Delinquency Scenarios

Scenario 1: Missed Payment

In Scenario 1, the member received a new loan (NL) of $50,000 on 3/22/16. The terms of the loan are as follows:

Original date 3/22/16
Original amount $50,000
Original interest rate 12%
Payment frequency monthly (22nd)
Original payment amount $514.31

The amortization schedule illustrates how the scheduled payments should be applied according to these terms. This loan is a variable rate loan and allows for a primary interest rate change (RCP) at the end of each month. The transaction code AMO reflects the amortization date, which is the expected payment date. The payment history reflects the actual activity as it occurred on the member's loan.

For this scenario, the actual payment activity and the amortization schedule reflect all activity from the date the loan was disbursed up to the calculation date of delinquency, which is 8/15/16.

According to Method B, delinquency is calculated by comparing the loan's actual balance to the amortization schedule as of the 8/15/16-calculation date. If the actual balance is greater than the amortization balance, the difference is the principal portion of the loan in arrears. In addition, all delinquent interest due will be calculated and added to the principal in arrears to arrive at the total delinquent amount.

Amortization Schedule

Pmt #	Txn	Date	Principal	Interest	Balance	Interest Due
	NL	3/22			50000.00
999	RCP	4/01		(11.5)	50000.00	164.39
001	AMO	4/22	19.10	495.21	49980.90
999	RCP	5/01		(12.0)	49980.90	141.73
002	AMO	5/22	27.50	486.51	49953.40
999	RCP	6/01		(12.5)	49953.40	164.23
003	AMO	6/22	0.00	514.31	49953.40	9.18
999	RCP	7/01		(12.0)	49953.40	163.15
004	AMO	7/22	6.28	508.03	49947.12
999	RCP	8/01		(11.0)	49947.12	164.21

Payment History

Txn	Date	Principal	Interest	Balance	Interest Due
NL	3/22			50000.00
RCP	4/01		(11.5)	50000.00	164.39
PMT	4/22	19.10	495.21	49980.90
RCP	5/01		(12.0)	49980.90	141.73
PMT	5/22	27.50	486.51	49953.40
RCP	6/01		(12.5)	49953.40	164.23
PMT	6/22	0.00	514.31	49953.40	9.18
RCP	7/01		(12.0)	49953.40	163.15
RCP	8/01	6.28	(11.0)	49953.40	672.26

The codes reflected in the Txn column for Payment History are not the actual transaction codes used by Portico.

Manual Calculation of Delinquency Method B

As you can see from the payment history, the member failed to make the scheduled payment on 7/22/16. To manually calculate delinquency as of 8/15/16, complete the following steps:

Calculate the principal in arrears by subtracting the actual balance of the loan as of 8/15/16 from the last entry in the amortization schedule, which is 8/1/16.
Actual loan balance: 49,953.40
Amortization balance: 49,947.12
Principal in arrears: 6.28
Calculate interest in arrears.
Interest due 6/22 - 7/01/16: 163.15
Interest due 7/02 - 7/22/16 with new interest rate of 12%: 344.88
Total interest in arrears: 508.03
Calculate interest due on principal in arrears.
Interest due 7/23 - 8/01/16 on 6.28 at 12%: .02
Interest due 8/02 - 8/15/16 on 6.28 at 11%: .03
Total interest due on principal in arrears: .05
Add the principal in arrears plus the interest in arrears plus the interest due on principal in arrears to arrive at the delinquent amount due.
Principal in arrears: 6.28
Interest in arrears: 508.03
Interest on principal in arrears: .05
Total delinquent amount due as of 8/15/16: 514.36

System Calculation of Delinquency Method B

Portico uses the following steps to calculate delinquency Method B.

Calculate the payoff of the member's actual loan as of 8/15/16. Add the interest due to the current loan balance to arrive at the loan payoff amount.
Interest due but not collected (FCCBNC field): 672.26
Interest due 8/02 - 8/15/16: 210.76
Current loan balance: 49,953.37
Loan payoff amount as of 8/15/16: 50,836.42
Calculate the loan payoff according to the amortization schedule by adding the interest due to the loan balance.
Interest due up to the last entry in the amortization schedule as of 8/01/16: 164.21
Interest due 8/02 - 8/15/16 based on amortization balance as of 8/01/16: 210.74
Loan balance as of 8/01/16 based on amortization schedule: 49,947.12
Loan payoff amount as of 8/15/16: 50,322.07
Calculate the delinquent amount by subtracting the actual loan payoff from the amortization loan payoff.
Actual loan payoff: 50,836.42
Amortization loan payoff: 50,322.07
Delinquent amount due as of 8/15/16: 514.35

