NetLoan - True Up Modification

Overview

A True Up modification corrects a loan's origination-level figures (Initial Loan Balance, Down Payment, and Initial Interest Date) after the loan has already started amortizing, and recalculates the go-forward schedule along with any resulting refund.

True Up is available only on loans where your company is the Lender, Servicer, or Intercompany party. It is not available for Borrower loans. If your company is the Borrower on the loan and needs to tie NetLoan's calculated interest out to a statement the lender sent you, use a Statement Adjustment modification instead.

Prerequisites

  • The loan's entity type must be Lender, Servicer, or Intercompany (not Borrower).
  • The loan must be commenced/locked, with an existing amortization schedule.
  • The loan must not be a Revolving Dynamic Installment loan.
  • The loan must not be fully amortized (only Refund and Draw modifications are valid on fully-amortized loans).
  • The effective date must fall within the same month as the loan's first open schedule-line period.

Step-by-Step Instructions

  1. From the loan record, select Modify. Or, navigate to NetLoan > Loan Management > Modification Register > New.
  2. Select True Up as the Modification Type.
  3. Set the Effective Date to the period the correction should post in. This must be within the same month as the loan's first open schedule-line period.
  4. Set Effective Time (Beginning or End of day) if the effective date is the same as the loan's origination date.
  5. Choose the Schedule Calculation Type (Calculate Rate, Calculate Payment, or Default) to control whether rate or payment amount is editable for the true-up.
  6. Enter the corrected figures:
    • Adjusted Initial Balance — the corrected initial balance. Leave blank to default to the original balance minus any prior True Up adjustment already applied.
    • Adjusted Down Payment — the corrected down payment, if applicable.
    • Initial Interest Date — override if needed.
  7. If the true-up relates to specific payments, use the payment sublist's Refund checkbox to mark any payment that should be refunded.
  8. Save/recalculate. Review the calculated Customer Refund Amount — this is the amount actually collected minus what would have been collected under the corrected schedule; a positive value is owed back to the customer.
  9. Select Modify Loan to save and process. NetLoan recalculates the go-forward schedule, posts the resulting journal, and stores the calculation for reference and reversibility.
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