates. If no parameters are selected, the report will print for all contacts.
When you have selected your parameters, click
. The first page of the Mail Merge Docu-
ment (the report for the first selected contact) will be shown on the screen. Click
to print all
of the pages of the report.
Creating a Word Statement
To create a custom statement for use in NLS, you will create a document in Microsoft Word
using the Mail Merge features.
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Any computer from which you intend to run this report must have all necessary fonts installed.
If you use a font in the document, which is not installed on the computer that runs the report,
Microsoft Word will substitute another font, and this may alter the format of your report.
Word statements can use data from the loan fields as well as the contact fields. The statement
should consist of a Header (optional), Footer (optional), and a document body. All of the
static information for the statement (customer name and address, loan number, total payment amount, remittance address, etc.) should be placed in the header and footer. The body
of the document should contain the Merge Fields for any statement detail items.
To create the statement, first launch Microsoft Word. The exact procedure may vary depending
on the version of Microsoft Word being used.
Select the menu File > New….
Click Blank Document.
Now, edit your Word document. To insert a Merge Field, press Ctrl-F9 to enter the merge braces
{}. Enter the MERGEFIELD command followed by the field name of the data you wish to add,
for example {MERGEFIELD cifnumber}. Word has a maximum limit of 63 unique fields per
document.
The MERGEFIELD command cannot be used in the header or footer portions of a document.
Use the SET and MERGEFIELD commands in the body of the document to define bookmarks
for use in the header/footer.
The SET command is also useful in cases where you will need to access the same piece of
data multiple times in the document, and that data is generated by a complex SQL query.
Using this command allows you to only do the SQL command twice.
EXAMPLE
{SET loan_number {MERGEFIELD loan_number}}
This query will define a bookmark loan_number that points to the {MERGEFIELD loan_number} command.
Once the bookmark is defined in the body, it can be used in the header or footer by simply
entering the bookmark in the merge braces.
EXAMPLE
Once the above bookmark is defined, the command {loan_number} placed in the header
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is functionally equivalent to the command {MERGEFIELD loan_number} in the body of the
document.
This may at first be a little bit confusing, but it is a limitation in Word and with a little practice it
will become second nature.
Once the document is complete, save it to an appropriate location.
A sample statement is included with NLS. To view it make sure to perform a complete install of
NLS. The sample will be located at C:\Program Files\Nortridge Software\NLS\docs\Word Mail Merge\Word Billing 1.doc or can be downloaded from the
Nortridge Software Community in the Documents > Miscellaneous Documents > Office Integration folder. Open the statement with Microsoft Word to see how it is structured. If all of the
merge commands are not displayed press Alt-F9 to switch between the results view and command view.
Next, you will install the statement in your NLS database.
Installing a Word Statement
Install your statement on to your NLS database through the Report Manager.
First, select the Main slider from Shortcut Bar, then click
Setup.
Select the Report Manager tab.
Click Add Report.
Fill in the fields of the Add Report Dialog as follows:
Type
Category
Format Title
Select Statement from the drop down list.
Select Loan Statement or Late Notice from the drop down list— for a word statement you cannot type in a new category.
Enter the title for the statement, as you would like it to appear in the Statement
Tree.
Description Enter any descriptive information about the report for future reference.
This defaults to your local directory. It specifies the location where the particular
Path
instance of the report will be generated at the time that you run the report. You
can set the report to generate somewhere else if you wish.
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Format File
Click
to browse your directories to locate the document that you created in
the previous step.
Click OK to return to the Report Manager screen.
On the Report Manager, click OK to save the report.
You will be prompted to shut down NLS, as the changes that you have made to the report tree
are loaded in from the database at the time the program is launched. Click Yes to restart the
application.
The statement will now appear in the Statement File drop down list in the Statement tab of the
Loan Setup dialog.
Excel Document Interface
A Microsoft Excel spreadsheet can be added to the list of NLS reports under either the Contact
or Loan sections. These documents are created using a copy of the Excel spreadsheet Excel
Report Info and List of NLS Fields.xls and customizing Sheet1 to utilize the data NLS
creates on Sheet2 at the time the individual report is run.
The Excel Report Info and List of NLS Fields.xls file can be downloaded from the
Nortridge Software Community in the Documents > Miscellaneous Documents > Office Integration folder.
Excel reports can only be run individually and can be added to the Contact or Loan Correspondence for later review.
Step by Step
Step 1: Create the Spreadsheet
1. Make a copy of Excel Report Info and List of NLS Fields.xls and name it
myreport.xls.
2. Open myreport.xls
Step 2: Make a Reference Page
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1. Click on the tab NLSDATA.
2. To provide a handy reference, print this sheet (it is already formatted to print the row and
column headers). This will give you a list of all the NLS fields that will be entered into
Column B when the report is run.
NOTE
The range NLSDATA!A1:B247 is named NLS. You can use the name with the VLOOKUP function to easily insert NLS generated data onto Sheet1.
Step 3: Add Your Customization
1. On Sheet1, enter your customizations. You may add a logo, create an invoice, or make
any other type of Excel report that will pull data from the NLS database. When you want
to grab NLS data, use the VLOOKUP function as follows:
=VLOOKUP(“name in column A”,NLS,2,FALSE)
EXAMPLE
To get the Loan Number into cell A1 on Sheet1, enter the function:
=VLOOKUP(“loan_number”,NLS,2,FALSE)
(This is equivalent to entering =NLSDATA!B122, but it is easier to debug).
The parameter in quotes must be exactly as shown in Column A on the sheet NLSDATA.
Column A is overwritten by NLS each time the report is generated, so you cannot
change the names. NLS only writes in columns A and B on sheet NLSDATA. You can customize all other columns on the sheet NLSDATA and they will not be disturbed.
There are currently 120 Contact fields to chose from and an additional 127 Loan fields. If
the report is a contact report, only the contact information will be filled in by NLS. If the
report is a loan report, all the fields will be filled in.
You can also reference the data in NLSDATA directly by cell reference. VLOOKUP makes
this easier. Refer to Excel Help for more information on VLOOKUP and Named Ranges.
2. Save the document. Be sure your cursor is in cell Sheet1!A1. This way, when you preview
your report in NLS you will see the upper left corner of your report. It is a feature of Excel
that all spreadsheets automatically open to the place where the cursor was last left.
Step 4: Install the Document into NLS
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1. Select Setup from the NLS Main slider.
2. Click System Setup.
3. Click the Report Manager tab.
4. Click Add Report.
5. Fill in the following fields:
Type: Select CIF or Loan.
Category: Enter an existing Category or create a new one. For example, you might want
all of your spreadsheets to be in a category called Spreadsheets.
Format Title: Enter a title as you want it to appear in the Report tree (e.g. LOAN BALANCE
SPREADSHEET LETTER).
Description: Optional
Path: Use the picker. If this is a contact report, select the Contact folder. If it is a loan
report, select the Loan folder.
Format File: Click
to locate and select your Excel file.
6. Click OK.
7. Click OK again to exit system setup.
8. Click Yes to restart NLS so that you can access your new Excel report.
Running an Excel Report
Excel reports are individual reports only. They are accessed from the Contact or Loan query
screens. Click
and select the Excel report from the list of individual reports. Click
to dis-
play the report on the screen. From there, the report may be closed, printed, or saved to the
Contact or Loan Correspondence History.
Cash Flow Reports
The Cash Flow Report will produce a Microsoft Excel spreadsheet which shows the projected
income from the current loans in the system according to the parameters set by the user. To
run the Cash Flow Report, click
Cash Flow Reports in the Reports slider of the Shortcut Bar,
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this will bring up the standard report parameters interface. The selection parameters function
in the same manner as the standard NLS reports.
Document Templates
The Document Template functionality in NLS allows for the setup of custom reports via Word
Documents, using the Content Controls features of Word instead of Word Mail Merge.
Document templates also give the ability to define a pop-up dialog at the point of report execution. This allows you to manage parameters that will affect the output of the finished report.
Creating the Word Document
To create a Word document for configuration as a document template, begin by formatting a
document normally in Word. In the example shown, those fields that will be replaced with data
from the NLS database are shown in red. The document shown is a letter to prospective new clients.
Now, replace the words in red with special Content Control keywords.
Content Controls can be enabled in Word Options by selecting File > Options.
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NOTE
Depending on the version of Word being used, the Option item may be found under a different menu such as the
menu.
Check Developer on the right pane of the Customize Ribbon tab.
NOTE
Depending on the version of Word being used, this option may be located in a different location such as Show Developer tab in the Ribbon option in the Popular tab.
Click OK.
NOTE
If you are running Word 2010, then you will need to enable Design Mode and Rich Text Content Controls icons. To do this, go to the file menu, and select Options. Then go to the Quick
Access Toolbar. Select the Developer Tab from the drop down list. This will bring up a list of
commands. From this list, enable Design Mode and Rich Text Content Controls. These two
icons will now appear on your Quick Access Toolbar, and may be used for the rest of the
instructions below.
In the Word doc, click on the Developer tab.
Next, click
to toggle design mode on.
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Make sure that your cursor is in the document where you intend to insert your content control
and click
to insert a Rich Text content control.
Right-click on the blinking cursor and select Properties.
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Type the Keyword in the Tag field. Click OK. Also, remove the red text that this keyword is replacing. The keywords ARE case sensitive.
Repeat this process for the remaining keywords.
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Save the document.
Adding a Check Box
To add a check box to the document, click
Legacy Tools and select Legacy Tools Check
Box Form Tool.
NOTE
The ActiveX Controls will not work with NLS.
Right-click the check box on the Word document and select Properties.
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In the Bookmark field, enter an identifying name for the check box. This name will correspond
to the tag entered in the Questions and Answers tab when setting up the document in NLS.
Adding a Drop Down List
To add a drop down list to the document, click
Drop-Down List Content Control.
NOTE
The Legacy Controls for a drop down list will not work with NLS.
Right-click the content control and select Properties.
Enter a tag for the control to be referenced from NLS. Use the same tag in the NLS Questions
and Answers tab when setting up the document in NLS. Click Add… to add all of the list items
as needed and click OK once finished.
Installing the Document Template
To install a document template, go to Document Templates in the System Setup tree.
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Click Add
and type a name and description for the document template.
Click OK.
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From the Template Type drop down list, select the type of report that you have created. The
keywords that you used in creating the report must come from the list associated with the type
of report for which you are configuring the Document Template.
To upload the actual report document, click …
next to the name of the template to access
the Advanced settings dialog.
Click …
next to Document then click Attach File
to get a Windows browser. Locate the
word file that you created and select it to upload the file into the NLS database.
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Click OK three times to complete the installation of the document template and restart NLS.
Question and Answer
One of the most powerful differences between the Document Template method of creating a
custom report through Microsoft Word and the Mail Merge method is the ability of a Document
Template to be configured with various questions which must be answered by the user at the
time the document is to be run, with the answers becoming potential fields which may appear
in the document output.
To configure Questions and Answers, start by opening the document template setup in the
NLS system setup.
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Next, click
to the right of the name of the document template.
To add a new question, right-click in the question window and select Add new.
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Click on the Question field and type in a question as it is to be presented at the time the report
is generated. Next, use the drop down list for Answer Type and choose a type of answer which
will be accepted. Type the tag (or bookmark) as it was used for the control created in Word
(e.g. Check1, Dropdown1…). Check the Required checkbox if the answer to this question is
mandatory for the document to run. Lastly, if the answer type is a drop down list, click
and
enter the various elements which are to populate that list.
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In the example shown, when the document is run, a question will appear on the screen “Who
is the Loan Officer?” and the answer must be selected from a drop down list. That answer is
assigned to a keyword defined by the tag “officer” which may be used in the setup of the word
document. See Creating the Word Document.
If you need to pull a piece of data which is not available as a keyword, you may define a
keyword using the Question and Answer setup and selecting the Answer Type of “USE SQL.”
The SQL query that you write MUST be formatted in such a way as to return just one row of data,
and this data will be assigned to the keyword defined by the question’s tag.
Clicking
to the right of the question will bring up a dialog box which will allow you to set
formatting parameters for the answer. The various formatting parameters available are
dependent upon the Answer type being used.
Answer Type
Default
Decimal
Value
Places
Text
X
Numeric
X
X
Comma
Show
Drop
SQL State-
Time
Down List
ment
X
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Answer Type
Default
Decimal
Value
Places
Comma
Show
Drop
SQL State-
Time
Down List
ment
Date
X
X
Drop Down
X
X
Drop List
X
X
Check Box
X
Radio Group
X
SQL State-
X
ment
Click Options to display a window with various options.
Lock generated doc-
Selecting this will cause the resulting document to be encrypted so
ument
that it cannot be modified by the end users.
Allow document viewing
Selecting this enables a “preview” button. Clicking this button will
allow the document to be shown on screen before being sent to
the printer.
Selecting this enables a field in the upper dialog for the entry of an
Allow email document
email address. NLS will then call the default email program upon
clicking OK. The document will be attached to the email.
Save to comments &
Selecting this will cause a copy of the document to be saved into
documents after print-
comments and documents for the contact or loan from which the
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ing
document is run.
Selecting this will map the tag to the results of a SQL query. Click
to edit the SQL query.
Use SQL to determine if
report is visible when
viewed in individual
report
Document Mappings
Use of Document Mappings is optional but exists in order to allow the user to use existing document template reports in NLS with minimal modifications.
This feature allows the use of Document Template tags other than those that are defined in the
NLS keywords. If you have a word document with tags already programmed, and those tags
correspond to keywords from the NLS database, but the actual tag is not identical to the
keyword, you may map your existing tags to the keywords through the Document Mappings
screen of the Document template setup.
To add a mapping, right-click and select Add new. Click in the Document Tag field and type
the tag as it appears in your word document. Then click in the NLS tag field and type the NLS
keyword tag that corresponds.
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Mappings may be added to an individual document template, or may be added globally so
that they may be used by all document templates. To add a mapping globally, click
next
to Global mappings at the bottom of the Document Templates setup screen.
Running the Report
Once a Document Template has been configured, it will appear as a report in the Individual
report menu appropriate to the type of document of which it has been designated (e.g. if
defined as a Contact type report it will appear in the individual reports menu on the contact
screen).
When the icon for the document is clicked, the main portion of the individual reports menu will
be populated with any questions which were defined for the document. Answer these questions and then click the display report button to generate the document.
Once generated the document may be saved or printed.
Keywords
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The Keywords that may be used in the Document Template to access specific fields in the database are divided into categories. Every keyword in a category is assigned a prefix.
Prefixes
PC_
Primary Contact
RC_
Related Contact
AP_
Primary Address Book
AR_
Related Address Book
RA_
Repo Agent Contact
RTC_
Transport Company Contact
RTT_
Transport To Contact
RRC_ Recondition Company Contact
DC_
Dealer Contact
Generic Keywords
SYSTEMDATE
Contact Keywords
Although Contact keywords may be used without a prefix, it is strongly recommended that a
prefix be used. If there is no prefix, then the keyword refers to a field from the contact upon
which the report is being run. If the report is run from a Task Manager Relationship then there
could be multiple Contacts involved and the prefix will help determine which one is to be
accessed in order to grab the field.
Contact Keywords
CIFNO
CIFNUMBER
SHORTNAME
COMPANY
LASTNAME1
FIRSTNAME1
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MIDDLENAME1
SALUTATION1
SUFFIX1
TITLE1
LASTNAME2
FIRSTNAME2
MIDDLENAME2
SALUTATION2
SUFFIX2
TITLE2
STREET_ADDRESS1
STREET_ADDRESS2
CITY
STATE
ZIP
COUNTRY
COUNTY
EMAIL
EMAIL2
DOB
DOB2
TIN
TIN2
MAIL_NAME1
MAIL_NAME2
WEB_ADDRESS
NAME
NAME2
SSN
SSN2
CSZ
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ADDRESS_AND_CSZ
PRIMARY_PHONE
PHONE_HOME
PHONE_HOME2
PHONE_HOME_FAX
PHONE_BUSINESS
PHONE_BUSINESS2
PHONE_BUSINESS_FAX
PHONE_MOBILE
DETAIL_UDF1 - DETAIL_UDF50
DEMOGRAPHICS_UDF1 - DEMOGRAPHICS_UDF50
FINANCIALS_UDF1 - FINANCIALS_UDF50
UDF1 - UDF50 (These udf fields are the relationship udfs that exist in task manager)
BORROWER_LINE_1 - BORROWER_LINE_6
Collateral Keywords
CR_COLLATERAL_ID
CR_COLLATERAL_CODE
CR_COLLATERAL_TEXT_DESCRIPTION
CR_DATE_VALUED
CR_NUMBER_OF_UNITS
CR_VALUE_PER_UNIT
CR_LIQUIDATION_PERCENTAGE
CR_NET_VALUE
CR_USERDEF01 - CR_USERDEF30
CR_INPUT_DATE
CR_V_ROW_ID
CR_REGISTERED_STATE
CR_VIN
CR_MAKE
CR_MODEL
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CR_STYLE
CR_TRIM
CR_COLOR
CR_LICENSE_PLATE_NUMBER
CR_YEAR
CR_ORIGINAL_MILES
CR_CURRENT_MILES
CR_CURRENT_MILES_DATE
CR_TITLE_STATUS_DATE
CR_TITLE_PERFECTED_DATE
CR_TITLE_RELEASED_DATE
CR_TITLE_NUMBER
CR_PURCHASE_PRICE
CR_ORIGINAL_VALUE
CR_CURRENT_VALUE
CR_VALUATION_METHOD
CR_VALUATION_DATE
CR_COMMENTS
Repo Details Keywords
RD_REPO_TYPE
RD_ORDER_DATE
RD_REPO_FEE
RD_REPO_FEE_INVOICE
RD_REPO_FEE_BORROWER
RD_STORAGE_FEE
RD_REPO_FEE_1 - RD_REPO_FEE_10
RD_CLOSING_FEE
RD_DELIVERY_FEE
RD_DAILY_STORAGE_FEE
RD_DAYS_FREE_STORAGE
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RD_REPO_DATE
RD_NOI_SENT_DATE
RD_NOI_EXPIRIATION_DATE
RD_NOI_EXTENSION_EXPIRATION_DATE
RD_REINSTATED_DATE
RD_TRANSPORT_REQUESTED_DATE
RD_TRANSPORT_EXPECTED_DELIVERY
RD_DELIVERY_CONFIRMATION_DATE
RD_TRANSPORT_FEE
RD_RECONDITION_FEE
RD_TOTAL_STORAGE_DAYS
RD_CHARGED_STORAGE_DAYS
RD_VEHICLE_MILEAGE
RD_SALE_PROCEEDS
RD_SALE_FEE_1
RD_SALE_FEE_2
RD_AGREED_RECOVERY_AMOUNT
RD_TOTAL_PAST_DUE_PANDI
RD_PAYOFF_LESS_LATE_FEES
Loan Details Keywords
LD_APPLICATION_DATE
LD_ORIGINATED_ACCTREFNO
LD_LOAN_NUMBER
LD_SALES_PRICE
LD_DOC_PREP
LD_SALES_TAX
LD_DMV_FEE
LD_LICENSE_FEE
LD_REGISTRATION_FEE
LD_SALES_FEE_OTHER_1
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LD_SALES_FEE_OTHER_2
LD_INSURANCE_CONTRACT
LD_GAP_CONTRACT
LD_SERVICE_CONTRACT
LD_CONTRACT_OTHER_1
LD_CONTRACT_OTHER_2
LD_DOWN_PAYMENT_CASH
LD_DOWN_PAYMENT_TRADE_IN
LD_DOWN_PAYMENT_REBATE
LD_DOWN_PAYMENT_OTHER
LD_AMOUNT_FINANCED
LD_FINANCE_CHARGE
LD_PREPAID_FINANCE_CHARGE
LD_DISCOUNT_PRECENTAGE
LD_DISCOUNT_DOLLAR
LD_RESERVE
LD_PRE_PAID_PAYMENT
LD_LOAN_TEMPLATE_NO
LD_LOAN_TERM
LD_LOAN_TERM_CHAR
LD_INTEREST_RATE
LD_PAYMENT_AMOUNT
LD_PAYMENT_AMOUNT_OVERRIDE
LD_ORIGINATION_DATE
LD_FIRST_PAYMENT_DATE
LD_COLLATERAL_VALUE
LD_LTV
LD_TOTAL_INCOME
LD_PTI
LD_PREMIUM_PERCENTAGE
LD_PREMIUM_DOLLAR
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LD_RESERVE_PERCENTAGE
LD_DEALER_CIFNO
LD_DEALER_COMPANY_NAME
LD_DEALER_CONTACT_NAME
LD_DEALER_VENDOR_ID
LD_DEALER_FEE_1 - LD_DEALER_FEE_10
LD_WITHHOLD_1 - LD_WITHHOLD_3
LD_WITHHOLD_1_DATE - LD_WITHHOLD_3_DATE
LD_DUE_TO_DEALER
LD_APR_RATE
Loan Keywords
LR_ACCTREFNO
LR_CIFNO
LR_MASTER_ACCTREFNO
LR_RESTRUCTURED_ACCTREFNO
LR_LOAN_NUMBER
LR_NAME
LR_SHORTNAME
LR_TIN
LR_INPUT_DATE
LR_OPEN_DATE
LR_CURR_DATE
LR_OPEN_MATURITY_DATE
LR_CURR_MATURITY_DATE
LR_PAYOFF_DATE
LR_LAST_ACTIVITY_DATE
LR_INTEREST_PAID_THRU_DATE
LR_PRINCIPAL_PAID_THRU_DATE
LR_INTEREST_ACCRUED_THRU_DATE
LR_ORIGINAL_NOTE_AMOUNT
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LR_CURRENT_NOTE_AMOUNT
LR_CURRENT_PRINCIPAL_BALANCE
LR_CURRENT_INTEREST_BALANCE
LR_CURRENT_FEES_BALANCE
LR_CURRENT_LATE_CHARGE_BALANCE
LR_CURRENT_PAYOFF_BALANCE
LR_CURRENT_PERDIEM
LR_CURRENT_DEF_PERDIEM
LR_CURRENT_SUSPENSE
LR_CURRENT_UDF1_BALANCE - LR_CURRENT_UDF10_BALANCE
LR_CURRENT_IMPOUND_BALANCE
LR_STARTING_INTEREST_RATE
LR_STARTING_YEAR_INTEREST_RATE
LR_CURRENT_INTEREST_RATE
LR_LAST_RATE_CHANGE_DATE
LR_NEXT_RATE_CHANGE_DATE
LR_NEXT_INTEREST_STEP_DATE
LR_ADDONINT_TOTAL
LR_ADDONINT_REMAINING
LR_COMPOUND_INTEREST_BALANCE
LR_COMPOUND_DEF_INTEREST_BALANCE
LR_NEXT_ACCRUAL_CUTOFF
LR_DAYS_IN_CURRENT_PERIOD
LR_TOTAL_PAST_DUE_BALANCE
LR_TOTAL_CURRENT_DUE_BALANCE
LR_NEXT_BILLING_DATE
LR_NEXT_STATEMENT1_DATE
LR_NEXT_STATEMENT2_DATE
LR_DAYS_PAST_DUE
LR_CURRENT_PENDING
LR_PROCESSING_START_DATE
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LR_CURRENT_OL1_BALANCE - LR_CURRENT_OL3_BALANCE
LR_CURRENT_SERVICING_BALANCE
LR_CURRENT_RESERVE_BALANCE
LR_INTEREST_ONLY_PAYMENT_DAYVALUE
LR_FIRST_INT_ONLY_PAYMENT_DATE
LR_PRINCIPAL_PAYMENT_DAYVALUE
LR_INTEREST_PAYMENT_DAYVALUE
LR_NEXT_INTEREST_PAYMENT_DATE
LR_NEXT_PRINCIPAL_PAYMENT_DATE
LR_AMORTIZED_PAYMENT_AMOUNT
LR_MINIMUM_PAYMENT_AMOUNT
LR_BALLOON_PAYMENT_AMOUNT
LR_BALLON_PAYMENT_DATE
LR_LAST_PAYMENT_DATE
LR_LAST_PAYMENT_AMOUNT
LR_ON_PRINCIPAL_PAYMENT
LR_ON_INTEREST_PAYMENT
LR_ON_PAYMENT
LR_NEXT_INTEREST_DUE_AMOUNT
LR_NEXT_PRINCIPAL_DUE_AMOUNT
LR_NEXT_PAYMENT_TOTAL_AMOUNT
LR_MINIMUM_PAYMENT_AMOUNT
LR_FIRST_PAYMENT_AMOUNT
LR_CURRENT_INT_ONLY_PAYMENT_DATE
LR_NEXT_INT_ONLY_PAYMENT_DATE
LR_FIRST_INTEREST_PAYMENT_DATE
LR_FIRST_PRINCIPAL_PAYMENT_DATE
LR_TOTAL_PRINCIPAL_PAYMENTS
LR_NEXT_PTP_DATE
LR_LAST_BROKEN_PTP_DATE
LR_LAST_KEPT_PTP_DATE
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LR_CURRENT_INTEREST_PAYMENT_DATE
LR_DETAIL_UDF1 - LR_DETAIL_UDF50
LR_DETAIL_2_UDF1 - LR_DETAIL_2_UDF50
Statements
In NLS, a Statement is defined as any document that is printed out on a periodic basis after
being automatically spooled to a print queue.
Documents that may be printed at any time, on an as needed basis, are referred to in NLS as
Reports.
NLS supports the spooling of two types of statements: Billing Statements1 and Periodic Statements2 .
Billing Statements
Billing Statements are automatically queued each time a billing is generated on a loan. The
billing date is controlled by the due date of the payment and by the Billing Cutoff3 parameter
of the loan.
EXAMPLE
The next payment on a loan will be due on the first day of March 2007. The billing cutoff for
this loan is –10. The system will set the Next Statement Date to February 19, 2007. When the
daily accruals for February 19th are processed, the March 1st payment will be billed on the
Loan System, and the statement will spool to the statement queue. The next time the statements are printed, this statement will be included in the statement print run.
Periodic Statements
Periodic Statements are statements that go to the print queue on a specified day. This day is
not determined by the existence of a receivable billing, but by the statement code setup.
EXAMPLE
If the Periodic Statement is set to print monthly, and the last statement went into the queue
3The number of days prior to the due date of the next payment on which that payment will bill and a receivable will be cre-
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on October 15th, the Next Statement Date will be set to November 15th. It is entirely independent of any billing process.
A periodic statement setup could be used to print a monthly statement on a loan that has only
quarterly1 or annual payments, or even no payments at all until maturity. In these cases, the
Statement may show that nothing is due.
Periodic statements should also be used in cases where the only payments due are fees that
were assessed through a recurring transaction; as such fees would not trigger a standard
billing statement.
Printing Statements
To print statements, click
Statements in the Reports slider in the Shortcut bar. A list of the
available statements will be loaded into the tree, and the main display will be populated with
search criteria fields that will allow you to narrow the range of statements for your print run.
The number shown in the Statements Unprinted field is the total number of statements that
have been queued, but never printed or purged. When a statement is processed it is marked
as printed and is no longer included in this count. It may be printed again only by using the
Reprint Statements option.
1 Every three months or four times a year.
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Click on one of the statement codes in the tree to select just the statements that belong to that
particular format. The Statements Unprinted field will update to reflect the number of unprinted
statements of that format only.
Do not try to print statements for the entire portfolio or for multiple statement codes at once
without selecting a specific statement code. The parameters available are different for the various statement types, so if you do not select a specific statement code, you will not get a parameter list, and so you will not have the opportunity to select the various parameters for the
statement print run.
If you wish to further narrow the range of statements in your print run, you may enter a loan
number range, a date range (for statement date), a Loan Group, Loan Class, or Loan Officer.
Once you have entered all of your parameters, click
Now, you may either click
Clicking
in the toolbar, or select
next to the Statements Selected field.
, Process Statement w/o Printout.
will generate a print run consisting of all selected statements. These statements
will be generated and sent to the printer. They will be marked in the database as printed, and a
copy of each statement will be attached to the Documents and Correspondence tab of the
appropriate loan.
Clicking
will generate a statement run consisting of all selected statements. These state-
ments will be generated, but will not be sent to the printer. They will be marked in the database
as printed, and a copy of each statement will be attached to the Documents and Correspondence tab of the appropriate loan. This option is generally used for old statements that
may be in the queue as a result of your initial entry of loans on to NLS at the time that your portfolio is brought over from another system. In this case, you would not want to send the customer statements for billings that were already invoiced and paid in the past, but you may
wish to have a statement generated and in the correspondence history so that it may be reprinted if necessary.
Late Notices
Late notices are generated to the print queue by late loan events.
EXAMPLE
A late loan code is configured to generate a late notice when any payment on a loan goes
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10 days past due. A loan with a payment due on the first of October is set up with this late
loan code. If the payment has not been paid by October 11th, a late notice will go into the
print queue.
The procedure for generating and printing out the late notices that are in the queue is identical
to the procedure for standard statements. Simply select the late notice from the tree instead of
the statement.
Consolidated Statements
Consolidated statements are generated by statement codes attached to commitments. A consolidated statement is an invoice for multiple loans under a commitment. In order for a statement to work as a consolidated statement, the statement file must first be programmed as
such, and then in configuration, the statement code must be designated as a consolidated
statement. Finally, the statement code is attached to a commitment rather than a regular loan.
Reprinting
To reprint a statement that has already been printed, click
Reprint Statements.
Select the Statement format from the tree that is the kind of statement you wish to reprint. The
upper portion of the display will be loaded with a list of all the past statement print runs for that
Statement format.
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Select the statement print run that you wish to reprint, or in which the statement that you wish to
reprint was generated. The lower section of the display will be loaded with a list of all of the
statements in that run.
If you wish to print just a single statement, select that statement from the list.
You may print or generate (and display to the screen) either the specific statement selected, or
the entire selected print run.
Standard Statement Formats
Three standard statement formats are included with NLS.
Loan Statement 1 is a standard billing statement.
Loan Statement 2 is a standard billing statement with transaction history.
Loan Statement 3 is a highly customizable statement that has options for credit-card statement
functionality.
Selection Parameters
Starting
Loan
Statements can be select by an alphanumeric range of loan numbers.
Number
Ending
Loan
Statements can be select by an alphanumeric range of loan numbers.
Number
Starting
Date
Ending
Date
Statements can be selected by a date range on the statement date.
Statements can be selected by a date range on the statement date.
Loan
Only statements from loans belonging to the loan group will be in the statement
Group
run.
Loan
Class 1
Loan
Class 2
Only statements from loans within Class 1 will be in the statement run.
Only statements from loans within Class 2 will be in the statement run.
Loan
Only statements from loans associated with the Loan Officer will be in the state-
Officer
ment run.
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Loan
Only statements from loans with the specified loan status will be in the statement
Status
run.
Status
Only statements from loans with the specified status code will be in the state-
Code
ment run.
Message
The text in this field will appear on all statements in the print run. This is used for
Line
reminders and seasonal greetings.
The text in this field will appear on all statements in the print run. This is generally
ACH Mes-
used for statements that go to borrowers who have their payments made via
sage
ACH, so the text will often be something like, “Send no payment. Your bank
account will be debited.”
Logo Filename
Logo Size
Width
Logo Size
Height
Logo Position Horizontal
Logo Position Vertical
Logo
Align
Center
Statement
Title
If you have a graphics file for a company logo, it must be placed on a local drive
of each computer running NLS. This field contains the full path and filename to
that graphic.
The logo will be sized horizontally to this number (in inches).
The logo will be sized vertically to this number (in inches).
The left edge of the logo will be placed this many inches from the left edge of the
page.
The top edge of the logo will be placed this many inches from the top edge of the
page.
If this checkbox is selected, the Logo Position Horizontal is overridden. The center
of the logo will be aligned with the center of the page (4.25 inches).
Text entered in this field will override the default title at the top of the statement.
Use Mailing
Mailing name will be used instead of the contact name.
Names
Show
Titles
Appends the title field (President, Accounts Payable, etc.) to the customer name.
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Show
Loan
If selected, the Loan Officer is displayed on the statement.
Officer
Show
Short
If selected, the contact shortname is displayed on the statement.
Name
Show
Maturity
If selected, the Loan’s maturity date is displayed on the statement.
Date
Show Previous Bal-
If selected, the ending balance from the previous statement is displayed.
ance
Sort Order Options
You may choose to have the printing order sorted in ascending alphanumerical order using
the Sorting drop down list.
Loan Group
Loan Class 1
Loan Class 2
Loan Officer
Loan Number
Contact Number
Contact Shortname
Loan Name
Loan Shortname
All Selection and Sorting Options on any particular statement code will remain after a statement print run, so that the next time you go to run statements, the options that you have selected are set as your starting point.
Email and SMS
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NLS can be configured to automatically send email and SMS1 text messages for the following
events:
l
l
l
l
l
l
l
l
ACH Return - when an ACH return is processed.
Credit Card Decline (Recurring type) - when a recurring credit card transaction is
declined.
Credit Card Processed (Recurring type) - when a recurring credit card transaction is processed.
Late Notice - when a late notice is generated.
NSF - when a non sufficient funds event occurs.
Payment Posted - when a payment is posted to a loan.
Payments Due - when a payment is due.
Statement - when a statement is generated.
The following items must first be configured before email and SMS can be used in NLS.
1. Email/SMS Servicer must be selected in System Defaults.
Click the Main slider on the shortcut bar, then Setup, then System Defaults.
On the Email/SMS Servicer option, click on the Current Value column and choose NLS Service
or NLS Client Application. This option determines whether the messages will be sent from the
NLS Client Application or the NLS Service. For smaller user environments where the NLS Service
1 Short Message Service is a text messaging service commonly used with mobile phones that uses standardized com-
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may not be set up, the NLS Client Application can be used. For larger user environments and
where automation is used, the NLS Service will keep track and process the message queue to
send through the email and SMS servers. Both, client and service, function in the same way
with the only difference being whether the client or service is processing the email and SMS.
Email/SMS His-
The number of days an email/SMS message that has been sent is stored
tory
in the database for historical reference.
Email/SMS Inter-
The time interval in seconds that the email/SMS servicer will attempt to
val Process
send email/SMS.
2. Communication preferences, Email/SMS server, and templates
in System Setup.
Communication Setup
To set up NLS for email and SMS text messaging, click the Main slider on the shortcut bar, then
Setup, then System > Communication. An email server and an SMS server must be configured prior to creating a communications preference.
Email Server Tab
To add a new email server, click Add
. Enter a name for the email server and click OK.
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Main Tab
Name
Name of the email server.
Email Address
Enter the email address as it will appear in the From line of the email.
Incoming (POP3) Tab (feature not yet implemented)
Outgoing (SMTP) Tab
Enter the credentials for the outgoing email server in this tab. Check with your system administrator or your email service provider to obtain the required information.
Server Address
Enter the server address for the SMTP server.
Enter the port number used for SMTP.
Port 25
Traditionally used for SMTP relaying.
Although port 465 was once recognized by Internet
Assigned Numbers Authority (IANA) for secured con-
Port 465
nections using SSL, this is no longer the case. However,
many services still recognize port 465 for SSL con-
Port
nections.
Port 587
The Internet Engineering Task Force (IETF) guidelines
define port 587 for secure email submissions.
Some servers may recognize port 2525 as an altern-
Port 2525
ative to port 587 in the event the other ports are
blocked.
Username
Enter the username for logging in to the server.
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Password
Enter the password for logging in to the server.
When enabled, a secured socket layer connection will be used to
SSL Enabled
connect to the server.
Use Windows
When enabled, Windows authentication will be used to log in to the
Authentication
server.
Click Test
to test the server connection. A dialog will appear to indicate if a connection
was made successfully or if any errors were encountered.
SMS Server Tab
Nortridge Software selected Solutions by Text (SBT) as the preferred text messaging service
vendor. Accordingly, NLS comes pre-configured with an interface to SBT. Please contact SBT
at [email protected] for details on text templates and pricing. If for any reason SBT
does not meet the customer’s needs, interfaces with other texting services can be engineered either by the customer or through the Nortridge Consulting Department.
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To add a new SMS server, click Add
. Enter a name for the server and click OK.
Name
Name of the SMS server.
API Key
Enter the API key provided by Solutions by Text.
Root Organization Code
Enter the root organization code provided by Solutions by Text.
Choose the method that will be used to verify the SMS phone number as configured with Solutions by Text.
VBT by
PIN
VBT by
VBT Type
A request message with an authorization code (PIN) is sent to a
customer’s device. Customer confirms authorization with a PIN
verbally or entered in a web form.
A request message is sent to a customer’s device. Customer con-
Reserve firms authorization with a reserve word response—Y, agree, or
Word
accept.
NLS
4. 10. 3
AN D
LATE R.
A request message is sent to a customer’s device. Verification is
done automatically without waiting for a manual response.
VBT
Auto
Specify the window of time during which SMS messages are to be sent. SMS
will only be sent out between the times specified. Messages generated outTime to Send
side of this window will be held until the specified time, at which time the messages will be sent. The specified time is based on the time zone of the server’s
location.
Click Test
to test the server connection. A dialog will appear to indicate if a connection
was made successfully or if any errors were encountered.
Communication Preferences Tab
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To create a communication preference, click Add
. Enter a name and a description for the
preference and click OK.
Specify for each event, whether to make the option of printing, emailing, or sending a text message available for a loan. Only items that are selected will be available as an option in a loan’s
communication preferences discussed below. Choose a template for use with email and SMS.
For payments due, the message may be sent on any of one to seven days before the due
date, on the due date, and one day past the due date. For credit card advance notification,
the message may be sent on any of one to seven days before the advance date.
For late notice and statement emails, the notice or statement may be sent as an attachment to
the email by selecting the Attach document to email option.
Email Template Tab
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To create a new email template, click Add
. Enter a name and click OK.
Name
The name of the email template.
Email Server
Drop down list of available email servers.
Alert Type
Specify the type of alert that this message is to be associated with.
Subject
Subject line of the email.
Body
Body of the email.
Body Encod-
Click to select the buttons to choose between HTML or plain text email mes-
ing
sages.
While editing the subject and body of the template, right-click in the field and select from available keywords (variables) from the Macros menu.
Click Test
to test the email template. A dialog will prompt you for an email address to send
the template. Check the email to verify that the template is formatted accordingly.
Email template keywords
{NLS_ACCTREFNO}
{NLS_LOANNUMBER}
{NLS_LOANNUMBER_LAST_4_CHARS}
{NLS_LOAN_TIN_LAST_4_CHARS}
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{NLS_CONTACT_TIN_LAST_4_CHARS}
{NLS_FIRSTNAME}
{NLS_LASTNAME}
{NLS_COMPANY}
{NLS_ADDRESS1}
{NLS_ADDRESS2}
{NLS_CITY}
{NLS_STATE}
{NLS_ZIP}
{NLS_TOTAL_CURRENT_DUE}
{NLS_TOTAL_PAST_DUE}
{NLS_DAYS_PAST_DUE}
{NLS_PAYOFF_AMOUNT}
{NLS_STATEMENT_DATE}
{NLS_STATEMENT_DUE_DATE}
{NLS_STATEMTN_PAYOFF_AMOUNT}
{NLS_STATEMENT_TOTAL_CURRENT_DUE}
{NLS_STATEMENT_TOTAL _PAST_DUE}
{NLS_#_DAYS_BEFOREAFTER_DUE_DESC}
{NLS_DUE_DATE}
{NLS_DUE_AMOUNT}
{NLS_AMOUNT}
{NLS_CC_NEXT_PROCESS_DATE}
{NLS_CC_DAYS_BEFORE_PROCESS_DATE}
SMS Template Tab
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To add a new SMS event, click Add
. Enter a name for the event, choose the SMS server to
use from the drop down list, and choose an alert type that will trigger the SMS from the drop
down list. Choose an organization structure and select the checkbox for the template to use
for this event.
NOTE
Templates are configured by Solutions by Text for your account.
Name
Name of the SMS template.
SMS Server
Drop down list of available SMS servers.
Alert Type
Specify the type of alert that this message is to be associated with.
Organization Structure Choose an organization structure as provided by Solutions by Text.
Templates
List of available SMS templates. Click to select the template to use.
Once all of the information in entered, click OK to restart NLS for the changes to take affect.
3. The Communication option in Loan Group Setup.
Click the Main slider on the shortcut bar, then Setup, then Loan Setup > Loan Group.
