NetLoan - Cutover Method / Mid-Life Transition to NetLoan
Cutover Method / Mid-Life Transition to NetLoan
When uploading loan data into NetLoan, users can choose between two methods: (1) upload using historical information (2) upload using a cutover date. This article will outline how to import loan data using a cutover date. More particularly, this article will focus on how to populate the Loan Upload template using a cutover date.
The cutover date will be the date your loan amortization schedule begins in NetLoan (if the loan commenced on/before your cutover date). Any detailed loan information prior to the cutover date (i.e. historical payment dates, interest rate changes, monthly amortization amounts, etc.) will not be captured in the NetLoan Loan record. If detailed historical data is desired, it can be attached as a separate file under the 'Documents' subtab of the loan record:
The most common cutover dates are (1) the Go-Live date (2) the beginning of the most recent fiscal year. Using the Go-Live date as the cutover date ensures that no historical data needs to be input into NetLoan. Using the beginning of the most recent fiscal year as the cutover date may require some historical data to be input into NetLoan, but provides data that can easily be tied out to financial statements and allows for a full year of reporting within NetLoan.
Note that the cutover method is primarily intended for borrowers (as historical schedule information is generally more easily accessible to lenders than it is to borrowers).
STEP-BY-STEP PROCESS
The following steps are for populating the 'Main' tab of the Loan Upload Template:
- In the 'Origination Date' column, enter the cutover date (if the loan commenced on/before the cutover date). If the loan commenced after the cutover date, enter the actual date the loan commenced.
- In the 'Initial Payment Date' column (if this column is being utilized), enter the first payment date on/after the cutover date. If the 'Payments' tab will be used for inputting all payments instead, enter the cutover date in the 'Initial Payment Date' column.
- In the 'Initial Loan Balance' column, enter the beginning of day loan principal balance as of the cutover date.
- In the 'Annual Percentage Rate' column, enter the APR as of the cutover date.
- If the loan had an accumulated accrued interest balance as of the cutover date, add a column in the template and name it 'Beginning Accumulated Accrued Interest'. Enter the amount of accumulated accrued interest as of the cutover date.
The following steps are for populating the 'Payments' tab of the Loan Upload Template:
- In the 'Effective Date' column, only enter payments that were effective on/after the cutover date.
The following steps are for populating the 'Rates' tab of the Loan Upload Template:
- In the 'Effective Date' column, only enter rate changes that were effective on/after the cutover date.