Comparing the Delinquent Periods

Method B	Method D
Portico calculates the delinquent period by taking the delinquent dollar amount and dividing this amount by the monthly payment. Payment frequencies other than monthly will be converted to monthly to determine the number of months delinquent. Delinquent Dollar Amount/Monthly Payment = Delinquent Period A partial delinquent period is considered a full payment past due. The number of months past due is always one (1) less than the number of payments. For example, if the member had 3 delinquent payments, you would subtract 1 from the number of payments delinquent to arrive at the number of months past due (3-1=2). Use the following amounts to determine the delinquent period for Method B: Delinquent amount: $514.35 Monthly payment: $514.31 514.35/514.31 = 1.000077 = 2 payments delinquent Portico calculates to seven decimal places. This would be considered a partial delinquent period. Therefore, it is considered a full payment past due. The delinquent period according to Method B is 2 - 1 = 1 month.	Method D calculates delinquency by comparing the system date to the next payment due date. For example, if the next payment date is less than the calculation date, then the loan is delinquent. Use the following dates to determine the delinquent period for Method D: Due date: 7/22/16 System date: 8/15/16 Frequency: Monthly Portico determines how many months have passed by comparing the system date (8/15/16) to the next payment date (7/22/16). The member is 24 days past due. The delinquent period according to Method D is 0 months. The delinquent amount is $514.31, but is not considered one month past due.

Method B

Method D

Portico calculates the delinquent period by taking the delinquent dollar amount and dividing this amount by the monthly payment. Payment frequencies other than monthly will be converted to monthly to determine the number of months delinquent.

Delinquent Dollar Amount/Monthly Payment = Delinquent Period

A partial delinquent period is considered a full payment past due. The number of months past due is always one (1) less than the number of payments. For example, if the member had 3 delinquent payments, you would subtract 1 from the number of payments delinquent to arrive at the number of months past due (3-1=2).

Use the following amounts to determine the delinquent period for Method B:

Delinquent amount: $514.35
Monthly payment: $514.31
514.35/514.31 = 1.000077 = 2 payments delinquent

Portico calculates to seven decimal places. This would be considered a partial delinquent period. Therefore, it is considered a full payment past due. The delinquent period according to Method B is 2 - 1 = 1 month.

Method D calculates delinquency by comparing the system date to the next payment due date. For example, if the next payment date is less than the calculation date, then the loan is delinquent. Use the following dates to determine the delinquent period for Method D:

Due date: 7/22/16
System date: 8/15/16
Frequency: Monthly

Portico determines how many months have passed by comparing the system date (8/15/16) to the next payment date (7/22/16). The member is 24 days past due. The delinquent period according to Method D is 0 months. The delinquent amount is $514.31, but is not considered one month past due.

Scenario 2: Late Payments

In Scenario 2, the member received a new loan (NL) of $50,000 on 3/22/16. The terms of the loan are as follows:

Original date 3/22/16
Original amount $50,000
Original interest rate 12%
Payment frequency monthly (22nd)
Original payment amount $514.31

The amortization schedule illustrates how the scheduled payments should be applied according to these terms. The terms of this loan specify payments to be made on the 22nd of each month. However, the member made regular payments on the 30th of each month, eight days late. The payment history reflects the actual activity as it occurred to the member's loan.

For this scenario, the actual payment activity reflects the member's payments on the 30th of each month. The amortization schedule reflects all activity from the date the loan was disbursed up to the calculation date of delinquency, which is 8/15/16.

Amortization Schedule

Pmt #	Txn	Date	Principal	Interest	Balance
	NL	3/22			50000.00
001	AMO	4/22	4.72	509.59	49995.28
002	AMO	5/22	21.21	493.10	49974.07
003	AMO	6/22	4.99	509.32	49969.08
004	AMO	7/22	21.46	492.85	49947.62

Payment History

Txn	Date	Principal	Interest	Balance	Interest Due
NL	3/22			50000.00
PMT	4/30	0.00	514.31	50000.00	126.79
PMT	5/30	0.00	514.31	50000.00	105.63
PMT	6/30	0.00	514.31	50000.00	100.91
PMT	7/30	0.00	514.31	50000.00	79.75

Note: The codes reflected in the Txn column for Payment History are not the actual transaction codes used by Portico.

Manual Calculation of Delinquency Method B

As you can see from the payment history, the member made regular loan payments eight days late. Instead of following the terms of the loan and making the payments on the 22nd of each month, the member made regular payments on April 30, May 30, June 30, and July 30.

