When do I use the selection to update unpaid loans for the On-Line Collections file?

Answer

This only needs to be done if Action Letters by one installment are to be printed or an unpaid (not delinquent) report is needed between the first and 14th day after the payment is due. Running 1st Notices or 2nd Notices automatically updates the On-Line Collections file. Until the 1ST NOTICES or 2ND NOTICES-ACTION UPDATE are run, not all the unpaid accounts will appear on the report.

Only accounts unpaid for two or more months will be on the report, since those accounts will still be in the On-Line Collections file. To update the On-Line Collections file without running notices, the path is (03.13.02.07).

Question

What is the design concept of the Loan Servicing On-Line Collections file?

Answer

The Loan Servicing Collection program is designed so that only unpaid accounts are held in the On-Line Collections file. This use of the On-Line Collections file increases the speed of collectors to access unpaid accounts and reduces the time to read loans for the collection reports.

Question

What puts unpaid or delinquent loans in the On-Line Collections file?

Answer

Loans that remain unpaid when a first or second payment notice is prepared by the program are added to the On-Line Collections file automatically. Field 20 of the LS Master Record indicates how many days past the due date the first and second notice qualifies to be prepared by the program. By running the programs to send 1ST NOTICES or 2ND NOTICES-ACTION UPDATE to borrowers, all unpaid loans will be in the On-Line Collections file.

By running the 2ND NOTICES-ACTION UPDATE there is no need to use the update option for printing delinquent (not unpaid) loan reports. It is a Fannie Mae requirement that the first notices be sent for at least the first six months of the loan. If 1ST NOTICES are not printed after six months, unpaid loans will not be added to the On-Line Collections file until the 2ND NOTICES-ACTION UPDATE is prepared.

A 2ND NOTICES-ACTION UPDATE should always be prepared to assess a late charge and notify the borrower of the late fee being assessed. Until the 2ND NOTICES-ACTION UPDATE is prepared (usually on the 15th day after the payment is due), unpaid loans, for the current month only, will not be in the On-Line Collections file.

If all you prepare are delinquent reports and you run 2ND NOTICES-ACTION UPDATE, there is no need to use the update option. If payment due dates are not all due on the first of the month, then 2ND NOTICES-ACTION UPDATE will have to be run more than one time per month to catch all loans that are 15 days past the payment due date.

Question

What removes a loan from the On-Line Collections file?

Answer

When the loan becomes current, it is no longer unpaid, and the program automatically removes the loan from the On-Line Collections file.

Question

Do loans have to be in the On-Line Collections file to have a 2ND NOTICES-ACTION UPDATE prepared?

Answer

It is by running the 2ND NOTICES-ACTION UPDATE that loans are placed in the On-Line Collections file.