Changing Indirect Loan Information

Related Topics

The Account Information – Loans - Indirect Info tab lets you review and update an existing indirect loan. To access the Indirect Info tab, under Member Services on the Portico Explorer Bar, click Account Information. The Overview tab appears on top. Click the Loans tab. Locate the member using the search tool on the top menu bar. Select the down arrow to select the search method, then enter the search criteria. Select the green arrow or press ENTER to locate the member.

Click the Indirect Info tab. Click the Select a Loan Account down arrow to select the loan note number. Then, click the green arrow. The information for the specified indirect loan will appear.

Loans - Indirect Info

How do I? and Field Help

Complete the following fields to update the indirect loan information.

Field Description

Dealer ID

Enter the unique dealer ID used to identify the dealer.

Keyword: DN

Length: 6 alphanumeric

The branch associated with the dealer automatically appears.

Reserve Type

Enter the type of reserve processing to be used as defined on the Reserve Information - Maintenance window and associated with a dealer on the Dealer Information - Maintenance window.

Keyword: DR

Length: 2 alphanumeric

Upfront Reserve

Enter the total upfront amount to be paid to the dealer for the loan.

If the reserve type is flat use the flat fee table from the Flat Fee Schedule - Maintenance window, to determine the upfront reserve amount by matching the loan balance with the appropriate range of loan balances in the table.

If the reserve type is split, calculate the upfront reserve using this formula:

Spread Interest (Primary Rate Interest - Buy Rate Interest) multiplied by the dealer split from the Reserve Information - Maintenance window.

If the upfront reserve from the flat fee table is greater than the calculated upfront reserve, then use the upfront reserve from the flat fee table.

Keyword: AX

Length: 8 numeric including decimal

Amortized Reserve Amount

Enter the total amount of reserve that has been amortized. This field is updated monthly after amortization is processed in the month end cycle.

Keyword: AM

Length: 8 numeric including decimal

Earned Reserve Amount

Enter the total amount of reserve that the dealer has earned as of the previous month end. The system uses the following calculation to derive this amount:

Life-to-date Interest X Spread / APR = Dealer Earned Reserve

Keyword: UP

Length: 8 numeric including decimal

Recourse Amount

Enter the guaranteed amount the dealer is paid for the loan. The dealer may be liable for this amount if the loan is defaulted.

Keyword: IR

Length: 10 numeric including decimal

Chargeback

Enter the amount charged back to the dealer when a payoff or chargeoff is eligible for chargeback.

Keyword: CB

Length: 8 numeric including decimal

Loan Buy Rate

Enter the rate at which the financial institution requires the loan to yield. An example of this would be a situation where the stated annual percentage rate is 7.25% on the face of the loan note. The financial institution buys this loan from the dealer at a buy rate of 6.25%. If left blank, the buy rate will be calculated by the system if the reserve type is not flat. The buy rate must be less than or equal to the stated annual percentage rate (Effective Rate). If the reserve type is flat fee, the buy rate (Loan Buy Rate) must equal the stated annual percentage rate (Effective Rate).

The interest rate can be equal to or greater than zero but less than 36.500.

Keyword: BY

Length: 6 numeric including decimal

Loan Spread

Enter the difference between the buy rate and the annual percentage rate on the loan. If left blank, the spread will be calculated by the system if the reserve type is not flat.

Keyword: IS

Length: 5 numeric including decimal

Effective Rate

Enter the difference between the Buy Rate and the Annual Percentage Rate on a loan. If left blank, the spread will be calculated by the system if the reserve type is not flat. The interest rate can be equal to or greater than zero. The effective rate will be calculated during the month end cycle for indirect loans.

Keyword: ER

Length: 5 numeric including decimal

Exclude Chargeback

Select the Exclude Chargeback check box to exclude the loan from the chargeback process. Amortization will be accelerated for the loan.

Keyword: XC

Member Setup Fee Due from Dealer

Select the Member Setup Fee Due from Dealer check box to charge the dealer a member setup fee.

Keyword: MX

Straight Line Number of Months

If the Amortization field in the Indirect Loan Options section on the Credit Union Profile – Loans tab is Straight Line Method - Term, the Straight Line Number of Months field will appear. Portico will calculate the number of months based on the loan's term and payment frequency. If necessary, you can enter a specific value in this field.

Length: 3 numeric

Keyword: MA

Reporting Analytics: Months to Amortize (Located in Loan/Indirect Loan subject )

Click Save to save your changes.

The following information cannot be maintained on the Loans - Indirect Info tab:

  • The original date of the loan. Loan advances will not change this date. Keyword: OR
  • The date the loan was booked on the system. The dates is used by the system to post the upfront reserves to the general ledger account. Keyword: BD
  • The interest rate on the loan.

During month-end processing, the following fields are updated:

  • Chargeback - If a chargeback has occurred, the amount that was charged back to the dealer is displayed.
  • Amortized Reserve Amount - The total amount of upfront reserve that has been amortized accumulates here.
  • Effective Rate - If the loan was booked beyond the current month, the effective rate used for the amortization is calculated and displayed. If the loan was booked in the current month, the Effective Rate field will display 0.00 until month-end processing. To force the system to recalculate the effective rate set the Effective Rate field to 0.00.
  • Earned Reserve Amount -The amount of upfront reserve the dealer earned is calculated and displayed here. The calculation is: Earned Reserve Amount = LTD Interest * Spread/APR

General Ledger Effects: The amount entered into the upfront reserve will be posted as a debit to the deferred fee general ledger account on the Loan Profiles - Account Information tab and a credit to dealer holdback general ledger account in the Indirect Loan Options section on the Credit Union Profile - Loans tab.

Related Reports: Non-Financial Transaction Register Report 030 | Teller Balancing Effects: none

To reverse the transaction on the same day, perform the Reversals - Same Day Reversals tab.

For a prior-day correction, perform the Reversals - Prior Day Loan Reversal tab or update the information on the Loans - Indirect Info tab.

To access and maintain the indirect loan information, users must be assigned to one of the following pre-defined security groups or you can create your own security groups. You can add these permissions to a credit union-defined security group using the Security Group Permissions – Update window.

Permission Security Group

Loans - Tab - Indirect Loan - Maintain

Lending - Manager

Lending - Officer

Loans - Tab - Indirect Loan - View Only

Lending - Clerk

Lending - Manager

Lending - Officer

Keyword: 64I