Click the Servicing Options tab and choose the Communication preference to use for this loan
group from the drop down list.
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4. Loan Communication Preferences
To set up a loan with email and SMS events, query the loan and highlight it in the treebar. Select
View > Communication Preferences menu.
NOTE
If a communication preference is not associated with the loan group to which the loan
belongs, the Communication Preferences menu will be disabled.
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In the Alerts tab, select the alert types that will trigger an email or SMS for this loan. Only alert
types that have been configured and selected in Setup for that communication preference
are listed and can be selected. Alert types that have not been configured for email or SMS will
be grayed out or will not be listed.
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In the Email Address/SMS # tab, configure the email address and SMS numbers of the recipient.
In the Email Address section, click New
Or click …
and enter an email address of the recipient.
to choose from a list of email addresses associated with the loan.
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Select the phone number to use and click OK.
Multiple email addresses may be entered separately.
In the SMS # section, click New
Or click …
and enter the phone number of the recipient.
to choose from a list of mobile phone numbers associated with the loan.
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Select the phone number to use and click OK.
Once a phone number is entered, click Submit. A verification message, as defined in the SMS
Server VBT setup, will be sent to the phone number. Follow the verification process to validate
the phone number.
To delete an email address or SMS #, highlight the item in the list and click
.
User Defined Field Attributes
User-defined fields in NLS can be customized in various ways. Right-click on a user-defined field
and select Setup to open the User Defined Field Setup… dialog.
Field
Label for the user defined field up to 50 characters in length. The default is “User
Label
Defined.”
Default
Value
A value entered in this setup field will automatically be entered as the actual field
data by default whenever a new account is added (contact or loan user-defined
fields respectively).
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Set field to allow for up to 50 alphanumeric characters.
Text Field
Unlimited text
Select to allow an unlimited length of text into
size
the field.
Rich Text
Select to allow for rich text (formatted) to be
Format
used.
Set field for only numeric values.
Decimal Number of decimal places to use. Click the up and
Places
Numeric
Field
down arrows to select up to five decimal places.
Max
The maximum value that the field can accept.
Value
Min
The minimum value that the field can accept.
Value
Date Field
Set field for a date value.
Field becomes a drop down list that allows for selection from a list
Field
Type
Drop Down
or for manual entry. Click
Add to add items to the list and use
Field (Allow
to re-order selected items in the list. Click Sort to sort the list
user input)
of items in alphabetical order.
Field becomes a drop down list that allows for selection from a list.
Drop Down
Field (Select
only)
Click
Add to add items to the list and use
to re-order
selected items in the list. Click Sort to sort the list of items in alphabetical order.
Check Box
Button
Documents
Field becomes a checkbox that is selected or unselected by clicking on it.
Field becomes a button which will execute a specified script when
clicked.
Field can be used for attaching documents. When the field is
clicked, a dialog will appear for selecting documents.
Displays a table with up to 15 columns and an unlimited number
Grid
of rows containing any user defined field types or information from
connected contacts, loans, work packets, or tasks.
Disabled Check to disable a user-defined field. The corresponding user-defined field on the
Contact will display no data, and will not accept any input.
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Required When selected, NLS will not allow a Contact to be saved unless a valid value is
entered into that user-defined field.
When selected, the entire field will be removed from the Contact display. This can
Hide
be used to create spaces between groups of fields allowing for greater latitude in
customizing the look of the contact screen.
When selected, the field will be grayed out and cannot be edited, but any inform-
Read
ation in that field is still displayed. Information can get into the field by being
Only
placed there before the field definition is set to read only, by having a default
value set in the field definition, or by having the field value set by a VB script code.
Mixed
Case
When selected, lower case letters may be used for the User Defined text.
Script
Click
next to Script to open the script editing dialog.
Advanced Field Formatting
Click
next to Advanced to open the advanced field formatting dialog.
The Static Position defines the location of the UDF label and the Field Position defines the position of the field where the data is to be entered. The numbers available in the drop down lists
correspond to standard configuration of columns and rows; however, you can type in
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numbers in order to override the conventions of the standard columns and rows. All positions
and dimensions are measured in pixels and are defined with respect to the
shown in the
screenshot below:
Line, Label, and Box Garnishes
To add a horizontal line, additional labels, or enclosing boxes to the layout, right-click a blank
area in edit mode and select Add Line, Add Label, or Add Box from the popup menu. The text
for the label and the box title can be edited by double clicking on the text.
The objects can be resized and moved anywhere within the layout and can deleted by rightclicking on a object and selecting Delete Object.
Collateral
Collateral on the Nortridge Loan System is usually entered on the Collateral tab of a Loan
Setup (see Collateral ).
If you need to track collateral on the loan system for a loan that has not yet been entered, or if
you need to track a piece of collateral that is linked to multiple loans, you may enter it from the
main collateral screen.
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To access the main collateral screen, click
Collateral in the Main slider in the Shortcut bar.
From here, you can run a query on all collateral items that have been entered in the loan system as well as adding new ones and to link existing collateral to loans.
You may also attach a collateral item directly to a Contact account.
A single collateral item may be linked to multiple loans. This process is known as cross-collateralization.
ACH
The ACH (Automated Clearing House) function in NLS is used to set up automatic draws
against customer checking accounts. These automatic draws are used to satisfy payments
against loans in NLS.
ACH setup may be broken down into the following key areas:
l
Global ACH setup: Your company’s ACH identifiers are entered into the system. This data
will be used when an ACH file is created.
l
Loan ACH configuration: The frequency and amount of the draw is set up on the customer loan along with ACH information pertaining to the customer’s checking account.
l
Create an ACH: The ACH is created for a range of dates in the future. All loans that are
configured to have ACH draws within the date range selected will be included. The ACH
file is created for transmission, and each loan with an ACH will generate a pending transaction, so that the payment will automatically be processed in NLS on the date for which
the draw is scheduled.
Loan ACH Configuration
To configure a loan for ACH, query the loan and select View > Automated Payments menu
item.
Click Add
to put in an order for an ACH on this account. On the Add New Payment dialog,
select a status and a description for the ACH. The default status is Active, but an ACH can also
be Disabled or Expired.
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Main
On the Main tab, you will enter information for the customer’s checking account.
ACH Com- If you have configured multiple ACH company codes, you will select which one
pany
is to be used for this customer from the ACH Company drop down list.
Type
This field is not used in the current version of NLS.
ABA#
Acct#
The ABA number of the bank that has the checking account that is to be used for
the automated draws.
The account number of the checking account that is to be used for the automated draws.
The check number of the check that was voided by the customer in setting up
Check#
the automated draw. All of the automated draws effectively go through with that
check number, so the check must be voided by the customer and not used.
Acct Type
Either Checking or Savings.
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Amount
Either a fixed amount, a percentage of the principal, or the amount scheduled
to be billed.
Type
NOTE
“Amount of Billing” can only be used when the Frequency Type is also set to
“Billing.”
Amount
Max
Amount of
Draws
Only exists if type is fixed. This is the amount to be drawn in the ACH.
When the total amount of the ACH draws exceeds this amount, there will be no
more draws.
Debit
If selected, the ACH will debit the checking account being drawn.
Credit
If selected, the ACH will be a credit to the checking account.
Percentage
Min Amt
Max Amt
Max
Amount of
Draws
Only exists if type is set to percentage of principal. This is the percentage of the
principal that will be drawn.
If the amount derived by the percentage is less than this amount, this amount
will be used.
If the amount derived by the percentage is greater than this amount, this
amount will be used. Zero in this field represents no maximum amount.
When the total amount of the ACH draws reaches this value, the ACH terminates.
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Frequency
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Either One-Time, Recurring, or Billing.
Type
NOTE
A frequency type of “Billing” should only be used when the Amount Type is
set to “Amount of Billing.”
Period
For Recurring ACH draws, the frequency of the draw.
Start Date
The date of the first ACH draw.
Next Date
The date of the next ACH draw.
Expire Date
If set, there will be no ACH draws after this date.
The Grace Period is added to the ACH date to determine the date on which the
ACH will be drawn. This date determines if the particular draw will appear on
any particular NACHA file, based on the date range selected, and it is also the
Grace
Period
date associated with the transaction when sent to the bank. The ACH date will
be the effective date of the transaction. This has the effect of simulating the lag
time that is normal with traditional check processing.
EXAMPLE
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ACH date is August 1st and Grace Period is set to 3. This ACH will appear on
any NACHA file that includes August 4th and August 4th is the date that will
appear on the NACHA file. The pending transaction which will be posted in
NLS to process the payment will have an effective date of August 1st.
Max # of
When the count of total draws equals this number, there will be no further
Draws
draws.
Draws
Completed
A count of the number of draws that have already been done.
Options
Continue drafts
By default, ACH drafts end whenever a payoff transaction is executed.
after Payoff
Selecting this option overrides that default.
Continue drafts
after Maturity
By default, ACH drafts end upon the maturity date of the loan. If the
mature loan is not paid off, it may be necessary for the drafts to continue.
Selecting this option will allow drafts to continue after maturity.
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Do not adjust
draft down to
loan balance on
payoff
By default, whenever an ACH draft will result in a payoff that overpays the
loan, the draft amount will be adjusted down to just payoff the loan, so
that no refund is required. Selecting this option will override that default.
Notes
Any text that you would like to record about this particular customer’s ACH and its setup may
be recorded here.
Create an ACH
To create a new ACH Batch, go to the Processing slider on the Shortcut bar and click
on the
toolbar.
Enter a batch reference number for the ACH, a Batch Date, and a Deposit Date. NLS allows up
to five user-defined fields to be configured for use with the ACH. Depending upon what information your company is tracking in these user-defined fields, you may need to fill in these fields
as well.
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When all fields are filled in, click Next>.
Select an ACH header from those that were configured in the global ACH setup. The Execute
dates (from and to) define the date range for the ACH. All loans that have ACH draws scheduled during this range of dates will be included.
If no loan group is selected, the ACH will include all loans for which an ACH is scheduled in the
selected date range. Selecting a loan group limits the ACH to loans in that group, allowing
you to possibly break your ACH processing down into smaller batches. You may also filter by
ACH company.
Click
next to Save Result As to open a windows browser dialog. Browse to the path where
you want the ACH file to be generated and enter a file name.
When all fields have been filled in, click Next>.
A small window will pop up to tell you the number of ACH transactions that were included in
your selected date range. If that number is one or greater, an ACH file will be created at the location specified.
On any loans for which an ACH transaction was created, that transaction will be entered as a
pending transaction. It will be processed automatically during the nightly accrual processing
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run when the pending transaction’s effective date is reached. Pending payments effectively
post on the morning of their posting date, so they will occur during the end of day processing
for the previous night. This way, if accruals are up to date, on any day where you observe a
loan that had a pending transaction scheduled for the current date, that transaction will have
posted unless it was created the same day by a back-dated ACH process.
Amortized Fees
The amortized fees feature can be used to handle the accumulation of income for fees for
which that income must be amortized over the life of the loan. In addition, it can also be used
to amortize discount income (the income inherent in purchasing a loan for less than the principal balance of that loan) or to amortize the expense of loans bought at a premium.
The first step in setting up a fee amortization is to configure two transaction codes: once for
establishing the amortized fee, and the second for the periodic amortization.
Next, the amortized fee is configured on a loan by one of the following four amortization methods:
Straight Line
Effective Interest
Principal Pro-rata
Custom
The fee will amortize during the nightly accrual process on those days when it is scheduled to
do so. For example, if the fee amortization is set up as daily, it will amortize during each nightly
accrual process, but if it is set up to weekly, it will only amortize during one of each seven
nightly accrual processes.
At any time, you can view the setup and the fee amortization history for the amortized fees on
a loan by selecting Amortized Fees from the view menu.
Setting Up Transaction Codes
Because Amortized Fees are entirely invisible to the end user, the main purpose of the function
is to control the transactions that apply income to the general ledger.
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A fee (one that does not need to have its income amortized) would generally have two transaction codes involved, one for the assessment of the fee and one for the payment, and the
general ledger setup of that fee would usually look something like this:
Transaction
GL Debit Account
GL Credit Account
Fee Assessment Accrued Fees (Receivable) Fee Income
Fee Payment
Cash
Accrued Fees (Receivable)
In the case, where we can not credit the income upon assessing the fee, because that income
must be stretched out over the life of the loan, we need to add two additional transaction
codes, one to establish the fee amortization, and another to actually amortize it on a daily,
weekly, monthly, etc. basis. If we assume that the credit to fee income occurs on the periodic
amortization transaction, our (somewhat incomplete) general ledger setup will now look like
this:
Transaction
GL Debit Account
Fee Assessment
Accrued Fees (Receivable) ?
Fee Payment
Cash
Establish Fee Amortization
?
?
Periodic Amortization of Fee ?
GL Credit Account
Fee Income
In order to begin filling in the blanks, we begin by establishing a general ledger account to represent the asset of fees which have been assessed but not yet amortized. We will name this
account: Unamortized Fees. At any time, the balance in this account will represent the remaining amount of fees to be amortized. The addition of this account to the GL setup results in the
following configuration:
Transaction
GL Debit Account
Fee Assessment
Accrued Fees (Receivable) ?
Fee Payment
Cash
?
Unamortized Fees
Periodic Amortization of Fee Unamortized Fees
GL Credit Account
Fee Income
This leaves us with just one more GL account needed. An analysis of the transactions indicates
that this account represents the amount of any fee (of a type which should be amortized)
which has been assessed but for which the fee amortization has not been set up. The balance
of this account should always be zero, and any non-zero balance indicates that a fee
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amortization setup has been neglected. With the knowledge that this account should never
hold a balance for longer than the time it takes to set up the fee, we name this account: Amortized Fees Clearing Account. We now have the following configuration:
Transaction
GL Debit Account
Fee Assessment
Fee Payment
Cash
Periodic Amortization of
Fee
GL Credit Account
Amortized Fees Clearing
Account
Amortized Fees Clearing
Account
Unamortized Fees
Unamortized Fees
Fee Income
You can now go into Loan Setup: Labels to configure GL place-holders for the Amortized Fees
Clearing Account and the Unamortized Fees accounts. Once the GL place-holders have been
configured, you should map the actual GL accounts in your Loan Group setup.
You are now ready to set up the two transaction codes. For general information, see: setting
up custom transaction codes.
The specifics of these transaction codes are as follows:
The Amortized Fee Establishing Transaction
In order for this transaction code to be used for this purpose, make sure that the Transaction
Type is set to Generic, the Transaction Classification is set to Amortized Fee, and the Loan Balance Affected is set to Amortized Fees Total (increase). The general ledger controls should be
set up based on the GL configuration in the table above.
The Amortized Fee Periodic Amortization Transaction
In order for this transaction code to be used for this purpose, make sure that the Transaction
Type is set to Generic, the Transaction Classification is set to Amortized Fee, and the Loan Balance Affected is set to Amortized Fees Amortization (increase). The general ledger controls
should be set up based on the GL configuration in the table above.
Amortized Fee Setup
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To set up an amortized fee on a loan, query the loan, and then select View > Amortized Fees
menu.
Click Add
.
The specific configuration will depend on the type of fee amortization:
Straight Line Method
If a fee is amortized via the straight line method, the amount of the fee to be amortized is
divided by the total number of periods, and the periodic amortization transaction will be run
for the resulting amount whenever called for by the fee amortization setup.
Examples
1. A $1,000 fee, amortized monthly over 12 months: The amortization transaction will occur
once a month for the amount of $83.33.
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2. A $1,000 fee, amortized daily over 12 months: The amortization transaction will occur
daily for the amount of $2.74.
Description
Descriptive text to identify this amortized fees and distinguish it from any other
amortized fees on the same loan.
Type
Set to “Straight Line - Periodic”
Start Date
The first date on which the fee should amortize
Balance
The Amount of the fee to Amortize
Est. Bal.
Transcode
Period
Divisor
Amort. Fee
Transcode
Periodic
Amount
The Establishing Transaction Code. Only transaction codes which meet the
requirements for an Amortized Fee establishing transaction code will be available in this drop down list.
The frequency of the straight line amortization
The total number of times that the fee will amortize straight line. The fee amount
will be divided by this value to derive the periodic amount.
The periodic amortizing transaction code. Only transaction codes which meet
the requirements for an Amortized Fee periodic amortizing transaction code will
be available in this drop down list.
The amount that will be amortized during each periodic amortization.
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Effective Interest Method
If a fee is amortized via the effective interest method, the amortization of the fee will track with
the interest accruals on the loan. For example: in an amortized loan, more interest tends to be
realized up front while the principal balance is higher. A fee amortized by the effective interest
method would amortize in proportion to this accrual of interest.
The equations and procedures for this amortization method are as follows:
Given that
x = total interest accrued life to date on the loan
y = total interest projected to accrue over the entire life of the loan based on history so far and
projecting the payment schedule forward from this point to the maturity date
then
x/y = the ratio of the fee which should be amortized up to this point in time.
if
f = the amount of the fee to be amortized
then
f* (x/y) = the dollar amount of the fee that should be amortized up to this point in time.
if
a = the amount of the fee that has been amortized so far
then
(f * (x/y)) -a = the amount of the fee to amortize today.
The amortization period controls the frequency with which these calculations are run. Modifications, interest rate changes, advances, or principal reductions on a loan can cause drastic
shifts to the factor “y” in the equations above and as a result when these calculations are run,
the amount of the fee to amortize can jump greatly, or can even be a negative value. There is
a checkbox to allow negative amortization, and if this is selected, the fee amortization will correct back to where it “should be” given the new and current conditions of the loan. If this checkbox is not selected, then the amount amortized will be zero each time until such time as the
calculations yield a positive amount to amortize. Because the projection of interest “y” is
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always through the maturity date of the loan, by that date y will always equal x, and consequently the fee will always amortize in full on the first amortization date on or after the date of
maturity.
Description
Type
Starting Balance
Est. Bal.
Transcode
Amort. Fee
Transcode
Amort
Effective
Date
Set to “Effective Interest Method - Daily Accrual”
The date from which to start amortizing. Interest accrued prior to this date is not
counted in either “x” or “y.”
Interest Off- This field is calculated automatically, and is the amount to be deducted from
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set
Expected
Interest
Period
“x” and “y” based on the Amort Effective Date. It represents the interest that
accrued prior to that date.
Factor “y” in the above equations
The period used to define the frequency of the amortization
Used with period to define the frequency of the amortization.
Number of
EXAMPLE
Periods
If period is set to days and number of periods is set to 5, the calculations
above would be run every five days.
Start Date
Allow Negative
Entries
The date of the first amortization and calculation.
If selected and the amount of the fee to amortize comes to a negative value,
then that amount will be rolled back (un-amortized). If not selected and the
amount of the fee to amortize comes to a negative value, then zero will be
amortized.
Principal Pro-rata Method
If a fee is amortized via the principal pro-rata method, the amortization of the fee will track with
the rate at which the principal balance on the loan is repaid. For example, when 20% of the original principal of the loan has been repaid, the fee will be 20% amortized.
The equations and procedures for this amortization method are as follows:
Given that
x = the total principal paid on the loan
y = the total principal advanced on the loan
then
x/y = the ratio of the fee which should be amortized up to this point in time.
if
f = the amount of the fee to be amortized
then
f * (x/y) = the dollar amount of the fee that should be amortized up to this point in time.
if
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a = the amount of the fee that has been amortized so far
then
(f * (x/y)) - a = the amount of the fee to amortize today.
As long as no principal payments have been made since the last time the calculations were
run, the amount of the fee to amortize will always come out to zero. Therefore, if it is your intention that a portion of the fee should amortize as soon as a principal payment is made, set the
period for this setup to daily. A portion of the fee will always amortize during the nightly accrual
process of any day on which there was a payment to principal.
Description
Type
Starting Balance
Est. Bal.
Transcode
Principal
Use “Principal/Original Balance Prorata Method”
The amount to be deducted from the principal paid “x” and principal
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Offset
Amort. Fee
Transcode
Period
advanced “y” of the loan. Amortization beginning on the start date will be
based on this adjusted principal.
The period used to define the frequency of the amortization
Used with period to define the frequency of the amortization.
Number of
EXAMPLE
Periods
If period is set to days and number of periods is set to 5, the calculations
above would be run every five days.
Start Date
Allow Negative
Entries
If selected and the amount of the fee to amortize comes to a negative value,
then that amount will be rolled back (un-amortized). If not selected and the
amount of the fee to amortize comes to a negative value, then zero will be
amortized.
If the loan’s Interest Type is set to Fixed Amortization 1 , the principal paid for the above calculations is the amount of principal that should have been paid according to the amortization
schedule. This means that the fee will amortize on the next opportunity to do so after a principal payment is due, even if that principal payment has not been made.
Custom Method
The custom method of fee amortization is the simplest (and also the least used) method by
which to amortize a fee.
You simply specify the exact dates on which portions of the fee are scheduled to be amortized
then you specify the exact amount to be amortized on each of those dates.
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Description
Type
Use “Straight Line - Custom”
Balance
Est. Bal.
Transcode
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Amort. Fee
Transcode
Start Date
To schedule a date and amount to amortize a portion of the fee, click Add
on the lower
section of the dialog.
Period Number
Enter an identifying number for the period that you are defining.
Period Date
Enter a date on which you want a portion of the fee to be amortized.
Period
Enter the amount that represents the portion of the fee that you want amort-
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Amount
ized.
Canceling an Amortized Fee
This feature is available in NLS 4.9.2 and later.
To cancel the remainder of an unamortized amount, click the Cancellation tab then select the
type, transcode, and minimum cancellation amount. Click Cancel
and set the effective
date of the cancellation. The Amortization Adjustment and Cancellation Amount will automatically be populated based on the selected type. Click OK to cancel the amortized fee.
Calculation used to determine the amortization adjustment and cancellation amounts.
Actuarial remaining amortized fee is used as the cancellation amount.
Type
Pro-rata
Cancellation
Transcode
calculates the amortization adjustment and cancellation
amount based on the pro-rata method.
Rule of
calculates the amortization adjustment and cancellation
78s
amount based on rule of 78s.
Transaction code to use with the cancellation.
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Minimum
Cancellation
Cancel on
Early Payoff
Rebate Rule
Sets the minimum amount required for the cancellation amount. Cancellation amount is 0 if it is less than the minimum cancellation value. Maximum value is 999.00.
Select to cancel remaining amortized fee upon early payoff.
This feature is not yet implemented. Proportional rule will be used for all Rule
of 78s.
Viewing Existing Amortized Fees
To view an existing amortized fee on a loan, first query that loan.
Select View > Amortized Fees menu.
Main Tab
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The Main tab shows the transactions associated with the amortized fee—the establishing transaction as well as each of the amortizing transactions which has been run so far. In addition,
the balances of the fee are shown.
Setup Tab
The fields on the Setup tab are identical to the fields that were set at the time the fee was configured. For information on these fields, see the setup sections for the various types of amortized fees.
Straight Line
Effective Interest
Principal Prorata
Custom
Notes Tab
The Notes tab is a place where you can type some text related to the amortized fee and have it
saved there.
Disbursement Screen
The Disbursement Screen may be accessed by clicking the Disbursement slider on the Shortcut
Bar and then clicking
Disbursement.
The options in the main section of the Disbursement screen control what type of object is to be
queried on that screen. The objects available for query are:
Vendors
When the Query Contact Vendor button is selected, you may enter a search criteria and click
to query the list of available vendor accounts on the Contact Records.
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The main section of the Vendor Query screen shows information related to the specific vendor
account selected in the tree. The upper section shows the same information as the vendor
account on the contact.
The lower section shows a list of outstanding vouchers for that vendor account.
Voucher ID
Voucher
Type
Each voucher has a unique identifying number in the database.
The available voucher types are configured in the Disbursement Setup and are
assigned to voucher generating transaction codes when those codes are configured.
Account Reference Number. This is a unique number identifying the loan that
Acctrefno
the voucher is on. Although it is unique to the loan, it is possible to have multiple
vouchers with the same acctrefno since there can be more than one voucher
on a loan.
Pay Date
The date that the voucher will be paid.
Due Date
The date that payment is due.
Amount
Reference
The amount of the transaction which generated the voucher. It will ultimately be
the value of the check.
The Voucher Reference. This comes from setup that is built into the transaction
code.
Description This field is not currently in use.
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Select the Query Disbursement Accounts button on the disbursement screen and click
for
a list of your various disbursement accounts. All checks printed for the disbursement account
selected in the tree will be shown in the main view.
Check Date
The date on which the check was printed.
Check Number The number of the check that was printed.
Payee
The recipient of the funds.
Reference
This field is not currently in use.
Debit
The amount of a voided check.
Credit
The amount of a paid check.
Status
Active or Voided
Checks
Select the Query Checks button on the disbursement screen and click
for a list of checks
that have been processed.
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You may void a check from this screen by right-clicking a check and selecting Void Check.
Vouchers
Select the Query Vouchers button on the Disbursement Screen and click
to receive a list of
vouchers. You can enter a search criteria to aid in finding the specific voucher or vouchers that
you are looking for.
Account Reconciliation
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Account Reconciliation is used to balance the checking accounts that are represented by disbursement accounts within NLS.
To reconcile an account go to the Disbursement slider and query the disbursement account.
Then select the menu Actions > Reconcile.
Begin by entering the ending balance shown on your bank statement. Click …
next to End-
ing Balance.
Enter the statement date and the ending balance then click OK.
Next, go down the list of outstanding checks and check off any that appear as paid on the
bank statement.
Once this is done, you will be ready to enter adjustments.
Enter Adjustments
All items on the bank statement, other than vouchers and checks that are represented in NLS
must be entered as Adjustments. Additionally, the first time the Disbursement features of NLS
are used to reconcile, an adjustment should be entered to establish the starting balance
(unless the bank account did not exist prior to the use of NLS, in which case the starting balance would be $0.00). In all subsequent months, the starting balance will automatically be
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set to the ending balance of the previous month.
Enter the date, type, and amount of the adjustment along with any reference text that you
desire. The available adjustment types are:
l
l
l
l
l
l
l
l
Deposit - N/A
Deposit - Check
Deposit - Wire
Deposit - Cashier’s Check
Deposit - Cash
Bank Fee
Misc Adjustment
Interest Earned
Once you have entered all of the adjustments that appear on the bank statement, you are
ready to Finalize the Reconciliation.
Finalize Reconciliation
Once the account is balanced, click Finalize Reconcile… to complete the process. If the
account had been balanced when this button is clicked the Reconciliation will be finalized
and recorded. If the account is out of balance, you will receive a warning.
Click Back to Reconcile to continue entering adjustments, or click Force Adjustment to make a
correcting entry in the bank account to force balancing.
Vouchers to Print
When you are ready to print checks, click
Process Vouchers on the Disbursement Shortcut
bar (or Disbursement > Vouchers to Print from the navigation menu).
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You will see a list of all outstanding unprinted vouchers. You can narrow the list by selecting
from the voucher type drop down list, or by setting a date constraint.
Check the vouchers that you want to print checks for.
Click
. The vouchers you have selected are removed from the list.
To print them, proceed to check printing.
Check Printing
Click
Print Checks in the Disbursement slider in the Shortcut bar.
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The vouchers that you selected under Vouchers to Print should all be listed.
Click Print Check to send the checks to the printer.
Dashboard
The dashboard displays various graphical charts and maps representing the data in the database. The dashboard is accessed from the Main slider in the Shortcut bar.
Four dashboards are predefined; Loan Portfolio, Loan Averages, Delinquency, and Collections. Within each dashboard are built-in charts.
Built-in Charts
Loan Portfolio
l
New Loan Count per Day
A line chart showing the number of new loans created on a daily basis.
l
New Loan Dollar per Day
A line chart showing the dollar amount in new loans created on a daily basis.
l
New Loan Count per Month
A line chart showing the number of new loans created on a monthly basis.
l
New Loan Dollar per Month
A line chart showing the dollar amount in new loans created on a monthly basis.
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l
Portfolio Active Loan Count
A line chart showing the number of active loans in the portfolio.
l
Portfolio Active Loan Balance
A line chart showing the total balance of active loans in the portfolio.
Loan Averages
l
Average Loan Balance at Origination
A line chart showing the average of all loans on the date of origination.
l
Average Principal Balance
A line chart showing the average of all principal balance.
l
Average Interest Rate
A line chart showing the average of all interest rates.
l
Average Interest Rate at Origination
A line chart showing the average of all interest rates on the date of origination.
l
Average Term at Origination in Days
A line chart showing in days the average of all loan terms on the date of origination.
l
Average Term Remaining in Days
A line chart showing the average number of term days remaining in all loans.
Delinquency
l
Average Days Delinquent
A line chart showing the average number of days loans are delinquent.
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Dollars Collected
A line chart showing the total amount of dollars collected.
l
Current Days Delinquent
A pie chart showing the number of delinquencies in a pie chart.
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Average Days Delinquent by State
A map chart showing the average number of days loans are delinquent by state.
Collections
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Collector Actions per Day
l
A line chart showing the number of collector actions per day.
Customer Contacts per Day
l
A line chart showing the number of customers contacted.
Promise to Pay Count Made, Kept, Broken per Day
l
A line chart showing the number of pay count made, kept, and broken per day.
Promise to Pay Dollar Made, Kept, Broken per Day
l
A line chart showing the dollar amount of promises to pay made, kept, and broken per
day.
NOTE
Line (Stock) chart shows a data range selector which can be used to choose a data zoom
(display) range. The navigator along the bottom of the chart shows the entire sampling
range. The blue highlighted area within the range indicates the currently displayed area.
Click and drag the entire highlighted area or move the handles on either side of the highlighted area to adjust the displayed area. The Zoom buttons (1m, 3m, 6m, YTD, 1y, All)
along the top of the chart will adjust the highlighted area to the respective zoom range.
TIP
Mouse over any data point on a chart to see a tooltip showing the actual data being plotted.
Toolbar
The active items in the toolbar performs the following functions.
Copy the currently visible charts to the clipboard. Only the visible portion will be
Copy
copied.
Print
Print the currently visible charts. Only the visible portion will be printed.
Add
Add a new dashboard.
Delete
Delete the selected dashboard. The predefined dashboards cannot be deleted.
First
Show the very first dashboard in the tree list.
Pre-
Show the previous dashboard in the tree view.
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vious
Next
Show the next dashboard in the tree view.
Last
Show the last dashboard in the tree view
Refresh Resets the Line (Stock) chart to its default zoom range.
Adding a New Dashboard and Charts
To add a new dashboard, click Add
. Enter a name and a description and click OK.
Right-click in the empty view area and select Add Chart from the contextual menu. Up to six
existing charts or new charts may be added to a dashboard.
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To add an existing chart to the dashboard, click the Add existing chart button and choose from
a selection of predefined charts from the drop down list. Choose a location to place the chart
within the dashboard from the Location drop down list and click OK.
To create a new chart to add to the dashboard, click the Add new chart button.
Give the new chart a Name as it will appear in the list of existing charts and a Description for the
chart.
Choose from one of six chart types and set the parameters as defined for each of the chart
types below. Once the parameters are set, select a predefined SQL query statement from the
drop down list or enter a SQL query statement to retrieve the data to be displayed from the
database.
Click Execute to see the results of the SQL query statement in the field below the button.
Click Tidy to see the SQL statement reformatted for readability.
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Choose a location to place the chart within the dashboard from the Location drop down list
and click OK. The new chart will appear on the dashboard.
The chart is also saved in the database and will be available in the existing charts list until it is
deleted.
Chart Types
Line (Stock) and Line
This is a simple line chart with an X and Y axis. The Line (Stock) chart shows an additional date
range selector (Navigator) displayed within the chart.
Title
Enter a title for the chart as it is to appear at the top of the chart.
Left
Enter a label for the Y axis as it is to appear along the left edge of the chart.
Drop down list to choose the data type of either a date or number to be represented on the axis.
Datetime
X/Y Axis
options
Gridlines Toggles the display of grid lines on the chart.
Overlay
Opposite
Format
Toggles the display of data labels on the outside of the chart area
or within the chart area.
Switches the display of data labels from either the left edge to the
right edge or along the bottom edge to the top.
Drop down list to choose from various date formats.
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Number
Trendline
Decimal
Click the up/down arrow to display up to five decimal places
places
in the number.
Separators
Toggles the display of comma separators in the number.
Currency
Toggles the display of the currency symbol before the number.
Toggles the display of a linear regression trendline.
Pie
Options for the pie chart are:
Title
Left
Not applicable.
Tooltip X
Not applicable.
Tooltip Y
Label
Enter a label as it is to appear in the tooltip balloon.
Decimal
Click the up/down arrow to display up to five decimal places in
places
the number.
Separators
Currency
Table
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This is a basic table of data with the following options:
Title
Bar
This is a simple bar chart with the following options:
Title
Left
Enter a label for the Y axis as it is to appear along the left edge of the chart.
X axis
Not applicable
Y axis
Decimal
Click the up/down arrow to display up to five decimal
places
places in the number.
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Separators
Toggles the display of the currency symbol before the num-
Currency
Tooltip Y Label
ber.
Enter a label as it is to appear in the tooltip balloon.
Map
This is a geographic chart for the United States, United States - continental, United States + territories, Canada, Canada - under 71 latitude, United States + Canada, Mexico, and North
America. Options for this chart are:
Title
Left
Not applicable.
Tooltip X
Not applicable.
Tooltip Y
Legend
Label
Enter a label as it is to appear in the tooltips balloon.
Decimal
places
the number.
Separators
Currency
Label
Not applicable
Decimal
places
the number.
Separators
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Currency
Determines the colors used in the chart from a lower value (left) to a higher value
Gradients (right). Click on the color swatch to choose a different color from the drop down
palette or choose More Colors… to use a color picker.
Contextual Menu
The following menu items are available when a chart or an empty space within the dashboard
is right clicked.
Add Chart
Add a new chart to a dashboard. Option not available on predefined dashboards.
Resize
The chart becomes resizable by grabbing one of the edges or corners of the
enabled
chart.
Float Widget
Float All Widgets
Dock Widget
Dock All
Widgets
Full Screen
Copy
View Chart
Information
The chart can be moved to any location on your display and resized.
All charts becomes a window which can be moved and resized.
Dock a chart to the dashboard display area.
Docks all charts to the dashboard display area.
Displays the chart in full screen. Right-click and select Restore (ESC) or hit Esc
on the keyboard to exit full screen view.
Copies the visible portion of the chart to the clipboard.
Displays a NLS Chart Widget Information window showing detailed information
of the chart. The XML and SQL query statement can be edited (except on builtin charts).
Remove
Removes the chart from the dashboard. Option not available on predefined
Chart
dashboards.
Delete
Removes the chart from the dashboard and from the database. Built-in charts
Chart
cannot be deleted.
Dashboard Security
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Dashboard privileges are granted to NLS users and function in the same way other security privileges are granted—through trustee, individual user privileges, and group privileges. The privileges can be assigned in:
Security > User > Privileges tab
Security > Group > Privileges tab
Security > Default Privileges
To edit Trustees on a per dashboard basis, right-click a dashboard and select Modify
Security….
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Privileges available are:
Dashboard
View
Update
Add
Delete
User is able to view all dashboards owned by everyone.
User is able to rename all dashboards owned by everyone (except for built-in
dashboards).
User is able to add new dashboards.
User is able to delete all dashboards owned by everyone (except for built-in
dashboards).
Charts
View
User is able to view the XML in the chart information dialog.
Update
User is able to update every chart (except for built-in charts).
Add
User is able to add new charts.
Delete
User is able to delete every chart (except for built-in charts).
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Charts
Remove
User is able to remove every chart (except from built-in dashboards).
Print
User is able to print every chart.
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Additional Features
Temporary Notes
You may add an unlimited number of “sticky” Temporary Notes to a Contact or Loan record.
These look like yellow memos that are stuck to the screen on the specific Contact or Loan
account. A Temporary Note may contain up to 1,000 characters. The note may be re-sized, set
as private (so that only the original creator can read it), and set so that only the owner can
delete it.
NOTE
A user with DBA1 privilege can view notes set as private and delete notes set as owner
delete.
To add a temporary note, begin with a Contact or Loan account. Click
Notes on the tool-
bar. As soon as you click this button, a blank note will appear.
You can move and resize your note on the page. Enter the text that you want to appear on the
note. Any time this contact or loan account is queried, the note will appear in the same location and the same size as the way that you configured it.
A user may hide a note (to more easily view the contact or loan account information) by clicking
in the upper right corner of the note. This does not delete the note and it will reappear
the next time the contact or loan is queried.
Clicking
Private
Notes
note icon in the upper left corner of the note brings up the following options:
If selected, only the user that created the note may view it.
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Owner
Delete
Delete
Close
If selected, only the user that created the note may delete it.
Deletes the note completely. It will not come back when the contact or loan is
re-queried.
Closes the note without deleting it. Same as clicking
.
Commitments
A commitment is an agreement by a lender to grant a loan or loans for a specified amount of
money at a future date. The holder of the commitment may pay a fee to reserve the funds, but
is not required to pay interest on the money unless it is actually borrowed.
A commitment differs from a line of credit, in that each draw under the commitment may be a
separate loan with differing interest rates and different repayment terms. On a line of credit
loan, the interest rates and repayment terms are set in advance for the entire credit line.
The diagram below shows how commitments fit into the structure and hierarchy of NLS:
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In the example shown above, Johnson Company has three separate loans which amount to a
total of $800,000. These loans are under the commitment for $1,000,000, so the Johnson Company could still take out another loan for $200,000 if the company wanted to do so any time
within the remaining term of the commitment.
Adding a Commitment
A commitment is added directly to a contact, so in order to add a commitment, begin by
querying the contact for the customer who is receiving the commitment.
Click
next to
on the toolbar and select Add Commitment.
The commitment entry screen is identical to the loan entry screen (specifically for Line of Credit
type loans) but with certain fields and functions missing (such as the loan amount). The commitment amount is entered in the credit line fields.
Adding a Loan to a Commitment
To add a loan under a commitment, first query the commitment. You may do this from the
Loan Query screen, or by querying the contact then expanding the tree to view the loans and
commitments under that contact. Click on the desired commitment.
Once you have the commitment selected, click
next to
on the toolbar and select Add
Loan Under Commitment.
The Loan Entry Screen that comes up will already have the loan properly linked up under the
commitment. The remaining parameters of the loan should be added as usual.
Viewing Commitment Detail
Once a commitment has been added to a contact, and a loan has been added to the commitment, the tree for this contact/commitment loan 1 combination will look like the example
shown below.
1 Type of loan that is an agreement by a lender to grant a loan or loans for a specified amount of money at a future date.
The holder of the commitment may pay a fee to reserve the funds but is not required to pay interest on the money unless
it is actually borrowed.
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If you view the commitment itself (just as you would view a loan), it will look like the example
shown above.
The commitment limit is the amount that was defined when the commitment was created.
The rest of the balances on the commitment are the sums of the appropriate balances on all of
the loans within that commitment.
The grayed out fields (interest rate, next payments due, regular payment, and days past due)
do not apply to a commitment on its own, but will exist on the various loans that are present
under the commitment.
ACH billing may be added to a commitment loan.
NOTE
To draft billings for all loans under a commitment, set ACH billing at the commitment loan
level. Do not set ACH billing at both the loan level and at the commitment level. Doing so
will result in duplicate ACH being drafted.
When loans under a commitment have different due dates, they will be processed as separate transactions.
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When a credit bureau is set at a commitment level, NLS will consolidate all loans under the
commitment and report to the credit bureau as one loan.
All credit bureau overrides are set at the commitment level. Any status code set under the
commitment will be ignored.
NOTE
Once a credit bureau is set at a commitment level, the credit bureau cannot be set on
loans under the commitment.
Pools
A pool is an aggregation of the loans of different borrowers, which have been combined for a
specific purpose, such as to be resold into the secondary market.
The diagram below shows how pools fit into the structure and hierarchy of NLS.
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In the example shown above, Mary’s Mortgage and John’s Mortgage have been placed in a
pool for eventual sale to the ABC Lending Company. This pool exists under the contact for ABC
Lending Company. Each loan is linked to the contact under which it was created (as normal)
as well as the pool into which it has been placed.
Adding a Pool
A Pool is added directly to a contact, so in order to add a pool, begin by querying the contact
on which the pool is to be placed.
Click
next to
on the toolbar and select Add Pool.
The pool entry screen is identical to the loan entry screen (specifically for line of credit type
loans) but with certain fields and functions missing (such as the loan amount). The pool
amount is entered in the credit line fields. Loans may be added to the pool until the available
pool credit line is used up.