To manually calculate delinquency as of 8/15/16, complete the following steps:

Calculate the principal in arrears by subtracting the actual balance of the loan as of 8/15/16 from the last entry in the amortization schedule, which is 7/22//16.
Actual loan balance: 50,000.00
Amortization balance: 49,947.62
Principal in arrears: 52.38
Calculate interest in arrears.
Interest due through 7/30/16: 79.74
Interest due 7/22 - 7/30/16: - 131.50
Total interest in arrears: - 51.75
Calculate interest due on principal in arrears.
Interest due 7/22 - 8/15/16 on 52.38 at 12%: .41
Total interest due on principal in arrears: .41
Add the principal in arrears, plus the interest in arrears, plus the interest due on principal in arrears to find the delinquent amount due.
Principal in arrears: 52.38
Interest in arrears: - 51.75
Interest due on principal in arrears: .41
Total delinquent amount due as of 8/15/16: 1.04

System Calculation of Delinquency Method B

Portico uses the following steps to calculate delinquency Method B.

Calculate the payoff of the member's actual loan as of 8/15/16. Add the interest due to the current loan balance to arrive at the loan payoff amount.
Interest due but not collected (7/30) (FCCBNC field): 79.75
Interest due 7/31 - 8/15/16: 263.01
Current loan balance: 50,000.00
Loan payoff amount as of 8/15/16: 50,342.76
Calculate the loan payoff according to the amortization schedule by adding the interest due to the loan balance.
Interest due up to the last entry in the amortization schedule as of 7/22/16: 0.00
Interest due 7/23 - 8/15/16 based on amortization balance as of 7/22/16: 394.11
Loan balance of as 7/22/16 based on amortization schedule: 49,947.62
Loan payoff amount as of 8/15/16: 50,341.73
Calculate the delinquent amount by subtracting the actual loan payoff from the amortization loan payoff.
Actual loan payoff: 50,342.76
Amortization loan payoff: 50,341.73
Delinquent amount due as of 8/15/16: 1.03

Comparing the Delinquent Periods

Method B	Method D
Portico calculates the delinquent period by taking the delinquent dollar amount and dividing this amount by the monthly payment. Delinquent Dollar Amount/Monthly Payment = Delinquent Period A partial delinquent period is considered a full payment past due. The number of months past due is always one (1) less than the number of payments. For example, if the member had 3 delinquent payments, you would subtract 1 from the number of payments delinquent to arrive at the number of months past due (3-1=2). Use the following amounts to determine the delinquent period for Method B: Delinquent amount: $ 1.03 Monthly payment: $514.31 1.03/514.31 = .0020026 = 1 payment delinquent Since Portico calculates to seven decimal places, this would be considered a partial delinquent period or a full payment past due. The delinquent period according to Method B is 1 - 1 = 0 months.	Method D calculates delinquency by comparing the system date to the next payment due date. For example, if the next payment due date is less than the calculation date, then the loan is delinquent. Once the loan has exceeded the grace days allowed, they are not considered a factor in determining the delinquency period. Use the following dates to determine the delinquent period for Method D: Due date: 8/22/16 System date: 8/15/16 Frequency: Monthly Portico determines how many months have passed by comparing the system date (8/15/16) to the next payment date (8/22/16). The member is not delinquent according to Method D. The delinquent period according to Method D is 0 months. The delinquent amount D is $0.00.

Method B

Method D

Portico calculates the delinquent period by taking the delinquent dollar amount and dividing this amount by the monthly payment.

Delinquent Dollar Amount/Monthly Payment = Delinquent Period

Use the following amounts to determine the delinquent period for Method B:

Delinquent amount: $ 1.03

Monthly payment: $514.31

1.03/514.31 = .0020026 = 1 payment delinquent

Since Portico calculates to seven decimal places, this would be considered a partial delinquent period or a full payment past due. The delinquent period according to Method B is 1 - 1 = 0 months.

Method D calculates delinquency by comparing the system date to the next payment due date. For example, if the next payment due date is less than the calculation date, then the loan is delinquent. Once the loan has exceeded the grace days allowed, they are not considered a factor in determining the delinquency period.

Use the following dates to determine the delinquent period for Method D:

Due date: 8/22/16

System date: 8/15/16

Frequency: Monthly

Portico determines how many months have passed by comparing the system date (8/15/16) to the next payment date (8/22/16). The member is not delinquent according to Method D.

The delinquent period according to Method D is 0 months. The delinquent amount D is $0.00.