WELCOME TO GMS RLSS ONLINE HELP
The help you need at your fingertips.
The first step is to establish the Loan Master as usual. If the loan is to accrue no interest during the deferred period, select Amortized as the interest calculation method. By doing this, the first payment posted will allocate interest based on only one payment cycle, usually one month. If interest is to accrue and be paid when payments begin, select Daily interest. If Daily interest is chosen, be prepared to see a large portion of the first payment going to interest, as the program will collect interest from the disbursement activity date until the activity date of the first payment.
NOTE: If closing documents indicate daily interest, but that interest is not to accrue, select Amortized as the interest method until the first payment is posted. After that payment is posted, edit the Loan Master to Daily interest. Any future payments will then calculate interest from activity date to activity date.
Within the Loan Master there is field titled “First Due Date”. This is the field in which the date the first payment is actually due is entered. Delinquency reports and several pertinent features and supplements will take this date into consideration when determining if a loan payment is late. It will not be considered late until the First Due Date has passed.
There is a pre-established status code for Deferred loans. Although choosing the appropriate status code for each Loan Master is always your option, consider using the Deferred code. By doing this, those loans can be excluded from statistical reports if desired.
Another option is to establish an Optional Master Field to hold the date interest and/or principal payments are to begin. This can be utilized to create “tickler files” to assist staff in monitoring deferred loans. The date entered within the Optional Field can be accessed by utilizing Master File Query or Quick Date Listings.
Also, when posting the Disbursement in the Loan Activity screen, be sure the Next Payment Due field reflects the date you expect to receive the first payment. If you should save the transaction without advancing this date, you may go to Tools, Build History and correct the Next Payment Due Date there.