Adding a Loan to a Pool
To add a loan under a pool, first query the pool. You may do this from the Loan Query screen,
or by querying the contact then expanding the tree to view the loans and pools under that contact. Click on the desired pool.
Once you have the pool selected, click
next to
on the toolbar and select Add Loan
Under Pool. This will allow you to create a new loan under the Pool.
More often, however, you will be attaching loans that already exist on other contacts to your
pool. To do this, select Attach Loan To Pool. This will bring up a special query window that will
allow you to select the loan that you want to attach to the pool. The existing loan will be linked
to the pool if the pool has sufficient funds remaining in its credit limit.
Detaching a Loan from a Pool
To detach a loan from a pool, query the contact and expand the tree under the contact. Click
on the loan attached to a pool to highlight it. Then from the menu bar, select Actions > Add >
Detach Loan From Pool menu item.
Viewing Pool Detail
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Once a pool has been added to a contact, and a several loans have been added to the pool,
the tree for this pool loan 1 combination will look like the example shown below.
The commitment limit is the amount that was defined when the pool was created.
The rest of the balances on the pool are the sums of the appropriate balances on all of the
loans within that pool.
The grayed out fields (interest rate, next payments due, regular payment, and days past due)
do not apply to a pool on its own, but will exist on the various loans that are present under the
pool.
Participation Loans
Participation loans are loans in which the funds for the loan come from two or more participating institutions. Each participant in the loan will have their portion of the loan in a separate loan group for the purposes of general ledger reporting. This model is useful for a lender
who participates loans with a limited number of participating lenders.
For an explanation of how to set up loan groups for participation accounting, see Loan
Groups.
1 Type of loan that is an aggregation of the loans of different borrowers which have been combined for a specific pur-
pose, such as to be resold into the secondary market.
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Alternatively, for those lenders who participate loans with a large number of investors, an
alternate setup may be preferred in which each investor is not represented by separate
accounts in your general ledger. Just like each loan is not separated out on the GL side, and
NLS acts as your sub ledger, all of (or blocks of) the investors can have their GL report to an
aggregate account while NLS acts as a sub ledger, maintaining the balance of the funds
owed to each participant.
In this model, each participant must be added as a contact, and their participation account
information is entered as a vendor account.
Adding a Participation Loan
To enter a loan as a participation loan, begin as you normally would, by querying the contact
that the loan is to be entered on. Click
next to
on the toolbar and select Add New Loan.
Select the Participation checkbox at the bottom of the loan entry screen. This will make a new
Participation tab available on the loan entry screen. If your NLS license does not contain the
Participation Module, the Participation checkbox will not appear on your loan entry screen.
Enter the rest of the parameters for the loan as you normally would for that loan type. For
examples of entering different types of loans, see Loan Input Examples.
Click the Participant tab. Here you will enter the various participants that will exist on the loan.
When a loan is created and the Participation checkbox selected, a participant called PRIMARY
is immediately and automatically created. This participant has two functions: a) to hold all of
the principal balance of the loan until you have had a chance to create the other participants
and assign the money to them, and b) to catch any differences between the accruals of the
entire loan and the sum of the accruals of all of the participants, and thus keeping the loan
account in balance.
Differences between the accruals on the loan and the sum of the accruals of the participant
parts of the loan may occur simply from rounding (it is not unusual to have one cent per day
flowing to the PRIMARY participant), or they may be due to the fact that you are not required to
make the interest rates of the participants add up to the total interest rate of the loan.
EXAMPLE
ABC Lending Company books a loan to a customer at an interest rate of 10%. They sell off
participations in the loan for the full amount of the loan at 8%. ABC Lending Company now
owns none of the principal on the loan, but they are getting a 2% interest rate for
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administering the loan. They set up the loan at 10%, with a participant set up at 8% owning
the entire principal amount of the loan. Then they make sure that the loan group of this participant is set up so that the interest accrued for the participant goes to the participant’s
accrued interest and income accounts, while the loan group for the PRIMARY participant on
the loan will credit ABC Lending Company’s own income accounts. Every day when this
loan accrues interest, it will accrue at a rate of 10% on the full loan balance. The participant’s account will accrue at 8% on the full loan balance. The difference will automatically flow to the PRIMARY participant, and because the Loan Group for the PRIMARY
participant is set to credit ABC Lending Company’s own income account, they will realize
their 2% interest in the loan, even though they own none of the principal.
To add participants to the loan, click
on the Participation tab.
Enter a Participant Number, Name, select a Loan Group for the participant, and enter the principal amount and interest rate for that participant. If you are not using unique Loan Groups for
each participant, link the participant to a vendor account. Click OK. The participant will be set
up as a sub-loan for the amount designated, and that amount will be deducted from the
PRIMARY participant so that the total sum of the principal for all participants equals the principal of the loan.
To add subsequent participants, click
again and repeat the process. You can continue
adding participants, as long as there are funds remaining—that have yet to be assigned—in
the PRIMARY participant .
The vendor field in the configuration of the participant allows you to link the participation to
the vendor account on a contact that represents the source of funds. This is useful for handling
settlement of the funds, either by check or ACH. The presence of this disbursement account will
cause the generation of a voucher to the participant when a payment is received. If the participant’s Loan Group has a disbursement account specified in its Servicing options, then it is
not necessary to link a disbursement account here.
Participant Interest
On a participation loan, an interest rate is specified for the loan as a whole, but different
interest rates may be defined for each participant. This can result in a difference between the
interest accrued on the loan account, and the sum of the interest accrued on the various
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participant sub-loans. This difference is always automatically assigned to the PRIMARY participant’s sub-loan.
EXAMPLE
Assume a loan with a principal balance of $100,000 participated evenly between the lending company and a participating bank. The note rate is 10%, but the participating bank is
lending the money at 9%. Since the loan is participated evenly, the lending company can
charge 11% on the funds it is lending, and the borrower will end up paying a net of 10%
interest on the entire loan. Any discrepancies between the note rate (10%) and the sum of
the participant rates (½ of 9% + ½ of 11%) would be no more than small rounding errors.
The interest setup on a participant may be modified by querying the loan and then selecting
the participant on the query tree. Once the participant is selected, select View > Interest Setup
menu item. This will bring up a setup screen similar to the one that exists in the standard loan
setup, but this applies to only the sub-loan of the single selected participant.
Participant Setup
To specify the setup parameters for a participant, query that participant and then select View >
Participant Setup menu item.
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This field allows you to specify a principal cap for the participant. If the prinPrincipal
Cap
cipal cap is reached, no further principal may be added to this particular participant. If all participants have reached their cap, and the principal is
advanced on the loan, that principal will remain in the PRIMARY participant,
or a new participant may be added to the loan.
Disable Flow
to Shadow
Loans
Use Interest
Setup of
Loan
Allow Interest
Subsidization
Subsidization
Cap
Allows a participated loan to be set up where only certain participants flow to
pools attached shadow loans.
If this checkbox is selected, the interest rate setup for the loan will be automatically applied to the participant.
Interest subsidization is used in cases where a lender loans money at an
interest rate higher than the rate that is charged to the borrower, and the
remaining interest is paid by a subsidizing participant.
This field allows you to specify a subsidization cap for the participant. Once
that cap is reached, no more subsidized interest will be charged to that particular participant.
Allow Interest Interest add-on is used in cases where a lender loans money at an interest
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Add-On
rate lower than the interest that is charged to the borrower, and interest for the
loan servicing agent is added on to the loan.
This field allows you to specify an add-on cap for the participant. Once that
Add-On Cap
cap is reached, no more add-on interest will be assigned to that particular
participant.
Participant Query
Participation loans are queried normally, just like other types of loans. Click +
next to the loan
on the search tree to expand the loan to show its sub-loans.
Clicking on one of the individual participant sub-loans will allow you to view the informational
tabs for just that sub-loan.
Main
The Main tab of the query screen for a participant contains the same data as the Main tab for a
loan, but many of the parameters (such as data on upcoming payments) are not displayed
as they do not apply to a sub-loan.
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Rules
Clicking the Rules tab on any participant allows access to the rules for all of the participants on
the loan. For each item in the rules, you may set either a percentage or an order hierarchy.
EXAMPLE A
If the Principal Advance % rule was set to 80% on participant #1 and 20% on participant #2,
and the loan had a principal advance of $1,000,000, the advance would be automatically
broken down as $800,000 on participant #1 and $200,000 on participant #2. If order hierarchy were used instead, then the appropriate transaction would go entirely to the first
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designated participant until that transaction could no longer be applied.
EXAMPLE B
If the Interest Payment Order rule was set to participant #1 first and participant #2 second,
and if participant #1 had an interest balance of $137.72 and participant #2 had an interest
balance of $496.34, a payment for $200 would be applied to cover the entire $137.72 on
participant #1 and the remaining $62.28 would go to reduce the balance of participant #2
to $434.06.
Comments
The Comments tab, when accessed from a participant, allows access to the loan commenting system and those comments that have been added to that particular participant subloan.
This button allows you to log a new comment. The comment will be autoAdd
matically stamped with the date and time, and your User ID number.
This button will remove the highlighted comment if you have the privilege to
Delete
delete comments.
Modify
modify comments.
This button will print out all of the existing comments on the currently selected
Print
contact.
This button allows you to search the database comments for key words. The
Search search may include just the currently selected contact, or may search the entire
table.
Show
This button toggles between show and hide category mode. Using comment
Categories categories, the comments may be stored in separate “file folders.”
Transactions
All transactions for a particular participant sub-loan are listed in the Transaction History of that
participant. The date and time of the actual moment of transaction entry are recorded along
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with the user ID. The effective date is the date entered by the user at the time of transaction
entry.
When a transaction is reversed, it is not taken off of Transaction History, but a reversing transaction is added. The Transaction History, therefore, will show a complete history of every event
that has happened on the sub-loan except for interest accruals, rate changes, and modifications to the loan setup.
Hide
Reversed Trans-
This button will toggle the display to show or hide reversed transactions.
actions
Print
Comments
This button will print out the full list of the transaction history.
Clicking this button brings up a comments window which will allow you to
add comments that are linked directly to individual transactions.
Statistics
Complete statistical data for each participant sub-loan is available through the Statistics tab.
The statistics are shown for the participant sub-loan Life to Date, for each calendar year of the
loan’s existence, and for each month of the loan’s existence.
Page 1
Principal
The sum of all Principal Advance Transactions made during the statistical
Advanced
period.
Principal Paid
The sum of all principal payments made during the statistical period.
The sum of all interest accruals and interest adjustments during the stat-
Interest Earned
istical period. As interest adjustments may be positive or negative, any negative interest adjustments during the statistical period will reduce the total
Interest Earned.
Interest Paid
Late Charges
Earned
Late Charges
The sum of all Interest Payments made during the statistical period.
The sum of all late charges assessed during the statistical period.
The sum of all late fee payments made during the statistical period.
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Paid
Misc Fees
The sum of all fees (other than late fees) assessed during the statistical
Earned
period.
Misc Fees Paid
Escrow Interest
Earned
Escrow Interest
Paid
The sum of all fee payments (other than late fees) made during the statistical period.
Average Bal-
The sum of all daily balances during the statistical period, divided by the
ance
number of days in the period.
High Balance
The greatest single daily balance for the loan in the statistical period.
Low Balance
The lowest single daily balance for the loan in the statistical period.
A counter of the number of distinct billings that have gone one, two, three,
Past Due
or four or more months past due. When a payment becomes 60 days past
30/60/90/120+ due, its counter is taken off 30. The sum of these counts should not exceed
the total number of payments that have ever been past due.
Past Due 10
Days
NSF Payment
User Def # 1–25
A count of all distinct billings that have gone 10 or more days past due.
These statistics are defined by the system administrator, and may be
updated by user-defined transactions.
Interest Accruals
The Interest Accruals tab provides access to all of the daily accruals that have been earned on
the participant sub-loan. The accruals are aggregated into monthly totals, but the daily accruals may be accessed for any month by clicking on that month.
Show/Hide
Corrections
Print
Toggles the display of daily accruals that have been superseded by correcting entries back into the list.
This button will print out the full list of the accrual history, either the monthly
aggregates or the daily accruals for the selected month.
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History
The Field History tab provides access to the history of all modifications that have been made to
the participation and the participant sub-loan setup.
This button will print out the full list of the modification history.
Print
This button allows you to add or modify notes about the currently selected Loan
Modify Setup Modification History item.
Fil-
By default, the field history shows the complete list of modifications for the currently
ter
selected loan. By clicking this button, you can run a search on all of the modi-
Query
fication history in the database.
Clicking this button will reload the modification history for the current loan. This will
allow you to view any modifications that you have just made to the loan, or any
Refresh
Record
modifications that have been made to this loan by other users since the last query
was run.
GL Setup Example
Loan Groups can be used to handle the disbursement of funds to the proper General Ledger
accounts of Participation Loans. For a complete discussion of the NLS Participation Module,
see Participation.
In a participation loan, some portion of the loan has been funded by an entity (called the participating entity) aside from the lender who is servicing the loan (called the lead participant).
The participating entity will collect a portion of the interest and principal payments made on
the loan. The percentage of payments collected by the participating entity is generally proportional to the percentage of principal that the participating entity funded. Some participation loans use LIFO and FIFO payment options instead of a percentage. LIFO (Last in – First
out) means that the participant whose funds were disbursed last is paid off first. FIFO (First in –
First out) means that the participant whose funds were disbursed first is paid back first.
Because the lead participant must pay some of the funds collected to the participating entity,
the general ledger accounting for the participation is handled differently than for regular
loans. This is reflected in the GL setup for the Loan Group of the participating entity.
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Below is an example of a GL account setup for a participated, fixed rate, commercial loan. The
loan groups involved are 1501 – Commercial Loans – Fixed Rate, and 1504 – Participations
sold – commercial loans.
1501
1501
1504
1504
Type
Account
Type
Account
Cash Account
Asset
1001
Asset
1011
Loan Asset
Asset
1501
Asset
1504
Interest Income
Revenue
6301
Liability
2804
Accrued Interest
Asset
1931
Asset
1944
Late Fee Income
Revenue
6383
Liability
2804
Accrued Late Fees
Asset
1937
Asset
1944
Other Fees Income
Revenue
6399
Liability
2804
Accrued Other Fees
Asset
1937
Asset
1944
Write-off Accounts
Expense
7601
Expense
7601
Suspense
Liability
2701
Liability
2701
GL Account
The list of GL accounts involved in the servicing of this loan is:
1001 Currency and coin
1011 Funds held for participating entities
1501 Commercial loans – fixed rate
1504 Participations sold – commercial loans
1931 Accrued interest receivable – commercial loans
1937 Loan fees receivable
1944 Funds receivable on behalf of participating entities
2701 Acceptances outstanding
2804 Funds due to participating entities
6301 Interest income on commercial loans – fixed rate
6383 Late charges
6399 Other charges and fees on loans
7601 Provision for possible loan losses
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Next, we continue the example by running through several transactions and seeing how they
affect the general ledger.
We begin the example by assuming a $2,000 loan at 12% interest. The loan is 50% participated.
At the start, our cash account (1001) holds $1,000, which is to be our portion of the principal of
this loan.
Starting Balances:
Account Debit
1001
Credit
1,000.00 0.00
Transaction #1: The participating entity gives us $1,000 to lend. We place the money in a separate cash account (1011). We also credit a liability account (2804) to show that we must pay
this back to the participating entity. This transaction is done in your general ledger and is outside the scope of NLS (since the loan is not yet funded, and the Nortridge Loan System deals
only with the actual servicing of the loan).
Balances:
Account Debit
Credit
1001
1,000.00 0.00
1011
1,000.00 0.00
2804
0.00
1,000.00
Transaction #2: We fund the loan as a 50/50 participation for $2,000. On the day that the loan
is funded, the GL Posting Report instructs the accounting department to credit $1,000 to the
cash account (1001), credit $1,000 to the participant’s cash account (1011), debit $1,000 to
the loan asset account (1501), and debit $1,000 to the participant’s loan asset account
(1504).
Balances:
Account Debit
Credit
1001
0.00
0.00
1011
0.00
0.00
1501
1,000.00 0.00
1504
1,000.00 0.00
2804
0.00
1,000.00
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Transaction #3: Over the course of a month, the system accrues interest on the $2,000 principal of $20. Of this $20, $10 is accrued on behalf of the participant and must eventually be
paid to that participant. Since the participant’s loan group setup shows the liability account
(2804) in the interest income column, the GL posting report will automatically increase the
amount owed to the participant. The user need only follow the GL posting report. $10 is debited to the accrued interest receivable account (1931), $10 is credited to the revenue account
(6301), $10 is debited to the participant’s accrued interest account (1944), and $10 is credited to the liability account (2804).
Balances:
Account Debit
Credit
1001
0.00
0.00
1011
0.00
0.00
1501
1,000.00 0.00
1504
1,000.00 0.00
1931
10.00
0.00
1944
10.00
0.00
2804
0.00
1,010.00
6301
0.00
10.00
Transaction #4: The customer makes a payment of $120. This payment is distributed by the system as $100 to principal, and $20 to interest. On the GL Posting Report, this is further broken
down as a $50 principal payment for each participant, and a $10 interest payment. The GL
posts are: $60 debit to the cash account (1001), $60 debit to the cash account of the participant (1011), $50 credit to the loan asset (1501), $50 credit to the loan asset of the participant (1504), $10 credit to the accrued interest (1931), and $10 credit to the accrued
interest of the participant (1944).
Balances:
Account Debit
Credit
1001
60.00
0.00
1011
60.00
0.00
1501
950.00 0.00
1504
950.00 0.00
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Account Debit
Credit
1931
0.00
0.00
1944
0.00
0.00
2804
0.00
1,010.00
6301
0.00
10.00
Transaction #5: At the end of each month, the lending institution in our example makes a payment to the participating entity of their portion of any loan payments made. To see what
needs to be paid, they need only refer to the balance of account 1011. A payment of $60 is
made to the participating entity. Like the original transfer of funds from the participating entity,
this payment is not handled within NLS. An entry for the transaction is made in the general
ledger: $60 debit to the liability account of funds owed to the participating entity (2804), and
a $60 credit to the participating entity’s cash account (1011).
Final Balances:
Account Debit
Credit
1001
60.00
0.00
1011
0.00
0.00
1501
950.00 0.00
1504
950.00 0.00
1931
0.00
0.00
1944
0.00
0.00
2804
0.00
950.00
6301
0.00
10.00
Charge Off / Multiple Book Accounting
The NLS Charge Off / Multiple Book Accounting module allows you to have a loan report to
two or more different sets of books in the General Ledger. For example, if you have a loan that
has been charged off, or partially charged off on your official ledger, but you still need to keep
the entire loan on the system so that you can attempt to collect on the full amount, this module will help in this type of situation.
This is done with the use of Shadow Loans. A shadow loan exists on the loan system in parallel
with the master loan. Any transaction (like a payment) that is applied to the master loan will be
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applied to the shadow loan as well, although the payment application for the two may be different. Other types of transactions (like write-offs) may be applied to only the master loan or
the shadow loan. The two loans are placed in different loan groups. This way, you may have a
master loan that has the full balance of the original note (reporting to a dummy loan group
with dummy GL accounts), and a shadow loan on which the write-offs have been performed
(reporting to your real GL).
Adding a Shadow Loan
To add a shadow loan to an existing loan, first query the loan that will be getting a shadow
loan. Click
next to
on the toolbar and select Add Shadow Loan.
The Add Shadow Loan screen is identical to the Add New Loan screen with the following exceptions: The Statements tab is eliminated (statements are generated from the master loan); the
Payment Amount, Payment Method, and Term Fields are eliminated; the Custom Payment
Schedule and Participation checkboxes are eliminated; and a Set Shadow Properties checkbox is added.
Enter an amount for the shadow loan (it can be different than the amount of the master loan).
Enter an interest rate for the shadow loan. The shadow loan can also accrue interest at a different rate than the master loan. On the Re-Payment tab, you can set the payment distribution
default order for the shadow loan to be different from the master loan.
Enter Classification items (groups, classes, etc) and user-defined loan detail items just as you
would on a regular loan.
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Make sure the Set Shadow Properties checkbox is selected to enable the Shadow Loan Properties tab.
Shadow Loan Properties
The Shadow Loan Properties tab allows you to set some parameters that control the way that
the shadow loan interacts with its master loan.
Disable Auto
If this checkbox is selected, a payment made on the master loan will not be
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Distribution
Disable Payments Due
Entries
duplicated on the shadow loan.
If this checkbox is selected, the billings issued on the master loan will not be
replicated on the shadow loan. Payments may still be billed on the master
loan, and when paid, the transactions will be duplicated on the shadow
loan (although they may be duplicated with a different distribution order).
Disable
Writeoff Flow
Through
Post Payments as Suspense
If this checkbox is selected, writeoff transactions will not be duplicated on the
shadow loan.
If this checkbox is selected, all payments that flow to the shadow loan will
post into the suspense bucket.
Post Over-
If this checkbox is selected, all payments which flow to the shadow loan for
payment to
which there is not a receivable to which they can be applied, will post into the
Suspense
suspense bucket.
Shadow Modes
Basis
Recovery
Discount Method, when set, will distribute to income the principal and interest portion of the customer payment multiplied by the discount percentage. The
remainder will go to basis recovery. The income will be applied to the shadow
loan using transaction code 290 – Earned Income Payment.
When Discount Method is the selected Shadow Mode, two option flags become
Discount
Method
available. By default, interest and principal on the customer loan will distribute as
earned income and basis recovery, respectively, on the shadow loan. If Discount
Interest is selected, then the interest payment on the customer loan will be discounted with the discount percentage, with the discount amount recognized as
earned income and the remainder as basis recovery. If Discount Principal is selected, then the principal payment on the customer loan will be discounted with the
discount percentage, with the discount amount recognized as earned income
and the remainder as basis recovery.
Daily Pror- Daily Prorated Income Method, when set, will distribute to income the portion of
ated
the discount amount based on a straight line, prorated by day from the purchase
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Income
date to the payment date. Any remaining funds not applied to income are
Method
applied to basis recovery.
LTCG After
For all shadow modes (except NONE) this option becomes available. It is the Long Term Capital Gains After Date, and when populated, it will force all capital gains before this date to use
transaction code 294 – Short Term Capital Gain, and all capital gains after this date to use
transaction code 296 – Long Term Capital Gain.
Querying a Shadow Loan
A shadow loan may be queried normally, just like any other loan. It may also be accessed by
querying the master loan. If the master loan is queried, a red dot on the query tree will indicate
that the loan has a shadow loan attached to it. If you click
next to the icon for the loan, the
tree will be expanded to show the sub-loans (shadows or participants) for the master loan.
Clicking on the icon for the shadow loan will load the shadow loan into the main query
screen. The shadow loan has all of the same information tabs as a regular loan.
Shadow Loan Payments
To enter a payment on a loan that has a shadow loan, make the payment normally. The payment distribution screen contains controls for directing the flow of the payment to attached
shadow loans.
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Apply To All Loans: Select this checkbox to make the payment apply to the master loan and all
shadow loans.
Show Loan (drop down): This drop down list allows you to select which loan (master or any
one of the shadow loans) the current distribution screen applies to. This allows you to set different manual distributions or check the default distributions for each loan before committing
the transaction.
Shadow Loans and Pools
Shadow loans may be used as a method of aggregating the GL functions of a pool of loans.
Loans are often combined into a pool for the purpose of later sale into a secondary market.
The lending company may wish to have a single set of GL entries for the entire pool of loans.
This may be accomplished by using the setup illustrated below.
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Task Manager
Because the Nortridge Loan System Task Manager is a complex development environment
that will allow you to program your own user-defined tasks, it would be impossible to explain
its implementation by any method other than by example.
In the sections that follow, we shall set up a series of Task Templates for the purpose of tracking
a loan through the application and approval process.
Task Manager Example
The design of the workflow of these tasks is as follows:
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First, a contact will be entered into the loan system for the potential borrower. A Work
Packet will be entered onto that contact. This is the Loan Origination work packet. It will
contain visual basic scripting code that will automatically generate an Originate Loan
task. This task will have its own code to generate a Loan Application task.
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The Loan Application task will contain user-defined fields that will allow the Loan System
user to track the status of the application, and when the task has been modified to show
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that the application has been completed, the task will create three new tasks: Verify
Employment, Verify Deposit, and Verify Credit.
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The code of each of these tasks is designed so that no further automated action will be
taken until all three tasks have been completed. Once the borrower’s employment has
been satisfactorily verified, and the borrower’s bank account has also been verified,
and the credit report has been acquired, the next automated action will occur and will
depend on the results of the credit score that was entered on the Verify Credit task.
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If the credit score is less than 650, a Loan Denied task will be generated. This task will
require a system user to generate the denial letter and close out the application.
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If the credit score is greater than 750, a Loan Approval task will be generated. This will
automatically generate another task that will require the creation of loan documents so
that the loan may be created and funded.
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If the credit score is between 650 and 750, a task is automatically generated called
“Loan Committee.” On this task there is a user-defined drop down field that will allow an
NLS user to enter the decision of the Loan committee. Based on the decision entered in
this field, either a Loan Denied or a Loan Approval task will be created.
The following sections will illustrate how to set up some of the work packet and task templates
for these tasks.
Configuring the Work Packet Template
We begin by configuring a template for the work packets that will contain all of the tasks for the
loan application and approval process.
First, we add a new work packet template called LOAN ORIGINATION. Since this work packet
will only be added to contacts, we select the contact template type.
The Work Packets that are created by this template will be used only to hold the tasks that will be
under it, so none of the data fields on the Work Packet will be populated. Therefore, we can
check the “Hide” parameter on all of the user-defined fields for this work packet template.
When added to a contact, Work Packets that are created by this template will automatically
create a task called ORIGINATE LOAN. The scripting to create this task is set to execute “After
Create.”
The After Create Script
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VBSCRIPT
Set Task = nlsApp.Tasks.New(1)
nlsApp.Tasks.BeginTransaction
Task.WorkPacketRefno = current_work_packet_refno
Task.StatusCodeID = 1
Task.NLSRefno = nlsApp.GetField("CIF_REFNO")
If (Task.Save = -1) Then
nlsApp.Tasks.RollbackTransaction
Else
nlsApp.Tasks.CommitTransaction
End If
Script Explanation
Calls a function Tasks.New from within the NLS
Set Task = nlsApp.Tasks.New(1)
application. This function creates a new task using
the task template specified. In this case, a task will
be created using Task Template #1.
Starts a process of entering parameters onto the
nlsApp.Tasks.BeginTransaction
task that is being added. This process will be concluded by either a “Commit” or a “Rollback” statement.
By setting the work packet reference number on
the new task to the reference number of the cur-
Task.WorkPacketRefno = current_
work_packet_refno
rent work packet that is executing this script, we
ensure that the new task is created under this work
packet.
Sets the Status of the Task to “Open.” This is based
on the Task status codes that you have configured.
Sets the reference number of the new task to the ref-
Task.NLSRefno = nlsApp.GetField
("CIF_REFNO")
erence number of the contact under which the
Work Packet has been added, so that if you query
for tasks under the contact you will see this task.
If there is any error in the processes of setting para-
meters on a task, NLS automatically sets a variable
nlsApp.Tasks.RollbackTransaction called Task.Save to the value –1. These statements roll back the process of entering the task if
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such an error is detected.
Else
nlsApp.Tasks.CommitTransaction
End If
If there is no error, the task entry is committed.
The Originate Loan Task Template
The Work Packet Template for Loan Origination automatically creates a task using the Originate Loan Task Template. If it attempts to do so before that task has been configured, it will
cause an error.
First, we add a new task template called ORIGINATE LOAN. Since this Task will only be added to
contacts, we select the contact template type.
We set the Label for User-Defined Field #1 to “Loan Status.” Make the Default setting “Needs
Application.” Make the field type a Drop-Down Field. In the items list for this field, we create the
options: Needs Application, Application Complete, Pending Verification, In Committee, Loan
Denied, and Loan Approved. The value of this user-defined field will be automatically updated
by the other tasks in the workflow as appropriate.
That is the only user-defined field needed for this task, so the rest are set to hidden.
This task is supposed to stay open during the entire loan approval process. Another task, just
for the application must be created, so we place scripting on this task to do so. This script is
also set to “After Create.”
The After Create Script
VBSCRIPT
Set Task = App.Tasks.New(2)
App.Tasks.BeginTransaction
Task.NLSRefno = App.GetField("CIF_REFNO")
App.Tasks.RollbackTransaction
Else
App.Tasks.CommitTransaction
End If
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This script is identical to the one on the Loan Origination Work Packet except that the task created by it uses task template #2 (Loan Application) instead of task template #1 (Originate
Loan).
The Loan Application Task Template
The task template for the Loan Application tasks must be configured prior to adding the work
packet on any contact, as the work packet will automatically set up an Originate Loan task,
and the Originate Loan task will automatically set up a Loan Application Task. If the Loan system tries to set up a task using this template before the template is configured, an error would
result.
First, we add a new task template called LOAN APPLICATION. Since this Task will only be added
to contacts, we select the contact template type.
We set the label for User-Defined Field #1 to App Status. Make the Default setting “Send App.”
Make the field type a Drop-Down Field. In the items list for this field, we create the options: Send
App, App Sent, App Received, App Incomplete, and App Complete. The value of this userdefined field is to be updated by the NLS users as the application status changes. When they
set the status to “App Complete” the scripting will automatically create the tasks for the next
phase.
That is the only user-defined field needed for this task, so the rest are set to hidden.
When the Application Status is set to “App Complete,” and this task is marked as finished, the
tasks to verify employment, deposit, and credit score will be automatically created by the scripting on this task, which is set to “After Save” since it must be run any time a modification is
made to this task.
The After Save Script
VBSCRIPT
SET App = GETOBJECT(, "nls.application")
SET CurrentTask = App.Tasks.Open(current_task_refno)
IF (CurrentTask.UDF1 = "APP COMPLETE" AND CurrentTask.StatusCodeID <> 2)
THEN
Error_Found = 0
SET Task = App.Tasks.New(3)
Task.NLSRefno = CurrentTask.NLSRefno
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IF (Task.Save = -1) THEN
Error_Found = 1
END IF
Error_Found = 1
END IF
Error_Found = 1
END IF
CurrentTask.CompletionDate = NOW
CurrentTask.StatusCodeID = 2
IF (CurrentTask.Save = -1) THEN
Error_Found = 1
END IF
IF (Error_Found = 1) THEN
App.Tasks.RollbackTransaction
ELSE
END IF
END IF
Script Explanation
This line creates an object called App, and sets the
value of that object to the operating system memory
address of the Nortridge Loan System program application. This is done as the first line of all VB scripts used
on user-defined fields, Work Packet and Task Templates, so that when we call a function from within a
SET App = GETOBJECT(, "nls.apscript, that function is correctly applied by the operplication")
ating system to the NLS program and not to some
other application that is currently running on your
computer. It is theoretically possible for scripts from
within NLS to be designed to affect other programs,
and so it is necessary for us to specify which program
these instructions are to affect.
SET CurrentTask =
App.Tasks.Open(current_task_
refno)
Creates an object called CurrentTask, and assigns it
the value of the reference number of the task that is
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running the script. This reference number will be used
to make sure that the tasks we are going to create are
properly linked with the task that is creating them, its
work packet, and its contact.
Dictates that the code that follows will only be
IF (CurrentTask.UDF1 = "APP
COMPLETE" AND CurrentTask.StatusCodeID <> 2)
THEN
executed if the Application Status is set to "APP
COMPLETE" and the Status Code of the Loan Application task is set to completed.
Starts a process of entering parameters onto the task
that is being added. This process will be concluded by
either a “Commit” or a “Rollback” statement.
Error_Found = 0
Sets an initialization value of 0 for a variable called
Error_Found.
Calls a function Task.New from within the NLS application (as specified by App). This function creates a
new task using the task template specified. In this
case, a task will be created using Task Template #3
(Verify Employment).
By setting the work packet reference number on the
new task to the reference number of the current work
packet that is executing this script, we ensure that the
new task is created under this work packet.
Sets the Status of the Task to “Open.” This is based on
the Task status codes that you have configured.
Sets the reference number of the new task to the ref-
erence number of the current task. Having the same
reference number will make sure that the tasks are
attached to the same work packet, contact, etc.
If there is any error in the processes of setting parameters on a task, NLS automatically sets a variable
Error_Found = 1
END IF
called Task.Save to the value –1. In the event this happens, the Error_Found variable is set to 1. When the
entry of the three tasks is complete, all will be rolled
back if Error_Found = 1 so that it will not be possible
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to have some of the tasks successfully entered and
some not.
Error_Found = 1
END IF
Error_Found = 1
END IF
CurrentTask.CompletionDate =
NOW
This block of code sets up a task using task template
#4 (Verify Deposit).
This block of code sets up a task using task template
#5 (Verify Credit).
This sets the completion date of the Loan Application
task to the current system date of your computer.
Sets the status of the Loan Application task to “Com-
CurrentTask.StatusCodeID = 2
pleted.” This is based on the task status codes that you
have configured.
If there is any error in the processes of setting parameters on a task, NLS automatically sets a variable
IF (CurrentTask.Save = -1)
THEN
Error_Found = 1
END IF
called Task.Save to the value –1. In the event this happens, the Error_Found variable is set to 1. When the
entry of the three tasks is complete, all will be rolled
back if Error_Found = 1 so that it will not be possible
to have some of the tasks successfully entered and
some not.
If any of the tasks failed to be entered properly, all of
IF (Error_Found = 1) THEN
App.Tasks.RollbackTransaction the tasks will be rolled back.
ELSE
If there were no errors in entering any of the new tasks,
they are all committed.
END IF
END IF
Closes the If-Then statement from the beginning of the
script. Remember that none of these instructions were
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executed if the Application Status field was not set to
"APP COMPLETE".
Remaining Task Templates
The rest of the required task templates for the example we have described are configured with
their appropriate scripting code.
Using the Task Manager
Once all of the tasks have been completely configured and all of the necessary scripting has
been added, these tasks and work packets may be used. The use of these tasks is entirely
driven by the scripting that has been entered on them, so our example will continue with the
Loan Origination tasks.
Since the Work Packet and Task templates that we have added are configured as Contact only
templates, we must add the Contact for our potential borrower first.
Click
next to
on the toolbar and select Add Work Packet once the contact has been
added. If the Loan Origination Work Packet is the only one on the system, it will come up automatically. Otherwise, you will need to pick from the various work packet templates that you
have configured.
The entire bottom section of the Work Packet is blank because we have configured the Work
Packet Template to have all of its user-defined fields hidden, since they were not needed.
Click OK to add the work packet to the Contact.
Once the Work Packet has been added to the Contact, it may be viewed from two different
places.
The Task tab of the Contact toggles between Work Packets that are on that Contact and Tasks
that are on that Contact. To view the Work Packet from here, query the Contact, click the Task
tab, and then click Work Packet.
You may bring the screen for the individual Work Packet back up by double clicking the Work
Packet in the list.
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The second place from which the work packet may be accessed is the Inbox, found in the
Main slider of the Shortcut bar. In the tree of the Inbox, click on Work Packets. Then click
to
bring up the list of all currently existing Work Packets.
By clicking on
next to a work packet, we can see any tasks that exist under this work packet.
Double click the work packet to view the work packet.
This task has a field for application status that is designed to allow the NLS user to track the loan
application through various phases. First, the status shows that an application needs to be
sent to the customer. Once it has been sent, the status is changed to reflect that fact. When the
application has been returned from the customer and deemed to be complete, the change of
its status to reflect this causes three new tasks to be automatically created.
NOTE
In this example, when we say that the field for application status that is designed to allow the
NLS user to track the loan application through various phases, we mean it was designed as
such by the creator of the tasks template in question, not by the designers of the Nortridge
Loan System. The task manager is designed to allow you to design and program your own
task templates, and those will do whatever you program them to do.
Change the App Status to APP COMPLETE, and click
. This will cause the scripting behind this
task to be executed, and that scripting is (in this case) designed to create three new tasks.
Do a new query of the Inbox to view the new tasks that have been created.
This concludes our example of Configuring and using Work Packets and Tasks.
For help on configuring your own tasks, call Nortridge Software Customer Support.
Task Manager Relationships
Task manager relationships are used to automate complex functions such as loan origination, repossessions, or bankruptcy proceedings.
The building blocks of the task manager relationships are the Relationship Codes.
Once Relationship Codes have been defined, they may be combined in various combinations in the Relationship Templates. These templates define the procedures and requirements for the tasks in question.
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Relationship Codes
Task Manager Relationship Codes are the building blocks of Task Manager Relationship Templates.
To add a new Task Manager Relationship Code, click Add
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Code
Description
Valid only at
The name to be used for this particular building block.
A more detailed explanation of what this Relationship code is for and how it is
to be used may be entered here.
Indicates if this code is for use with Tasks or Work Packets
Contact-Primary
Contact-Related
Contact-Dealer
Collateral
Type
Contact-Address Book
User Defined Fields
Loan Details
Repo Details
Credit Profile
Contact Cat-
<All>
egories
Borrower
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Lender
Dealer
Vendor
<All>
Contact Type
List of available Contact Types from Contact Setup
Contact - Primary
The primary contact in a loan origination, repossession, or bankruptcy is generally the borrower. To create a Relationship code for the borrower that is to be used as one of the building
blocks of the Task Manager Relationship templates, go to the Relationship Code tab under
Relationships in Task Setup. Click Add
.
Make the Code and Description: BORROWER.
Use Type: Contact - Primary.
Leave the rest of the settings to their defaults and click OK.
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Contact - Related
The most common example of a related contact, to be used in Task Manager Relationships,
would be a co-borrower.
To add a co-borrower Relationship Code, click Add
on the Relationship Code tab of Rela-
tionships under Task Setup.
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Set the Code and Description to COBORROWER, and set the Code Type to Contact - Related.
Leave the rest of the fields set to their defaults and click OK.
Contact - Dealer
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To add a Relationship Code for a Dealer, click Add
on the Relationship Code tab of Rela-
tionships under Task Setup.
Set the Code and Description to: DEALER.
Set the Type to: Contact Dealer.
Leave the rest of the settings to their defaults.
Click OK.
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Collateral
One of the building blocks that is necessary for most loan originations is some piece of collateral. For an auto loan this would most likely be a vehicle. For a mortgage it would be real
estate.
In our example, we will set up a Task Relationship Template for the origination of an auto loan,
so for our collateral building block, we set up a relationship code called: Auto.
Click Add
on the Relationship Code tab of Relationships under Task Setup.
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For Code and Description, type: AUTO.
For Type select: Collateral.
Select from your Loan Collateral Codes in the Collateral Type drop down list.
Click OK.
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Contact - Address Book
Two examples of Address Book Contacts which might need to be configured as Relationship
Codes for the Relationship Template for Loan Origination are Employment Verifications and
References.
To add each of these codes, click Add
on the Relationship Code tab of Relationships
under Task Setup.
For the Code and Description Fields, enter: EMPLOYMENT (or REFERENCE).
For the Type field, select: Contact - Address Book.
Leave the remaining fields set to their default settings.
Click OK.
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User Defined Fields
A Task Manager Relationship code may be configured with a type of User Defined Fields. This
creates a form which may be accessed by the relationship templates. This form contains up to
50 standard user-defined fields and five special grid type user-defined fields.
If more than 50 user-defined fields are required for your Relationship Template, then multiple different User Defined Field Relationship Codes may be configured. Multiple codes of this type
may be accessed from the same Relationship Template, resulting in more than one userdefined field form in the process defined by that Relationship Template.
To add one of these codes, click Add
on the Relationship Code tab of Relationships under
Task Setup.
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For the Code and Description Fields, enter any descriptive text to identify the total list of fields
configured on this form.
For the Type field select User Defined Fields.
Click OK.
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The User-Defined Fields on this form may be configured similarly to those which exist on the
Contact Types and Loan Portfolios.
Loan Details
The Loan Details Relationship Code defines the types of loans to be automatically created by a
loan origination Relationship Template. To create a Relationship code for the Loan that is to be
used as one of the building blocks of the Task Manager Relationship templates, go to the Relationship Code tab under Relationships in Task Setup. Click Add
.
In this example, we will set up a Relationship Template for an Automotive Loan Origination
where multiple loan products are available.
