Was Not Entered at Boarding
How does failing to add or update a payment schedule affect the customer?
Failing to add or update the payment schedule can result in incorrect customer billing, as BaNCS will automatically generate schedules using default information (such as the prime rate) instead of the loan's actual terms.
What happens for re-amortization on a trigger-based or pre-defined bases term loan when multiple payment streams are entered?
Entering multiple payment streams will override the loan's automatic re-amortization payments and prevent BaNCS from reamortizing as intended.
What happens with future billing if the negotiated payment schedule is not updated during a term extension with continuing validity payments?
BaNCS may bill the customer incorrectly, resulting in payment amounts that are larger or smaller than intended.
How does entering an incorrect negotiated payment amount impact the customer?
Loan will not amortize according to the signed documents, resulting in either an unexpected early payoff or an incorrect balloon payment amount at maturity
For a principal and interest loan with no re-amortization language and four separate payment streams, how many streams should be entered?
4 streams
Per this Note snip on a line of credit (LOC) converting to a term loan with specific conditions, what should be entered for the negotiated payments?
Nothing should be entered for negotiated payments at the time of boarding. Because there are outstanding conditions to convert, you should only board the active Line of Credit portion of the loan.
Per this Note snip how payment streams should be entered into BaNCS for negotiated payments?
1 payment stream
Per this Note snip how should negotiated payments be entered into BaNCS?
2 streams. 60 payments of $3,788.63 and 1 payment of $365,485.01
Per this Note snip what payment amount should be entered into BaNCS for negotiated payments?
108 payments of $7,816.02
Why is it critical to input only a single payment stream for loans with trigger-based or pre-defined amortization structures?
Entering multiple payment streams will override automatic amortization and prevent BaNCS from amortizing correctly.
Where can you verify that the boarding processor entered negotiated payments in the correct order of operations once the financial transactions have posted in BaNCS?
The balance history
For a term loan requiring principal-plus-interest payments, how many payment streams should be entered into the negotiated payments screen in BaNCS?
Enter all payment streams exactly as they appear in the legal documents.
Where in BaNCS can you verify the total number of payments the system has calculated for the loan?
Loan Account - General Inquiry - Payments Remaining
How can you verify that the boarder entered the negotiated payments screen during a loan modification?
Balance history
Where in the note should you look to find the amortization language for entering negotiated payments?
Amortization language is typically located in both the 'Interest Rate' and the 'Payments' sections of the notes.
According to our procedures, what is the correct workflow sequence for entering negotiated payments into BaNCS?
Negotiated payments should be entered only after the interest rate has been set up and all financial transactions have been processed on the loan.
Under what specific amortization conditions should multiple payment streams be entered into BaNCS?
Only Manual (3, I, T) not trigger base or pre-defined based.
When processing a loan extension with continuing validity, where should you verify what the ongoing payment amounts should be?
Review the billing history prior to the loan's previous maturity date and/or the prior schedule history.
What can you do as a boarder to verify that you entered the correct payment amounts?
Verify the correct payment amount using the loan documents or billing history, enter the data slowly to prevent input errors, and confirm that the final payment schedule is reading correctly.
True or False: BaNCS will only permit you to enter negotiated payments that match the total number of payments the system has calculated for the loan
True
Where in BaNCS can you verify that the system is correctly reflecting the negotiated payment schedule?
Maintenance -> Payment schedule
How does knowing your re-amortization language in the loan documents affect the number of payment streams that need to be entered?
Trigger based and pre-definded loans should only get one stream and only manual (3, I, T) loans should have all streams entered in.
What are the benefits of checking payment schedule after entering negotiated payments?
The payment schedule is where BaNCS pulls the bills from. Checking the payment schedule ensures you entered negotiated payments correctly.
What can you do to ensure your negotiated payments are correct per the documents?
Review the executed loan documents to verify the loan term as this will impact how negotiated payments are entered (P&I versus P+I), the interest rate, the amortization term, whether a balloon payment is required, and any specific re-amortization language
If you have 3 payment streams and loan has both annual REAM and Trigger based REAM, how many payment streams will you enter in negotaited payments?
1 stream