Overview

This article shows how to establish or update ownership records on a Servicer loan using the Update Ownership suitelet. Each ownership record allocates a share of principal and interest to a specific owner. Two ownership types are functional today - 3rd Party Owner (an external vendor) and Subsidiary Owner (another subsidiary in the same NetSuite OneWorld instance). The Servicer Owner type appears in the system but is not yet supported - do not select it. This article covers both single-loan and mass-update paths.

Prerequisites

• NetLoan - Create a Servicer Loan must be complete (the loan record must exist and have a generated schedule).
• The vendor, customer, and (where applicable) subsidiary records that will represent each owner must exist in NetSuite.
• For Subsidiary Owners, each owning subsidiary must have a representing vendor and representing customer configured.
• NetSuite role with permission to access NetLoan suitelets and edit NetLoan Investor Ownership records.

Step-by-Step

Navigation

• Single loan: NetLoan > Loan Register, open the loan, then click Update Ownership on the record header.
• Mass update: NetLoan > Mass Update Loans > Update Ownership

Single Loan

1. From the loan record, click Update Ownership. The Investor Ownership suitelet opens with the loan pre-populated and any existing ownership records listed.
2. In the suitelet header, set the Effective Date of the change. This drives the Start Date of new ownership records and the End Date (one day prior) of any prior ownership records being replaced.

3. For each new ownership row, populate the fields in the order below. The required fields differ by ownership type:

   • Ownership Type: choose 3rd Party Owner or Subsidiary Owner. Do not choose Servicer Owner; that type is defined in the system but is not yet supported.
   • Owner (Vendor) and Owner (Customer): required for 3rd Party Owners. The vendor is the external party that holds principal/interest; the customer is the corresponding customer record used on funding and distribution transactions.
   • Owner (Subsidiary): required for Subsidiary Owners. The Vendor and Customer fields default to that subsidiary's representing vendor and customer.
   • Principal Ownership Percentage: share of principal owned. The sum of new Principal Ownership percentages across all rows must equal 100% before the suitelet allows submission.
   • Interest Ownership Percentage: share of interest owned. May differ from Principal Ownership Percentage; does not need to total 100% across rows (the servicer can retain a slice of the interest in the future when servicer-ownership functionality is supported).
   • Owner Interest Rate: auto-calculated from Interest Ownership Percentage; can also be edited directly, in which case Interest Ownership Percentage recalculates.

4. Submit the suitelet. The system creates new NetLoan Investor Ownership records dated to the Effective Date and end-dates any prior records being replaced.

Mass Update

1. Navigate to NetLoan > Mass Update Loans > Update Ownership. The mass-update version of the suitelet opens with no loan pre-selected.
2. Set the Effective Date that will apply to all loans in the batch.
3. Select the loans to update - by direct selection or by a saved-search filter - and apply the new ownership configuration to each.
4. Submit. The system processes each loan in the batch, applying the same end-dating and creation logic as the single-loan path.

Important rule that applies to both paths: ownership cannot be changed retroactively prior to (a) the Start Date of the most recent ownership record on the loan, or (b) the date of the most recent ownership-related bill. If a user picks an Effective Date earlier than either, the suitelet will reject the submission.

Considerations

• Servicer Owner is not supported. The Servicer Ownership Type is defined in the system but is not functional yet. Use only 3rd Party Owner or Subsidiary Owner. A separate article will cover Servicer Owner when that work releases.
• 3rd Party vs. Subsidiary Owner - required fields:
  • 3rd Party Owners require Vendor + Customer; the Subsidiary field is not used.
  • Subsidiary Owners require Subsidiary; Vendor and Customer default to that subsidiary's representing vendor and customer.
• 3rd Party vs. Subsidiary Owner - financial impact downstream:
  • 3rd Party Owners produce a single transaction in the loan's subsidiary on funding (an invoice) and on distribution (a vendor bill).
  • Subsidiary Owners produce an intercompany pair on both funding and distribution - one transaction in the loan's subsidiary and a paired transaction in the owner's subsidiary, linked via the Paired Intercompany Transaction field.
• Principal must total 100%; interest can vary. The sum of Principal Ownership Percentages across active ownership rows must equal 100% on submission. Interest Ownership Percentages do not have the same constraint, since the servicer is allowed to retain a slice of interest in scenarios that the future Servicer Owner type will support.
• Effective Date drives end-dating. Submitting a new ownership configuration with an Effective Date end-dates all prior ownership records to the day before the Effective Date and starts the new records on that date.
• Distribution billing respects ownership dates. Distribution bills are not generated for owners whose End Date precedes the payment date, and periods that have already been billed under a prior ownership configuration are not re-billed when ownership changes.
• Mid-cycle changes are constrained. Ownership cannot be changed retroactively prior to the Start Date of the most recent ownership record or the date of the most recent ownership-related bill - pick an Effective Date that follows both.

Related Articles

• NetLoan - Servicer Entity Type Loan Overview

• NetLoan - Create a Servicer Loan
• NetLoan - Record Funding on a Servicer Loan
• NetLoan - Distribute Payments to Owners on a Servicer Loan

Record Structure

NetLoan Investor Ownership

The fields below mirror the layout of the NetLoan Investor Ownership record. The Update Ownership suitelet creates and updates records with these fields.