Make the Code and Description: AUTO LOAN.
Set Type to Loan Details.
Click OK.
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For Information on configuring the sub-tabs of the Loan Details Task Template, see:
Loan Detail Template
Loan Detail Components
Script
Loan Detail Template
Click
on the Loan Detail Template tab to add links to your existing loan templates. These
now represent available loan products that may be chosen during the origination process for
which this relationship code is to be used. A name designation may be specified for the loan
product.
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Click
to the right of the template to bring up the Template Criteria. Here, you may define
the term type, minimum and maximum term, and a minimum and maximum interest rate for
the loan product.
Loan Detail Components
The Loan Detail Components tab contains a list of fields which may be enabled for the loan origination process. These fields are standardized for consumer (including Auto) loans.
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Any fields that are not appropriate to the type of loan that is to be set up by this Loan Detail
Task Relationship may be left disabled (by leaving the Enabled checkbox unselected) and will
not appear on the origination screen for this process.
The list of available standardized fields is as follows:
Sales Price
Doc Prep Fee
Sales Tax
DMV Fee
License Fee
Registration Fee
Fee Other 1
Fee Other 2
Insurance Contract
GAP
Service Contract
Other Contract
Other Contract 2
Down Payment Cash
Down Payment Trade In
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Down Payment Rebate
Down Payment Other
Dealer Discount
Dealer Premium
Dealer Reserve
Dealer Withhold 1
Dealer Withhold 2
Dealer Withhold 3
Dealer Fee 1 - Dealer Fee 10 (Labels are modifiable)
Amount Financed
Pre-Paid Payment
For each of these fields, the following options may be set.
OPTION
DATA TYPE
DEFINITION
Predefined for all fields listed above, except for
Label
Text
the 10 Dealer Fee fields, for which the label
may be modified.
Allows selection from the list of available transaction codes and defines which transaction
Transaction Code
Drop Down List
code (if any) should be executed upon loan
entry for the amount that has been entered in
this field.
Allows selection from the list of previously configured amortized fee setups and defines
Amortized Fees
Drop Down List
which of these fee setups (if any) should be
automatically configured upon loan entry for
the amount that has been entered in this field.
Allows setup of an amount to be in the field
Default Amount
Currency
Min Amount
Currency
Sets a minimum value limit on the field.
Max Amount
Currency
Sets a maximum value limit on the field.
Dealer Proceeds
Checkbox
when the origination screen is first initiated.
If selected, a voucher for payment to the
dealer will be created for the amount in this
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OPTION
DATA TYPE
DEFINITION
field.
If selected, a voucher for a payment from the
Dealer Fee
Checkbox
dealer will be created for the amount in this
field.
If selected, the amount in this field will not be
No Discount
Checkbox
counted against the discount amount or the
discount percentage.
No Premium
Checkbox
counted against the premium amount or the
premium percentage.
No Reserve
Checkbox
counted against the reserve amount or the
reserve percentage.
Selecting this on a field allows that field to
Enabled
Checkbox
appear on and be used by the Origination
screen.
Script
VB script code or C script code may be configured to execute during the origination process.
The triggers for the execution of this script code may be either On Field Change, On Book Loan
Clicked, or After Loan is Booked.
For specific information related to scripting and how to write scripts, see the article on Scripting
in the Appendix.
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Repo Details
The Repo Details Relationship Code defines the repossession actions that may be taken
through the task relationship templates. To create a Relationship code for the Repo that is to be
used as one of the building blocks of the Task Manager Relationship templates, go to the Relationship Code tab under Relationships in Task Setup. Click Add
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In this example, we will set up a Relationship Template for an automotive repossession.
Make the Code and Description: Vehicle Repo.
Use Type: Repo Details.
Click OK.
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For Information on configuring the sub-tabs of the Loan Details Task Template, see:
Loan Repo Components
Loan Repo
Script
Loan Repo Components
The Loan Repo Components tab contains a list of fields which may be enabled for the repossession process.
Any fields that are not appropriate to the type of repossession action that is to be set up by this
Repo Detail Task Relationship may be disabled and will not appear on the screen for this process.
The available standardized fields are:
Repo Fee
Closing Fee
Delivery Fee
Storage Fee Day
Repo Fee Invoice
Borr. Repo Fee (Label is modifiable)
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Storage Fee (Label is modifiable)
Misc Fee 1 - Misc Fee 10 (Label is modifiable)
Transport Fee
Sale Proceeds
Sale Fees (Label is modifiable)
Sale Fees 2 (Label is modifiable)
Recondition Fee
For each of these fields, the following options may be set.
OPTION
DATA TYPE
Label
Text
DEFINITION
Predefined for all fields listed above except where
indicated as modifiable.
Allows selection from the list of available transaction
Transaction
Code
Drop Down List
codes and defines which transaction code (if any)
should be executed upon loan entry for the amount
that has been entered in this field.
Allows selection from the list of available previously
configured amortized fee setups and defines which of
Amortized Fees
Drop Down List
these fee setups (if any) should be automatically configured upon loan entry for the amount that has been
entered in this field.
Allows setup of an amount to be in the field when the
Default Amount
Currency
Min Amount
Currency
Sets a minimum value limit on the field.
Max Amount
Currency
Sets an maximum value limit on the field.
Enabled
Checkbox
origination screen is first initiated.
Selecting this checkbox on a field allows that field to
appear on and be used by the Origination screen.
Loan Repo
The Loan Repo sub-tab of a Task Relationship Code of the type “Repo Details” contains the
links to automatically generated reports which must be sent out during the process of the
repossession. The reports must first be configured in the NLS Report Manager in order to appear
in these drop down lists. The reports may be custom reports created to your specifications for
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you by Nortridge Software, or may be Word Mail Merge reports created in house and installed
into NLS.
Order Document: This document is the order to the repo-man to obtain the vehicle.
NOI Document: This document is the Notice of Intent which must be sent to a borrower who is
in possession of a vehicle to inform the borrower that the vehicle will be repossessed.
This tab also contains a checkbox to allow you to disable the notes field which may appear on
the repossession screen.
Script
VB script code or C script code may be configured to execute during the repo process. The
only triggers for the execution of this script code is On Field Change.
For specific information related to scripting and how to write scripts, see the article on Scripting
in the Appendix.
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Credit Profile
A Task Relationship Code of the type Credit Profile creates a building block for the Relationship
Template that is capable of pulling a credit report on the borrower. No special setup is required
for this functionality; the code need only be of the proper type. There are up to 55 user-defined
fields which may be configured to be associated to the credit report (50 standard and five special grid fields) and those may be configured in the Credit Profile Task Relationship Code.
Relationships Template
On the Relationships Template tab, you add the templates which represent various types of processes that you are designing. These may be loan origination, repossession, or bankruptcy
processes. Within a specific template, you add the Relationship Codes which form the building
blocks that fit together to make the process defined by the template.
Click Add
to add a new relationships template.
After adding the template, right-click on RELATIONSHIPS to add the relationship codes that are
needed for this process. From the top level, relationship codes of the following types which
were added in the Relationships Code tab are available: Contact - Primary, Contact - Related,
Loan Details, Collateral, Repo Details, Contact - Dealer, and User Defined Fields.
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Relationship codes of types: Contact - Address Book and Credit Profile are added as a second
layer below any Relationship Code of Type: Contact - Primary or Contact - Related. This is done
by right clicking the code on which you wish to add the second layer code.
You control the behavior of these codes by configuring the Properties and Rules of each Relationship Code in the template.
Properties
The Properties tab of the Task Manager Relationship template contains the properties for the
specific Relationship Code that is selected as it relates to that template.
These properties indicate the Mandatory Count, Maximum Count, and (for the borrower
code) weather or not the origination task should appear on the task tab for the borrower’s contact record.
EXAMPLE
A certain Loan Origination task relationship template may be configured to require one
Mandatory Employment Verification, and to allow a maximum of two, while another Loan
Origination task template could be configured in which Employment Verification was not
mandatory.
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Rules
Any Task Relationship Code which has been added to a Task Relationship Template may have
one or more Rules assigned to it. The rule acts as a condition, which if met, can trigger an
action.
The list of available rule conditions is different for each type of Task Relationship Code and are
listed below.
Contact
The list of available rule conditions for Task Relationship Codes of the type: Contact is shown
below.
If one of these rules is assigned to the Task Relationship Code on a Task Relationship Template,
and if the condition is met, then one of five actions may be triggered. For information on configuring the action that is to occur when the rule is invoked, see: Rules Actions.
Contact Type is assigned to specific values
Entity is assigned to specific values
where setup date is in this date range
with specific words in the company
with specific words in the salutation 1
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with specific words in the firstname 1
with specific words in the middlename 1
with specific words in the lastname 1
with specific words in the suffix 1
with specific words in the title 1
with specific words in the street address 1
where city is located in this location
where state is located in this location
where date of birth (1) is in this date range
where date of birth (2) is in this date range
Collateral
The list of available rule conditions for Task Relationship Codes of the type: Collateral is shown
below.
Collateral code is assigned to specific values
where vehicle year is in this date range
where brand of vehicle is this
where model of vehicle is this
where style of vehicle is this
where color of vehicle is this
where title type is this value
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where title status is this value
where title status is in this date range
where title perfected is in this date range
where title released is in this date range
with specific words in title number
with specific words in branded title
where vehicle is registered in this state
with specific words in license plate number
where purchase price is in this range
where original value is in this range
where current value is in this range
where valuation is in this date range
with specific words in valuation method
where original miles is in this range
where current miles is in this range
where miles as of is in this date range
where date valued is in this date range
where the number of units is in this range
where the value per unit is in this range
where the liquidation percentage is in this range
where the net value is in this range
Credit Report
The list of available rule conditions for Task Relationship Codes of the type: Credit Report is
shown below.
where FICO score is in this range
where credit bureau name is this
where report date is in this date range
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where installment balance is in this range
where installment past due balance is in this range
where installment monthly payment is in this range
where installment available percentage is in this range
where real estate balance is in this range
where real estate monthly payment is in this range
where revolving balance is in this range
where revolving past due balance is in this range
where revolving monthly payment is in this range
where revolving available percentage is in this range
where oldest trade item date is in this date range
where total inquiries is in this range
where total inquiries during the last 6 months is in this range
where total trade item is in this range
where total paid trade item is in this range
where satisfactory count is in this range
where total delinquencies over 30 days is in this range
Address Type
The list of available rule conditions for Task Relationship Codes of the type: Address is shown
below.
with specific words in the description
with specific words in the company
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where zipcode is in this range
Loan Detail Type
The list of available rule conditions for Task Relationship Codes of the type: Loan Detail is
shown below.
where application date is in this date range
where Sales Price is in this range
where Doc Prep Fee is in this range
where Sales Tax is in this range
where DMV Fee is in this range
where License Fee is in this range
where Registration Fee is in this range
where Sub Total (Fee) is in this range
where Insurance is in the range
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where GAP is in this range
where Service Contract is in this range
where Sub Total (Contract) is in this range
where Cash is in this range
where Trade is in this range
where Rebate is in this range
where Down Payment Total is in this range
where Total Financed is in this range
where Loan Term is in this range
with specific words in Loan Term Type
where Interest Rate is in this range
where Origination Date is in this date range
where First Payment Date is in this date range
where First Payment Date is in this date range
where Amount Financed is in this range
where Finance Charge is in this range
where Payment Amount is in this range
where Payment Amount Override is in this range
where difference between Payment Amount Override and Calculated Payment is greater
than this dollar range
where difference between Payment Amount Override and Calculated Payment is greater
than this percentage range
where Pre-Paid Finance Charge is in this range
where Collateral Value is in this range
where LTV is in this range
where Total income is in this range
where PTI is in this range
Repo Detail Type
The list of available rule conditions for Task Relationship Codes of the type: Repo Detail is
shown below.
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where Repo Type is this
where Order Date is in this date range
where Reinstatable Flag is in this range
where Repo Fee is in this range
where Closing Fee is in this range
where Repo Fee Invoice is in this range
where Repo Fee Invoice booked flag is this value
where Delivery Fee is in this range
where Daily Storage Fee is in this range
where Days of Free Storage is in this range
where Repo Date is in this date range
where NOI Sent Date is in this date range
where NOI Expiration Date is in this date range
where NOI Extension Expiration Date is in this date range
where Reinstated Date is in this date range
where Borrower Repo Fee is in this range
where Borrower Repo Fee booked flag is this value
where Storage Fee is in this range
where Storage Fee booked flag is this value
where Repo Fee (#1 - #10) is in this range
where Repo Fee (#1 - #10) booked flag is this value
where Total Storage Days is in this range
where Charged Storage Days is in this range
where Vehicle Mileage is in this range
where Vehicle Condition is in this range
where Transport Fee is in this range
where Transport Requested Date is in this date range
where Transport Expected Delivery Date is in this date range
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where Delivery Confirmation Date is in this date range
where Recondition Fee is in this range
where Recondition Fee Reimbursable is this value
where Sale Proceeds Fee is in this range
where Sale Fees #1 is in this range
where Sale Fees #2 is in this range
Rules Actions
When the condition for a rule is met (e.g. if a borrower rule of “Where city is located in this location,” is used and the city field on the contact matches the city that has been specified for the
rule) then the rule action that has been associated with that rule will be executed. There are five
types of actions that may be associated with a rule which will be executed if the conditions of
the rule are met.
Alert
An alert is a type of Rules Action which may be taken if the condition of a rule is met. The rule
named: High Theft Area, in the picture below is a rule which uses an Alert Action.
Click the button to the right of the rule to view the rule definition.
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This defines the conditions under which the rule triggers an Alert. Fore more information on the
nature of the Alert, click the word alert.
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The Alert is defined as informational in nature. This means that when the rule is triggered, an
alert will be posted for the user to see, but the user will not be stopped from continuing with the
process. If the alert was configured as a warning, then the user must select a checkbox to
acknowledge the alert in order to continue the process.
Verification
A Verification is a type of Rules action which may be taken if a rule’s condition is met. The rule
named: Verify Income in the picture below, is a rule that uses the Verification action.
Click the button to the right of the rule to view the rule definition.
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This defines the conditions under which the rule triggers a verification. Fore more information
on the nature of the verification, click the word verification.
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This setup indicates that a message, “Request two months of paystubs,” will come up if the
condition (City is Any City) is met. A verification must be satisfied before the loan can be
booked. The setup defines the type of the verification as a Document. Available verification
types are: General, Phone Call, Email, Fax, Mail, Document, In Person, and Inspection.
The setup furthermore defines which statuses are appropriate to this verification. In this case,
the verification can either be verified or un-verified. Other possible status settings which may be
allowed are: pass, fail, or waive.
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The remainder of the setup defines which users may or may not have the authority to make the
verification.
NOTE
A rules action of type Verification is functionally identical in setup and execution to a rules
action of type Stipulation. Both are provided to allow the designer of the relationship template some method by which to distinguish between different types of items that must be
verified or stipulated, but the distinction is entirely up to the designer.
Outstanding Verifications and Stipulations will appear in the in-box to help facilitate their completion.
Stipulation
A Stipulation is a type of Rules action which may be taken if a rule’s condition is met.
A rules action of type Stipulation is functionally identical in setup and execution to a rules
action of type Verification. Both are provided to allow the designer of the relationship template
some method by which to distinguish between different types of items that must be verified or
stipulated, but the distinction is entirely up to the designer.
Outstanding Verifications and Stipulations will appear as separate tasks in the in-box to facilitate their completion.
Document
A Document is a type of Rules action which may be taken if a rule’s condition is met.
A rules action of type Document will require the printing of a document. This document is
linked to a report installed through the report manager. The report may be a standard NLS
report, but will more likely be a custom report programmed by Nortridge Software programmers, or by the users of the system using Word Mail Merge features or Word Document
Templates features.
When the rule has determined that a document must be printed from NLS, the status for the rule
will be set to “Not Printed” and a button to access the printing of the document will be available. Once the document is printed, the status of the rule will be set to “Printed.” The rule will
then be satisfied. This must be completed before the task in question (loan origination, repossession, or bankruptcy are some examples) can be completed.
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Pull Credit Report
Pull is a type of Rules action which may be taken if a rule’s condition is met.
This type of action is only applicable for a global rule where the active node in the relationship
template tree is a relationship code of one of the “Contact” types.
When the rule condition is met, satisfaction of the rule to allow the process to continue will
require the pulling of a credit report.
Collector Mode
The Collector Module allows you to see all information about a loan, pertinent to the collections process, on a single screen. To enter collector mode from loan query, click
on the
toolbar.
You can query for loans as normal on the collector screen, or you can have the loans popped
to the screen by a campaign.
Once a loan has been popped or queried to the collector screen, you should have all contact
and co-borrower information necessary to make collection calls. Select the collection action
taken from the Coll Action drop down list. Then, based on the results of the collection call,
select the result from the Coll Result drop down list. These options are pre-configured by your
system administrator.
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Depending on the combination of action and result codes, the result may pop up a secondary dialog or initiate a promise to pay.
If a secondary dialog pops up, fill in all of the appropriate fields of the secondary dialog. These
fields are user-defined and were configured by your system administrator specifically for this
action/result combination.
A promise to pay will require you to enter the date and amount of the promise to pay. If a payment for at least the amount promised has not been made on that account by the date specified, the promise to pay will be marked as having been broken.
Collection Campaigns
Campaigns are used to automatically pop loans to the screen one after the other for expedited collection actions. A user can connect to their own personal campaign, or to any campaign that was created with the campaign builder. Once connected to the campaign, the
user will have the loans of the campaign pop one by one until they leave collection mode, or
the campaign is complete. Each time they complete a collection action on a loan, the next
loan in the campaign will pop automatically.
Personal Campaigns
Each user has a personal campaign. To add loans to your personal campaign, go into collector mode and run a query using any desired search criteria. Click
to add the selected
set of loans to your personal campaign. You may then attach to your personal campaign to
begin popping loans.
Campaign Builder
The Campaign Builder is used to create a campaign using SQL query criteria. It is accessed
from the NLS Main Shortcut slider.
To build a new campaign, click
. Enter a name and description for your new campaign
setup.
Enter your queries in the columns of the Query section. To be included in the campaign, the
loan must meet each query criteria selected.
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To enter a query, select a table on the NLS database from the Table drop down field, or type the
name of a table. Then select a field from that table from the Field drop down field, or type the
name of the field.
Next, you may choose if you want the resulting loans sorted by the results of this field in ascending or descending order.
Finally, enter the criteria for the field. If a criteria is entered directly in the field, it will be assumed
that the field in question must equal the search criteria. Do not use quotes for strings. If the field
in question is a string, NLS will add quotes to the query where needed. You may use greater
than or less than symbols in the criteria fields. You may type additional query parameters in the
Or field.
Alternatively, you may choose to define your query as an SQL query directly against the database by clicking the Use SQL Statement button. This gives you all of the flexibility of the SQL language in creating your query.
EXAMPLE
Select acctrefno from loanacct where days_past_due > 30
When you are finished click
to save your query.
On the Options tab decide if you want to include or exclude loans that are already on other
campaigns.
To execute the query, click
. Any loans that meet the query will be added to the campaign.
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Before the campaign will be visible to the collectors, its status must be changed to Open. Your
collectors may then attach to the campaign from the Collections Screen.
Deleting a Campaign
To delete a campaign setup or a campaign list within, highlight the item in the tree bar and
click
.
NOTE
The Personal Campaign setup cannot be deleted.
Useful Query Examples
Select by Days Past Due; Exclude Certain Status Codes
Query: all loans between 5 and 45 days past due that do not have certain status codes in
effect (in this example, the status codes in question are represented by status code numbers
10 and 14).
To determine what number represents a certain status code, go to the status code setup, and
expand the invisible field to the left of the Status Code column to reveal the code numbers.
SQL QUERY
select acctrefno from loanacct where days_past_due > 4 and days_past_due
< 46 and acctrefno not in (select acctrefno from loanacct_statuses where
status_code_no = 10 or status_code_no = 14)
Select Loans where Promise to Pay has been Broken within a certain Date Range
Query: all loans with promises to pay which were broken between October 1st and October
14th of 2010.
SQL QUERY
select acctrefno from loanacct where acctrefno in (select acctrefno from
loanacct_collections where row_id in (select loanacct_collections_row_id
from loanacct_collections_ptp where promise_broken_date > '2010-10-01'
and promise_broken_date < '2010-10-14'))
Select by Days Past Due; Exclude Loans with unresolved Promises to Pay
Query: all loans 30 or more days past due that do not have unexpired promises to pay.
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SQL QUERY
select acctrefno from loanacct where days_past_due > 29 and acctrefno not
in (select acctrefno from loanacct_collections where row_id in (select
loanacct_collections_row_id from loanacct_collections_ptp where promise_
kept_date = NULL and promise_broken_date = NULL))
Escrow Module
The NLS Escrow Module is an add-on to the basic NLS package that fully automates the tasks
associated with maintaining escrow accounts on behalf of the borrowers. It allows organizations to receive payments from their clients for property taxes, insurance, and special assessments. The organization can automatically disburse these sums to the appropriate vendors as
they become due. It allows servicers to specify unlimited types of escrow accounts as well as
vendors.
In meeting the accounting and reporting requirements set forth by the Real Estate Settlement
Act (RESPA), NLS Escrow performs all of the traditional functions that escrow officers typically
encounter: including the billing, collection, organization, and analysis of all of the data relating to escrow transactions; the generation of documents involved in each transaction; the logging of the receipt of funds and the generation of disbursements; the generation of reports
about the work completed through the system; and the generation of necessary tax forms.
NLS Escrow incorporates the complete accounting audit trail from receipt to eventual generation of checks through the disbursements feature of NLS.
The Escrow Module is divided into the following sections:
Setting Up Impound Codes
Impound Analysis
FARETS Interface
Setup of Impound Transaction Codes
Four standard transaction codes exist for use with generic impounds.
Transaction Code Number
Transaction Description
170
Impound Assessment
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270
Impound Payment
466
Impound Distribution
468
Impound Refund
Often, a loan servicer will need to track the transactions and statistics for different kinds of
impounds separately. For example, a separate set of transaction codes may be required for
the tax impounds and insurance impounds. Therefore, a typical set of manual transaction
codes for impounds might look like this:
1170
Tax Impound Assessment
1270
Tax Impound Payment
1466
Tax Impound Distribution
1468
Tax Impound Refund
2170
Insurance Impound Assessment
2270
Insurance Impound Payment
2466
Insurance Impound Distribution
2468
Insurance Impound Refund
The numeric relationship between these custom transaction codes and the standard codes
was intentionally done for the purpose of clearly organizing the transaction codes, but it is not
required.
General information on setting up manual transaction codes can be found in the section:
Adding a User Defined Transaction Code.
The specifics related to how an impound transaction code is unique will be detailed here.
Assessments
The assessment transactions are non-gl events and the GL controls for these transactions
are generally left to NONE.
Payments
The payment transactions will generally debit a cash account and credit an Impound
account on the GL. There will often be separate Impound accounts on the ledger for the
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different types of impounds (taxes, insurance, etc.), and that is one of the reasons why
these manual transaction codes are often needed.
Distributions
The distribution transaction generates a check to a vendor. It therefore generally debits the
impound account and credits Accounts Payable.
Refunds
The GL effects of a refund are identical to those for a distribution. The payee of the check is
simply the borrower instead of a vendor.
Loan Controls
The Classification for all of these transactions must be Impound
Assessments
No loan balance is affected by the assessment.
Payments
The Impound loan balance is increased.
Distributions
The Impound loan balance is decreased.
Refunds
The Impound loan balance is decreased.
Assessments
The transaction is a receivable. The payment type is Impound. The associated payment is
the Impound Payment trans code that is being configured for the same impound type.
Payments
The transaction is a payment. The payment type is Impound. The associated receivable is
the Impound Assessement trans code that is being configured for the same impound type.
Distributions
No payment processing controls.
Refunds
No payment processing controls.
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Voucher Processing
Assessments
No voucher processing.
Payments
No voucher processing.
Distributions
Use voucher type code of Impound Disbursements.
Refunds
Use voucher type code of Impound Refund.
Four things must be in place before impounds may be configured on a loan:
1. Transaction Codes for Impounds.
2. Impound Codes.
3. Contact Records for the entities to be paid by escrow.
4. Vendor Accounts must be configured of those contacts.
To configure impounds on a loan, first query that loan. Select View > Impounds menu. Here
you will have three choices:
1. Impounds
2. Analyze Impounds
3. FARETS Interface (First American Real Estate Tax System)
Select the first option (Impounds)
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Click
to add a new impound.
Select an impound type (from the list of impound codes that you had previously configured)
and type a description for the impound.
The impound setup will then be configured on the following four tabs:
Impound
The impound tab contains general information related to the impound account.
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Impound
Type
Impound
Desc
The impound type code is selected from a preconfigured drop down list.
The description is entered here for reference and identification purposes.
This is the invoice number of the tax or insurance bill or other type of payment
for which escrow is being held. If a vendor receives a check for escrow pay-
Invoice #
ments from multiple borrowers, a detailed report that will print with that check
will include information on the breakdown of those funds, indicating the borrowers on whose behalf the payments are being made. The invoice and
account numbers are included in this report.
Account #
This is the Account number for the tax account or insurance policy.
This is the impound reference. By setting the voucher reference in the trans code
Reference
setup to “%R”, the impound reference will be assigned as the reference field for
the vouchers generated by this impound, and subsequently the reference on
the checks.
Vendor
This links to the specific vendor account for the payee of the impound (e.g. tax
agency or insurance company).
Total
The total amount of money to be impounded. Because of billing cycles for
Impound
taxes and insurance, these figures are generally adjusted annually, so the
Amount
amount here is the bill for one year of taxes or a one year insurance policy.
Current
The current amount in impound for this particular account. This will generally
Impound
be zero whenever an impound is set up, but often has a value in it when this
Balance
screen is accessed on an existing impound.
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Loan Servicers are allowed to impound extra funds to cover them in the event
that the original impound amount becomes insufficient to actually cover the
amount of the bills. Annual impound analysis procedures will be used to make
sure that in subsequent years the cushion neither builds up nor becomes insufficient.
NOTE
Cushion type and amount is used in the impound analysis output.
Dollar Amount
The Cushion amount is a specifically designated amount.
The Cushion amount is defined as an amount sufficient to
cover a number of extra periods of impound.
EXAMPLE
An impound for an amount of $2,650.00 would be
$220.83 per month. To build in a two month cushion we
Cushion
would multiply that amount by 14 months to get
Type
$3,091.67. Then, dividing by 12 months would result in a
Number of Peri-
monthly impound payment of $257.64. The extra $36.81
odic Amounts
each month is there to build up the cushion.
At the end of the year, a cushion of $441.71 would exist,
and that should cover the lender/servicer in the event of
an unforeseen increase in the tax or insurance amount.
This often occurs as the money for the next tax bill is being
accumulated in the impound months before the actual
tax bill with the final assessed amount is issued; hence the
need for a cushion.
As a Percentage of
Total Impound
The cushion amount is defined by multiplying the impound
amount by the specified percentage.
Cushion
Amount /
Number of
This field is used with the cushion type field to define the actual amount of the
Periods /
cushion.
Cushion
Percentage
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Billing
The billing tab of the impound setup contains all those settings which govern when impound
shall be billed and how much impound billing shall be added on to the regular periodic
billing.
Controls the criteria for determining when the impound will be billed.
Scheduled A specific date for billing this impound is scheduled.
Billing
Type
Periodic
Billing
Start
Date
Expire
Date
Max
Repeat
A first billing date is scheduled as well as a billing period that will
define the subsequent billings with respect to the initial billing.
The impound will be billed at the same time that the regular payment on the loan is billed.
The date of the first impound billing.
No impound billing will be assessed after the date set here.
The maximum number of impound billings which may be billed.
Determines how to calculate the billing amount for each impound payment.
Amount
Fixed Amount
User may specify the amount to be billed.
Type
Total Impound
The impound is divided by the number of payments
Divided by remain-
before the tax or insurance bill is due. This helps make
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ing billings prior to
due date
sure that the funds are available when needed.
Total Impound
The impound is divided evenly over the number of pay-
Divided over one
ments scheduled in a year (e.g. divided by 12 if the pay-
year
ment period is monthly and the Billing Type is Billing).
Periodic
Click Recalc to have the amount calculated automatically based on the Amount
Amount
Type setting.
Analysis
New
Start
The start of the next period for the purpose of impound Analysis.
Date
Analysis
Based on the Impound Analysis, the expected Periodic Payment Amount for the
New
impound in the next period (year) after the analysis start date (i.e. what the Peri-
Amount
odic Amount is expected to change to).
# Times
Executed
The number of billings that have occurred thus far on this impound.
Last
Execute
The date of the most recent impound billing.
Date
Payments
The Payments tab of Impound Setup holds the information and setting that dictate when a
voucher shall be generated for the payment to the vendor.
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This controls the determination for when the voucher should be generated.
None
Scheduled
Payment
Periodic
Type
Upon
Receipt
Installment
(Yearly)
Due
Date
Pay Date
Offset
Expire
Date
No vouchers will be generated for this Impound
The voucher is scheduled to generate on a date specifically
defined.
Vouchers will be generated on a periodic basis.
This option is not currently enabled.
If the due dates are irregular (such as in states where property taxes
are due in October and February) you can set installment payments with up to four distinct dates.
For Scheduled
The Scheduled due date
For Periodic
The due date of the next periodic payment
For Installment (Yearly)
The due date of each installment
The number of days prior to the due date at which the voucher will generate. This
is to allow sufficient time for printing the voucher, mailing, and arrival at the
vendor.
A date after which no vouchers will be generated for this particular impound.
Pay Date The date the voucher is scheduled to be generated (Due date - Pay Date Offset)
Period
For Periodic Payment Type only; the period will define the subsequent due dates
with respect to the first due date.
Helps the Period to define the subsequent due dates.
Number
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EXAMPLE
of Periods
Max
Repeat
A regular due date of three times per year could be defined as Period: Months,
Number of Periods: 4.
The Maximum number of vouchers that can be generated by this impound setup.
Determines the amount of the Voucher to be generated.
Amount
Type
Total Impound Amount
The amount Defined on the Impound tab.
Current Impounded Amount The current balance of the Impound.
The amount is designated specifically by the
Fixed Amount
user.
Determines the type of discount applied to the payment.
Discount
None
No discount.
Type
Amount
Enter the fixed amount to discount in the Amount field.
Percentage
Enter the percentage to discount in the Percentage field.
Times
Executed
The number of vouchers that have been generated by this impound setup.
Last
Execute
The most recent date of voucher generation.
Date
Options
How a payment is to be handled is configured in the Options tab.
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Payment Handling Options
Hold Payment
Only pay when
impound balance is
sufficient
Pay only if FARETS or
manually verified
When selected, payments will not be made.
When selected, payments will be made only if the impound balance
is greater than or equal to the payment amount.
When selected, payments will be made only if FARETS is used or the
Verified checkbox for a payment installment on the Payment tab is
selected.
Impound Analysis
Introduction
Since it is beneficial to outline the steps in conducting an escrow analysis, as well as some of
the servicer’s obligations under the Real Estate Settlement Procedures Act (RESPA) and options
for having a borrower cure a shortage or deficiency, a general outline and discussion of these
steps are provide.
RESPA and Regulation X
Section 10 of RESPA places limits on the amount a lender or servicer may require a mortgagor
to keep in his or her escrow account to cover the payment of taxes, insurance, or other disbursements. This section also governs a servicer’s obligations with respect to providing an
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annual escrow account statement (i.e. escrow analysis) and notice, “not less than annually”
of any shortage in the escrow account.
Initial and Annual Escrow Statements
Initial Statement
A servicer that establishes an escrow account in connection with a “federally related mortgage” must provide the borrower a statement that clearly itemizes the estimated taxes, insurance premiums, and other charges that are reasonably anticipated to be paid from the
escrow account during the first 12 months after the escrow account is created. The statement
must be provided to the borrower either at closing, or within 45 days after creation of the
escrow account. If the initial statement is provided to the borrower at closing of the loan, the
servicer may incorporate such a statement in the uniform settlement statement.
Annual Statement
A servicer that has established or continued an escrow account must provide the borrower
with a statement at least once for each 12-month period (otherwise known as the “escrow
account computation year”) during which the servicer maintains the escrow account that
clearly itemizes:
1. the amount of the borrower’s current monthly payment
2. the portion of the monthly payment being placed in the escrow account
3. the total amount paid into the escrow account during the period
4. the total amount paid out of the escrow account during the period for taxes, insurance
premiums, and other charges (as separately identified)
5. the balance in the escrow account at the conclusion of the period
6. an explanation of how any surplus is being handled by the servicer
7. an explanation of how any shortage or deficiency is to be paid by the borrower
8. if applicable, the reason(s) why the estimated low monthly balance was not reached,
as indicated by noting differences between the most recent account history and last
year’s projection.
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The Regulation allows the servicer to provide or deliver the annual escrow statement to the borrower along with other statements or materials, including form 1098, which is provided for federal income tax purposes.
Short Year Statements
A servicer may issue a short-year annual escrow account statement (“short-year statement”)
to change one escrow account computation year to another. By using a short-year statement, a servicer may adjust its schedule for its entire portfolio or alter the escrow account computation year for the escrow account. The short-year statement has the effect of ending the
“escrow account computation year” for the escrow account and establishing the beginning
date of the new escrow account computation year. Therefore, the servicer must deliver the
short-year statement to the borrower within 60 days from the end of the short year.
If a borrower pays off a mortgage during the escrow account computation year, the servicer is
required to send a short-year statement to the borrower within 60 days after receiving the payoff funds.
Transfer of Servicing
If servicing of the loan is transferred and the new servicer changes the monthly payment
amount of the accounting method used by the transferor (i.e. old servicer), then the new servicer must provide the borrower with an initial escrow account statement within 60 days of the
date of servicing transfer. If the new servicer provides an initial escrow account statement
upon the transfer of servicing, the new servicer must use the effective date of the transfer of servicing to establish the new escrow account computation year. On the other hand, if the new
servicer retains the monthly payments and accounting method used by the old servicer, the
new servicer may continue to use the escrow account computation year established by the
old servicer or may choose to establish a different computation year using a short-year statement. At the completion of the escrow account computation year or any short year, the new
servicer must perform an escrow analysis and provide the borrower with an annual escrow
account statement. Regardless of whether the new servicer changes or retains the payment
amount of accounting method used by the old servicer, upon the transfer of servicing, the
transferor must provide a short year statement to the borrower within 60 days of the effective
date of the transfer of servicing.
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The Escrow Analysis
For purposes of Regulation X, an escrow analysis is the accounting that a servicer conducts in
the form of a trial running balance for an escrow account to:
1. Determine the appropriate target balances
2. Compute the borrower’s monthly payments for the next escrow account computation
year and any deposits needed to establish or maintain the account
3. Determine whether shortages, surpluses, or deficiencies exist.
In general, there are five steps in completing an escrow analysis.
The numbers used in this example come from the HUD website
Step 1 - Anticipated Escrow Disbursements
The first step in the analysis is to list all of the anticipated disbursements that will be paid out of
the escrow account over the next 12 months. The example assumes $1,200 for property taxes
($500 paid July 25 and $700 paid December 10) and $360 for Hazard Insurance on September 20.
County Taxes
Homeowner’s Insurance
Total
$1,200.00
$360.00
$1,560.00
If the borrower has a payment for flood insurance, which is ordinarily paid every three years,
the Regulation requires the servicer to project a trial balance over the three-year period.
If the servicer knows the charge for an escrow account item in the next computation year, then
the servicer shall use that amount in estimating disbursement amounts. But if the charge is
unknown to the servicer, the servicer may base the estimate on the preceding year’s charge, or
the preceding year’s charge as modified by an amount not exceeding the most recent year’s
change in the national Consumer Price Index for all urban consumers.
Step 2 - Calculating the Monthly Escrow Component
The second step in the analysis calls for the servicer to divide the total from Step 1 by 12
monthly payments ($1,560 divided by 12 = $130).
Step 3
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The third step in the escrow analysis requires the servicer to create a trial running balance for
the next 12 months, listing all payments into the escrow account and all payments out of the
account, and when the anticipated disbursements above are expected to be paid.
Payment
Disbursement
June
“Step 3 Balance”
0
July
130
500
-370
August
130
0
-240
September
130
360
-470
October
130
0
-340
November
130
0
-210
December
130
700
-780
January
130
0
-650
February
130
0
-520
March
130
0
-390
April
130
0
-260
May
130
0
-130
June
130
0
0
Step 4
Step 4 requires the servicer to increase all of the monthly balances to bring the lowest point in
the account (in the example, December -$780) up to zero. This is sometimes referred to as the
theoretical low point. Usually the low point comes in the month where the property taxes have
been paid.
Payment
Disbursement
June
“Step 3 Bal-
“Step 4 Bal-
ance”
ance”
0
780
July
130
500
-370
410
August
130
0
-240
540
September
130
360
-470
310
October
130
0
-340
440
November
130
0
-210
570
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“Step 3 Bal-
“Step 4 Bal-
ance”
ance”
700
-780
0
130
0
-650
130
February
130
0
-520
260
March
130
0
-390
390
April
130
0
-260
520
May
130
0
-130
650
June
130
0
0
780
Payment
Disbursement
December
130
January
Step 5
Step 5 directs the servicer to add any cushion the lender requires to the monthly balances. The
cushion may be a maximum of one-sixth of the total escrow charges anticipated over the next
12 months. The regulation provides that the servicer shall examine the loan documents to
determine the applicable cushion and limitations for each escrow account. If the loan documents provide for lower cushion limits than under the Regulation, then the terms of the loan
documents apply. Where the terms of any loan document allow greater payments to an
escrow account than allowed by the Regulation, then the Regulation controls the applicable
limits. Where the loan documents do not specifically establish an escrow account, whether a
servicer may establish an escrow account for the loan is determined by state law. If the loan
document is silent on the escrow account limits and a servicer establishes an escrow account
under state law, then the limitations under the Regulation apply, unless state law provides for a
lower amount. If the loan documents provide for escrow accounts up to the RESPA limits, then
the servicer may require the maximum amounts consistent with the Regulation, unless an
applicable state law sets a lower amount.
In the example provided: 1/6 of $1,560 = $260.00
Payment
Disbursement
June
Balance
1040
July
130
500
670
August
130
0
800
September
130
360
570
October
130
0
700
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Payment
Disbursement
Balance
November
130
0
830
December
130
700
260
January
130
0
390
February
130
0
520
March
130
0
650
April
130
0
780
May
130
0
910
June
130
0
1040
So, following the RESPA/HUD guidelines, the maximum the servicer could require in the escrow
account at the point of analysis (June) is $1,040. This is then compared to the actual balance
of the amount impounded to determine the presence of a Surplus, Shortage, or Deficiency.
Surpluses, Shortages, and Deficiencies
At this point, the servicer then compares the “required” amount (otherwise known as the “target balance”) to the actual account at the time the escrow analysis was being performed (in
the example provided, the escrow analysis is being performed in the month of June). If the
amount in the escrow account exceeds the required amount, then there is a “surplus” in the
escrow account. Where the surplus is less than $50, the servicer may apply the surplus to
reduce the amount of the escrow payment, or may choose to return the surplus to the borrower. If the surplus is more than $50, the servicer must return the surplus to the borrower within
30 days of performing the escrow analysis.
If the amount in the escrow account is positive, but less than the required amount, then there is
an escrow shortage. If the amount of the escrow shortage is less than one month’s escrow payment, the servicer may ask the borrower to pay this shortage within 30 days, or the servicer may
spread it out over 12 months. If the amount of the escrow shortage is greater than one month’s
escrow payment, then the servicer must spread the shortage out over at least 12 months. A servicer may also do nothing and allow the shortage to exist.
If the amount in the escrow account not only falls below the required amount but is negative
(i.e., where the servicer has had to use its own funds to make a disbursement), then there is an
escrow deficiency. As with an escrow shortage, if the amount of the deficiency is less than one
monthly escrow payment, the servicer may require the borrower to pay the deficiency within 30
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days. However, if the amount of the deficiency is equal to or greater than one monthly escrow
payment, the servicer may require the borrower to repay the amount over 2–12 months. A servicer also has the option to allow the deficiency to exist and do nothing to change it.
Running the Analysis in NLS
On any loan where impounds are configured, select the menu item View > Impounds > Analyze Impounds.
