NetLoan - Standard Payment Adjustment
Standard Payment Adjustment
Purpose: Throughout the duration of the loan, there might be instances in which a change in the loan payment would affect the loan schedule. This would require you to update the payments made after a certain date. NetLoan makes this process easy and will automatically update the loan schedule going forward using the newly input rate.
Prerequisites: Loan payment modifications must be entered in NetLoan prior to month-end amortization of the month in which the payment change will take place.
Step-By-Step Process
1a. If viewing the Loan record, you can select the Modify button above the Primary Information.
1b. Otherwise, navigate to NetLoan > Loan Management > Modification Register > New.
2. Make sure the correct Loan and Modification Type (Adjust Loan Terms) is selected in the Primary Information section of the modification proposal record.
3. (Optional) If you would like the modification proposal to be created with the "Approved" status, make sure that is selected in the Status dropdown.
4. On the same page, scroll down to select the Payments list under the Payments subtab.
5. Enter the Effective Date of the new payment, the Payment Amount that should be applied to the loan, and the Payment Frequency moving forward. Click the Add button.
6. You will now Save the modification proposal.
7. On the saved modification proposal record, a Modify Loan button will appear which you can then select. A warning box will appear asking you to confirm that you want to modify the loan. Select OK to proceed.
8. Then you will be redirected to the loan record for the loan you just modified. Select the Refresh button periodically until it disappears. Once it is no longer visible, the loan schedule should reflect the payment change in the Payment column from the selected date moving forward. And voila! Your loan payment has been adjusted.
- If a modification was entered in error you can select the Reverse Modification button that is located at the top of the lease record. This will reverse the modification you just made. Check out our Modification Reversal article for more information. Note: If the amortization entries for that month have been run you will no longer have the option to reverse the modification.