A Guide from MC Customer Support
|
| Training | Mortgage Computer has often said the Construction Package functions best when used as designed. | |
Approve a construction loan and close the loan using the MC OFFICE Mortgage Banker software package. Prepare all the documents necessary and disburse the funds as follows: | ||
| 1. | A 30-year Construction Perm loan with a six month construction period is approved to close. Enter in MB Field 36 Terms (Months) Maturity 360 months and 354 months for the amortization period to compute a full P&I payment. In MB Field 315 First Payment Date, enter the first day of the month after the six month construction period. To compute the interest during the construction period, enter in MB Field 901 Interest the TO date one month before the date in MB Field 315. Then change the per-diem interest to be 1/2 (one-half) of that amount. The program will compute the amount of interest during the construction period. (Use 1/2 since only half of the funds will be disbursed during the construction period.) This amount of prepaid interest will be used in the APR calculation for Truth-in-Lending forms. | |
| 2. | You disburse items for recording, fees, etc., at that time and pass the undisbursed amount to the construction account. When a loan is single pay to a builder, transfer all funds to the undisbursed loan amount and disburse fees, etc., from there. How to set up the account for disbursement of loan funds. Debit Construction Notes Receivables (GL Account) Credit Undisbursed Loan Funds (Custodial Checking) | |
| 3. | MC advises to NEVER post the undisbursed funds to a GL account. Do not increase GL Notes Receivable as funds are disbursed. Funds are the borrower's and should be placed in one checking account called Undisbursed Loan Funds for all construction loans. You disburse funds (write checks) from this checking account and have a record for each loan. Use the MC Cashbook Reconciliation program to balance all your checking accounts. | |
Updated August 1, 2006 at 9:11 a.m.