Because of the RESPA requirement to deliver an analysis two months in advance of any
change to the impounding amount, the analysis date will default to the start of the next
month, plus two months, from the date upon which the impound is being run. Click Next >.
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Click
under the Doc column to view the analysis statement.
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Click Finish on the analysis form to send the statements to the printer.
FARETS Interface
The Nortridge Loan System is able to interface with First American Real Estate Tax Service
(FARETS). This permits NLS users who are subscribers to FARETS to automatically update all tax
information in the escrow impound setups through an electronic file that pulls from the appropriate taxing authorities. You indicate the properties in your portfolio, and FARETS will send out
an update file on an annual basis, with all necessary modification data from the taxing jurisdiction. When processing the FARETS file, NLS will automatically verify each tax item to ensure
that the tax assessment is correct.
When a FARETS text file has been received, upload this file into NLS by selecting the menu item
View > Impounds > FARETS Interface.
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Click
next to the FARETS Tax Amount File field and browse to the location where the file is loc-
ated to upload the file.
Select the Impound Type from the drop down list.
Select the Loan Group from the drop down list.
Payment Amount Threshold sets a cap on how much the property tax can increase from year
to year. If the amount from FARETS is in violation of this cap, the FARETS file will be rejected. An
amount of zero indicates no threshold.
The section Use the following to match FARETS w/ NLS: allows you to map fields within the
FARETS document to fields in NLS so as to properly link the two together.
When the FARETS file is run, two reports will be generated. The Match report will list all files in the
FARETS document that did match to an account in NLS, and the Exception report will list any
files in the FARETS document that were rejected. Click the respective buttons for these reports to
specify the path where you want them generated.
Click Test to create the reports without actually transferring the FARETS data into NLS. This is
used to determine what would be rejected if you were to transfer the FARETS data at this time.
Click Run to transfer the FARETS data into NLS and generate the reports.
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If the checkbox in options: “Pay only if FARETS or manually verified,” is selected, then transferring the FARETS data will automatically select the verified checkbox on those installments for
which the FARETS data was transferred.
Credit Line Reserves
In order to maintain proper control of construction loans, it may be necessary to break up a
line of credit into multiple smaller credit lines. For example, a credit line of $1,000,000 could
consist of $400,000 for framing, $300,000 for roofing, $200,000 for plumbing/electrical, and
$100,000 for flooring.
The Nortridge Loan System allows for the setup of multiple credit lines on a line of credit loan.
Each of these credit lines may be tracked separately, or the summary of the entire credit line
can be viewed. Manual transactions may be set up for various kinds of draws, and those transactions can be automatically linked to the credit lines so that running a certain draw transaction will automatically draw for the corresponding credit line.
Credit Line Summary
To view the credit line summary, query a Line of Credit Loan. Select the View > Loan Setup
menu. Then, click
to the right of the credit line field.
The picture above shows the credit line summary for a Line of Credit Loan on which the credit
limit has originally been set to zero. For a plain Line of Credit, where the credit line is not divided
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up into separate reserve elements, the credit limit will be entered into the credit limit field of the
loan setup screen, and would appear here as the main credit line.
To add additional credit lines (a loan where all of the credit is broken up into various reserves
will often have no Main Credit Line) click
to configure the detail of the specific credit line.
When you add a credit line, you will need to link that credit line to a specific transaction code
for a draw so that when a draw occurs, the funds are automatically taken from the correct
credit line reserve.
Credit Line Detail
The information for a specific credit line is contained in that line’s credit line detail.
To view the detail of a credit line, query a Line of Credit Loan. Select the View > Loan Setup
menu then click
to the right of the credit line field. Click
to the right of the credit line
column.
The specific data for the credit line is configured on the tabs.
Main
The Main tab of the credit line detail contains data regarding how much can be drawn
against that credit line and in what increments.
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Name
The name given to identify the specific credit line reserve
Description
A description of what the reserve is to be used for
The indicated transaction code, when run against the loan will automatically
Transaction
Code
draw from this particular credit line reserve. The same transaction code can not
be designated for multiple reserves on the same loan. For more information
regarding setting up transaction codes for different kinds of draws on reserves,
see Linking Transaction Codes for Draws to Specific Credit Lines.
Credit Line
Limit
Draw Limit
Max Draw
Amount
Min Draw
Amount
The amount of credit earmarked for this particular reserve
The maximum total draw available for this particular reserve
The maximum amount which may be taken as a draw in a single transaction
The minimum amount which may be taken as a draw in a single transaction
Max # of
The number of times a draw transaction for this credit line may be run. A value
Draws
of zero indicates no specific limit.
# of Draws
The number of times that a draw transaction for this credit line has been run.
Draw until
A date field, after which this credit line reserve expires, and no more draws may
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be made.
Overdraw
The Overdraw tab of the credit line reserve contains configuration that controls how the loan
will respond to an advance which exceeds the amount in the reserve.
The overdraw threshold controls how much over the credit limit a draw is allowed
to go and still allow the advance to take place
Greater
Overdraw
Threshold
Attribute
Lesser
Both
The threshold is the greater of a fixed amount or designated percentage of the credit line
The threshold is the lesser of a fixed amount or designated percentage of the credit line
The threshold is the sum of a fixed amount and a
designated percentage of the credit line
Amount
The fixed amount specified by the user
Percentage
A percentage of the specific credit line reserve
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The overdraw fee controls how much to charge in the event that the credit line
reserve is over-drawn. The threshold allows the advance to take place, but a fee
may be imposed.
The fee is the greater of a fixed amount or designated
Greater percentage of the amount by which the credit line is
over-drawn
The fee is the lesser of a fixed amount of designated perAttribute
Lesser
centage of the amount by which the credit line is over-
Overdraw
drawn
Fee
The fee is the sum of a fixed amount and a designated
Both
percentage of the amount by which the credit line is
over-drawn
Amount
Percentage
Transaction
code
The fixed amount specified by the user
A percentage of the amount by which the credit line has been
over-drawn
The transaction code to be used in assessing the fee. TC 154 is the
standard transaction code designed for this purpose, but a
manual transaction code could also be configured.
Fee
The Fee tab of the credit line reserve setup is used to set a fee that is assessed for all draws.
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Greater
Attribute
Lesser
Both
Amount
Fee is the greater of a specified amount or a percentage of the
amount of the draw
Fee is the lesser of a specified amount or a percentage of the
amount of the draw
Fee is the sum of a specified amount or a percentage of the amount
of the draw
The specified fixed amount of the fee
Percentage The percentage of the amount of the draw
Transaction
Code
The transaction code to be used in assessing the draw fee. TC 152 - Credit Line
Advance Fee is a standard transaction code designed for this purpose, though
other transaction codes could be configured.
Options
The Options tab contains several options flags for controlling functions of a credit line reserve.
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In general, the last three draws for the entire credit line are shown on the
Include Draw in
credit line information screen in loan query. This option allows the draws
“Last 3 Draws”
from a specific credit line reserve to be either included or excluded from
that list.
Expired reserve
added back to
If a particular credit line reserve reaches its draw until date, any portion that
the Main Credit
has not been drawn is allocated back to the main credit line.
Limit
Linking Transaction Codes for Draws to Specific Credit Lines
When breaking up a credit line into multiple credit line reserves, it is necessary to create different transaction codes for the different types of draws. Linking each credit line reserve to a
separate transaction code will make the draws automatically come from the correct part of
the credit line.
A manual transaction code which is set up to represent a certain type of draw should have a
transaction classification of advance, and should generally increase the loan balance of Principal.
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When adding a credit line reserve to a Line of Credit Loan, a list of the available transaction
codes will appear in the credit line detail. Check the transaction code to be used as the draw
transaction for this reserve, and any time that particular transaction code is run on the loan, it
will automatically draw from this reserve.
On any one loan, a particular transaction code may be used as the draw for only one reserve,
so once a transaction code has been assigned to a reserve, that transaction code will no
longer appear in the list of available transaction codes for the same reserve.
Credit Bureau
NLS has the ability to create Metro 2 files for submission to credit bureaus. The reporting entity is
defined in the loan setup. This entity can be associated with loan templates, loan groups, and
loans. At the loan template and loan group, the reporting entity may be defined for all loans
associated with those objects. For instance, if a reporting entity is defined at the loan group, all
loans belonging to that loan group will report under that entity. Defining the reporting entity at
the loan template allows for not only the reporting entity to be defined but also the Portfolio
Type, Account Type, and Primary ECOA Code for all loans created with that template.
At the loan level, a user would add the loan to the reporting entity to be reported on a regular
basis. The setup dialog, allows for the setting of the Portfolio Type, Account Type, and Primary
ECOA code. These drop down lists include all available options that exist in the Metro 2 specifications.
In addition to the setup fields, the Loan View Credit Bureau dialog also contains the Special
Comment and Account Status Codes that can manually be used to denote special situations
like fraud or partial charge off. For ease of reading, the 24 Month Payment History is in a
graphic representation showing what has been reported as of the last report date to the bureau. The override fields allow for the overriding of reported data for those special circumstances that may come up where correcting the transactional history is not possible.
Metro 2 files can be generated on cycles or months. When it is time to generate the file, select
View > Processing > Transaction menu and generate the file. Once the file is generated it can
then be uploaded directly to the credit bureau. All generated files will be saved in their entirety
in the database for historical record. Any corrections or overrides will require a comment from
the user making the correction along with the correction data elements.
Dealer Setup
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The K1 segment, which reports the original creditor name and creditor classification code, can
be added to the credit bureau Metro 2 file. This feature is available on contact types with the
dealer type flag set.
To enable K1 segment, select the dealer contact in the contact tree view and select View >
Dealer Setup menu.
Select Enable K1 segment. The Creditor Name field will automatically populate with the company name of the dealer contact associated with it. The creditor name can also be manually
entered as needed. Select a Creditor Classification from the drop down list.
Creditor Classification Values:
01 = Retail
02 = Medical/Health Care
03 = Oil Company
04 = Government
05 = Personal Services
06 = Insurance
07 = Educational
08 = Banking
09 = Rental/Leasing
10 = Utilities
11 = Cable/Cellular
12 = Financial
13 = Credit Union
14 = Automitive
15 = Check Guarantee
Click OK to save the changes.
View Credit Bureau Report on Individual Loan
To view the credit bureau setup on an individual loan, select View > Credit Bureau Report
menu.
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Credit Bur-
The header that was configured in loan setup and contains your company’s
eau Header
credit bureau account information.
Portfolio
Type
Line of Credit, Installment, Mortgage, Open Account, or Revolving
Account
Identifies the account classification as recognized by the credit bureaus.
Type
Some examples include: Agricultural, Attorney Fees, and Auto.
Override
Account
If needed the account status code can be overridden by selecting this option
Status
and choosing the appropriate item from the drop down list.
Codes
Override 24Month
Future Pymt
History
If needed the 24 month future payment history data can be overridden by
selecting this option and choosing the appropriate item from the drop down
list.
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Override Pay- If needed the payment rating can be overridden by selecting this option and
ment Rating
choosing the appropriate item from the drop down list.
Special
Special Comment may be used in conjunction with the Account Status to fur-
Comment
ther define the account.
Compliance Allows the reporting of a condition that is required for legal compliance (e.g.,
Condition
according to the Fair Credit Reporting Act (FCRA) or Fair Credit Billing Act
Code
(FCBA)).
Primary
ECOA Code
Defines the relationship of the primary consumer to the account and designates the account as joint, individual, etc., in compliance with the Equal
Credit Opportunity ACT.
Contains a value that indicates a special condition of the account that
Consumer
Info Indicator
applies to the primary consumer. This special condition may be that a bankruptcy was filed, discharged, dismissed, or withdrawn; a debt was reaffirmed;
or the consumer cannot be located or is now located. The indicator should be
reported one time and will be deleted only when the condition no longer
exists.
Charge Off
This field will contain any amount that was charged off and was intended to
Amount
be reported to the credit bureau.
Last Report
Date
This field will contain the date the report was last run.
Once the monthly credit bureau processing has been completed, the 24 month history is populated with codes indicating the status of the loan at the end of each calendar month. Any of
these can be overridden by clicking in the override field directly under the entry to be changed.
After entering overrides, you may regenerate the Metro 2 file for submission to the credit bureaus, and the override history will continue to be the history reported each period until it is
removed.
A modification comment may be entered for each override.
Processing the Credit Bureau
The credit bureau data should be processed on a monthly basis. Running the processing of
the credit bureau data generates the 24 month credit bureau history on each individual loan
which is set up for credit bureau processing. The final month of this history is always the previous month, as each entry in the 24 month history indicates the loan’s past due status as of
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the last calendar date of that month. In addition, the credit bureau processing also creates the
Metro 2 file that is to be sent to the credit bureaus. If after generating the data, you need to do
overrides on individual accounts, and you need those overrides to be reflected in the Metro 2
file, you must re-run the processing after entering the overrides to create a new Metro 2 file.
To process the credit bureau, begin by selecting Processing slider from the Shortcut bar and
then click
on the toolbar.
This will bring up a Create New Credit Bureau Batch wizard.
Enter a batch reference and set the batch date and deposit date.
Click Next.
Select a Credit Bureau Header from the drop down list.
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Click Next.
Enter a path and file name where you wish to save the Metro 2 file.
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Click Next.
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Click Finish.
Trust Accounting
The Trust Accounting features of The Nortridge Loan System are designed to allow you, the
Loan Servicer, to manage servicing of loans for multiple lenders.
Just as the loan system acts as a sub-ledger, freeing the servicer from the need to maintain a
separate asset account for each and every borrower, the Trust Accounting features allow similar, parallel, functionality from the lenders. A contact is setup for each lender and this contact,
instead of being attached to a loan, is attached to a disbursement account. The loans from
this lender are linked to the disbursement account in such a way that the disbursement
account will track the net cash balance of funds being held by the servicer on behalf of that
lender.
In addition, servicing fees may be automated, and these may be charged to the lender, or netted against the monies owed to the lender prior to remittance.
Contact Disbursement Accounts
In trust accounting, the balances held in trust for a particular Lender are stored in a Disbursement Account.
The disbursement account is configured on the Contact record for that lender.
The balances of a loan are held in the normal loan record which is configured under the contact record for the borrower.
Each loan is assigned to a loan group which defines the GL to which it reports. In this case, that
loan group will be configured to point to the disbursement account of the corresponding
lender.
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To add a disbursement account for a lender, query the lender’s contact. Then click
. Click
to configure a new disbursement account.
Loan Setup for Trust Accounting
Of the many global Loan Setup codes and parameters in the Nortridge Loan System (Portfolios, Classes, Groups, Status Codes, Transaction Codes, base rates, etc.) two need special
consideration with regard to trust accounting. These are Loan Groups and Transaction Codes.
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Loan Groups: A special tab related specifically to Trust Accounting has been added to the
loan group setup. This controls the Loan Group Servicing Options.
Transaction Codes: Seven new standard transaction codes have been added to the system to
control the placement of money into and out of trust and to control Servicing Fees for trust
accounting.
Loan Group Servicing Options
When a Loan Group is configured and that group is intended to represent a Lender—for whom
you, as a servicer, are doing trust accounting—use the Servicing options tab of the Loan
Group setup to link that loan group to the Lender’s disbursement account, you may also specify ACH configuration information if ACH will be used to collect the borrower’s payments and
automatically deposit them into the lender’s account. In addition, a credit bureau header
may be specified. This allows you to report to credit bureaus and have those reports specify the
actual lender as the creditor on the account, not you, the servicer.
ACH Company
Links to an ACH Company configured in the Global ACH Setup.
Credit Bureau Links to a Credit Bureau Header as configured in the parameters of Loan
Header
Setup.
Disbursement If you will be cutting checks to the borrower, this field links to the DisAccount
bursement Account configuration corresponding to the bank account from
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which you will be cutting those checks.
Attach to a
Vendor
(Investor)
Name
Select this checkbox and use the lookup to link to the Disbursement Account
on the Contact record of the lender.
The name of the contact on which the linked Vendor Disbursement Account
exists.
Contact Num- The Contact number of the contact on which the linked Vendor Disber
Notes
bursement Account exists.
Use this field to enter any notes you need to make about the servicing procedures for this lender.
Transaction Codes for Trust Accounting
Seven new standard transaction codes have been added to the loan system for the purpose
of controlling trust accounting.
Transaction Code
10
Trust Deposit
20
Trust Disbursement
22
32
40
42
50
Trust Deposit
Transaction Code 10 - Trust Deposit is used to recognize the receipt of funds into the servicer’s
ledger that belongs to some other entity (a Lender). This transaction is run automatically for
the total amount of the payment received by the borrower when the following conditions
(defining trust accounting setup) are met:
1. The loan is a member of a loan group that is configured with Servicing Options.
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2. Within the Servicing Options, the Loan Group is tied to a Disbursement Account. This represents a bank account where the money held in trust for the lender sits, and from which
checks to that lender may be cut.
3. Within the Servicing Options, the Loan Group is attached to a Vendor. This is an account
on the Lender’s Contact File which holds the balances owed to or by that Lender as well
as the outstanding Vouchers for that lender.
The Trust Deposit transaction is a General Ledger posting which will create a debit to the TrustCash Account and a credit to the Trust-Undisbursed Funds.
When a payment is made, and this transaction is automatically run, Transaction Code 20 Trust Disbursement is also automatically run. This transaction creates a debit to Trust-Undisbursed Funds and a credit to PH Accounts Payable. The Trust Disbursement also creates a
Voucher for cutting a check to the Lender. The net result of both transactions being run for the
same amount (which is what will happen if there is no servicing fee on the payment) is a debit
to Trust-Cash Account and a credit to PH Accounts Payable. The act of printing the check creates a debit to PH Accounts Payable and a credit to Trust-Cash Account so that the net GL after
the check has been remitted is a complete wash.
The General Ledger accounts involved in the Principal and Interest Payment transactions:
Cash, Loan Asset, and Accrued Interest, represent the GL accounts of the lender, and not the
servicer, and unless the servicer is also managing the ledger of the lender, they need not necessarily be defined at all.
EXAMPLE
Borrower makes a payment of $300, of which $100 is an interest payment and $200 is a principal payment.
GL Accounts
Lender’s Cash
Lender’s Loan Asset
Lender’s Accrued Interest Receivable
Trust-Cash (Servicer’s GL)
Trust-Undisbursed Funds (Servicer’s GL)
PH Accounts Payable (Servicer’s GL)
When the payment is made, the following transactions are run:
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Transaction
Debit GL/Amount
Credit GL/Amount
200 - Principal Payment Lender’s Cash: $200
Lender’s Loan Asset: $200
202 - Interest Payment
Lender’s Cash: $100
Lender’s Accrued Interest: $100
10 - Trust Deposit
Trust - Cash: $300
Trust - Undisbursed Funds: $300
20 - Trust Disbursement Trust - Undisbursed Funds: $300 PH Accounts Payable: $300
From the point of view of the Lender’s GL, this leaves us with $300 cash, $200 reduced from
the loan balance (Loan Asset), and $100 of interest payment received.
From the point of view of the Servicer’s GL, this leaves us with $300 of the Lender's Cash in
Trust, and a $300 credit in Accounts Payable corresponding to an outstanding $300
voucher.
For information on the other Trust transaction code involved, see Trust Disbursement.
To see how this example changes when servicing fees are involved, see Trust Disbursement Servicing Fee and Trust Receivable - Servicing Fee.
For information on how to configure the automation of the Servicing Fee, see Servicing Fee Recurring Transaction.
Trust Disbursement
Transaction Code 20 - Trust Disbursement is used to generate a voucher representing funds to
be paid out to a Lender, and make the appropriate GL entries for the Servicer related to that
payment. This transaction is run automatically for the amount due to the lender. Upon receipt
of a payment, this amount will be the total amount of the payment received by the borrower
less any servicing fees owed by the lender to the Servicer. It automatically runs when the following conditions (defining trust accounting setup) are met:
The Trust Disbursement transaction is a General Ledger posting which will create a debit to the
Trust-Undisbursed Funds and a credit to Accounts Payable.
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When a payment is made, and this transaction is automatically run, Transaction Code 10 Trust Deposit is also automatically run. This transaction creates a debit to Trust-Cash and a
credit to Trust-Undisbursed Funds. The net result of both transactions being run for the same
amount (which is what will happen if there is no servicing fee on the payment) is a debit to
Trust-Cash Account and a credit to PH Accounts Payable. The act of printing the check creates
a debit to PH Accounts Payable and a credit to Trust-Cash Account so that the net GL after the
check has been remitted is a complete wash.
EXAMPLE
Borrower makes a payment of $300, of which $100 is an interest payment and $200 is a principal payment.
GL Accounts
Lender’s Cash
Transaction
Debit GL/Amount
Credit GL/Amount
200 - Principal Payment Lender’s Cash: $200
Lender’s Accrued Interest: $100
10 - Trust Deposit
Trust - Cash: $300
Trust - Undisbursed Funds: $300
20 - Trust Disbursement Trust - Undisbursed Funds: $300 PH Accounts Payable: $300
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From the point of view of the Servicer’s GL, this leaves us with $300 of the Lender’s Cash in
Trust, and a $300 credit in Accounts Payable corresponding to an outstanding $300
voucher.
For information on the other Trust transaction code involved, see Trust Deposit.
To see how this example changes when servicing fees are involved, see Trust Disbursement Servicing Fee and Trust Receivable - Servicing Fee.
Transaction Code 22 - Trust Disbursement - Servicing Fee is used to generate a voucher for the
disbursement of the servicing fee from the trust to the servicer. This transaction is run automatically for the total amount of the payment received by the borrower when the following
conditions (defining trust accounting setup) are met:
4. A Servicing Fee is configured on the loan through Recurring transactions.
5. The servicing fee is configured with a type of Net From Cash Total Outstanding.
The Trust Disbursement - Servicing Fee transaction includes a General Ledger posting which will
create a debit to the Accounts Receivable and a credit to the Accounts Payable.
When a payment is made, on a loan for which there is a servicing fee, this transaction will be
automatically run along with transaction code 10 - Trust Deposit, transaction code 20 - Trust
Disbursement, transaction code 32 - Trust Receivable - Servicing Fee, and transaction code
320 - Servicing Fee.
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The net general ledger result of all of these transactions being run is illustrated by the following
example.
EXAMPLE
Borrower makes a payment of $300, of which $100 is an interest payment and $200 is a principal payment. The loan is set up with a servicing fee of $15 per payment.
GL Accounts
Lender’s Cash
PH Accounts Receivable (Servicer’s GL)
PH Accrued Fees 2 (Servicer’s GL)
PH Fees Income 2 (Servicer’s GL)
Transaction
Debit GL/Amount
Credit GL/Amount
200 - Principal Payment
10 - Trust Deposit
Trust - Cash: $300
20 - Trust Disbursement
320 - Servicing Fee
22 - Trust Disbursement - Servicing Fee
Lender’s Accrued Interest:
$100
Trust - Undisbursed Funds:
$300
PH Accounts Payable:
$300
$300
Accrued Fees 2: $15
Fees Income 2: $15
Accounts Receivable: $15
Accounts Payable: $15
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Transaction
32 - Trust Receivable - Servicing
Fee
Debit GL/Amount
Credit GL/Amount
Accrued Fees 2: $15
Trust, a $300 credit in Accounts Payable ($285 is payable from the trust to the lender and
$15 is payable from the trust to the servicer), a $15 debit in Accounts Receivable, and a $15
credit in fee income.
Additionally three vouchers have been created by these transaction codes. The Trust Disbursement generated a voucher for $300 payable to the lender and the Servicing Fee Receivable generated a voucher for ($15) also payable to the lender. When the vouchers with like
payables are combined, this results in a check of $285 to the lender, leaving $15 in the Trust
Cash account. The Servicing Fee Disbursement transaction generated a voucher of $15 with
the Servicer as the payee. This results in a check of $15 from the trust to the servicer.
For information on the other Trust transaction codes involved, see Trust Deposit, Trust Disbursement, and Trust Receivable - Servicing Fee.
Transaction Code 32 - Trust Receivable - Servicing Fee is used to generate a voucher for the disbursement of the servicing fee from the lender to the trust. It is paid out of the trust to the servicer
by Transaction Code 22 - Trust Disbursement - Servicing Fee. This transaction is run automatically for the total amount of the payment received by the borrower when the following
conditions (defining trust accounting setup) are met:
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4. A Servicing Fee is configured on the loan through Recurring transactions.
5. The servicing fee is configured with a type of Net From Cash Total Outstanding.
The Trust Receivable - Servicing Fee transaction includes a General Ledger posting which will
create a debit to the Accounts Payable and a credit to the Accrued Fees 2.
When a payment is made, on a loan for which there is a servicing fee, this transaction will be
automatically run along with transaction code 10 - Trust Deposit, transaction code 20 - Trust
Disbursement, transaction code 22 - Trust Disbursement - Servicing Fee, and transaction code
320 - Servicing Fee.
The net general ledger result of all of these transactions being run is illustrated by the following
example.
EXAMPLE
Borrower makes a payment of $300, of which $100 is an interest payment and $200 is a principal payment. The loan is set up with a servicing fee of $15 per payment.
GL Accounts
Lender’s Cash
PH Accounts Receivable (Servicer’s GL)
PH Accrued Fees 2 (Servicer’s GL)
PH Fees Income 2 (Servicer’s GL)
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Transaction
Debit GL/Amount
Credit GL/Amount
200 - Principal Payment
10 - Trust Deposit
Trust - Cash: $300
20 - Trust Disbursement
320 - Servicing Fee
22 - Trust Disbursement - Servicing Fee
32 - Trust Receivable - Servicing
Fee
Lender’s Accrued Interest:
$100
$300
PH Accounts Payable:
$300
$300
Accrued Fees 2: $15
Fees Income 2: $15
Accounts Receivable: $15
Accrued Fees 2: $15
Trust, a $300 credit in Accounts Payable ($285 is payable from the trust to the lender and
$15 is payable from the trust to the servicer), a $15 debit in Accounts Receivable, and a $15
credit in fee income.
Additionally three vouchers have been created by these transaction codes. The Trust Disbursement generated a voucher for $300 payable to the lender and the Servicing Fee Receivable generated a voucher for ($15) also payable to the lender. When the vouchers with like
payables are combined, this results in a check of $285 to the lender, leaving $15 in the Trust
Cash account. The Servicing Fee Disbursement transaction generated a voucher of $15 with
the Servicer as the payee. This results in a check of $15 from the trust to the servicer.
For information on the other Trust transaction codes involved, see Trust Deposit, Trust Disbursement, and Trust Disbursement - Servicing Fee.
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Transaction Code 40 - Subsidized Interest Receivable is used to settle up interest between the
subsidizing participant and the subsidized participant on a participation loan with an interest
buy-down. This transaction code is executed on the subsidizing participant and transaction
code 42 - Subsidized Interest Payable is executed on the subsidized participant. These transactions occur automatically when the following conditions are met:
1. The loan is a participation loan.
2. One of the participants is set up with an interest rate higher than the interest rate of the
loan (this is the Subsidized participant).
3. One of the participants is set up with an interest buy-down for the amount of the difference between the rate of the Subsidized participant and the rate of the loan (this is the
Subsidizing participant).
4. A recurring transaction is set up on the Subsidizing participant with a transaction type of
Subsidization Settlement.
5. In the configuration of the Subsidization Settlement recurring transaction, the Subsidized
participant is designated as the participant to settle with.
The Subsidized Interest Receivable transaction affects the GL with a Debit to Accrued Interest
and a Credit to Accounts Receivable. In addition, the transaction increases the interest balance on the participant on which it is run (which, due to its buy-down, has accrued negative
interest).
Example: A loan with a balance of $10,000 accrues interest at 10%. The interest is periodic, so
the total monthly accrual is $83.33. The Subsidized participant has an interest rate of 12% for a
total monthly accrual of $100. The subsidizing participant has a 2% buy-down for a total
monthly negative accrual of ($16.67). The General Ledger Accounts involved are:
Subsidized Participant’s Accrued Interest
Subsidizing Participant’s Accrued Interest
Subsidized Participant’s Interest Income
Subsidizing Participant’s Interest Expense
Accounts Receivable
Accounts Payable
After one month’s accrual of interest, the balances of these accounts would be as follows:
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Account
Debit Balance
Credit Balance
100.00
0.00
0.00
16.67
0.00
100.00
16.67
0.00
Accounts Receivable
0.00
0.00
Accounts Payable
0.00
0.00
0.00
0.00
The recurring transaction is configured to do the Subsidization settlement at the end of the
month. Transaction Code 40 runs for $16.67 on the subsidizing participant, increasing the
interest balance on that participant upward toward zero. On the GL, the subsidizing participant’s accrued interest is debited and accounts receivable is credited, corresponding to a
negative voucher which will either deduct from the amounts due to be paid out to the vendor
account of the subsidizing participant, or will require a billing to receive the interest subsidy
from the subsidizing participant.
Trans code 42 is run on the participant who has been designated as the subsidized participant. This decreases the interest balance on that participant in the same way that a payment would. If effect, a portion of the interest is being paid by the subsidizer and is therefore
not due from the borrower. On the GL, there is a debit to Trust - Undisbursed Funds and a credit
to Accounts payable. This is identical to the GL setup of the trust disbursement transaction (TC
20) which will occur when the borrower pays their portion of the interest payment, and will create a similar voucher.
At this point, the borrower still has yet to make their interest payment, and the balances of the
GL accounts are as follows:
Account
Debit Balance
Credit Balance
100.00
0.00
16.67
16.67
0.00
100.00
16.67
0.00
Accounts Receivable
0.00
16.67
Accounts Payable
0.00
16.67
16.67
0.00
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For information on the other trust transaction code involved, see Subsided Interest Payable.
Transaction Code 42 - Subsidized Interest Payable is used to settle up interest between the subsidizing participant and the subsidized participant on a participation loan with an interest buydown. This transaction code is executed on the subsidized participant and transaction code
40 - Subsidized Interest Receivable is executed on the subsidizing participant. These transactions occur automatically when the following conditions are met:
1. The loan is a participation loan.
2. One of the participants is set up with an interest rate higher than the interest rate of the
loan (this is the Subsidized participant).
3. One of the participants is set up with an interest buy-down for the amount of the difference between the rate of the Subsidized participant and the rate of the loan (this is the
Subsidizing participant).
4. A recurring transaction is set up on the Subsidizing participant with a transaction type of
Subsidization Settlement.
5. In the configuration of the Subsidization Settlement recurring transaction, the Subsidized
participant is designated as the participant to settle with.
The Subsidized Interest Payable transaction affects the GL with a Debit to Trust - Undisbursed
Funds and a Credit to Accounts Payable. In addition, the transaction decreases the interest
balance on the participant on which it is run, bringing it down to the amount remaining to be
paid by the borrower.
Example: A loan with a balance of $10,000 accrues interest at 10%. The interest is periodic, so
the total monthly accrual is $83.33. The Subsidized participant has an interest rate of 12% for a
total monthly accrual of $100. The subsidizing participant has a 2% buy-down for a total
monthly negative accrual of ($16.67). The General Ledger Accounts involved are:
Accounts Receivable
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Accounts Payable
After one month’s accrual of interest, the balances of these accounts would be as follows:
Account
Debit Balance
Credit Balance
100.00
0.00
0.00
16.67
0.00
100.00
16.67
0.00
Accounts Receivable
0.00
0.00
Accounts Payable
0.00
0.00
0.00
0.00
The recurring transaction is configured to do the Subsidization settlement at the end of the
month. Transaction Code 40 runs for $16.67 on the subsidizing participant, increasing the
interest balance on that participant upward toward zero. On the GL, the subsidizing participant’s accrued interest is debited and accounts receivable is credited, corresponding to a
negative voucher which will either deduct from the amounts due to be paid out to the vendor
account of the subsidizing participant, or will require a billing to receive the interest subsidy
from the subsidizing participant.
Trans code 42 is run on the participant who has been designated as the subsidized participant. This decreases the interest balance on that participant in the same way that a payment would. If effect, a portion of the interest is being paid by the subsidizer and is therefore
not due from the borrower. On the GL, there is a debit to Trust - Undisbursed Funds and a credit
to Accounts payable. This is identical to the GL setup of the trust disbursement transaction (TC
20) which will occur when the borrower pays their portion of the interest payment, and will create a similar voucher.
At this point, the borrower still has yet to make their interest payment, and the balances of the
GL accounts are as follows:
Account
Debit Balance
Credit Balance
100.00
0.00
16.67
16.67
0.00
100.00
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Account
Debit Balance
Credit Balance
16.67
0.00
Accounts Receivable
0.00
16.67
Accounts Payable
0.00
16.67
16.67
0.00
For information on the other trust transaction code involved, see Subsided Interest Receivable.
Transaction Code 50 - Dealer Reserve Receivable is used to generate a voucher for funds that
will be held back from the dealer during the origination process. This transaction debits the
Accounts Payable (corresponding to a “receivable” voucher which would reduce the amount
of the dealer’s check) and credits the Dealer Reserve GL account. No Loan Balances are
affected by this transaction, but the receivable voucher is generated.
For more information, see the Loan Origination section in Task Manager Relationships.
Servicing Fee - Recurring Transaction
A Servicing Fee (charged by you, the Servicer, to the Lender on whose behalf you are servicing
the loan) is configured on an individual loan through the recurring transaction menu.
Begin by querying the loan on which you wish to add a servicing fee then select View > Recurring Transactions menu.
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Click
to add a new recurring transaction. Enter a description.
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Click OK.
Servicing fees are generally charged whenever a payment is received, so select On Payment
from the event drop down list. With this event type, no other event parameters should be
required.
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Click the Transaction tab. Select a transaction type of Servicing Fee. The transaction amount
can be designated as a fixed amount or as a percentage of any loan balance or several combinations of loan balances. A common figure to use for this purpose would be a percentage
of the payment received. A minimum and maximum amount may be set, with zeros indicating
no constraints. Select the servicing fee type from the drop down list as detailed below. Select
the Use Vendor checkbox and assign the vendor account who will be paying the servicing fee.
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When this recurring transaction is executed, Transaction Code 320 - Servicing Fee will be run
against the loan. Depending on the Servicing Fee Type selected, additional transaction codes
which create vouchers may be run.
Servicing Fee Types
None
Net From
Cash - by
Payment
No additional transactions will be executed. No vouchers will be created.
This option is not currently enabled. At this time no additional transactions will
be executed, and no vouchers will be created.
Transaction Code 22 - Trust Disbursement-Servicing Fee is executed for the
amount of the fee. This creates a voucher which deducts the amount of the ser-
Net From
vicing fee from the amount payable to the Lender.
Cash - Total
Outstanding
Transaction Code 32 - Trust Receivable-Servicing Fee is executed for the
amount of the fee. This creates a voucher which results in a payment of the servicing fee from the trust account to the servicer.
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Transaction Code 322 - Servicing Fee Receivable is executed for the amount
Bill Lender
of the fee. This creates a voucher which results in a payment of the servicing
fee from the trust account to the servicer. The Lender must be billed to pay that
amount to the trust account.
Integration with Disbursements
When trust account is configured, payments from the borrowers will result in vouchers to
handle the disbursements of funds to the lenders. In addition, servicing fees may result in
vouchers that will reduce the amounts of the payments due to the lenders and other vouchers
which will handle the disbursements of those fees to the servicer.
When you are ready to process those vouchers and print checks, the normal procedures for
vouchers and disbursements apply.
See: Disbursement Screen
Trust Servicing Example
This section is a complete integrated example of the trust servicing functions. It begins with an
Example Premise, and then follows the Servicer through the configuration of the Global Setup
parameters necessary for servicing the loan, the setup of an actual loan that is configured for
trust accounting and the servicing of that loan.
Example Premise
Three entities are involved in the servicing of our example loan.
The Servicer is the company that owns and operates the Nortridge Loan System software. They
are paid a fee of $15 per payment collected by their client: The Lender to service the loan. This
servicing includes the accrual of interest, the billing of monthly payments, the collection and
processing of those payments, and collections activities if the borrower does not pay in a
timely manner.
The Lender is the company that has lent money to The Borrower. The lender pays out the principal advance at the time that the loan is funded, and collects the principal and interest payments from The Servicer, less the $15 monthly payment servicing fee. The lender has assumed
all of the risk of the loan, and with the exception of the Servicing fee, is entitled to all of the
interest income.
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The Borrower is an individual who has purchased a home and taken out a mortgage which is
advanced by The Lender and administered by The Servicer.
The loan is a 30 year mortgage of $265,000 with a fixed interest rate of 4.875%. The loan may
also include Tax Escrow and a Mortgage Insurance Premium, although these will not be
modeled in this example.
Global Setup
Before setting up any loans and beginning servicing for the lender, the servicer must configure
a loan group in The Nortridge Loan System for those loans that are to be serviced on behalf of
the lender. This loan group will control the General Ledger configuration for loans belonging
to the lender, and the servicing options configured in the loan group will point to the disbursement account configured under the lender’s contact record. This allows vouchers generated on behalf of the lender to be paid to the lender.
First, a contact account is created for the lender and a disbursement account configured on
the disbursement tab of the contact. For more information, see Contact Disbursement
Account.
Continue the example with sections on configuring the general ledger and servicing options
within the lender’s loan group:
GL
There are two parts to the general ledger that may be configured for trust accounting. First,
there is the GL from the lender’s point of view, which may be configured if the servicer intends
to provide the lender with periodic reports to help the lender make postings to their ledger.
Second, there are the specific accounts related to the trust, which are part of the servicer’s
ledger.
The GL accounts for the lender are configured in a loan group for that lender. In our example,
we have configured a loan group called “Lender” and configured within it general ledger
accounts to map the GL placeholders to the ledger accounts. The account numbers/names
(account numbers in NLS are alphanumeric, and so need not be numbers at all) for the
lender, for simplicity, have been designated as:
Lender’s Cash
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Lender’s Asset
Lender’s Accrued Interest
Lender’s Interest Income
Lender’s Late Charge Income
Lender’s Fee Income
These are configured in the lender’s Loan Group along with accounts for AP, AR, writeoffs, and
suspense.
The ledger for the trust account is configured in the Disbursement/Trust Setup. Two general
ledger accounts must be configured here, the cash account for the trust and the undisbursed
funds. These are configured as TRUST-CASH and UNDISBURSED FUNDS.
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In addition, bank account information for the actual trust account may be configured here.
Servicing Options
To configure the servicing options for the lender’s loan group, select that loan group and go to
the Servicing Options tab.
Here, in the Disbursement Account drop down list, you must link this lender to the trust account
that has been set up for them. Next, check Attach to a Vendor (Investor) and link the loan
group to the vendor account for the Lender.
For information on the additional fields, see Loan Group.
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Loan Setup
To configure the borrower’s loan in the Nortridge Loan System, begin by entering a Contact for
the borrower.
Click
next to the
and select Add New Loan.
Enter a Loan Number.
Enter the loan amount: $265,000.
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Set the interest method to Fixed Amortization 1 .
Enter the interest rate of 4.875%.
Set the origination date.
Set the term to: 360 months (due in 360 months, this is not a balloon loan).
Switch to the Classification tab and set the loan group to LENDER. The setup that is in place on
this loan group is going to make this loan behave as a trust loan.
Loan classes, late fee codes, statement codes, etc, can also be entered but those are not
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Now the Servicing Fee on this loan will be set up.
Select View > Recurring Transactions menu.
Click
and type “Servicing Fee.”
Click OK.
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Select the event type of “On Payment.”
Click the Transaction tab.
Select Servicing Fee for Transaction Type.
Leave amount type set to Fixed Amount and we set the amount to 15.00
Set the Servicing Fee to Net From Cash - Total Outstanding and connect it to the Lender’s
Vendor account.
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Click OK.
Loan Servicing
Now that the loan has been entered into the loan system, it is ready to undergo its day to day
servicing operations. The following topics detail how each of these servicing actions is affected
by the trust accounting setup:
Advance
Since the loan in question is a Fixed Amortized1 Mortgage Loan, it is unlikely that there will be
subsequent principal advances. The actual advance of principal was done by the lender
through an Escrow company before the Servicer began to service the loan, so the trust
accounting General Ledger should not be affected by this transaction. However, the GL
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accounts that the Servicer may be tracking for the purpose of aiding the Lender with the posting to the Lender’s GL accounts were affected. The Servicer can view the General Ledger implications of these transactions through the use of the GL Posting Detail Report.
