Servicing Fee - Recurring Transaction
A Servicing Fee (charged by you, the Servicer, to the Lender on whose behalf you are servicing the loan) is configured on an individual loan through the recurring transaction menu.
Begin by querying the loan on which you wish to add a servicing fee then
Click Add to add a new recurring transaction. Enter an order and a description.
Servicing fees are generally charged whenever a payment is received, so select
Click the Transaction tab. Select a transaction type of Servicing Fee. The transaction amount can be designated as a fixed amount or as a percentage of any loan balance or several combinations of loan balances. A common figure to use for this purpose would be a percentage of the payment received. A minimum and maximum amount may be set, with zeros indicating no constraints. Select the servicing fee type from the drop down list as detailed below. Select the Use Vendor checkbox and assign the vendor account who will be paying the servicing fee.
When this recurring transaction is executed, Transaction Code 320 - Servicing Fee will be run against the loan. Depending on the Servicing Fee Type selected, additional transaction codes which create vouchers may be run.
Servicing Fee Types
|None||No additional transactions will be executed. No vouchers will be created.|
|Net From Cash - by Payment||This option is not currently enabled. At this time no additional transactions will be executed, and no vouchers will be created.|
|Net From Cash - Total Outstanding||
Transaction Code 22 - Trust Disbursement-Servicing Fee is executed for the amount of the fee. This creates a voucher which deducts the amount of the servicing fee from the amount payable to the Lender.
Transaction Code 32 - Trust Receivable-Servicing Fee is executed for the amount of the fee. This creates a voucher which results in a payment of the servicing fee from the trust account to the servicer.
|Bill Lender||Transaction Code 322 - Servicing Fee Receivable is executed for the amount of the fee. This creates a voucher which results in a payment of the servicing fee from the trust account to the servicer. The Lender must be billed to pay that amount to the trust account.|