NetLoan - Review and Override Fee Allocations on a Servicer Loan

Overview

Every one-time fee assessed on a servicer loan is automatically allocated between the loan's owners and the servicer, using the defaults on the fee's payment type. This article shows you how to review those allocations, adjust the owner/servicer split, approve them for billing, and - when a specific fee should be divided differently among the owners - override the per-owner percentages. Fee allocation is available only on Servicer entity type loans, and only for one-time fee payment types.

Prerequisites

• The loan must use the Servicer entity type and be commenced.
• Ownership must be set up on the loan, with active Investor Ownership records covering the effective date of each fee. See NetLoan - Set Up Ownership on a Servicer Loan.
• Fee allocation defaults must be configured on the fee payment types. See NetLoan - Configure Fee Allocation Defaults for a Servicer Loan (not yet published).
• At least one one-time fee must be assessed on the loan.
• Fees already in Billed status cannot be modified.

Step-by-Step

Navigation

• Record button: Click Fee Allocation Override on the servicer loan record

This opens the fee allocation page, which lists every NetLoan Payment on the loan that is one-time and has a fee payment type selected. Recurring payments do not appear.

Review and Approve Fee Allocations

1. Open the servicer loan record and click Fee Allocation Override.
2. Review the assessed fees. Each line shows the fee's Date, Payment, Payment Type, Fee Allocation Status, and Percentage of Fees Allocated to Owners. An indicator marks any fee whose owner split has already been overridden.
3. To open a fee record directly - for approval or review - click the Date on that line.
4. To apply one percentage across every fee on the page, enter it in the Default Owner Allocation % field in the page header. This stamps the value onto all lines in the sublist at once.
5. To adjust a single fee, edit Percentage of Fees Allocated to Owners on that line. The remainder of the fee is retained by the servicer.
6. Set Fee Allocation Status to Approved on each fee that is ready to bill. Fees left in Pending Approval will not be picked up for bill generation.
7. Click Submit. An indicator displays while the changes save.

To leave without saving, click Cancel - you are returned to the loan record.

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Override the Owner Split on a Fee

By default, the owners' share of a fee divides by each owner's Principal Ownership %. Use this flow when a specific fee should be split differently - for example, when one owner absorbs more than their normal share.

1. On the fee allocation page, click Override Allocation on the fee's line. The Fee Owner Allocation Override page opens in the same tab.
2. Confirm you are on the right fee - the fee's effective date displays in the page header.
3. Review the current split. The sublist shows one line per owner active as of the fee's effective date, with each owner's allocation percentage and dollar amount. A final line shows the servicer and the remainder of the fee after owner allocation.
4. Edit the allocation percentage for each owner as needed. The dollar amounts and the servicer's remainder line update to reflect your changes.
5. Click Submit. An indicator displays while the change saves, then you are returned to the fee allocation page, where the fee now shows the override indicator.

The header-level owner allocation percentage on this page is disabled and does not update as you edit the sublist.

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Considerations

Status governs billing. Only fees in Approved status are picked up for bill generation. Once a fee moves to Billed, its allocation is locked and cannot be updated. This deliberately separates fee allocation from the record-level approval process. The status a new fee starts in comes from the Fee Allocation Status default on its payment type.

Percentages are validated as you work. The system prevents a combined owner allocation above 100% as you type, and blocks any percentage above 100% on save.

Owner lines reflect history, not today. The owners shown on the override page are those active as of the fee's effective date. If ownership changed after the fee was assessed, the lines reflect the earlier ownership, not the current state.

Overrides are fee-specific. An override applies only to the fee you entered it on. It does not change the payment type default or affect any other fee, past or future.

Ownership changes trigger a recalculation. When ownership percentages are updated on the loan, the Ownership Update mass update recalculates payment allocation percentages accordingly.

The borrower is unaffected. The gross fee is billed to the borrower and stays visible on the schedule line exactly as assessed, regardless of how it is allocated. The split is entirely a back-office matter.

GL impact. Owners are paid their allocated share through distribution bills, using the Fee Distribution Item configured on the payment type. The servicer's retained portion posts as a journal entry credited to the Servicer Income Account on the payment type.

Related Articles

• NetLoan - Servicer Entity Type Loan Overview
• NetLoan - Set Up Ownership on a Servicer Loan
• NetLoan - Create a Servicer Loan
• NetLoan - Fee Allocation Between Owners on a Servicer Loan
• NetLoan - Configure Fee Allocation Defaults for a Servicer Loan

Record Structure

NetLoan Loan Payment (Fee)

These fields drive the owner/servicer split on an individual assessed fee. They are editable from the fee allocation page.

NetLoan Payment Allocation

One record per owner per fee, holding that owner's share. Created automatically and updated when you submit an override.