G/L
Account
G/L
Description
LENDER’S
LENDER’S
ASSET
ASSET
LENDER’S
LENDER’S
CASH
CASH
Trans
Code
100
100
Description
Eff Date
Debits
Principal
09/18/2015 265,000.00000
Advance
Principal
09/18/2015
Advance
0.00000
Credits
0.00000
265,000.00000
Accrual
Interest is accrued daily on the example loan. The daily accrual is $35.88541 per day during
the fist month of the loan. This includes accrual of interest from 09/18/2015 through
10/17/2015 for a total interest accrual for the first month of $1,076.56230. The Trust Accounts,
and the Servicer’s GL is still not involved, but for the purposes of the Lender’s GL. the GL posting
Summary information up to and including 10/17/2015 is as follows:
Type
G/L
Account
Transactions LENDER’S
ASSET
Transactions LENDER’S
CASH
Transactions
Accruals
Accruals
Description
Debits
LENDER’S
265,000.00000
ASSET
LENDER’S
CASH
NONE
LENDER’S
LENDER’S
ACCRUED
ACCRUED
INTEREST
INTREREST
LENDER’S
LENDER’S
INTEREST
INTEREST
INCOME
INCOME
0.00000
Credits
0.00000
265,000.00000
Difference
265,000.00000
265,000.00000
1,402.40000
1,402.40000
0.00000
1,076.56000
0.00000
1,076.56000
0.00000
1,076.56000
-1,076.56000
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NOTE
The top two accounts are affected by the Principal Advance. The entries going into an
account designated as NONE are the result of the monthly billing transaction which is a
non-GL event. The last two accounts are affected by the daily interest accruals for the
month. Also, notice that the report rounds to the penny.
Billing and Payment
10 days before the due date of the first payment, NLS automatically created two billings, one
for principal and one for interest. The principal billing was created through the use of trans
code 120 and was for $325.84. The interest billing was created through the use of trans code
122 and was for $1,076.56.
The payment from the borrower was received two days after the due date and was for
$1,402.40. This payment was applied normally. The payment was automatically applied using
transaction codes 200 and 202. In addition, because the loan is set up for trust accounting,
transaction codes 10 and 20 (trust deposit and trust disbursement) were also generated for
the amount of $1,402.40. The first deposits the money received into the trust account. The
second creates a voucher for payment of that money received from the trust account to the
lender.
The recurring transaction, which is set up to automatically execute on receipt of payment,
automatically processed the servicing fee.
Servicing Fee
The recurring transaction is set up to execute a servicing fee of $15 upon receipt of any payment. This is done automatically by executing three transaction codes (22, 32, and 320) each
in the amount of $15. The use of these three specific transaction codes is dictated by the setup
of the servicing fee, specifically the use of the “Net From Cash - Total Outstanding,” option.
Trans code 22 creates a voucher for $15 from the trust to be paid to the servicer.
Trans code 32 creates a voucher for -$15 to the lender, effectively reducing the payment due
to the lender from the trust.
Trans code 320 creates the general ledger entries that realize the servicing fee income to the
Servicer.
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After the payment—and taking into account the addition of a few more days of interest
accrual—the general ledger summary for the loan is as follows:
Type
G/L Account Description
Trans-
ACCOUNTS
ACCOUNTS
actions
PAYABLE
PAYABLE
Trans-
ACCOUNTS
ACCOUNTS
actions
RECEIVABLE
RECEIVABLE
LENDER’S
LENDER’S
ACCRUED
ACCRUED
INTEREST
INTREREST
Trans-
LENDER’S
LENDER’S
actions
ASSET
ASSET
Trans-
LENDER’S
LENDER’S
actions
CASH
CASH
Transactions
Transactions
NONE
Trans-
SERVICERS
SERVICERS
actions
FEE INCOME
FEE INCOME
SERVICERS
SERVICERS
FEE
FEE
RECEIVABLE
RECEIVABLE
TRUST-CASH
TRUST-CASH
Trans-
UNDISBURSE-
UNDISBURSE-
actions
D FUNDS
D FUNDS
LENDER’S
LENDER’S
ACCRUED
ACCRUED
INTEREST
INTREREST
LENDER’S
LENDER’S
INTEREST
INTEREST
INCOME
INCOME
Transactions
Transactions
Accruals
Accruals
Debits
Credits
Difference
15.00000
1,417.40000
-1,402.40000
15.00000
0.00000
15.00000
0.00000
1,076.56000
-1,076.56000
265,000.00000
1,402.40000
325.84000
265,000.00000
264,674.16000
263,597.60000
1,402.40000
1,402.40000
0.00000
0.00000
15.00000
-15.00000
15.00000
15.00000
0.00000
1,402.40000
0.00000
1,402.40000
1,402.40000
1,402.40000
0.00000
1,255.77000
0.00000
1,255.77000
0.00000
1,255.77000
-1,255.77000
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Remittance to Lender
Now that the payment has been received and the servicing fee processed, there are three
vouchers outstanding.
The first is a voucher for a payment to the Lender in the amount of $1,402.40.
The second is a voucher for a payment to the Lender in the amount of -$15.00.
The third is a voucher for a payment to the Servicer in the amount of $15.00.
If these vouchers are used to print checks (see Check Printing) the checkbox to combine
vouchers that are for the same payee will be used, and this will result in a check to the Lender in
the amount of $1,387.40 and a check to the Servicer in the amount of $15.00. These add up to
the amount that is currently in the trust account, and after these checks are processed against
that account, the balance in the trust account will be zero.
Special Accounting Considerations
The transaction codes and interest accruals in the Nortridge Loan System are set, by default,
for accrual based accounting. Most loans post a credit to interest income for the amount of
the interest which has accrued. However, for certain types of pre-computed interest loans, the
interest for the purpose of determining the payment amount may be determined by the rule of
78s while the interest for the purpose of posting income to the ledger is determined by the actuarial method. This requires a more complex configuration of the general ledger setup.
This chapter will detail the specific default configurations, and what changes need to be made
in the transaction code and loan group setups in order to configure for any interest mode
other than standard (non-rule of 78s actuarial) accrual basis accounting.
Standard Interest Accrual Accounting
Interest in the Nortridge Loan System accrues on a daily basis based on one of three methods:
simple interest1 , fixed amortization 2 , or rule of 78s.
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Simple Interest: the interest is computed on the current principal balance, which is multiplied
by the interest rate to determine annual interest, then divided by a factor to derive the daily
interest. This factor is determined by the interest year setting of the loan.
Fixed Amortization: the interest is computed on the expected principal balance from the amortization schedule, which is multiplied by the interest rate to determine annual interest, then
divided by a factor to derive the daily interest. As above, the interest year setting determines this
calculation.
Rule of 78s: the expected interest over the life of the loan is pre-computed. This pre-computed
interest is divided by the summation of the total number of payments. This payment factor is
then multiplied by a declining number, beginning with the total number of payments, and
decreasing by one, until for the final payment the number is one. The resulting figure is the
interest for the period in question and is divided by the number of days in the current period to
derive the daily interest. For more information on this procedure, see Add On Interest.
The method by which this daily interest posts to the General Ledger is determined by the use of
accrual basis or cash basis accounting. The default setup of the Nortridge Loan System is for
accrual basis.
For information on the default setup and how the accrual is posted to the ledger, see Accrual
Basis Accounting.
For information on how to reconfigure the setup for cash basis, see Cash Basis Accounting.
Accrual Basis Accounting
Any daily interest accrual will create a set of general ledger entries. A debit will be posted to the
GL placeholder: Accrued Interest1, and a credit will be posted to the GL placeholder Interest
Income1. If the loan system is to be configured for Accrual Basis Accounting, each loan group
should have the appropriate interest receivable account mapped to Accrued Interest1 and the
appropriate revenue account mapped to Interest Income1.
For information on how to modify the Loan Group (General Ledger Setup) and the transaction
codes to do your interest accrual using cash basis, see Cash Basis Accounting.
Cash Basis Accounting
In Cash Basis Accounting, revenue for interest is not realized until the point of interest
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payment. The Nortridge Loan System is configured, by default for Accrual basis accounting. In
order to run your interest via cash basis, it is necessary to make the following modifications to
the setup:
1. Make sure that the place-holders Accrued Interest1 and Interest Income1 are mapped to
NONE. These place-holders will automatically receive a debit and credit (respectively) of
the amount of the daily accrual, and in Cash Basis you do not want a daily posting.
Therefore, your actual interest revenue account CANNOT run through the Interest
Income1 place-holder.
2. Use the “Labels” setup under Loan Setup to set one of the user-defined loan group
place-holders for your actual cash-basis interest income. Use a label such as “CB
INTEREST INCOME.” It is not necessary to create a place-holder for the receivable asset as
there is no interest receivable in cash-basis accounting.
3. Map the placeholder you have created (e.g. CB INTEREST INCOME) to your actual
interest revenue account in the Loan Group.
4. Modify the following interest payment transaction codes (202, 206, 210, and 222) as follows: the credit is set to PHAccrued Interest1; change this credit to the placeholder that
you have created for your cash basis interest income (e.g. CB INTEREST INCOME).
Rule of 78s Actuarial Interest Accounting
If a loan is set up using one of the Rule of 78s interest methods, the posting of the accrual to the
general ledger can either be done normally (in this case by the rule of 78s where the posting of
income matches the interest accrual) or by the actuarial method. The Rule of 78s accelerates
the accrual of interest at the start of the loan, and the purpose of using the actuarial method
for posting to income is to avoid having that acceleration reflected in the ledger. The difference between the amount of interest accrued (by the Rule of 78s) and the amount of
interest reported (by the actuarial method) will reach a maximum at approximately the midpoint of the loan, then will reduce until the two become equal at the point of the loan’s maturity. If there is an early payoff on the loan, a transaction will post the outstanding difference to
income.
NOTE
For this loan type, there will always be a GL posting for both the amount of the Actuarial
accrual and the rule of 78s accrual. The setup of your loan group and transaction codes
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will control to which GL accounts each accrual posts and how the difference is resolved
upon payoff of the loan.
The actual posting of the interest to the ledger may be accomplished by either the Accrual
Basis or the Cash Basis Accounting method.
The following is an example showing mathematically, the difference between a Rule of 78s
accrual and an actuarial Accrual:
A loan is added with the following settings l
l
l
l
l
Interest Method - Rule of 78s (simple)1
Use Actuarial Interest
Principal - $10,000
Interest Rate - 10%
Term - 5 years (60 months)
In addition, for the purposes of this calculation, assume that the first month of the loan is a 30
day month (e.g. April, June, September, or November)
The pre-computed interest for a $10,000 loan, amortized over 60 months at 10% is: $2,748.19
(this may be derived from the amortization schedule of a simple interest2 loan entered into the
system).
The summation of the digits 1–60 is 61 x 30 = 1,830
The amount of interest per digit is $2,748.19/1,830 = $1.50174
For the first period of the loan, the number of digits to be used is the total number of payments,
so the interest to be accrued and paid the first month will be $1.50174 x 60 = $90.10440.
The daily interest accrued in a 30 day month is $90.10440/30 = $3.00348 (this is the per diem
interest for the Rule of 78s).
Now, for the purpose of posting income to the ledger, the per diem is again calculated by the
actuarial method $10,000 x 10% = $1,000 (annual interest)
1 Type of interest method where the loan accrues as a simple interest loan but the interest portion of the payment is
determined by applying the Rule of 78s to the total projected interest amount for the life of the loan.
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$1,000 / 12 = $83.33333 (periodic interest)
$83.33333 / 30 = $2.77778 (Actuarial per diem)
So, this loan accrues $3.00 of interest per day for the purpose of calculating the borrowers payment, but only posts $2.78 to income in the general ledger. The difference of $0.22 is posted to
a deferred interest income account.
Accrual Basis Accounting
When a Rule of 78s loan is set for Actuarial Accounting, extra transactions are created for controlling the posting of the interest to the General Ledger.
This example, which uses the figures from the previous example, will go through each of the
transactions that occurs and show how they affect the ledger, as well as any changes that are
required to the setup in order to facilitate the use of this method.
First, when a loan of this type is added to the system, in addition to the Principal Advance transaction, a transaction will be automatically posted to realize the amount of the pre-computed
interest up-front . In our example loan, the two transactions are as follows:
Transaction
Transaction
Transaction
Debit
Code
Description
Amount
Account
100
Principal Advance
10,000
110
Pre-computed
Interest
2,748.19
Loan
Asset1
Credit Account
Cash Account1
Loan
Accrued Deferred
Asset1
Interest1
The Ledger balances associated with this loan, after these transactions are as follows:
General Ledger Account
Debit Balance Credit Balance
Loan Asset1
12,748.19
Cash Account1
10,000
Accrued Deferred Interest1
2,748.19
On a daily basis, interest accrues. Two accrual entries are made each day: the Rule of 78s
interest and the Actuarial Interest. The entries are posted to the Ledger in the following manner:
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Accrual Amount
Accrual Type
Rule of 78s
3.00348
Accrual
Actuarial Accrual
2.77778
Debit Account
Credit Account
Accrued Deferred
Deferred Interest
Interest1
Income1
Deferred Interest Income1
Interest Income1
After 30 days of accruals, the balances of the Ledger Accounts are as follows:
Debit Balance
Loan Asset1
12,748.19
Credit Balance
Cash Account1
10,000
2,658.08560
6.77100
Interest Income1
83.33340
Now the interest balance of $90.10 is paid. In addition to the standard interest payment transaction, a transaction will be automatically run by the system (TC 214) for the payment (on the
Ledger) of the Actuarial Interest. By default, this transaction code is set with no General Ledger
entries. If you are using this kind of accounting, you should set this transaction to debit the
Accrued Interest1 (to offset the credit of the interest payment) and to credit Loan Asset1. If you
configure the transaction code in this way, the interest payment transactions will look like this:
Transaction
Code
202
214
Interest Payment
Rule of 78s Actuarial Payment
Transaction
Debit
Credit
Amount
Account
Account
Cash
Accrued
Account1
Interest1
90.10
83.33
Accrued
Interest1
Loan Asset1
The final Ledger balances after the interest payment are as follows:
NOTE
A Principal payment would have been made at the same time but is not relevant to this discussion.
Debit Balance
Loan Asset1
12,664.86
Credit Balance
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Debit Balance
Credit Balance
Cash Account1
9,909.90
2,658.08560
6.77100
Interest Income1
83.33340
Accrued Interest1
6.77100
The balance in Deferred Interest Income1 represents the difference between the interest that
has been accrued and the interest that has been applied to the ledger as Income.
The balance in Accrued Interest1 represents the difference between the interest that has been
paid and the interest payment that has been applied against the Loan Asset. These balances
will generally coincide. They will build to a maximum by approximately the midpoint of the
loan and will then decrease. They will be zero (i.e. the interest accrued and taken as income
will be equal, and the Interest paid and applied to the asset will be equal) by the final payment
of the loan upon maturity. If the loan is paid off early, settlement transactions will post the additional interest to the income and charge the credit balance in Accrued Interest against the
asset.
Cash Basis Accounting
In order to run the ledger by Cash Basis when using Actuarial Accounting on Rule of 78s loans,
you will need to make the following modifications to the default setup:
1. Make sure that the Loan Group Setup has the following place-holders all set to NONE:
Accrued Deferred Interest1, Deferred Interest Income1, and Interest Income1. Each of
these place-holders will be hit with a general ledger entry during the nightly accrual process, and you do not want your nightly accruals to go to the GL when you are doing
cash basis accounting.
2. Set up custom GL place-holders for CB Deferred Interest and CB Interest Income, and
map these in the Loan Group to the GL accounts where you will hold the unpaid
deferred income and the interest income accounts respectively.
3. Modify transaction code 110 so that it credits the CB Deferred Interest (instead of
Accrued Deferred Interest1).
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4. Modify all Interest Payment Transaction Codes (202, 206, 210, and 222) so that they
credit the Loan Asset1 (instead of the Accrued Interest1).
5. Modify transaction code 214 so that it debits CB Deferred Interest and credits CB Interest
Income.
When you add the loan, the full amount of the principal and the expected interest will debit the
loan asset. The principal will credit cash, and the amount of the expected interest will credit the
Cash Basis Deferred Interest.
During the nightly accrual process, no General Ledger entries associated with interest accruals
will reach any GL accounts.
When an interest payment is made, the amount of the interest payment will credit the loan
asset (debit is to cash). An additional transaction will automatically be generated for the actuarial amount of the interest paid (trans code 214). This actuarial amount will debit the Cash
Basis Deferred Interest and credit the Cash Basis Interest Income.
Rules
Rules are actions which are configured to occur on any and all loans in the system if and
when those loans meet a certain criteria defined by the setup of the rules.
When setting up a rule, a specific To Do action is defined. The point in time at which that action
is to take place is defined by the NLS Event for that action. For some combinations of To Do
and Event, a Frequency may be specified. A Condition, which determines if the action should
be performed at all on the loan in question, can also be set. Finally, the Rule Setup is completed by giving the rule a name.
Rules need not be assigned to loans, loan groups, or portfolios because all rules are in effect
across the entire database. For this reason, it is important that the condition be sufficiently
restrictive to make sure that the rule will not execute in any cases where it is not intended.
To add a new rule, go to
Click Add
Setup in the Shortcut bar and select Rules from Loan Setup.
to open the Rules wizard.
To Do
You will first be required to select from a list of To Do items.
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Click Abort in the lower pane of the Rules window to bring up a dialog for enterAbort Oper-
ing the message that will be displayed when the operation is aborted. The oper-
ation
ation to be aborted is either the addition of a transaction, a contact, or a loan,
and this will be determined by the NLS Event associated with the rule.
Click Loan Status in the lower pane of the Rules window to bring up a dialog
Change
for selecting which status code to add to the loan. If the Remove Status Code
Loan Status checkbox is selected, the status code in question will be removed from the loan
if it is currently on the loan.
Close Loan
This To Do operation will close the loan. This will be accomplished by executing
a payment for the amount of $0.00 with the payoff flag selected and setting
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the Loan Status to Closed.
Execute
Transaction
Code
Pull a Credit
Report
Send Notification
Run Script
Click transaction code in the lower pane of the Rules window to bring up a dialog with a drop down list for selecting which transaction code to run. A further
step in the wizard will allow you to select the amount for which to run that transaction code.
Click credit report in the lower pane of the Rules window to bring up a dialog
for selecting which bureau(s) to pull the report(s) from and if an existing report
should be used if it has been pulled recently.
Click notification int the lower pane of the Rules window to bring up a dialog
for entering the message to be sent in the notification, and to which user and
or group that notification should be sent.
Click script in the lower pane of the Rules window for entering a script to be
executed. See scripting for more details.
NLS Event
Without exception, after selecting a To Do, the next step in the Rules setup process is to select
the NLS Event that determines at which precise point this action is to take place. However, the
list of possible Events that are appropriate to each To Do is different (although overlapping).
The events themselves are self explanatory. The table below will list which NLS events are applicable to each To Do.
To Do
NLS Event
Abort Operation
(In this case the event defines not just when
Pre-payment
to abort, but what to abort)
After contact is added but before committed
to database
After loan is added but before committed to
database
After loan is updated but before committed to
database
After loan is updated and committed
After task is added but before committed to
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To Do
NLS Event
database
Change Loan Status
Post-accrual
Post-payment
Pre-transaction
Post-transaction
After payment reversal
database
After loan is added and committed
After transaction is added
database
Close Loan
Pre-accrual
Post-acctual
Post-payment
Execute Transaction Code
Pre-accrual
Post-accrual
Post-Payment
Pre-transaction
Post-transaction
After loan status change
Pull a Credit Report
Pre-accrual
Post-accrual
Pre-payment
Post-payment
Pre-transaction
Post-transaction
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To Do
NLS Event
After contact is added and committed
database
database
Send Notification
Pre-accrual
Post-accrual
Pre-payment
Post-payment
Pre-transaction
Post-transaction
to database
database
database
Before closing NLS
database
After task is added and committed
After task is updated but before committed to
database
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To Do
NLS Event
After task is updated and committed
Run Script
Pre-payment
Post-payment
Pre-transaction
Post-transaction
to database
database
database
Before closing NLS
database
After task is added and committed
After task is updated but before committed to
database
After task is updated and committed
Post batch accrual
Execute Loan Approval
After loan modify
Before loan is added
After transaction is added
Override commitment distribution order
Loan:Where loan portfolio is assigned to specific values
Loan:Where loan group is assigned to specific
values
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To Do
NLS Event
Transaction:Transaction is a payment
Transaction:Transaction is a principal
advance
Transaction:Transaction is a payment reversal
Transaction:Transaction is a NSF reversal
Transaction:Transaction is a principal reduction
Transaction:Transaction is interest adjustment
Transaction:Transaction is any manual transaction code
Advanced:Where SQL Statement return at least
1 row
Advanced:Where the Event is triggered by GUI
(Graphical User Interface)
Advanced:Where the Event is NOT triggered by
GUI (Graphical User Interface)
Frequency
Certain combinations of a To Do and an NLS Event involve events (such as the accrual) which
occur every day, and it may not be desired that the condition be checked to determine if the
To Do should be executed quite this often. Therefore, some combinations allow an optional
setting of Frequency. If no Frequency is set, it is assumed to be daily. Frequency options which
may be otherwise set are Weekly and Monthly.
If Weekly is selected, clicking Weekly in the lower pane will bring up a dialog box for the selection of a day of the week.
If Monthly is selected, clicking Monthly in the lower pane will bring up a dialog box for the selection of which months the To Do is to be executed. Additionally, a specific day of each month
may be selected. Lastly a specific day of the week may be selected along with the Ordinal: First,
Second, Third, Fourth, or Last. This allows for the selection of a single day of each month which
will be a constant day of the week.
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The following table lists all of the combinations of To Do and NLS Event for which a frequency
of Weekly or Monthly may be selected.
Close Loan
Pre-accrual
Post-accrual
Execute Transaction Code Pre-accrual
Post-accrual
Condition
The Condition portion of a rule setup defines the situations under which the rule should or
should not execute. The condition may be defined based on values in the contact that the
loan is under, values in the loan account itself, or based on an advanced trigger, as defined
in the table below.
Condition Type
Available Conditions
Contact
Contact Type is assigned to specific values
where zip code is in this range
where date of birth(1) is in this date range
where date of birth(2) is in this date range
Loan
where loan portfolio is assigned to specific values
where loan group is assigned to specific values
where loan type is assigned to specific values
where primary loan status is assigned to specific values
where secondary loan status is assigned to specific values
where open date is in this date range
where maturity date is in this date range
where current principal balance is in this range
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where current interest balance is in this range
where current deferred interest balance is in this range
where current fees balance is in this range
where current late charge balance is in this range
where current UDF(1–10) balance is in this range
where current payoff balance is in this range
where days past due is in this range
where past due amount is in this range
where current due amount is in this range
where interest-accrued-thru-date is in this date range
Advanced
where SQL statement returns at least 1 row
where the Event is triggered by GUI (Graphical User Interface)
where the Event is NOT triggered by GUI
Finish Rule Setup
When the event, frequency, and condition have been defined, and any required parameters
for the condition have been configured, click Next to finalize the rule setup. The rule will be
defined on the interface, and to finish the configuration, the only remaining requirement is to
give the rule a name.
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Click Finish to complete the rule setup.
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Web Services
Installation
NLS Web Services are supported on IIS 6, IIS 7, and IIS 7.5.
NOTE
Nortridge SaaS (ISP) customers do not need to install the web services. They are installed at
the data center ready for use.
1. Copy the entire folder NLS Web Service to the IIS root folder. This folder is installed during
the Nortridge Client installation and is located at c:\Program Files (x86)\Nortridge Software\NLS\NLS Web Service.
2. Open IIS Manager, navigate to Sites and find NLS Web Service. Right-click on NLS Web
Service and choose Convert to Application.
3. The web service must run under a windows user that has permission to connect to the
database. The NLSProcDLL uses this user to connect to the database server using windows authentication. If the service is running under IIS 6, you must configure this
domain user for asp.net access by executing the following command under DOS:
Aspnet_regiis -ga MachineName\AccountName
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Once you have run this command, assign this user to the pool under which the web service is running. You do this by right-clicking on the pool, choosing properties, clicking
the Identity tab, selecting the Use This Account option, and entering this user and the
user password.
4. The web service has to be able to find the nlsprocreq.dll file. In normal situations, the
path of the DLL must be in the system PATH variable.
5. At this point, the user should be able to connect to the web service and NLSProcReq;
however, when executing NLSAuthenticate, a user name and password must be
passed to that function. That user is an NLS user, which must be added inside NLS, and
must have the Web Credentials enabled under View/Web Credentials.
Additional notes:
l
It is recommended that a pool is created for the NLSWebService instead of using the
default pool.
l
The Nortridge application must be installed on the computer that is hosting the NLSWebService prior to installing the web service.
Configuring Path Variable for nlsprocreq.dll
For NLS web service to work, it needs to load nlsprocreq.dll.
Inside NLS web service, we didn’t hard code the location of nlsprocreq.dll because it’s not
100% guaranteed that nlsprocreq.dll is in c:\program files(x86)\nortridge software\nls\bin. So we just say load nlsprocreq.dll and it’s up to the OS to figure out the location.
In order for the OS to find the location, the user must add it to the PATH variable.
It’s under Control Panel -> System -> Advanced System Settings -> Advanced -> Environment
Variables…
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Methods
CalculateAmortizedPaymentAmount
string CalculateAmortizedPaymentAmount(double LoanAmount, double InterestRate, int
NumberOfPayments, int PaymentsPerYear, bool BeginningPeriodAmortizationFlag)
CalculateAmortizedPaymentAmountWithBalloon
string CalculateAmortizedPaymentAmountWithBalloon(double LoanAmount, double
InterestRate, int NumberOfPayments, int NumberOfPaymentsDue, int PaymentsPerYear, bool
BeginningPeriodAmortizationFlag, out double working_balloon_payment)
CreateAmortizationSchedule
int CreateAmortizationSchedule(BSTR ServerName, BSTR DatabaseName, int acctrefno,
BSTR* AmortScheduleXML, BSTR* ErrorMessage)
The CreateAmortizationSchedule call will return an amortization schedule of the loan specified by acctrefno in an XML stream.
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GenerateDocumentByte
GenerateDocument(BSTR ServerName, BSTR DatabaseName, BSTR DatabaseType, BSTR
DocumentTemplateName, int task0_or_wp1, int refno, BSTR* ErrorMessage)
ImportXML
int ImportXML(BSTR ServerName, BSTR DatabaseName, BSTR ImportString, BSTR* ErrorMessage)
ImportXMLUsingDBAuthentication
int ImportXMLUsingDBAuthentication (BSTR ServerName, BSTR DatabaseName, BSTR DatabaseType, BSTR DBUserName, BSTR DBPassword, BSTR NLSUserName, BSTR NLSPassword, BSTR
ImportString, BSTR* ErrorMessage)
NLSAuthenticate
string NLSAuthenticate(string db_type, string server_name, string database_name, string
username, string password, string ipaddress)
NLSChangePassword
string NLSChangePassword(string token, string OldPassword, string NewPassword)
NLSContactUDF
string NLSContactUDF(string token, string ContactNumber, string FieldsToReturn)
NLSCreateCredentials
string NLSCreateCredentials(string token, string ContactUserName, string ContactPassword,
string PasswordHint1, string PasswordAnswer1, string PasswordHint2, string PasswordAnswer2)
NLSForceChangePassword
string NLSForceChangePassword(string token, string NewPassword)
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NLSGetContact
string NLSGetContact(string token, string ContactNumber)
NLSGetLoanDetail
string NLSGetLoanDetail(string token, string LoanNumber)
NLSGetLoanStatuses
string NLSGetLoanStatuses(string token, string LoanNumber)
NLSGetLoanList
string NLSGetLoanList(string token, string ContactNumber, bool IncludeRelatedLoans)
NLSGlobalAuthentication
string NLSGlobalAuthentication(string db_type, string server_name, string database_name)
NLSLoanDetailUDF
string NLSLoanDetailUDF(string token, string LoanNumber, string FieldsToReturn)
NLSLoanPaymentHistory
string NLSLoanPaymentHistory(string token, string LoanNumber, string BeginningDate, string
EndingDate)
NLSLoanPaymentsDue
string NLSLoanPaymentsDue(string token, string LoanNumber, string BeginningDate, string
EndingDate)
NLSLoanPendingTransactions
string NLSLoanPendingTransactions(string token, string LoanNumber)
NLSLogOut
string NLSLogOut(string token)
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NLSMethod
int NLSMethod (BSTR XMLInputRequest, int* error, BSTR* XMLOutputResult)
NLSPasswordRecoveryAnswers
string NLSPasswordRecoveryAnswers(string db_type, string server_name, string database_
name, string ContactUserName, string HintAnswer1, string HintAnswer2)
NLSPasswordRecoveryByEmail
string NLSPasswordRecoveryByEmail(string db_type, string server_name, string database_
name, string ContactUserName, string IPAddress)
NLSPasswordRecoveryHints
string NLSPasswordRecoveryHints(string db_type, string server_name, string database_
name, string ContactUserName)
NLSStatementImage
string NLSStatementImage(string token, string LoanNumber, int DocumentID)
NLSStatements
string NLSStatements(string token, string LoanNumber, string BeginningDate, string EndingDate)
NLSVerifyContact
string NLSVerifyContact(string db_type, string server_name, string database_name, string
FirstName, string LastName, string SSNumber, string Address, string City, string State, string
Zip, string Phone, string LoanNumber, string EmailAddress)
TestImportXML
int TestImportXML(BSTR ServerName, BSTR DatabaseName, BSTR ImportString, BSTR* ErrorMessage)
VB.Net Example: Import XML
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VBSCRIPT
Dim CyberridgeWS As New NLSWebService.Service
Dim credentialCache As New System.Net.CredentialCache()
Dim credentials = New System.Net.NetworkCredential("nls.local\username",
"password", "")
Dim strXML, strErrorMessage As String
strErrorMessage = ""
strXML = "<NLS EnforceTagExistence=""1"">" & _
"<CIF UpdateFlag=""1"" CIFNumber=""B000001"" Entity=""Individual""
LastName1=""Last"" FirstName1=""First"" MiddleName1=""M""
StreetAddress1=""2 South Pointe Dr"" StreetAddress2="""" City=""Lake
Forest"" State=""CA"" ZipCode=""92630"" EmailAddress1="""" >" & _
"</CIF>" & _
"</NLS>"
credentialCache.Add(New Uri(CyberridgeWS.Url), "Basic", credentials)
CyberridgeWS.Credentials = credentialCache
CyberridgeWS.ImportXML("NlsSql08", "Database_Name", strXML,
strErrorMessage)
PHP Example #1: Authenticate Web User
PHP
<?php
$soapClient = new SoapClient
("https://ws.cyberridge.com/NLSWebService/Service.asmx?WSDL", array(
"login"
=> "nls.local\\user",
"password"
=> "password",
"trace"
=> 1,
"exceptions" => 0));
// Call RemoteFunction ()
$error = 0;
try {
// Setup the RemoteFunction parameters
$ap_param = array(
'db_type'
=>
'MSSQL',
'server_name'
=>
' NlsSql08',
'database_name'
=>
'Database_Name',
'username'
=>
'webuser',
'password'
=>
'webuserpassword'
);
$info = $soapClient->__call("NLSAuthenticate", array($ap_param));
print "<pre>\n";
// print "Request: \n".htmlspecialchars($soapClient->__getLastRequest())
."\n";
print "Response: \n".htmlspecialchars($soapClient->__getLastResponse
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())."\n";
print "</pre>";
} catch (SoapFault $fault) {
$error = 1;
}
?>
PHP Example #2: Import XML
PHP
<?php
$soapClient = new SoapClient
("http://nsidev:8080/NLSWebService/Service.asmx?WSDL", array(
"login" => "nls.local\\user",
"password" => "password",
"trace" => 1,
"exceptions" => 0));
// Call RemoteFunction ()
$error = 0;
try {
// Setup the RemoteFunction parameters
$ap_param = array(
'ServerName' => ' NlsSql08',
'DatabaseName' => 'Database_Name',
'ImportString' => 'xxxxxxxxxx'
);
$info = $soapClient->__call("ImportXML ", array($ap_param));
print "<pre>\n";
// print "Request: \n".htmlspecialchars($soapClient->__getLastRequest
()) ."\n";
print "Response: \n".htmlspecialchars($soapClient->__getLastResponse
())."\n";
print "</pre>";
} catch (SoapFault $fault) {
$error = 1;
}
?>
Frequently Asked Questions
1. How long does the token returned from NLSAuthenticate and NLSGlobalAuthentication
last?
The token lasts 12 minutes from the time of the last activity for the token.
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2. What are the valid options for the “db_type” parameter?
The valid db_type values are: “MSSQL” and “Oracle”.
Error Codes
Error Code
0
1
2
3
4
5
6
7
8
9
10
11
51
52
53
59
60
61
62
71
72
73
74
75
81
91
92
Error Description
OK
NLSPROCREQ_FAILED
INVALID_XML
INVALID_XML_TAG
TIME_OUT
DB_CONNECTION_FAILURE
DB_ERROR_ENCOUNTERED
INVALID_TOKEN
INVALID_PARAMETER_PASSED
INVALID_USERNAME
INVALID_OLD_PASSWORD
INVALID_NEW_PASSWORD
INVALID_USERNAME_PASSWORD
ACCOUNT_LOCKED
WEB_ACCESS_DISABLED
GENERAL_ERROR
VERIFYCONTACT_NOTHING_TO_VERIFY
UNABLE_TO_VERIFY_CONTACT
CONTACT_ALREADY_SIGNED_UP
CONTACT_USERNAME_TOO_SHORT
CONTACT_PASSWORD_TOO_SHORT
CONTACT_USERNAME_NOT_UNIQUE
PASSWORD_ANSWER_1_REQUIRED
PASSWORD_ANSWER_2_REQUIRED
EMAIL_NOT_SET
INVALID_HINT_QUESTION
INVALID_HINT_ANSWER
Web Portals
Integration
Setting up the Borrower Portal
l
Set up NLS Web Services in IIS. NLS Web Service version 4.6.11 or higher is required for the
Borrower Portal to function correctly.
Follow the directions in the “NLS WEB SERVICE API” document, located in the docs section where NLS was installed.
Or log into the Nortridge Online Community and go to Documents/Miscellaneous
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Documents/Borrower Portal/ for additional information.
l
Set up a user in NLS using the same credentials that were used to set the identity in the
application pool that NLS Web Services is using.
In the following example the application pool is set up using “test\kyle” as the identity .
In NLS the “User Signon” ID must match the Application Pool identity. The user must also
have DBA1 Privileges selected.
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l
Modify the Web.Config file. Open up the Web.Config file that is part of the Borrower
Portal package. In the file some lines must be modified in order to connect to your database, Web Services instance, and SMTP server.
o
Modify the mail settings portion to use your SMTP server as a means of sending
emails from the borrower portal. Change the host and port attributes to the appropriate values.
<mailSettings>
<smtp>
<network host="smtp.nortridge.com" port="25"
defaultCredentials="false" enableSsl="true"/>
</smtp>
</mailSettings>
o
Modify the app settings element:
n
The key DBType should be set to the type of database NLS is running on.
n
For the key Database set the value attribute to your NLS database name.
n
For the key DBServer set the value attribute to the server where the database
is stored.
n
The key RememberMeExpiration is used to set the amount of time in days
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that the remember me cookie will be active in the browser.
n
The key PasswordRequiredCharacters key is used to set the required characters that are needed when a user sets a password. In this case one of the
following characters is needed when setting the password: “!@#$%^*”
n
The keys PasswordMinLength and PasswordMaxLength are used to validate
the user’s password length when adding a new one.
n
The Email key is the email address that the password reset email will be sent
from and any payment processing errors will be sent to.
n
The key WebServiceUrl is the direct URL to where your NLS web services is hosted. Note: make sure that the URL points to the service.asmx page.
n
The key WebServiceUsername will need to be added if your web service is
hosted on CyberRidge.
n
The key WebServicePassword will need to be added if your web service is
hosted on CyberRidge.
<appSettings>
<add key="DBType" value="MSSQL"/>
<add key="Database" value="database_name"/>
<add key="DBServer" value="server_name"/>
<add key="RememberMeExpiration" value="30"/>
<add key="PasswordRequiredCharacters" value="!@#$%^*"/>
<add key="PasswordMinLength" value="8"/>
<add key="PasswordMaxLength" value="12"/>
<add key="Email" value="[email protected]"/>
<add key="WebServiceUrl"
value="http://webservice.com/Service.asmx"/>

<add key="WebServiceUsername" value="WebServiceUserName"/>
<add key="WebServicePassword" value="WebServicePassword"/>
</appSettings>
In the application setting section of the configuration file, the URL value must be
updated to the URL of your NLS Web Services. Note: make sure that the URL points to the
service.asmx page.
<applicationSettings>
<BorrowerPortal.Properties.Settings>
<setting name="BorrowerPortal_NLSWS_Service"
serializeAs="String">
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<value>http://webservice.com/Service.asmx</value>
</setting>
</BorrowerPortal.Properties.Settings>
</applicationSettings>
l
Setting up Borrower Portal site
o
In IIS Manager right-click on Sites in the left panel. Then click Add Web Site….
o
In the Add Web Site window, enter the name of the site, the physical path where
the Borrower Portal package is located, and the binding information. Use the
same Application pool that was used to set up the NLS Web Service.
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o
Once all the information is entered, open up your web browser and navigate to
the URL you specified in the web site setup. The borrower portal login screen
should be displayed.
l
To set up the credentials to log into a user’s account, open up the desired contact
record in NLS. Click on View > Web Credentials to open up the web credentials settings.
Enter the desired username and password, along with the two security questions, then
select the Enable Web Access checkbox. Once all the data is entered, use the username
and password to log in to the borrower portal.
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Setting Up the WebPay Form
For credit card processing using Merchant Partners, you will need to configure a WebPay form
in your Merchant Partners account.
Creating the Credit Card Form
In your Merchant Partners account click on the WebPay link in the Shopping Cart section.
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Once on the WebPay Configuration page you will need to create a new WebPay form. For Payment Option, select Credit Card Sale and give the form a unique name.
After clicking Submit, you will be redirected to a page where you can modify the layout of the
credit card form. The form can be laid out in a way that meets your business needs or you can
use the html from a form that we have set up. To set up a form using our template, follow the directions below:
In the WebPay Configuration screen click on the Advanced tab at the top of the screen. You
should see a screen similar to the screen shot below.
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Set the host domain to the domain where the borrower portal will be hosted.
In the Header HTML labeled as section 1 above, add the html below.
HTML
<!doctype html>
<html>
<head>
<meta http-equiv="content-type" content="text/html; charset=UTF-8">
<title>Payment Processing</title>
<style>
.errormsg
{margin:0; color:red;}
body { font-family: Arial, Helvetica, sans-serif; font-size: 14px; color:
#555; }
input[type="submit"], input[type="select"] {
background: -webkit-gradient( linear, left top, left bottom, colorstop(0.05, #ffffff), color-stop(1, #f2f2f2) );
background: -moz-linear-gradient( center top, #ffffff 5%, #f2f2f2
100% );
filter: progid:DXImageTransform.Microsoft.gradient
(startColorstr='#ffffff', endColorstr='#f2f2f2');
background-color: #ffffff;
-moz-border-radius: 14px;
-webkit-border-radius: 14px;
border-radius: 14px;
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border: 1px solid #dddddd;
display: inline-block;
color: #333333;
font-family: arial;
font-size: 14px;
font-weight: bold;
padding: 5px 20px;
text-decoration: none;
}
input[type="submit"]:hover {
background: -webkit-gradient( linear, left top, left bottom, colorstop(0.05, #dddddd), color-stop(1, #f2f2f2) );
background: -moz-linear-gradient( center top, #dddddd 5%, #f2f2f2
100% );
filter: progid:DXImageTransform.Microsoft.gradient
(startColorstr='#dddddd', endColorstr='#f2f2f2');
background-color: #dddddd;
cursor: pointer;
}
input[type="submit"]:active {
position: relative;
top: 1px;
}
input[type="text"]{
border: 1px solid #ddd;
padding: 5px;
font-family: Arial, Helvetica, sans-serif;
font-weight: normal;
font-size: 14px;
color: #555;
margin: 5px 0 0;
}
</style>
</head>
<body style="float:left; vertical-align: top;">
<center>
<div style="width:450px; float:left; vertical-align: top;">
In the form section labeled as section 2 above, add the html below.
