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A Guide from MC Customer Support - October 1997

Special Edition

Question Are MC loan payments paid in arrears or ahead?
Answer All real estate loan payments are based on the Business Method of computing interest. This method is used on bonds, mortgages and most business transactions. The Business Method uses a 30-day month throughout the year paid after the interest is earned for the proceeding 30 days (arrears). The Financial Method is applied on 365 days divided by 360 days for the interest per day. The other method is called the Exact Method. This is actual number of days (365) for the actual number of elapsed days in the payment period (C-pay type loans). This method is not regularly used.
Question What does MC mean by Standard Curtailment?
Answer Standard Curtailment (extra principal) is a regular amount that will be paid every month through DDA, ACH or payroll repayment type loans. The amount of the Standard Curtailment is entered in Loan Servicing Field 65.
Question Which step changes the payment during the Portfolio Analysis for escrows?
Answer When payment coupons/memos are printed, Step 7 of the analysis program will change the escrow constant.
Question When entering extra principal Transaction Code 05, a message is displayed. What does it mean?
Answer The message is a caution to the operator indicating if they want to proceed to accept the extra principal. This extra principal could result in a loss of interest. If okay, press <Y> to continue.
Question We want to start selling loans to Fannie Mae. Does the MC software create all the necessary reports?
Answer YES, for Fannie Mae, Freddie Mac, Ginnie Mae, etc.
Question We are trying to enter a loan amount in Mortgage Banker Field 32, and the message is LOAN AMOUNT EXCEEDS MAX/MIN LOAN AMOUNT is displayed. What does this mean?
Answer The loan amount being entered is more (maximum) or less than (minimum) set up in the Product (01.15.14.16). The Product is indicating to the operator the amount is not within the limits of the Product as set up.
Question The Transaction Code 81 is suspending because there is a loan balance already in Field 21. Why?
Answer This is caused by the operator trying to override the program and enter an amount through modify in Field 21. In the 1998 Spring Update, the program has been enhanced to not permit the operator to enter an amount in Field 21 if a Transaction Code 81 is in a group to be updated. A warning message is displayed when trying to modify.
Question We need to remove old loans from the Loan Servicing package. How do I do it?
Answer Good idea. Old loans no longer needed slow down the system and clutter reports with old out-dated information. After the 1998 Spring Update, use Maintenance (09.11.13) to remove old loans.
Question Will MC ever add the ability to print the Truth-in-Lending to the Rapid App package?
Answer Yes, it is done. Using the new Rapid App a T-I-L can be printed. Available as part of the 1998 Spring Update, printing either a Fixed or ARM T-I-L from the Rapid App software has been added.


At the recent 1998 MC Annual Conference it was announced that Rapid App 1003, Rapid App Print and Rapid App Correspondent have been combined into one package called Rapid App. See the next MC Journal for special pricing.


Question When updating loan payments in Loan Servicing, often times the error message, loan locked is displayed. Why?
Answer Locking the loan is designed as a prevention for a possible problem by not permitting the loan record to be updated when in use at a terminal. To solve this delay, an enhancement has been added with the 1998 Spring Update. If a loan is being used at another terminal or not properly closed at a terminal, the program will no longer stop and indicate it cannot post the payment until the loan is released. The program will simply suspense the payment to the suspense group and continue. Later, the operator can clear the item using the suspense reason to locate the terminal the loan is locked at, then update.
Question The April payment is short because of the increase due to escrow analysis. Can we still apply a Transaction Code 01?
Answer The program will accept the Transaction Code 01 payment only if the amount is at least equal to the P&I portion of the total payment. A Transaction Code 01 will short the escrow as long as the full P&I is paid.