Setting Up Delinquency Methods

If selected, delinquency history appears on the Loans - Delinquency tab. The system calculates delinquency history using the grace period specified in the Online Grace field.

(Portico Host: 902 Transaction - O/L HISTRY field)

The number of grace days allowed before a delinquent loan appears in the online delinquency history. This information is also used in the credit bureau reporting of delinquent loans. Valid values are 0 through 29.

Length: 0 numeric

(Portico Host: 902 Transaction - O/L GRACE field)

If selected, the Online Payments Made on Delinquent Loans Report 061 is supported. This report contains only the previous day's activity and prints at the credit union daily.

(Portico Host: 902 Transaction - REPORT 061 field)

If selected, Portico will assess late fees for delinquent payroll paid loans. The late charges are automatically assessed during payroll processing.

(Portico Host: 902 Transaction - P/R LT FEE field)

If selected, the system will produce late notices (440 Report) for payroll-paid loans that are delinquent.

(Portico Host: 902 Transaction - P/R NOTICE field)

If selected, Portico will require a teller override before permitting share transfers or withdrawals when the member has a delinquent credit card or vendor mortgage loan. Over-the-counter share withdrawals will require a teller override before allowing the transfer or withdrawal of funds when the member has a delinquent third-party mortgage loan or credit card. Unless your credit union is online, real-time with the mortgage vendor, the information on Portico does not include the total delinquent amount and; therefore, does not change the status on Portico.

If selected, all self service transactions would immediately be stopped, except payments to the delinquent loan. This includes online banking transfers, online bill payments, ATM/debit transactions, audio transfers and shared branching transactions.

To allow the use of Courtesy Pay funds, the appropriate options must be selected in the Courtesy Pay section on the Credit Union Profile - Shares tab.

(Portico Host: 902 Transaction - ML\CC field)

Indicates if the system requires an override teller ID for loan advances on delinquent loans. The valid options are:

N - Override teller ID is not required. System default.

Y - Override teller ID is required for loan advances on loans that are delinquent according to Delinquency Method D. This will include vendor loans (mortgage, education and credit cards).

B - Override teller ID is required for loan advances on loans that are delinquent according to the delinquency calculation method. This will include vendor loans (mortgage, education and credit cards).

On loans with Delinquency Method B, the loan must be delinquent beyond the percent of the scheduled loan payment amount specified in the Delinquency Percent field.

For loans with Delinquency Method D, the loan must be delinquent beyond the number of days specified in the Withdrawal Grace field.

(Portico Host: 902 Transaction - LN ADVANCE field)

Indicates the system requires an override teller ID on share withdrawals for members with delinquent loans. The valid options are:

N - Override teller ID is not required. System default.

Y - Override teller ID is required if the member has a loan that is delinquent according to Delinquency Method D

B - Override teller ID is required for share withdrawals if the member has a delinquent loan.

On loans with Delinquency Method B, the loan must be delinquent beyond the percent of the scheduled loan payment amount specified in the Delinquency Percent field.

For loans with Delinquency Method D, the loan must be delinquent beyond the number of days specified in the Withdrawal Grace field.

(Portico Host: 902 Transaction - SHARES W/D field)

Reporting Analytics: Shr WD OVRD Delq CC/Mtg (All Header Processing Rules subject in the Credit Union Rules\All Credit Union Rules folder)

Indicates the number of late notices produced during a delinquency period. This is the maximum number of notices a member will receive on the loan during the delinquency period. The valid options are:

0 - Late notices are NOT produced. System default.

1 - One late notice per delinquency period

2 - Two late notices per delinquency period

3 - Three late notices per delinquency period

(Portico Host: 902 Transaction - LT NOTICES field)

The number grace days allowed before the first, second, and third late notice is produced for a loan. A notice is produced when the number of days past the next payment due date exceeds or equals this number. This field is valid for loans with Delinquency Method B and D calculations if the loan due date is in the past. The number of days entered must be in the range of 0 through 999.

Length: 3 numeric

(Portico Host: 902 Transaction - GRACE 1, 2 and 3 fields)

The loan delinquent amount allowed before a late notice is produced. Late notices are produced for loans with delinquent amounts greater than this amount. Valid for Delinquency Method B and D loans. Valid values for this field are 0 through 999.99.

Length: 6 numeric including decimal

(Portico Host: 902 Transaction - NOTICE LMT field)

The number of days allowed for mail delivery of late notices. Mail days are added to the number of delinquency days when calculating interest due on a loan. This allows the late notice to show the correct amount due when it is received in the mail. Valid mail days are 0 through 999.

Length: 3 numeric

(Portico Host: 902 Transaction - MAIL DAYS field)

The percentage of the scheduled loan payment amount that must be delinquent before the system requires an override teller ID for share withdrawals and loan advances. Valid only for loans with Delinquency Method B. The valid percentages are 0 through 100 percent. Example: 075.00 equals 75 percent. Works in conjunction with the Loan Advance field and Share Withdrawals field.

Length: 6 numeric including decimal

(Portico Host: 902 Transaction - DELQ PERC field)

If selected, the system produces delinquency notices (440/441 Reports) for loans that are delinquent according to Delinquency Method B calculations but whose payment due dates are current (do not fall into the categories of notice number 1, 2, or 3).

(Portico Host: 902 Transaction - METHB NOTC field)

The percentage of the scheduled loan payment amount that must be delinquent before the system produces delinquency notices (440/441 Reports) for loans with Delinquency Method B. System default is 000.00.

Members will receive one Method B notice when they are delinquent based on Method B but the payment date is current. Then they would not receive any more notices unless their due date became past due, which indicates the member actually missed a payment. At this point the system would produce notices 1, 2, or 3 and adjust the counter flag on the Loans - Delinquency tab. The valid percentages are 0 through 100 percent. Example: 050.00 equals 50 percent.

Length: 6 numeric including decimal

(Portico Host: 902 Transaction - METHB NOTC GR field)

Indicates the default method used for delinquency calculation for specific loan types. You can override this value on the New Loan window and Loans - Delinquency tab for an individual loan. The valid options are:

D - Delinquency Method D. Delinquency Method D is based on the due date. System default.

B - Delinquency Method B. Delinquency Method B is based on the loans amortization schedule on the Loans Amortization tab. Not valid for payment type 007.

Delinquency Method B is the acceptable method for calculating delinquency on closed end loans with a term greater than 15 years.

Delinquency Method B recognizes the time value of money. There is a significant difference in the calculations. Method B uses an amortization schedule; therefore, the delinquency calculation compares the principal balance of the loan's current status to the amortization schedule. If the actual loan balance is greater than the loan balance of the amortization schedule, the loan is then considered delinquent. Once it is determined there are principal funds in arrears, the delinquent interest is then added to the balance to arrive at the total delinquent amount, which is the true time value of money.

Changing this field from B to D or from D to B will impact delinquency calculations.

If the Automated Collections field specifies B or P on the Loan Profiles - Collections/Late Charges tab, the Delinquent Method field must specify B.

(Portico Host: 961 Transaction - DELQ METH field)