HTML
<div
class="webpay process_payments_progressbar"
id="process_payments_progressbar"
style="display: none;">
::PROCESS_PAYMENTS_PROGRESSBAR_DEFAULT::
</div>
<table style=" float:left; vertical-align: top;" cellpadding="5px">
<tr>
<td width="150px">
<label for="amount" class="webpay" style="color: #555; ">
Amount</label>
</td>
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<td width="250px">
<input alt="" name="amount" class="webpay" type="text"
value="0.00" size="10" style="color: #555; ">
</td>
</tr>
<tr>
<td>
<label for="ccname" class="webpay" style="color:
#555">Cardholder Name</label>
</td>
<td>
<input alt="js_validate_notempty" name="ccname" class="webpay"
type="text" value="" size="32" style="color: #555; width:200px;">
</td>
</tr>
<tr>
<td>
<label for="ccnum" class="webpay" style="color: #555">Card
Number</label>
</td>
<td>
<input alt="js_validate_acctnum" name="ccnum" class="webpay"
type="text" value="" size="17" style="color: #555; width:150px;">
</td>
</tr>
<tr>
<td>
<label for="expmon" class="webpay" style="color:
#555">Expiration Date</label>
</td>
<td>
<select style="color: #555; " alt="js_validate_notempty"
name="expmon" size="1" class="webpay">
<option value="01">01</option>
</select>
<span class="webpay">
<select style="color: #555; " alt="js_validate_notempty" name="expyear"
size="1" class="webpay">
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</select>
</td>
</tr>
<tr>
<td>
<label for="cvv2" class="webpay" style="color:
#555">CVV2/CVC2/CID</label>
</td>
<td>
<input alt="" name="cvv2" class="webpay" type="text" value=""
size="4" style="color: #555" >::INFOICON_CVV2::
</td>
</tr>
<tr >
<td></td>
<td></td>
</tr>
<tr >
<td></td>
<td></td>
</tr>
</table>
Post-Back URL
Regardless of the layout of your form, the Post-back URL must be set to the HandleCreditCardPayment.aspx page of the borrower portal.
EXAMPLE
If your borrower portal is hosted at:
http://www.website.com/BorrowerPortal
Then the Post-back URL should point to:
http://www.website.com/BorrowerPortal/forms/HandleCreditCardPayment.aspx
Configuring the Payment Gateway in NLS
After configuring the WebPay form you will need to set up the Payment Gateway in NLS.
After naming this account and giving it a description, set your account ID, account Sub ID,
and account password. These values correspond to your Merchant Partners account.
The WebPay URL field corresponds to the WebPay form that you set up in earlier steps. You can
get this value from the bottom of the WebPay setup form.
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The WebPay Encryption Key is located on Merchant Partners website. Once logged into your
Merchant Partners account navigate to the Configure Options page. Once there scroll down
to the API Controls section and click on the Edit link on the Account Number 3DES Encryption
row.
Once on the Account Number 3DES Encryption page, copy your 3DES Key and paste it in the
WebPay encryption key field within NLS.
Add the Merchant Partner account in NLS.
Finally, assign the payment gateway at the loan group level.
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Update the Borrower Portal Web.Config file
Open up the Borrower Portal’s Web.Config file and set the email key value. If any errors occur
during the payment processing, the error info will be sent to this email.
<add key="RememberMeExpiration" value="30" />
<add key="PasswordRequiredCharacters" value="!@#$%^" />
<add key="PasswordMinLength" value="8" />
<add key="PasswordMaxLength" value="12" />
<add key="Email" value="[email protected]" />

Borrower Portal
Log In Procedures
When a borrower clicks the log in link that you have placed on your website, a login dialog will
be displayed.
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If this borrower has never logged into their loan on your website before, they will need to click
Register for New Account.
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The user will fill in the fields on this form to create their account on your website. This will populate the web credentials data in the user’s contact.
The user will pick from an available list of identifying questions, and provide the answers to
those questions. These may be used by the website to identify the user.
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If the user’s account name, password, or answer to the identifying question are not recognized, the user will be given another opportunity to log in.
Clicking Forgot Password on the main log in screen will cause the user’s password to be set to
a new value, which will then be automatically sent to the email address on file.
Upon a successful log in, the user will be taken to the Accounts Menu and the Balances
Screen.
Accounts Menu
Balances
Once your borrower has logged into NLS, they will automatically be taken to their Balances
page under the Accounts menu.
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The borrower’s web credentials are matched to their contact account within NLS, and data is
returned on all the loans for which they are the borrower. This data is displayed on the balances page. The loan numbers displayed here are hyper links to the balance detail page for
each individual loan.
Once a loan has been selected in this way, if the borrower clicks on one of the other tabs, such
as Payment History, Submit Payment, View Statement, or ACH Setup, they will be viewing the
corresponding data for the selected loan. If they click on one of these tabs without selecting a
specific loan, they will be viewing the corresponding data for the first loan on the list.
Payment History
Clicking on the Payment History tab after selecting a specific loan on the Balances tab will
bring up the payment history for the selected loan. If the borrower has more than one loan, a
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drop down list will allow selection from the list of available loans.
Submit Payment
The submit payment tab will allow the borrower to enter the information necessary to process a
payment through an automatic payment gateway. In addition to using the Web Portals, you
must have the automatic payment gateways configured.
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Payments may be submitted via Credit/Debit Card or Electronic Check.
The information submitted will be passed to the automatic payment gateway and processed
through that feature.
View Statement
Clicking on the View Statement tab will bring up a list of the statements stored in the comments
and documents for the selected loan. If the borrower has multiple loans, a drop down list will
allow selection from the available loans.
Clicking the document ID next to any specific statement will download the PDF file for that particular statement and display it for the borrower.
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ACH Setup
If you allow the processing of payments on your loans via ACH, you can enable the ACH setup
screen of the web portal and let your borrowers submit and modify their bank information to
you via your website.
The borrower will enter their bank information and specify the amount to be drawn, the frequency of draws (which can be tied to the billings), and the date of the first draw that they are
authorizing. When the borrower submits the information, it will automatically be imported onto
the setup for the borrower’s loan.
Change of Address
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Clicking the Change of Address tab will allow the borrower to enter a new address. Submitting
the new address will cause the web page to send a modification of the address fields to the
borrower’s contact record in NLS.
Preferences Menu
Nicknames
If you have borrowers with multiple loans, they may find it easier to tell their loans apart on your
website if they are allowed to give each loan a unique nickname, rather than having to remember each of their loan numbers. For example, a borrower may configure their loans within the
website so that one loan is called “Mortgage” while the other loan is called ”Credit Line.” This
nickname will show when they look at their list of loans, thus making it easier for the borrower to
distinguish between them.
The nicknames are configured on the Nicknames tab under the Preferences menu.
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Change Password
The borrower may change their website password from the Change Password tab of the Preferences menu.
The borrower will need to enter their old password correctly, then enter their desired new password twice before submitting the change.
Security Settings
The Security Settings tab of the Preferences menu will allow the borrower to change the list of
security challenge questions and the answers that are saved for their website account.
Nortridge Mail Source
Nortridge MailSource is an integrated service by Nortridge Software, in partnership with Allison
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Payment Systems, which handles statement generation, printing, and mailing. Cost is on a sliding scale which provides volume discounts. Call your Nortridge Software sales representative
or email [email protected] for the current service pricing/postage structure sheet.
Statement File For Mail Source
Your statement format must be configured for use with MailSource. If you use a standard NLS
Statement format, simply load the latest report pack to update your statement file. The standard statements in the report pack have been modified to be usable with MailSource. If you use
a custom statement, that statement will need to be modified for use with MailSource. Contact
your Nortridge Software representative regarding modification to your custom statement.
Logging on to MailSource
Starting with NLS version 4.8.7, the system will send out a web services call on login and connect to a database of MailSource users. If you are up and running on MailSource, then your
license key serial number will appear in that database, and the web services call will activate
the MailSource features automatically.
Statement Processing for MailSource
If MailSource is active, you will have a new icon—
Send to Document Queue—on your
statement processing toolbar. Select statements to process and click this button. The statements will be generated and processed similar to “Process Statements Without Printout.” An
image of each statement will go into the comments and documents on the corresponding
loan, and the individual statements and the entire run will both be available from the reprint
statements menu. In addition, a binary file of the entire print run will be stored to the document
queue. From there, it may either be sent to the printer at your leisure, or transmitted to Nortridge
Software for processing.
Transmitting the Document Queue
Go to the Processing slider and click Document Printing. Here you will see a list of all un-transmitted and unprinted print runs. The total number of statements, total pages, and file size will
be displayed in addition to the statement code that was used to generate the run. Initiate a
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print run by selecting the Selected option and then either click Print Locally
or Send to
MailSource icon on the Toolbar.
If you click Send to MailSource, you will get a screen with pricing information, where you may
enter information for the processing of your payment to Nortridge Software. You will select a
checkbox to accept the charge and click to transmit the print run.
Once transmitted, the print run will arrive at the MailSource Server where your payment will be
processed. The file will be combined with all of the print runs from other clients that arrive that
day and the resulting file will be transmitted to Allison Payment Services, where the statements
will all be printed, stuffed into windowed envelopes, marked with postage, and mailed.
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Delivery Point Validation
Delivery Point Validation is a test of an address to verify that it is a valid deliverable address.
Addresses entered in NLS will be validated with the database at the data center using a web service call from within NLS. This feature must first be enabled in Contact Setup > Defaults.
During address entry, NLS will automatically look up the address when the OK button is clicked.
An alert dialog will be shown if the address is not valid or if additional information is required
for verification.
An icon will be displayed in the Address button when DPV is enabled to indicate if the entered
address is:
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Valid
or
Invalid
. A drop down list shows why the address could not be verified.
Also stored in the database are the delivery point code, delivery point verification date,
address type, FIPS code, latitude, and longitude of the address.
CDFI
1
The CDFI tab
is available in the contact and loan detail views when the option to
hide the CDFI tab is deselected for the respective contact type and loan portfolios. The CDFI tab
is hidden by default in NLS.
To make the CDFI tab visible for a contact type, go to Setup > Contact Setup > Contact Type.
Select an existing contact type or create a new contact type and click the Options tab. Under
the Hide Tab section, deselect the CDFI option. Click OK to restart NLS.
To make the CDFI tab visible for a loan portfolio, go to Setup > Loan Setup > Loan Portfolio.
Select an existing loan portfolio or create a new loan portfolio and click the Options tab. Under
the Hide Tab section, deselect the CDFI option. Click OK to restart NLS.
1 Community Development Financial Institutions Fund.
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Query a contact or loan and click the CDFI tab
click
at the bottom of the detail view then
to enable entry of CDFI data.
NOTE
Include in Report — Enable this option to include the entered data in CDFI reports.
NOTE
FIPS Code — Address DPV lookup must be enabled in Setup > Contact Setup > Defaults for
FIPS code entry.
Please refer to the U.S. Department of Treasury CDFI Fund web site for additional information.
Contact
Investee Profile
Individual
Investee Type
Business
CDFI
For Profit
Non Profit
Entity Structure
Tribal
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Other
Annual Gross Revenue
Date Established
NAICS Code
Credit Score
Not Applicable
Female
Gender
Male
Both
Not Given
African-American
Alaskan Native
American Indian
Asian
Race
Hawaiian Native
Other Pacific Islander
White
Other
Not Applicable
Minority Owned
Female Head Household
Woman Owned
Low Income Owned
Not Applicable
Yes
First Time Homebuyer
No
Don’t Know
Not Applicable
Yes
Hispanic Origin
No
Not Given
Not Applicable
Low Income Status
Low Income
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Very Low Income
Other
Not Applicable
Other Target Population
Yes
No
Impact Profile
Not Applicable
Jobs at Time of Investment
0.00
Not Applicable
Jobs at Reporting Period End
0.00
No
Banked at Time of Intake
Yes
Gross Rev at Time of Invest.
No
LITP End Users
Yes
Not Applicable
No
OTP End Users
Yes
Not Applicable
No
IA End Users
Yes
Not Applicable
Include in Report — Enable to include data in CDFI reports
Loan
Transaction Profile
Project Number
Consumer
Purpose
Business
Microenterprise
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Home Purchase
Home Improvement
Const/Permanent/ACQ W-O Rehab - Commercial
Const - Housing - Multi Family
Const - Housing - Single Family
Const - Rehab - Commercial
Const - Rehab - Multi Family
Const - Rehab - Single Family
Other
Fully Amortized
Amortization Type
Partially Amortized
Non Amortizing
Other
Interest Type
Fixed
Variable
None
Convertible Debt
Equity Like Features
Performance-based Interest Rate
Royalties
Warrants
Other
First
Lien Position
Second
Unsecured Debt
Other
None
SBA
Guarantee
USDA
Other Federal Government
Personal Guarantee
Other
Transaction Type
Term Loan 1
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Equity Investment
Line of Credit
Debt with Equity
Other
None
Real Estate
Other Real Estate
Vehicle
Collateral Type
Equipment
Inventory
Receivables
Home Equity
Other
Collateral Value at Orig
Original Investment Amt
Equity Injection Amt
Forgivable Loan
No
Yes
Origination Date
First Payment Date
Term in Months
Interest Rate
Points
Origination Fees
Transaction Status
Active
Closed in Good Standing
Loan Status
Sold
Charged Off
Refinanced
Fair Value at Orig
Fair Value at Period End
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Controlled by Contact
No
LITP End Users
Yes
Not Applicable
No
IA End Users
Yes
Not Applicable
Number of Time Refi’d
Refinance Orig. Trans ID
Times Restructured
No
OTP End Users
Yes
Not Applicable
Gross Revenue TOE
0.00
Annual Gross Rev
0.00
Jobs at TOE
0.00
Jobs at Period End
0.00
Project Address
Address
FIPS Code
Project Impacts
Not Applicable
Job Type
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User Guide
Additional Features
Direct Jobs
Direct and Indirect Jobs
Not Applicable
Jobs Created
0.00
Not Applicable
Jobs Created Const
0.00
Not Applicable
Jobs Created Tenant Bus
0.00
Not Applicable
New Financing
Wage Data
Source/Jobs Estimate
Economic Impact
Rule of Thumb
Other
Jobs Estimate Other
Not Applicable
Area Real Estate Total
0
Not Applicable
Sq. Ft. Manufacturing
0
Not Applicable
Sq. Ft. Office
0
Not Applicable
Sq. Ft. Retail
0
Asking Rent per Sq. Ft.
Not Applicable
Housing Units Sale
0
Not Applicable
Housing Units Rental
0
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Not Applicable
Aff. Housing Units Sale
0
Not Applicable
Aff. Housing Units Rental
0
Other Impact 1 Expl.
Other Impact 1 Units
Other Impact 2 Expl.
Other Impact 2 Units
Total Project Cost
Community Capacity
No
Community Facility
Yes
Don’t Know
Not Applicable
Educational Facility
0.00
Not Applicable
Childcare Facility
0.00
Not Applicable
Healthcare Facility
0.00
Not Applicable
Arts Center Facility
0.00
Not Applicable
Other Facility
0.00
HFFI Award
Healthy Food Financing Initiative Financial Assistance (HFFI-FA) Transaction
Year of HFFI Award
HFFI_FA Activity
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Healthy Food Outlet Activity
Healthy Food Outlet Activity - Other
Food Desert Identifier Source
Food Desert Identifier Source - Other
Healthy Food Description
Total Number of New Retail Healthy Food Outlets
Total Number of New Non-Retail Healthy Food Lending Activities
Square Footage of New Retail Healthy Food Outlets
Square Footage of New Non-Retail Healthy Food Outlets
Target Market
Include in Report — Enable to include data in CDFI reports
Security
Privilege to view, update, add, and delete CDFI data can be assigned at the user, group, and
default system levels separately for contact and loan.
NLS Log
The NLS Log, viewed in System Setup, keeps a record of all automated and non-automated
accruals, scheduled reports, and other automated operations. The logs contain pertinent
information including counters, start and end times, elapsed times, and any error messages
that occur during a logged operation.
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Virtual System Date
NOTE
This feature is only available to users with admin privileges.
Admin users and users with the DBA1 flag set can set a virtual system date for testing cycles that
may require time travel operations.
To access this feature, select File > Virtual System Date.
Click Set Virtual System Date then either enter the new date to use or select a new date from the
popup calendar. NLS will now use the virtual date as the current date and base all of its calculations on this date.
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To return to using the actual system date, click Stop Virtual System Date or close the Virtual System Date window.
Branch
Branch support allows for identifying divisions and branches, separating contacts, loans, and
tasks by branch, and controlling user logins.
To enable branch control, go to Setup > System > System Defaults. Under Miscellaneous, click
on the Current Value field for Branch and select Enabled. Click OK to restart NLS.
Before assigning security privileges, a Branch contact type must be created and for each
branch, a contact must be created.
Go to Setup > Contact Setup > Contact Type. Click Add
and enter a code and description
for the branch contact type then click OK.
Click the Options tab and select the Branch Type Flag. Click OK to restart NLS.
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Click Add
and select Add Contact. Enter a contact number, shortname, and any other
pertinent information for the branch. The shortname will be used to reference this branch.
Select the code used for your branch contact type in the Contact Type drop down list and
save.
Assigning Branch Security
Go to Setup > System > Branch.
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Branch Security Tab
To add a new branch, click Add
.
Select Add Branches and choose a branch contact from the Branches drop down list.
To organize branches under divisions, click Add
.
Enter a name for the new division and click OK.
Highlight the division and click Add
to add a branch to the division or to create nested divi-
sions under it.
To create nested divisions, highlight the division to add to and click Add
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Enter a name for the new division, select Add branch division under <branch name> and click
OK. A new division will be created under the selected division.
Click Modify
to edit the name of a division or branch.
Click Delete
to delete a division or branch.
Once branches are created, users can be added to branches or divisions to give that user
access to data belonging to those branches.
To add users to a branch, highlight the branch to which to add a user. Under the User’s Security
tab, select a user or group from the User or Group tab in the right pane and click <
. The
user or group will move to the left pane giving that user or group access to the selected
branch.
Move selected item to the left pane.
Move all items from the right pane to the left pane.
Move selected item to the right pane.
Move all items from the left pane to the right pane.
NOTE
If a user is given access to more than one branch, a dialog will be presented during log in
for selecting which branch to log in under. Choose the branch from the drop down list and
click Select to log in.
If the user is given access to a branch and a division, a <All> option will be available in the
drop down list. This option gives the user access to all branches to which the user has
access.
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Contact’s Availability tab allows for adding an availability rule to a branch to allow access to
its data. By default each branch has access to its own data. To add a new availability rule to a
branch, highlight the branch and click Add
. Choose all branches, a division, or a branch
to which to give access and click OK. A summary of the contact’s availability is shown in the
window.
Contact’s availability tab
Dealer Tab and Vendor Tab
The Dealer tab and Vendor tab allows for adding an availability rule to a dealer or a vendor
contact type to allow access to the contact within a branch. By default, all dealers and
vendors are visible in all branches.
To add a dealer/vendor, click Add
and select a dealer/vendor from the drop down list.
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Click OK.
To add an availability rule to a contact, click
and click Add
next to the contact, select an availability rule
. Select a rule from the Add Branch drop down list and click OK.
To remove an availability rule from a contact, select an availability rule and click Delete
.
Working with Branches
When branches are enabled, all borrower and lender contact type will be assigned to a
branch.
NOTE
If upgrading from a previous version of NLS or using branches for the first time on an existing
database, adding a loan to a contact or vendor which is not assigned a branch will result in
an error. If this occurs, close the Add New Loan window and choose a branch from the
Branch drop down list for the contact or vendor.
Branch Trustee Security
User and group privilege to view, update, add, and delete branches can be managed in
Security.
Cash Drawer
Cash drawer feature allows for the tracking and management of cash handling procedures
associated with cash drawers containing currency and checks. It can be used in conjunction
with the branch option to associate drawers with branches.
Enabling Cash Drawer
To enable cash drawers, go to Setup > System > System Defaults and click on the current value
field for Cash Drawer and select Enabled. Click OK to restart NLS. A new Cash Drawer Setup
option will become available in Setup > System.
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Figure – System Defaults setting for Cash Drawer
Setting Up Cash Drawers
To set up cash drawers, go to Setup > Cash Drawer Setup.
Figure – Cash Drawer setup
Add
Create a new cash drawer.
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Delete
Delete the currently selected drawer.
Modify
Modify the drawer name and description.
Displays a dialog listing the history of modifications made to the selected
drawer.
Modification History
Figure – Modification History dialog
View
Displays details of the selected row.
Displays a side-by-side comparison of the details of two
Show Dif-
selected rows.
ferences
TIP
Control-click to select multiple rows.
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Figure – Differences dialog
Click Add
and enter a name and description for the cash drawer. Click OK.
Figure – New Cash Drawer
Choose the options for the cash drawer and restart NLS to save the changes.
Cash Drawer
Type
Individual
This type of drawer must have a user assigned to it at all times
and can only belong to a single user at any given time.
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Reserve
Account
This type of drawer can be used to fund other drawers. Cash
and check transactions cannot be made directly to/from a
reserve account.
Choose a GL account for the drawer balance.
CA SH/BA NK
In accounting, a “cash” account (as defined in the cash placeholder in
loan groups) can represent money that the organization has on deposit
Drawer Balance (Asset)
GL Account
somewhere, or (in the case of a bank or other entity that keeps actual
physical cash on hand) can represent actual physical funds in the form
of bills and coins that exist on the premises in a cash drawer. With the
addition of cash drawer functionality in the loan servicing system, it is
now necessary to distinguish between those “cash” accounts that represent physical cash on hand, and those “cash” accounts that represent
money on deposit at a bank or other institution, or “cash” clearing
accounts.
Choose a GL account for the drawer discrepancy.
D ISCREPA NCY
Drawer Discrepancy
(Income/Loss)
GL Account
This is an income/expense account representing the unearned revenue
that results from an overage in a cash drawer or the expense incurred
when a drawer is short. Because the account will be credited with a positive amount if there is an overage in the drawer and a negative amount
if the drawer is short, the account should be configured on the GL as an
income account even though it will often act as contra income (with a
negative value being posted).
Bank Balance
Choose a GL account for the bank balance. This is used for funds being pur-
GL Account
chased from and deposited to a bank.
Maximum amount the cash drawer is allowed to hold before it must be sold
Drawer Limit
off to the reserve account. This is not a hard limit and the drawer may
exceed this limit, at which time an alert will be displayed.
Branch
Choose a branch with which to associate this cash drawer. A default branch
will be used if the branch option is not enabled.
User (Indi-
Choose a user with which to associate this cash drawer. A cash drawer must
vidual drawer
have one, and only one user assigned to it.
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type)
Member
(Reserve
Account
drawer type)
Manage users who will have access to the reserve account. Users in the
Member Of group will have direct access to the reserve account. Users in the
Not Member Of group will not have access to the reserve account and will
require an authorization from an authorized user to buy from and sell to the
reserve account.
Cash Drawer Menu
Once cash drawers are set up, various functions relating to cash drawers can be accessed
from the Cash Drawer menu which will be available in contact view, loan view, and cash
drawer view. This menu is only available to administrators and users with cash drawers
assigned to them. All of the cash drawers the user has access to will be listed in the Cash
Drawer menu with a submenu of actions that can be selected for that cash drawer.
Count In Reconciliation
Displays a count-in reconciliation dialog to open the cash drawer.
Count Out Recon-
Displays a count-out reconciliation dialog to close the cash
ciliation
drawer.
Purchase Cash from
Displays a dialog to enter the amount of cash to purchase from a
Reserve
reserve drawer or bank.
Sell Cash to Reserve
Displays a dialog to enter the amount of cash to sell to a reserve
drawer.
Purchase Cash from
Displays a dialog to enter the amount of cash to purchase from a
Bank
bank.
Prepare Bank Deposit
Attach User to Open
Cash Drawer
Cash Drawer Status
Displays a dialog to enter the amount of cash and checks to prepare for a bank deposit.
This feature is not implemented in the current version.
Displays a table of all cash drawers accessible to the currently
logged in user.
Count-In Reconciliation
When a cash drawer is opened, it must first be reconciled. Enter the count for each denomination of bills, rolled coins, and loose coins in the drawer. If there is a difference between the
expected amount and the counted amount, the difference will be displayed in the cash and
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check discrepancy fields. Click Finalize to open the cash drawer. If there is a discrepancy, an
alert will warn you of the discrepancy and you may choose to correct the discrepancy or open
the drawer with the discrepancy in place.
Figure – Count-in Reconciliation
Ending
Cash Bal-
Shows the drawer’s balance of cash at the last count-out reconciliation.
ance
Net Cash
Transactions
Not applicable.
Expected
Cash Bal-
Shows the expected cash balance at the time the drawer is counted in.
ance
Ending
Check Bal-
Shows the drawer’s balance of checks at the last count-out reconciliation.
ance
Check Transactions
Not applicable.
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Expected
Check Bal-
Shows the expected check balance at the time the drawer is counted in.
ance
Counted
Cash Balance
Current balance of cash being counted in. This value changes dynamically
as the count changes.
Discrepancy Shows the discrepancy between the Expected Cash Balance and the CounCash
Counted
Check Balance
ted Cash Balance.
Current balance of check being counted in. This value changes dynamically
Discrepancy Shows the discrepancy between the Expected Check Balance and the CounCheck
Bills
Rolled Coins
Loose Coins
ted Check Balance.
Type in the number or use the arrow buttons for entering the count of each
denomination of bills. The total value is calculated to the right of the count.
Type in the number or use the arrow buttons for entering the count of each roll
of coins. The total value is calculated to the right of the count.
loose coins. The total value is calculated to the right of the count.
Checks
Type in the total amount of checks in the drawer.
Comments
Enter any comments, if needed, for the count in reconciliation.
Grand Total
This is the sum of the Counted Cash Balance and Counted Check Balance.
Count-Out Reconciliation
Before a cash drawer can be closed, a count-out reconciliation must be performed. Enter the
amount for each denomination of bills, rolled coins, loose coins, and total amount of checks
in the drawer. If there is a difference between the expected amount and the counted amount,
the difference will be displayed in the cash and check discrepancy fields. Click Finalize to close
the cash drawer. If there is a discrepancy, an alert will warn you of the discrepancy and you
may choose to correct the discrepancy or close the drawer with the discrepancy in place.
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Figure – Count-out Reconciliation
Ending
Cash Bal-
Shows the drawer’s balance of cash at the last count-in reconciliation.
ance
Net Cash
Transactions
Shows the total of all cash transactions since the last count-in reconciliation.
Expected
Cash Bal-
Shows the expected cash balance at the time the drawer is counted out.
ance
Ending
Check Bal-
Shows the drawer’s balance of checks at the last count-in reconciliation.
ance
Check Transactions
Shows the total of all check transactions since the last count-in reconciliation.
Expected
Check Bal-
Shows the expected check balance at the time the drawer is counted out.
ance
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Counted
Cash Balance
Current balance of cash being counted out. This value changes dynamically
Discrepancy Shows the discrepancy between the Expected Cash Balance and the CounCash
Counted
Check Balance
ted Cash Balance.
Current balance of check being counted out. This value changes dynamically as the count changes.
Discrepancy Shows the discrepancy between the Expected Check Balance and the CounCheck
Bills
Rolled Coins
Loose Coins
ted Check Balance.
denomination of bills. The total value is calculated to the right of the count.
Type in the number or use the arrow buttons for entering the count of each roll
of coins. The total value is calculated to the right of the count.
loose coins. The total value is calculated to the right of the count.
Checks
Type in the total amount of checks in the drawer.
Comments
Enter any comments, if needed, for the count out reconciliation.
Grand Total
This is the sum of the Counted Cash Balance and Counted Check Balance.
Purchase Cash from Reserve
NOTE
An authorized user for the reserve account must be present to complete the purchase.
Opens a dialog to purchase cash from a reserve account. Select the reserve account from the
drop down list and enter the amount of cash to purchase. Enter your password for the current
drawer and click Login. Enter the user name and password of the authorized user of the reserve
account and click OK. Purchased funds will be deducted from the reserve account and
added to the current cash drawer.
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Figure – Purchase cash from reserve account dialog
Sell Cash to Reserve
NOTE
An authorized user for the reserve account must be present to complete the purchase.
Opens a dialog to sell cash from the currently open cash drawer to a reserve account. Select
the reserve account from the drop down list and enter the amount of cash and check to sell.
Enter your password for the current drawer and click Login. Enter the user name and password
of the authorized user of the reserve account and click OK. Sold funds will be deducted from
the current cash drawer and added to the reserve account.
Figure – Sell cash to reserve dialog
Purchase Cash from Bank
Enter the amount to be purchased from a bank and click OK. The funds will be added to the
current cash drawer.
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Figure – Purchase cash from bank dialog
Prepare Bank Deposit
Opens a dialog for selling cash to a bank account. Select the bank account from the drop
down list and enter the amount of cash and check to deposit and click OK. The entered
amount will be subtracted from the drawer. The cash amount or check amount, respectively,
cannot exceed what is currently available in the drawer.
Figure – Prepare bank deposit dialog
Cash Drawer Status
Displays a table with a history of the selected cash drawer. The left pane shows the time the
count-in and count-out reconciliations occurred, any discrepancies that was finalized at that
time, and the comments.
Clicking on the OPEN item in the list will show all of the transactions for the drawer that has
taken place since the count-in reconciliation.
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Clicking on a count-out item in the list will show all transactions that occurred on the cash
drawer since the previous count-in reconciliation.
Clicking on a count-in item in the list will show the details of any discrepancy that may have
been recorded at that time.
Figure – Cash drawer status
NOTE
l
l
l
Clicking on the table header for a column will toggle between ascending and descending sort order based on that column.
The column width can be adjusted by grabbing the divider between the columns in
the table header.
The total row is always shown with a yellow background.
Cash Drawer View
Users with the privilege to view all cash drawers can view the status of cash drawers by clicking
on the Cash Drawer icon in the shortcut bar or selecting
Cash Drawer from the navigation
menu. A detail list of all available cash drawers will be displayed.
Figure – Administrator view
Transactions
When a cash or check transaction is made on a loan, the funds will be added to or subtracted
from the cash drawer depending on the transaction type. If the user is assigned a cash drawer,
the drawer will need to be open before any cash or check transaction can be made.
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NOTE
Transactions cannot be made directly from a reserve account. An individual cash drawer
must be used to perform a direct transaction.
Cash Drawer Security
User and group privilege for cash drawer:
Operate Cash Drawer
User is able to open and make transactions from cash drawers.
View All Cash Drawer
User is able to view all cash drawers.
View Branch Cash
User is able to view all cash drawers belonging to the same
Drawer
branch.
View
Cash Drawer Setup
User is able to view the cash drawer setup.
Update User is able to make changes to the cash drawer setup.
Add
User is able to add new cash drawers.
Delete
User is able to delete cash drawers.
Status Bar
The status (closed) or the name of the currently open cash drawer, current cash balance, and
current check balance will be displayed on the status bar at the bottom of the NLS window.
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Appendix
Appendix
Equations and Procedures
The equation for determining an amortized payment is:
Where:
P = Periodic Payment
Pr = Principal
n = Number of Payments
i = Periodic Interest (Interest rate / number of payments per year)
Example:
$10,000 amortized over one year at 12% with monthly payments.
Pr = 10,000
n = 12
i = .01
The summation sign tells us to take the sum of the following 12 quotients:
1 divided by 1.01 raised to the power of 1
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This sum is 11.25509
$10,000 / 11.25509 = $888.49
The Nortridge Loan System uses this equation indirectly. A complex algebraic equation has
been derived from this summation series, and it is this equation that is directly used by the loan
system to derive the payment amount.
Add on Interest
When a consumer loan is made with an add-on interest rate, the interest for the entire term of
the loan is calculated at the start of the loan by the equation:
I=PxRxT
where
I = total interest
P = principal
R = annual interest rate
T = term in years
EXAMPLE
A bank loaned $11,025 at an interest rate of 8.8435% to be repaid in 12 equal monthly
installments. The dollar amount of the interest as calculated by the equation above is $975.
The periodic payment on an add-on interest loan is calculated by the equation:
Pmt = (P + I) / n
where
Pmt = payment
P = principal
I = total interest (as calculated above)
N = total number of payments
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User Guide
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EXAMPLE
The principal of $11,025 is added to the calculated interest of $975 to get $12,000. When this
is divided by 12 monthly installments, the result is a monthly payment of $1,000.
The important point about an add-on interest rate is the difference between the stated, or
quoted, interest rate and the annual percentage yield, which may be almost twice the stated
interest rate. The reason for the difference is that the interest is calculated on the full principal
amount over the life of the loan, when in fact, part of the principal is being reduced with each
periodic payment.
Once the amount of each payment has been determined, interest and principal payments will
be billed during each payment period. The amount of principal billed is simply the total payment minus the interest billed. The amount of interest billed is calculated by the rule of 78s.
The rule of 78s uses the sum of the digits of the total number of payments.
EXAMPLE
In our 12 month loan, the sum of the digits is:
12 + 11 + 10 + 9 + 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 = 78
The sum of the number of digits may be calculated for loans of any length by using the formula:
where
n = the number of periods
EXAMPLE
Next, the total calculated interest is divided by the sum of the digits to determine a value of
interest per digit.
EXAMPLE
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The portion of each payment that is interest is calculated as follows:
For the first payment, the interest per digit is multiplied by the total number of payments.
For each subsequent payment, the multiplier is one less than in the previous payment, until the
final payment, in which the multiplier will be 1.
This will result in all of the calculated interest being billed by the end of the loan.
EXAMPLE
Month
Number of Digits
Interest per Digit
Interest per Month
1
12
$12.50
$150.00
2
11
$12.50
$137.50
3
10
$12.50
$125.00
4
9
$12.50
$112.50
5
8
$12.50
$100.00
6
7
$12.50
$87.50
7
6
$12.50
$75.00
8
5
$12.50
$62.50
9
4
$12.50
$50.00
10
3
$12.50
$37.50
11
2
$12.50
$25.00
12
1
$12.50
$12.50
Totals
78
$975.00
Because the Nortridge Loan System does all accrual posting on a daily basis, the system will
divide the current period’s calculated interest by the number of days in the current period to
determine the current per diem.
EXAMPLE
If month #1 is assumed to be January in the example above, our per diem for each month is
calculated as follows:
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User Guide
Appendix
Month
Interest per Month
Days in the Month
Per Diem Interest
January
$150.00
31
$4.83871
February
$137.50
28
$4.91071
March
$125.00
31
$4.03226
April
$112.50
30
$3.75000
May
$100.00
31
$3.22581
June
$87.50
30
$2.91667
July
$75.00
31
$2.41935
August
$62.50
31
$2.01613
September $50.00
30
$1.66667
October
$37.50
31
$1.20968
November $25.00
30
$0.83333
December $12.50
31
$0.40323
Interest Year Calculations
Interest Year determines the calculation method for the per diem interest of the loan and will
thus affect the Annual Percentage Yield.
Interest Year in the Nortridge Loan System is defined by a Numerator and a Denominator, both
of which can be one of five values: 360, 364, 365, 366, or ACT. Since the Interest Year is defined
as a ratio of two instances from these five values, there are 25 possible interest year definitions:
N = 360
N = 364
N = 365
N = 366
N = ACT
D=360
360/360
364/360
365/360
366/360
ACT/360
D=364
360/364
364/364
365/364
366/364
ACT/364
D=365
360/365
364/365
365/365
366/365
ACT/365
D=366
360/366
364/366
365/366
366/366
ACT/366
D=ACT
360/ACT 364/ACT 365/ACT 366/ACT ACT/ACT
The value: ACT represents the actual number of days in the current year. All Interest Years containing the value of ACT emulate other interest year calculations but may emulate different
interest years depending on the leap year status of the current year.
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Interest Year
In Non-Leap Year Emulates
In Leap Year Emulates
ACT / 360
365 / 360
366 / 360
ACT / 364
365 / 364
366 / 364
ACT / 365
365 / 365
366 / 365
ACT / 366
365 / 366
366 / 366
ACT / ACT
365 / 365
366 / 366
360 / ACT
360 / 365
360 / 366
364 / ACT
364 / 365
364 / 366
365 / ACT
365 / 365
365 / 366
366 / ACT
366 / 365
366 / 366
To calculate the per diem, first multiply the interest rate (r) by the principal (p) to derive the
annual interest (i).
i=pxr
To calculate the per diem (daily) interest, use the following equation where:
i = annual interest
z = per diem interest
n = numerator of interest year
d = denominator of interest year
l = number of days in current year (365 if a non-leap year and 366 if a leap year)
The same equation, written in single line format (as a computer equation) would look like this:
z = ((i / d) * n ) / l
The Interest Year 360/360 is a special case. In this case, the per diem interest is the annual
interest divided by the number of payments in a year, divided by the number of days in the current payment period. This interest year is inherent in the amortizing equations, and while a
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Fixed Amortization 1 loan could be done with other interest years, 360/360 is assumed for Fixed
Amortization loans because this is the only interest year calculation where the accrual and an
amortization schedule built from the amortizing equations will directly synchronize.
For each interest year, you may calculate the Annual Percentage Yield (APY) by multiplying the
Annual Percentage Rate (APR) by the factor listed in the table below (not accounting for fees
and charges).
Interest Year
APY factor (Non-Leap)
APY factor (Leap Year)
360 / 360
1
1
364 / 360
1.01111
1.01111
365 / 360
1.01389
1.01389
366 / 360
1.01667
1.01667
ACT / 360
1.01389
1.01667
360 / 364
0.98901
0.98901
364 / 364
1
1
365 / 364
1.00275
1.00275
366 / 364
1.00549
1.00549
ACT / 364
1.00275
1.00549
360 / 365
0.98630
0.98630
364 / 365
0.99726
0.99726
365 / 365
1
1
366 / 365
1.00274
1.00274
ACT / 365
1
1.00274
360 / 366
0.98361
0.98361
364 / 366
0.99454
0.99454
365 / 366
0.99727
0.99727
366 / 366
1
1
ACT / 366
0.99727
1
360 / ACT
0.98630
0.98361
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Interest Year
APY factor (Non-Leap)
APY factor (Leap Year)
364 / ACT
0.99726
0.99454
365 / ACT
1
0.99727
366 / ACT
1.00274
1
ACT / ACT
1
1
EXAMPLE:
A 10% APR loan with an Interest Year of ACT/360 (the Interest Year with the highest possible
yield) will have an APY of 10.1389% in non-leap years and 10.1667% in leap years.
Over the life of a 30 year loan with a starting principal of $100,000, this would result in an
additional $2,183 in accrued interest.
Round Off Errors
Round off errors result from the fact that a computer can carry only a finite number of digits of
any number. For instance, suppose that the database can store six digits and we wish to add
$4.476276 + $3.388567 = $7.864843. In the machine, each of the numbers would be rounded
to six significant digits:
$4.47628 + $3.38857 = $7.86485
The true answer, rounded off, would have a 4 in the sixth digit, but rounding error has caused
this to be a 5.
In the Nortridge Loan System, interest accruals are calculated and stored to 10 decimal
places. All transactions, and most on screen displays are rounded to the nearest cent.
Mathematicians Brower and Clemence (in 1961) derived a formula for the probable error after
n calculations:
decimal places.
EXAMPLE
The expected error after 100 calculations is:
decimal places.
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Each single calculation with a degree of precision of 10 decimal places has a degree of error
of plus or minus .00000000005.
Differences will accumulate to whole cents when the number of decimal places in the Brower
and Clemence calculation exceeds eight. This will occur when n exceeds 900,000. Therefore,
the length of term before a loan would be expected to have lost a full cent of interest due to
rounding errors is about 2,500 years.
The complete elimination of rounding errors in accruals over the lifetime of a 30-year loan
would have required the eight digits of precision. Rounding errors would still exist; however, in
the rounding to whole cents which is required in billing and transactions—different loan systems may handle rounding vs. truncation on the monthly payment amount differently—could
cause a slight rounding difference when comparing between two loan systems. But, you will
not have interest gained or lost due to rounding in NLS.
The preceding explanation of Rounding Errors is adapted from Fundamentals of Astrodynamics by Bate, Mueller, and White, 1971, pgs. 412 – 413 Section 9.5: Comments on Integration Schemes and Errors.
