Mortgage Loans and Payment Recalculation

Mortgage Loan Processing helps you with each task required to process a mortgage loan, including setup, loan payments, payment recalculation and more. Mortgage Loan Processing offers the following features:

Adjustable rate mortgage processing and reporting.
Mortgage lending support through financial information computer services.
Mortgage loan reporting that includes:

Adjustable rate mortgage notices and report
Escrow recalculation report
Activity report
Maturity and expiration reports
Year-end summary notices

Home equity loan processing, with mortgage points tracking, online escrow support and overpaid loan interest tracking.

Loan Payment Recalculation

Loan Payment Recalculation provides loan payment recalculation for variable rate and mortgage loans, such as home equity and adjustable rate mortgage (ARM) loans. Recalculation is based on the loan type’s payment type and rate option. Loan Payment Recalculation offers the following features:

Provides recalculation options at the loan type level.
Includes CUNA Mutual credit life (CLI) and credit disability insurance (CDI) premiums in the loan payment recalculation
Includes Financial Charges Calculated But Not Collected (FCCBNC) in the loan payment recalculation.
Allows choice of what triggers the automatic recalculation: loan advances, interest rate changes, no activity at all, or any combination.
Provides minimum loan payment amount option at loan type and individual loan levels.
Allows choice of which variable, the payment amount or the term, should be adjusted during the recalculation process.
Provides multiple report and notice options.
Provides cyclical recalculation (For payment types 002, 003, 004, 006 and 007 with calculation options B, F, P, 2, 3 and 6. Payment type 004 is being discontinued and no longer available for new loan types.)
Provides loan billing statements
Provides mortgage loan statements

Portico recalculates loan payments when the member makes a loan advance, when you change the interest rate on specified loan types, or when automatically requested during the monthly loan payment recalculation process. Payment recalculation can occur at one of the following times:

At the time of an online loan advance, for loan types with payment types 002 and 003 (if selected).
In the back-office cycle immediately following an interest rate change for non-cyclical recalculation loans with rate option D.
In the month end back-office cycle, before statements produce, when an interest rate change or a loan advance occurs during the month, or when monthly automatic loan payment recalculation is applied to loans meeting the monthly automatic recalculation criteria.
In the month-end back-office cycle, after statements produce, when a loan advance occurs during the month or when monthly automatic loan payment recalculation is applied to loans meeting the monthly automatic recalculation criteria.
During the month when the loan meets the loan type cyclical recalculation lead days criteria.

Variable Rate Index Processing

Variable Rate Index Processing allows Portico to perform loan rate changes automatically on variable rate loan types with payment type 009 or payment type 001, 002, 003, 004, 006 and 007 with rate option D based on a specified frequency, index rate, and margin. Payment type 004 is being discontinued and no longer available for new loan types.

Loans are automatically evaluated based on the next eligible rate change date associated with the loan. The next rate change eligiblity date is determined by the specified frequency on the loan. At that time the specified index rate and margin are used to determine if the rate on the loan should change.

Portico can also automatically perform rate changes on variable rate loans where the index and/or margin have not changed. This can occur if a rate that changed previously did not change to the value determined by the index and margin. The difference between the loan’s existing rate and the rate calculated using the loan’s index and margin will cause the loan’s rate to increase/decrease more than the rate specified in the % Limit Per Change field on the Adjustable Rate Information dialog box.

If supported by your credit union…

Notices are produced automatically on the night a loan is evaluated and it is determined that a rate change will occur at month end.
After the rate changes at month end, loan coupons are generated for loans that had a payment amount change due to the automatic rate change.
A loan billing statement can be produced detailing the pending rate change information either at month end or according to the loan lead days when the loan type supports cyclical recalculation.
Initial ARM disclosures are produced automatically when the loan meets the criteria for production.
Recurring ARM disclosures are produced automatically on the night a loan is evaluated and it is determined that a rate change will occur.

For Variable Rate Index Processing, your credit union administrator will use the following procedures to add, maintain, adjust the index codes and rates.