Purging loans

For more information regarding purging, see Purging Account and Member Records.

The following checkboxes in the Transaction Activity section on the Credit Union Profile – Purge tab specify the purge options for member loans. To access the Credit Union Profile – Purge tab, select Profiles under Administration on the Portico Explorer Bar. On the Profiles menu bar, select System, then select Credit Union. On the Credit Union Profile window, select the Purge tab.

Checkbox	Description
Open-end Loan	If selected, Portico purges zero-balance, open-end loans on the next purge date, when it is 365 days or greater than the last transaction date. Portico does not purge any loan types listed on the report rules for the Purge by Loan Type Report 930. (Portico Host: 906 Transaction - OPEN-END LN field)
Closed-end Loan	If selected, Portico purges zero-balance, closed-end loans on the next purge date, when it is 365 days or greater than the last transaction date. If this checkbox is selected, these loans purge regardless of YTD interest. Portico does not purge any loan types listed on the report rules for the Purge by Loan Type Report 930. (Portico Host: 906 Transaction - CLSD-END LN field)
Purge Loans	If selected, Portico purges a loan record on the next purge date after the member meets all purge criteria, regardless of any other loan purge options selected. (Portico Host: 906 Transaction - PURGE LOANS field)

The following criteria define when Portico purges loans:

• The purge date is 365 days or greater than the last transaction date for the account. If the last transaction date is zero, Portico purges the account when the purge date is 365 days or greater than the Date Joined field on the Contact Information tab.
• The Open-end Loan checkbox is selected on the Credit Union Profile – Purge tab.
• The Closed-end Loan checkbox is selected on the Credit Union Profile – Purge tab.
• The Purge Loans checkbox is selected on the Credit Union Profile – Purge tab.
• The Allow Account to Purge checkbox is selected on the Stmts/Reporting/Notices tab.
• The loan type is not specified on the 930 Report Rules.
• The loan balance is $0.00.
• The loan does not have a share pledge on the Loans – Pledges tab.
• The loan is not in Collections.
• The Exclude from Statement checkbox on the Loans - General tab is not selected. Excluding the loan will impact purge. If the Exclude from Statement checkbox is selected, the statement balance is not updated causing the loan never to purge.
• The loan does not have an unamortized fee.
• The loan's deferred late charges are $0.00.
• The member does not have a bankruptcy record (Legal\Bankruptcy tab).
• The loan’s Finance Charges Calculated But Not Collected (FCCBNC) are zero.

If the loan has an associated escrow share account, the escrow share account meets the required purge criteria for share accounts, and the loan meets the required purge criteria for loans, then both the escrow share account and the loan purge at the same time.

To purge vendor mortgage loans or vendor education loans, you must purge the loan on the vendor's system first. Then send a request to Portico Customer Service to delete the loan's VLU record.

To determine if a zero balance vendor mortgage loan should be included in the file upload to Portico, Portico uses the following logic:

If the loan balance is 0.00, Portico calculates the month difference (current date – date of last payment). If the date of last payment is blank, Portico uses the date of notice as the date of last payment.

• If the month difference is less than four, then Portico will include the loan in the file upload to Portico.
• If the month difference is greater than four, then Portico will skip the loan in the file upload to Portico.

To determine if a zero balance vendor mortgage loan should be purged from Portico in the quarterly purge, Portico uses the following logic:

If the loan balance is 0.00, and the current date is 01/01, 04/01, 07/01, or 10/01, Portico calculates the month difference (current date – date of last payment). If the date of last payment is blank, Portico uses the date of notice as the date of last payment.

• If the month difference is four, five or six, then Portico will purge the loan.

The following exceptions appear on the 935 Report if the loan does not meet the purge criteria:

• E01 - The member has an education loan residing on an outside vendor product.
• R01 - The member has a mortgage loan residing on an outside vendor product.
• L01 - The member has a loan type listed on the 930 Report Rules, and the Purge Loans checkbox is not selected on the Credit Union Profile - Purge tab.
• L02 - The member has a loan in collections.
• L03 - The member has a loan with a last transaction date after XX/XX/XX.
• L04 - The member has a loan with a last statement balance not equal to $0.00.
• L05 - The member has a loan with an unamortized fee.
• L09 - The member has an escrow loan. The escrow share account has a balance not equal to $0.00.
• L10 - The member has a loan pledged against a share or certificate, which belongs to another member.
• L11 - The member has a loan with uncollected late charges greater than 0.00 on the Loans - Interest/Charges tab.
• L12 - The member has a loan with uncollected interest (FCCBNC field) greater than 0.00 on the Loans - Interest/Charges tab.