Merge Fields for Word Reports
These are the NLS fields you can use to merge into a Word generated report. Create a Word
document (not a mail merge document) and enter the fields by typing CTRL-F9 (this enters the
curly brackets) and then entering the merge field command and the appropriate field name
(exactly as listed below). Word limits you to a maximum of 63 unique fields per document.
Refer to the NLS User Guide, Word Help, and the Microsoft web site for more information on merging and adding Word reports to NLS.
EXAMPLE
{ MERGEFIELD city } will insert the contact’s city into your document.
Contact (CIF) Merge Fields
cifno
home1_phone
all_cif_detail_udf
cifnumber
home2_phone
all_cif_demo_udf
setupdate
home_fax_phone
all_cif_financial_
udf
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cif_shortname
business1_phone
company
lastname1
business2_phone
salutation1
firstname1
mobile_phone
salutation2
middlename1
pager_phone
suffix1
lastname2
other_phone
suffix2
firstname2
all_phones
title1
middlename2
email
title2
mail_name1
cif_tin
email1
mail_name2
cif_entity
email2
cif_officer
cif_tin1
cif_detail_01 – cif_detail_50
cif_tin2
street_
address1
street_
address2
city
cif_demographics_01 – cif_demo-
web_address
graphics_50
state
cif_financial_01 – cif_financial_50
zip
country
Loan Merge Fields
current_payoff_balloan_number
mobile_phone
ance
acctrefno
current_perdiem
pager_phone
loan_shortname
current_suspense
other_phone
total_current_due_balloan_name
all_phones
ance
total_past_due_bal-
loan_entity
email
ance
loan_tin
addonint_total
cif_tin
loan_type
addonint_remaining
cif_entity
loan_group
cifnumber
cif_officer
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loan_class1
cif_setupdate
company
loan_class2
cif_shortname
salutation1
input_date
lastname1
salutation2
status_code
firstname1
suffix1
loan_officer
middlename1
suffix2
collection_officer
lastname2
title1
starting_interest_rate
firstname2
title2
current_interest_rate
middlename2
email1
next_rate_change_date
mail_name1
email2
curr_date
mail_name2
cif_tin1
curr_maturity_date
street_address1
cif_tin2
payoff_date
street_address2
web_address
last_activity_date
city
mailname_and_address
interest_paid_thru_date state
name_and_address
principal_paid_thru_
zip
amortized_payment_amount
country
all_loan_detail1_udf
original_note_amount
home1_phone
all_loan_detail2_udf
current_note_amount
home2_phone
date
interest_accrued_thru_
date
loan_detail1_01 – loan_
detail1_50
current_principal_balhome_fax_phone
ance
loan_detail2_01 – loan_
detail2_50
current_interest_balbuisness1_phone
ance
current_fees_balance
business2_phone
current_late_charge_balance
Statement Merge Fields
mailname_and_
suffix2
payment_description
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address
name_and_address
title1
payment_amount
cifno
title2
payment_paid
cifnumber
cif_tin1
payment_remaining
cif_shortname
cif_tin2
maturity_date
lastname1
loan_officer
minimum_payment_amount
firstname1
loan_number
credit_line_limit
middlename1
loan_tin
balloon_payment_amount
lastname2
statement_date
balloon_payment_date
firstname2
statement_due_date
amortized_payment_amount
middlename2
current_rate
last_payment_amount
mail_name1
total_past_due_bal
last_payment_date
total_current_due_
mail_name2
extra_line_if_duedate_changed
bal
street_address1
original_note_amt
skip_tot_payments
street_address2
current_note_amt
this_period_advances
current_principal_
city
this_period_payments
bal
state
current_interest_bal
this_period_interest
zip
current_fees_bal
this_period_fees
current_late_charge_
country
this_period_late_charges
bal
entity_type
current_payoff_bal
this_period_debit
company
current_perdiem
this_period_credit
salutation1
addonint_total
this_period_udf_1 – this_period_
udf_10
salutation2
addonint_remaining
this_period_number_of_days
suffix1
date_due
item_date_order_descending
Mail Merge Switches
Switches within a Mail Merge mergefield may be used to format the resulting output.
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TIP
To edit existing mergefields, select the entire mergfield which is shown enclosed in chevrons
(«NLSField») and press Shift-F9 to reveal the field code (or right click on the mergefield and
select Toggle Field Codes) which will then be shown enclosed in braces ({MERGEFIELD
NLSField}). Once the mergefield has been modified, place the cursor within the braces and
press F9 to hide the field code.
Mergefields can be nested and to enclose existing mergefields within a new mergefield,
select the existing mergefield and press Ctrl-F9. This will result in the mergefield being
enclosed in braces ({«NLSField»}).
String Formatting
To apply font formatting, add a format switch (\* Charformat) and apply font formatting to
the ‘M’ in MERGEFIELD.
EXAMPLE
{MERGEFIELD cifno \* Charformat} will display cifno in bold text.
Following are format switches that can be used to control capitalization of words.
Switch
Description
\* Caps
Capitalizes the first letter of each word.
\* FirstCap
Capitalizes the first letter of the first word.
\* Upper
Capitalizes all letters.
\* Lower
All letters are in lower case.
Number and Currency Formatting
To apply number and currency formatting, add a numeric format switch (\#).
Numeric format switches are used in combination with the following:
Switch
Description
Specifies the minimum numeric places to display including leading zeroes.
0 (zero)
EXAMPLE
{MERGEFIELD current_interest_rate \# 00.00} displays 05.00
#
Specifies the minimum numeric places to display. If a place has no digit, it is
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Switch
Description
replaced with a space.
EXAMPLE
{MERGEFIELD payment_amount \# $###} displays $ 10
Does not display digits to its left and if used to the right of a decimal point, the
result is rounded to that place.
x
EXAMPLE
{MERGEFIELD cifno \# x##} displays 111 if cifno is 123111
{MERGEFIELD current_interest_rate \# 0.00x} displays 0.599 if current_
interest_rate is .59911
. (decimal
point)
Places a decimal point in its position.
Places a digit grouping symbol (thousand separator) as specified in the
regional settings in the Control Panel.
, (comma)
EXAMPLE
{MERGEFIELD current_payoff_balance \# $,0.00} displays $1,234.56
Places a minus sign on a negative result or adds a space if the result is positive or zero.
- (minus)
EXAMPLE
{MERGEFIELD current_payoff_balance \# "$#,##0.00;- $#,##0.00"} displays
$1,234.56 for a positive number and - $1,234.56 for a negative number
Places a plus sign to a positive result, a minus sign to a negative result, or a
space if the result is zero.
+ (plus)
EXAMPLE
{MERGEFIELD current_payoff_balance \# "+ $#,##0.00"} displays +
$1,234.56 for a positive number and - $1,234.56 for a negative number
Places negative number within parenthesis and a hyphen in place of zero.
() (par-
EXAMPLE
enthesis)
{MERGEFIELD current_payoff_balance \# "$,0.00;($,0.00);'-'"} displays
$1,234.56 for a positive, (1,234,56) for a negative number, and - for zero.
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NOTE
Zero values can be suppressed by adding a final semicolon (;) at the end (\# "$,0.00;
($,0.00);"). This suppresses 0s resulting from empty fields and from fields containing 0s.
To left justify the numbers, enclose the switch parameter in quotes (\# "$,0.00") and insert a
tab into the field code after the $ sign.
EXAMPLE
{MERGEFIELD current_principal_balance \# "$ ,0.00"}
{MERGEFIELD total_current_due_balance \# "$ ,0.00"}
displays
$ 99,999.99
$ 1,111.11
Force '0' Substitution for Empty/Missing Records
Use Set Val to force the display of $0.00 for fields that are empty.
EXAMPLE
{Set Val {MERGEFIELD current_suspense}{=Val \# "$,0.00"} will result in $0.00 being displayed if current_suspense is empty.
Math and Percentage Formatting
Mathematical calculations can be performed by using the EXPRESSION (=) field.
EXAMPLE
NLS stores its percentage figures as-is (i.e. 5.01% is stored as 5.01). This can be converted
into a decimal number.
{ ={ MERGEFIELD starting_interest_rate }/100 \# 0.00 } results in 0.05 if the stored value is
5.01.
Conversely, if the stored value is in decimals, it can be converted into a percentage.
{ ={ MERGEFIELD starting_interest_rate }*100 \# 0.00% } results in 5.01% if the stored value is
.0501.
The precision of the result, as set by 0.00, can be from '0' to '0.000000000000000'.
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NOTE
After pressing F9 to hide the field code, the mergefield may display a syntax error. However,
the mergefield will function correctly in NLS as long as the code was entered correctly.
Date Formatting
To apply date formatting, use the date-time format switch (\@).
Switch Description
yyyy
Year. Use yy to display the last two digits of any year.
Month. Use MMMM to fully spell out the month (e.g. September, October). Use MMM
M
to display the three letter abbreviation for the month (e.g. Sep, Oct). Use MM to display the month in two digits with a leading zero for single digit months (e.g. 09, 10).
Use M to display the month in digits (e.g. 9, 10).
Day. Use dddd to spell out the day of the week (e.g. Sunday, Monday). Use ddd to
d
display the three letter abbreviation of the day (e.g. Sun, Mon). Use dd to display the
day in two digits with a leading zero for single digit days (e.g. 09, 10). Use d to display the day in digits (e.g. 9, 10).
EXAMPLE
{MERGEFIELD payoff_date \@ "dddd, MMMM d yyyy"} displays Friday, August 5 2016
{MERGEFIELD payoff_date \@ "ddd, d MMM yyyy"} results in Fri, 5 Aug 2016
{MERGEFIELD payoff_date \@ "yyyy.MM.dd"} results in 2016.08.05
{MERGEFIELD payoff_date \@ "d-M-yy"} results in 5-8-16
NOTE
The d, M, y expressions can be arranged in different order, but note the usage of uppercase
“M” for months as the lower case “m” is used for minutes.
Ordinal and Cardinal Formatting
Ordinal values can be displayed using the \* Ordinal switch.
EXAMPLE
{MERGEFIELD input_date \@ "dddd,"} {MERGEFIELD input_date \@ "d" \* Ordinal}
{MERGEFIELD input_date \@ "'of' MMMM, yyyy"} results in Thursday, 5th of May, 2016
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Ordinal values can also be converted to ordinal text with the \* OrdText switch.
EXAMPLE
{MEGEFIELD input_date \@”dddd,”} {MERGEFIELD input_date \@ “d” \* OrdText \* FirstCap}
{MERGEFIELD input_date \@ “’of’ MMMM, yyyy”} results in Thursday, Fifth of May, 2016
Values can be displayed as cardinal text with the \* CardText switch.
EXAMPLE
{MERGEFIELD cifnumber \* CardText} results in one.
The result will be in lower case but string format switch can be used to capitalize accordingly.
Values can be displayed as cardinal text with the \* DollarText switch. An ‘and’ will be inserted
at the decimal point and the first two decimals will be displayed over the 100 denominator.
EXAMPLE
{MERGEFIELD total_current_due_balance \* DollarText} results in three hundred and 21/100.
Time Formatting
To format how time is displayed, use the date-time format switch (\@).
Switch
h or H
Description
Hours. Lower case h denotes 12-hour format and upper case H denotes 24-hour
format. Use hh or HH to display a leading zero on single digit hours.
m
Minutes. Use mm to display a leading zero on single digit minutes.
s
Seconds. Use ss to display a leading zero on single digit seconds.
AM/PM
Displays AM or PM.
EXAMPLE
{MERGEFIELD time \@ HH:mm} displays 13:01
{MERGEFIELD time \@ h:mm:ss AM/PM} displays 1:01:01 PM
U.S. Zip Code Formatting
Format zip codes as a 5-digit or 5+4-digit zip code.
EXAMPLE
{QUOTE
{SET ZipCode {MERGEFIELD zip}}
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{IF{ZipCode}> 99999 {SET ZipCode {ZipCode \# "00000'-'0000"}}}
"{=-{=-{ZipCode}-ZipCode}/2 \# 00000;;}{=-({ZipCode}*(-1)-ZipCode)/2 \# ;-0000;}"}
12345 results in 12345
123450000 results in 12345
12345-0000 results in 12345
123451111 results in 12345-1111
Selective Space Insertion
Use \b and \f switches to insert a space only when a field is not blank.
Switch
Description
\b
Specifies text to be inserted before the mergefield if the field is not blank
\f
Specifies text to be inserted following the mergefield if the field is not blank
EXAMPLE
{MERGEFIELD firstname1 \f " "}{MERGEFIELD middlename1 \f " "}{MERGEFIELD lastname1}
If all fields are not blank, the result will be Mary Jane Smith
If middlename1 is blank, the result will be Mary Smith
Selective Line Break Insertion
Use \b and \f switches to insert line breaks when needed.
EXAMPLE
{MERGEFIELD street_address1}
{MERGEFIELD street_address2 \f "↲"}
{MERGEFIELD city}, {MERGEFIELD state} {MERGEFIELD zip}
Replace ↲ with an actual line break (Shift-Enter)
If all fields are not blank, the result will be
123 Main
MS 123
Any Town, CA 00000
If street_address2 is blank, the result will be
123 Main
Any Town, CA 00000
Without the \f switch, there would be an empty line between street_address1 and the
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city/state/zip line.
Scripting
The following scripts provide useful examples of VB scripts that may be used to manipulate
User-Defined Fields on Contacts and Loans. These scripting techniques may be extended for
use in controlling the execution of tasks in the Task Manager.
NOTE
Please refer to the NLS COM API – COM Programmatic Interface Reference (available on the
Nortridge Online Community in the Documents section) for additional information on functions and fields.
Example of conditionally setting a field
CIF_Detail_UDF1 is Annual Income. CIF_Detail_UDF2 is a text field called “Income Status.” This
field has a default value of “Pending.” The field is to be automatically updated based on the
amount entered in Annual Income: Less than 25,000 = Low; 25,000 – 75,000 = Medium;
Greater than 75,000 = High.
The following script is set “When Field Changes” on CIF_Detail_UDF1:
VBSCRIPT
Income = App.GetField("CIF_Detail_UDF1")
If Income < 25000 then
App.SetField "CIF_Detail_UDF2", "Low"
Else
App.SetField "CIF_Detail_UDF2","Medium"
Else
App.SetField "CIF_Detail_UDF2","High"
End If
End If
This line should come at the beginning of all scripts. It creates
an object called “App” which links to the NLS application so
Set App = GetObject(,
"nls.application")
that when you use the command App.GetField, you will be
running the GetField function on NLS instead of on some
other application.
Income = App.GetField
A variable called Income is set to the value in the CIF_Detail_
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("CIF_Detail_UDF1")
UDF1 field
App.SetField "CIF_
Detail_UDF2", "Low"
Else
If Income < 75000
then
App.SetField
The proper text is placed in the CIF_Detail_UDF2 field, based
"CIF_Detail_
UDF2","Medium" on the value of the Income variable.
Else
App.SetField
"CIF_Detail_
UDF2","High"
End If
End If
Doing Arithmetic
CIF_Detail_UDF3 is Land Value. CIF_Detail_UDF4 is Structure Value. CIF_Detail_UDF5 is Property
Value. Whenever Land Value or Structure Value is changed, Property Value will be updated to
be the sum. In Example #3 we will place a script on Property Value that will automatically shift
focus to Land Value whenever someone clicks in the Property Value field. This will make it so
that the only way a user can set the Property Value is through the Land and Structure Value
Fields.
The following script is set “When Field Changes” on both CIF_Detail_UDF3 and CIF_Detail_UDF4:
VBSCRIPT
LandValue = App.GetField("CIF_Detail_UDF3")
StructureValue = App.GetField("CIF_Detail_UDF4")
PropertyValue = CDbl(LandValue) + CDbl(StructureValue)
App.SetField "CIF_Detail_UDF5", PropertyValue
Gets the value in field CIF_Detail_UDF3
LandValue = App.GetField
("CIF_Detail_UDF3")
StructureValue = App.GetField
Gets the value in field CIF_Detail_UDF4
("CIF_Detail_UDF4")
PropertyValue = CDbl
Adds them together. The CDbl command forces the
(LandValue) + CDbl(Struc-
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tureValue)
two variables to be numbers instead of strings.
App.SetField "CIF_Detail_
UDF5", PropertyValue
Places the sum into field CIF_Detail_UDF5
Setting Focus Elsewhere
To prevent the user from changing the Property Value field other than as a sum of the Land and
Structure Value fields, we will make the focus jump to Land Value any time the user clicks in the
Property Value Field.
The following script is set “Before Input” on CIF_Detail_UDF5:
VBSCRIPT
App.SetFocus ("CIF_Detail_UDF3")
Switches focus back to Land Value field
App.SetFocus ("CIF_Detail_UDF3")
Calculate Date Difference in Days
The lending company wishes to track how long it is taking to sell their loans from first contact
with the customer to closing date. Field CIF_Detail_UDF6 will be the First Contact Date. CIF_
Detail_UDF7 will be the closing date. Whenever one of these dates is set, and there exists a valid
date in both fields, CIF_Detail_UDF8 “Selling Period” will be set to the number of days between
them.
The following script is set “When Field Changes” on both CIF_Detail_UDF6 and CIF_Detail_UDF7:
VBSCRIPT
FirstContact = App.GetField("CIF_Detail_UDF6")
CloseDate = App.GetField("CIF_Detail_UDF7")
If FirstContact <> "" and CloseDate <> "" Then
FirstContact = mid(FirstContact, 6, 5) & "/" & left(FirstContact, 4)
CloseDate = mid(CloseDate, 6, 5) & "/" & left(CloseDate, 4)
SalePeriod = DateDiff("D", FirstContact, CloseDate)
App.SetField "CIF_Detail_UDF8", SalePeriod
End If
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FirstContact = App.GetField
If no date is entered in either field the rest of this pro("CIF_Detail_UDF6")
CloseDate = App.GetField
cedure is skipped.
("CIF_Detail_UDF7")
If FirstContact <> "" and
CloseDate <> "" Then
FirstContact = mid
(FirstContact, 6, 5) &
"/" & left(FirstContact,
4)
CloseDate = mid
(CloseDate, 6, 5) & "/"
& left(CloseDate, 4)
SalePeriod = DateDiff
("D", FirstContact,
CloseDate)
App.SetField "CIF_
Detail_UDF8", SalePeriod
Dates in UDF fields are stored internally in the format
“yyyy/mm/dd.” This command converts the date to
“mm/dd/yyyy.
The DateDiff function, when used with the “D” parameter will return the number of days between the
other two parameters.
Sets the answer in CIF_Detail_UDF8 and closes the If
statement.
End If
Calculate Age in Years
Field CIF_Detail_UDF9 is the customer’s birthday. Field CIF_Detail_UDF10 is the customer’s age at
the time of loan closing. We will use the close date in field CIF_Detail_UDF7.
The following script is set “When Field Changes” on both CIF_Detail_UDF9 and CIF_Detail_UDF7.
On CIF_Detail_UDF7, it is placed after the script that is already there, so that changing the close
date will result in updates to both CIF_Detail_UDF8 and CIF_Detail_UDF10.
VBSCRIPT
DateOfBirth = App.GetField("CIF_Detail_UDF9")
ClosingDate = App.GetField("CIF_Detail_UDF7")
If DateOfBirth <> "" And ClosingDate <> "" Then
Age = CInt(Left(ClosingDate, 4)) - CInt(Left(DateOfBirth, 4))
If Mid(DateOfBirth, 6, 5) > Mid(ClosingDate, 6, 5) Then
Age = Age - 1
End If
App.SetField "CIF_Detail_UDF10", Age
End If
"nls.application")
DateOfBirth =
Extracts just the year portion of each date and finds the difference.
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App.GetField("CIF_
Detail_UDF9")
ClosingDate =
App.GetField("CIF_
Detail_UDF7")
If DateOfBirth <> ""
And ClosingDate <> ""
Then
Age = CInt(Left
(ClosingDate, 4))
- CInt(Left
(DateOfBirth, 4))
If Mid
(DateOfBirth, 6,
5) > Mid(ClosingDate, 6, 5)
Then
Age = Age 1
End If
App.SetField
"CIF_Detail_
UDF10", Age
End If
Extracts the “mm/dd” portion from each date and compares
them. If the closing date is before the customer’s birthday, one
is subtracted from the customer’s age.
Sets the answer in CIF_Detail_UDF10 and closes the If statement.
Calculate Years & Months between two dates
Field CIF_Detail_UDF11 is Hire Date. Field CIF_Detail_UDF12 will be Time at Job as of Closing.
The following script is set “When Field Changes” on both CIF_Detail_UDF11 and CIF_Detail_
UDF7. On CIF_Detail_UDF7, it is placed after the scripts that are already there, so that changing
the close date will result in updates to CIF_Detail_UDF8, CIF_Detail_UDF10, and CIF_Detail_
UDF12.
VBSCRIPT
ClosingDate = App.GetField("CIF_Detail_UDF7")
HireDate = App.GetField("CIF_Detail_UDF11")
If ClosingDate <> "" And HireDate <> "" Then
Years = CInt(Left(ClosingDate, 4)) - CInt(Left(HireDate, 4))
Months = CInt(Mid(ClosingDate, 6, 2)) - CInt(Mid(HireDate, 6, 2))
If Mid(HireDate, 6, 5) > Mid(ClosingDate, 6, 5) Then
Years = Years -1
Months = Months + 12
End If
If Mid(HireDate, 9, 2) > Mid(ClosingDate, 9, 2) Then
Months = Months -1
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End If
Employed = Years & " Years, " & Months & " Months"
App.SetField "CIF_Detail_UDF12", Employed
End If
"nls.application")
ClosingDate =
App.GetField("CIF_
Detail_UDF7")
HireDate =
App.GetField("CIF_
Detail_UDF11")
If ClosingDate <> ""
And HireDate <> ""
Then
Years = CInt
(Left(ClosingDate, 4)) CInt(Left
(HireDate, 4))
Months = CInt
(Mid(ClosingDate, 6, 2))
- CInt(Mid
(HireDate, 6,
2))
If Mid(HireDate,
6, 5) > Mid(ClosingDate, 6, 5)
Then
Years =
Years -1
Months =
Months + 12
End If
If Mid(HireDate,
9, 2) > Mid(ClosingDate, 9, 2)
Then
Months =
Months -1
End If
Employed = Years
& " Years, " &
Months & "
Months"
App.SetField
"CIF_Detail_
UDF12", Employed
End If
If we have not yet reached the anniversary of the hire date in the
year of closing, we will have a negative number for months. We
correct this by adding 12 months and subtracting one year.
If we have not yet reached the day of the month on which the
customer was hired, then we subtract one from the number of
months.
We build a string consisting of the years and months of employment, assign that string to CIF_Detail_UDF12, and close the If
statement.
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Using a Select Case Statement
Field CIF_Detail_UDF13 will be a numeric field “Taxable Income.” Field CIF_Detail_UDF14 will be
a drop down list called “Tax Status” with the following options: “Single,” “Married – Filing
Jointly,” “Married – Filing Separately,” “Head of Household,” and “Trust or Estate.” The script in
CIF_Detail_UDF12 and CIF_Detail_UDF13 will calculate the Tax Bracket and display it in field CIF_
Detail_UDF15.
VBSCRIPT
TaxableIncome = App.GetField("CIF_Detail_UDF13")
TaxStatus = App.GetField("CIF_Detail_UDF14")
If TaxableIncome <> "" And TaxStatus <> "" Then
Select Case TaxStatus
Case "SINGLE"
If TaxableIncome <= 6000 Then
Bracket = "10%"
Else
If TaxableIncome > 6000 and TaxableIncome <= 26250 Then
Bracket = "15%"
Else
Bracket = "27%"
Else
Bracket = "30%"
Else
Bracket = "35%"
Else
Bracket = "38.6%"
End If
End If
End If
End If
End If
Case "MARRIED - FILING JOINTLY"
Bracket = "10%"
Else
Bracket = "15%"
Else
Bracket = "27%"
Else
Bracket = "30%"
Else
Bracket = "35%"
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Else
Bracket = "38.6%"
End If
End If
End If
End If
End If
Case "MARRIED - FILING SEPARATE"
Bracket = "10%"
Else
Bracket = "15%"
Else
Bracket = "27%"
Else
Bracket = "30%"
Else
Bracket = "35%"
Else
Bracket = "38.6%"
End If
End If
End If
End If
End If
Case "HEAD OF HOUSEHOLD"
Bracket = "10%"
Else
Bracket = "15%"
Else
Bracket = "27%"
Else
Bracket = "30%"
Else
Bracket = "35%"
Else
Bracket = "38.6%"
End If
End If
End If
End If
End If
Case "TRUST OR ESTATE"
Bracket = "15%"
Else
If TaxableIncome >1750 and TaxableIncome <= 4150 Then
Bracket = "28%"
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Else
Bracket = "31%"
Else
Bracket = "36%"
Else
Bracket = "39.6%"
End If
End If
End If
End If
End Select
App.SetField "CIF_Detail_UDF15", Bracket
End If
Reg Z Compliance
The following paragraphs contain some notes regarding Reg Z compliance and how these
compliance issues relate to some interest calculations in NLS.
From Reg Z: Background and Summary provided by the Federal Reserve (page 14)
If the consumer borrows $2,500 for a vacation trip at 14 percent simple interest1 per annum
and repays that amount with 25 equal monthly payments beginning one month from consummation of the transaction, the monthly P + I payment will be $115.87, if all months are considered equal, and the amount financed would be $2,500. If the consumer’s payments are
increased by $2.00 a month to pay a non-financed $50 loan fee during the life of the loan, the
amount financed would remain at $2,500 but the payment schedule would be increased to
$117.87 a month, the finance charge would increase by $50, and there would be a corresponding increase in the APR. This would be the case whether or not state law defines the $50
loan fee as interest.
If the loan above has 55 days to the first payment and the consumer prepays interest at consummation ($24.31 to cover the first 25 days), the amount financed would be $2,500 - $24.31,
or $2,475.69. Although the amount financed has been reduced to reflect the consumer’s
reduced use of available funds at consummation, the time interval during which the consumer has use of the $2,475.69, 55 days to the first payment, has not changed. Since the first
payment period exceeds the limitations of the regulation’s minor irregularities provisions (see
226.17(c)(4)), it may not be treated as regular. In calculating the APR, the first payment period
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must not be reduced by 25 days (i.e., the first payment period may not be treated as one
month).
Reg Z 226.17 (c)(4)
(4) In making calculations and disclosures, the creditor may disregard any irregularity in the
first period that falls within the limits described below and any payment schedule irregularity
that results from the irregular first period:
(i) For transactions in which the term is less than 1 year, a first period not more than 6 days
shorter or 13 days longer than a regular period;
(ii) For transactions in which the term is at least 1 year and less than 10 years, a first period not
more than 11 days shorter or 21 days longer than a regular period; and
(iii) For transactions in which the term is at least 10 years, a first period shorter than or not more
than 32 days longer than a regular period.
In practice, the interpretation of what constitutes a long first period, and how that first period is
to be accrued has an effect on the payoff balance during any day within that first period. This
is important if we do not pre-pay the excess interest, because now we have an irregularly
lengthened period. This is not a problem for a simple interest loan but has ramifications on
loans with pre-computed interest methods (Fixed Am and rule of 78s).
If the loan in question is simple interest, then the daily accrual would simply be applied for 55
days.
However, if the loan is calculated based on the Fixed Amortized1 or one of the Rule of 78s
Interest methods, the concept of equal periods is inherent to the mathematics of those interest
methods. Therefore, the “stub period interest,” 25 days accrual in this case, generally accrued
at a ACT/360 basis, must be capitalized, before the first full period of 30 days is accrued.
In the above example: ($2,500 x .14)/360 x 25 = 24.31 (the same figure that we showed
above).
Since in this extended example, this is not being pre-paid, it is capitalized, and the principal
accrued on for the first full month is: $2,500 + $24.31 = $2,524.31.
One month’s interest is then accrued on this figure: ($2,524.31 x .14)/12 = $29.45.
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The total interest for the 55 day period is given by: $24.31 + $29.45 = $53.76.
And so the interest to principal breakdown for the first payment would be $53.76 to interest
and $62.11 to principal, reducing the principal balance to $2,437.89 for the start of the second
period.
If we had not had an extra 25 days in the first period, the first period interest would have been
$29.17 and the principal in the first period would have been reduced by $86.70. Clearly, in
order to avoid the generation of a balloon on this loan, the monthly payment would have to
be increased slightly to account for the extra 25 days, and this is the reason why pre-paying the
stub interest greatly simplifies the situation.
Holiday List
United States Federal Holidays
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New Year’s Day
Birthday of Martin Luther King, Jr.
Presidents Day
Memorial Day
Independence Day
Labor Day
Columbus Day
Veterans Day
Thanksgiving Day
Christmas Day
NYSE Holidays
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New Year’s Day
Birthday of Martin Luther King, Jr.
Presidents Day
Good Friday
Memorial Day
Independence Day
Labor Day
Thanksgiving Day
Christmas Day
Canadian Holidays
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New Year’s Day
Family Day
Good Friday
Victoria Day
Provincial Day
Canada Day
August Civic Holiday
Labor Day
Thanksgiving
Remembrance Day
Christmas Day
Boxing Day
Mexican Holidays
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New Year’s Day
Constitution Day
Benito Juarez’s Birthday
Good Thursday
Good Friday
Labor Day
Independence Day
All Souls’ Day
Revolution Day
Change of Federal Government (Every Six Years)
Day of the Virgin of Guadalupe
Christmas
Reporting Points and MIP on 1098 Reports
The 1098 report has fields for the reporting of the dollar value of points paid and of mortgage
insurance premiums paid. If you are transactionally tracking these figures, the transaction
codes may be configured to update a user-defined statistic (one for each of these two values)
and the user-defined statistic may be mapped to the report on the parameter list of the report’s
setup.
If you need to backfill this data for a prior period in which you were not tracking these values
transactionally, you may set up a custom transaction code that does nothing but increase the
value of a user-defined statistic.
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To get the value that is present in statistics, for the specified date range, onto the report, simply
set the number of the user-defined statistic in the appropriate field in the reports parameter list.
Using a Team Foundation Server (TFS) will offer version control for certain aspects of NLS setup
when using multiple databases. In this scenario, when a change is made to a setup on one
database, it will be reflected on all databases.
Version control is available for the following setup parameters:
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System Setup > Global Script
Contact Setup > Contact Type
Loan Setup > Loan Portfolio
Task Setup > Task Template
Task Setup > Workflow
Setting up NLS for TFS
This feature must first be enabled in NLS. Click Setup in the Shortcut bar, then System > System
Defaults. Scroll down the configuration list and click on the CURRENT VALUE field under Team
Foundation Server. Set the field value to Enabled from the drop down list.
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Click OK and restart NLS.
To connect to a TFS server, click on any of the TFS supported setup items then right-click and
select Team Foundation Server (TFS) > Connect to TFS…. The contextual menu is accessed in
different locations as described below.
Global Script
Right-click anywhere in the script entry field.
Contact Type
Right-click on any contact type.
Loan Portfolio
Right-click on any loan portfolio.
Task Template
Right-click on any task template.
Workflow
Click on Workflow tab and right-click on any workflow.
On the Team Foundation Server Connection dialog, enter the server location in the Projection
Collection URI field. Specify the user authentication method. Enter the project name on TFS.
NOTE
The project name must begin with $/.
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Click Connect.
Once connected, create a workspace in your project folder on TFS then click
and select a
local folder to where the workspace will be linked. Setup files are stored as XML files and any
XML file in the TFS workspace will also be store on your locally linked folder.
Adding Items to TFS
Each setup parameter must be added to your TFS workspace before they can be shared with
other databases. Use the same procedure to connect to a TFS, but select Add <item> to TFS
where <item> is the name of the setup parameter being added.
When an item is added to TFS a new folder will also appear in your local linked folder. The
folder contains an XML file where the parameters are stored and is also stored on the server.
When the file is being edited by a user, it is locked or “checked out” on the server so that no
changes can be made by anyone else. A file that is unlocked or “checked in” can be edited.
Contact Type, Loan Portfolio, Task Template, and Workflow will display an icon next to each
item when connected to a TFS. The icons and their definitions are:
The item has not been added to TFS.
Item is checked in and ready to be checked out for editing. Item cannon be edited until
it is checked out.
Item is checked out and can be edited.
Items is checked out by another user and cannot be edited until the item has been
checked in. Hover the cursor over the icon to display a tooltip showing the user who currently has it checked out.
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To check out an item for editing, right-click and select Team Foundation Server (TFS) > Check
Out. You should now see
next to the item that you have just checked out. Once you have
finished editing, save the changes by selecting Team Foundation Server (TFS) > Check In
<Item>. Once the item is checked in, another user can select Get Latest Version to retrieve the
latest version of the file.
Show History
Right-click and select Team Foundation Server (TFS) > Show History to show a history of
changes made to the file. A dialog will open showing a version number of the file, the user that
made the changes, date of modification, and a comment detailing the changes.
Differences between two versions can also be displayed by selecting two entries in the history
list and clicking Diff. A split view window will display the first selected file in the left pane and the
second file in the right pane. Differences between the two files will be displayed as color coded
text to indicate deleted text (red), changed text (blue), and inserted text (green).
Change TFS Connection
Right-click and select Team Foundation Server (TFS) > Change TFS Connection… to open the
Team Foundation Server Connection dialog for updating any of its information.
Export/Import
Setup items can also be shared with other users without the use of version control by exporting
the XML file then importing it on another database. To do this, right-click on a setup item and
select Export to file and save the XML file. Then on the other database, go to the same setup window, right-click on an item and select Import from file. Select the XML file that was exported and
the new changes will be applied to the database.
This method is useful for when you only want to share a setup with particular users and not
necessarily with all the users on the database.
When connecting to a Microsoft SQL Server, there are two ways of authenticating the user:
Database Authentication and Windows Authentication. Database Authentication uses a login
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and password stored by the database whereas Windows Authentication uses the current
logged in Windows credentials from Active Directory to authenticate the user.
Windows Authentication, while considered the best approach, does come with a significant
drawback; when a user connects to an SQL server and is authenticated by their Windows credentials, the SQL server does not understand if they are connecting from an application, a
reporting tool, or Microsoft Excel. This is an often overlooked security issue when using Windows Authentication.
EXAMPLE
Loan Servicing Manager, John Smith, connects to an SQL server using an application that
has the ability to update rows on a table. What happens when John Smith connects to the
SQL server using Microsoft Excel? The connection will contain the privilege to update rows
on that table.
The solution to this issue is Microsoft SQL Server Application Role. An application role is a user
defined role configured by an administrator that contains specific security privileges. The
application role is defined with a password that is granted to a user by an application at startup. The Windows user defined in the SQL server would contain limited connect privilege and
would inherit all privileges defined in the application role at application startup.
In Nortridge Loan System this functionality is enabled within System Defaults by setting a role
name and password. If a role name and password are defined, NLS will enable the application role for the user after the initial connection at the startup of the application. This functionality greatly helps security administrators keep authentication simple while still having
complete control of database security privileges.
Script Recorder
This is a feature designed for our own internal testing purposes and is documented here
solely for those interested in testing NLS using their own data.
NLS can save snapshots of a loan and transaction entries to an external XML file for testing purposes. The XML file can then be executed at a later time to validate results.
Enabling XML Script Recorder
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To enable the script recording feature, open the NORT.UDP file (located in the NLS installation
folder) in a text editor and set SCRIPTRECORDER=ON.
If you do not have a NORT.UDP file, create a text file with the following content:
[configuration]
SCRIPTRECORDER=ON
Save the file in the NLS installation folder (e.g. C:\Program Files (x86)\Nortridge Software\NLS\NORT.UDP).
Restart NLS for the changes to take effect.
Recording Snapshots
Keyboard
Function
F7
Start/stop a new recording session.
F9
Take a snapshot of the loan and transaction.
F10
Run a recording.
Hit F7 on the keyboard to start a new XML script recording session.
In the Record New XML dialog, click
and choose where to save the recording and enter a
filename.
NOTE
If a full path is not specified in the Filename field, the file will be saved in the same folder as
the NLS.exe file.
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Enter an Owner and a Description for reference and click OK.
The application icon in the window title bar will become a red square to indicate that NLS is
ready to save snapshots.
NOTE
Always use Contact #1. The script recording feature is designed to work with Contact #1.
While the recording is enabled, hitting F9 will take a snapshot of the currently selected loan to
the XML file. After accruing or making changes to the loan, hitting F9 again will append the
new snapshot of the loan to the same XML file.
NOTE
Snapshots are not automatically recorded to the XML file. It is recorded only when the F9 key
is pressed.
When finished, hit F7 to stop the recording. The red square will be replaced by the NLS icon to
indicate that the recording has stopped.
Running a Recorded XML Script
To run the XML file, hit F10.
Click
and select the XML file to run then click OK.
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NLS will run the recorded XML script and save a log of the result as a text file.
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Glossary
B
Bi-Monthly
Every two months.
Bi-Weekly
Every two weeks.
Billing Cutoff
The number of days prior to the due date of the next payment on which that payment
will bill and a receivable will be created. The billing date is calculated by adding the
billing cutoff to the due date.
Billing Statement
Due date of a loan and billing cutoff determines when the statement is queued for processing and printing.
C
CDFI
Community Development Financial Institutions Fund.
Commitment Loan
Type of loan that is an agreement by a lender to grant a loan or loans for a specified
amount of money at a future date. The holder of the commitment may pay a fee to
reserve the funds but is not required to pay interest on the money unless it is actually
borrowed.
D
DBA
Database Administrator
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E
Extend Term
When changing the maturity date of a loan, the term is counted from the maturity date
of the loan.
F
Fixed Amortization
Type of interest method where interest is accrued daily on the amount of principal specified in the amortization schedule. Early or late payments do not affect the accrual.
Principal reduction transactions will cause the schedule to re-amortize. The interest is
non-compounding and is typically calculated on a 360/360 interest year.
M
Modify Term
When changing the maturity date of a loan, the term is counted from the original origination date of the loan.
N
Non-revolving Loan
Type of loan with a credit line which can be drawn out, up to a set limit, but its repaid
principal cannot be drawn out again.
P
Periodic Statement
User specified date determines when the statement is queued for processing and printing.
Pool Loan
Type of loan that is an aggregation of the loans of different borrowers which have
been combined for a specific purpose, such as to be resold into the secondary
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market.
Q
Quarterly
Every three months or four times a year.
R
Renew Term
When changing the maturity date of a loan, the term is counted from the maturity date
of the loan and allows for entering a renewal date.
Revolving Grace
Any charges incurred during the current payment period, if paid in full during this payment period, will incur no interest charges.
Revolving Grace with Same as Cash
Because the payment of all charges under Revolving Grace would activate Same as
Cash and therefore pay off the loan, the Revolving Grace feature does not really come
into play in this combination until after the Same as Cash period has expired. So the
loan is Same as Cash until Same as Cash expiration and then it is Revolving Grace.
Revolving Loan
Type of loan with a credit line which can be drawn out, up to a set limit, and its repaid
principal can be drawn out again.
RowID
A number used internally in a database to identify a row of data.
Rule of 78s (add-on)
Type of interest method where the interest for the entire term of the loan is calculated at
the start of the loan.
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Rule of 78s (simple)
Type of interest method where the loan accrues as a simple interest loan but the
interest portion of the payment is determined by applying the Rule of 78s to the total
projected interest amount for the life of the loan.
S
Same as Cash
If the payments on the loan equal the total advanced before the expiration of same as
cash, all interest is reversed and all payments to interest are credited to principal and
the loan is paid off.
Semi-Annually
Every six months or twice a year.
Semi-Monthly
Twice a month.
Simple Interest
Type of interest method where the loan will always accrue daily on the current principal balance.
SMS
Short Message Service is a text messaging service commonly used with mobile phones
that uses standardized communications protocols to exchange short text messages.
T
Term Loan
Type of loan with a specifically defined origination and maturity dates and a defined
schedule of payments.
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Closing Notes
Closing Notes
If you have any questions or concerns, please contact Nortridge Software Support at [email protected] or (800) 435-7240.
Phone: (714) 573-7988
Fax: (714) 572-0297
Web: www.nortridge.com
Office Hours: Monday to Friday, 6:00 AM to 5:00 PM Pacific Time
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Copyright ©2016. All Rights Reserved.
Rev. 20161011-A

NLS User Guide - Nortridge Software

Transcription

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