WELCOME TO GMS RLSS ONLINE HELP
The help you need at your fingertips.
Loan funds weren’t disbursed at loan closing – do I go ahead and post as a disbursement?
Because the Activity Date is used to calculate interest, disbursements should only be posted when the funds are actually disbursed. It’s fine to establish the Loan Master file and enter data. By doing this, documentation of the date of the loan and the loan amount obligated to that borrower is accomplished. The loan will then begin to show up on statistical reports, with no disbursements.
What if we use daily interest, and all of the loan funds are not disbursed on the same day?
Post each disbursement on the date it occurred. When entering a second disbursement for a loan for which no repayments have yet been made, you will see an amount post automatically to Accrued Interest. This amount is the interest that has already accumulated on the loan balance created through the previous disbursement. The program moves it into Accrued Interest so it knows just how much interest was due prior to the second disbursement. It then begins to calculate interest on the higher balance resulting from the second disbursement.
What if we don’t use daily interest? We’ve established the loan as Amortized in the Loan Master file, and the loan funds were not all disbursed on the same day?
When disbursing loan funds over a period of time, it is important to initially establish the Loan Master file as Daily interest. This will enable the program to accurately post accrued interest and repaid interest to the loan history during the time funds are being disbursed.
Once all loan funds have been disbursed to the borrower, and one repayment has been posted since the final disbursement, you may edit the Loan Master file and select Amortized as the interest calculation.
Sometimes loan repayment begins before all loan funds have been disbursed. When subsequent disbursements are posted through Loan Activity, the Paid-thru and Next Payment Due dates will be pulled from the last recorded activity.
What happens when I post a repayment, but the amount is not large enough to cover the accrued interest?
The software will calculate interest due from the most recent activity date, and post that amount to current interest. It will then take the balance of the payment and decrease the accrued interest by that amount. This will show on the activity screen as a negative figure in the accrued interest field. The balance on the accrued interest will then carry forward to the next activity. If you are using late fees or penalties, those fields may need to be adjusted.
IMPORTANT NOTE: Although you always have the ability to edit the numbers automatically calculated on the activity screen, it is not a good idea to edit the accrued interest field. This amount is a product of an internal calculation, and decreasing or increasing the accrued interest will prevent the program from accurately posting interest to the loan.