Getting To Know: Loan Patterns

One of the critical features of our Loan Servicing software is that you can service any of our products, in any state. And while that means a lot of flexibility for our clients, it can be a little tricky.

States regulate lending practices, as well as the Federal Government. Just a few examples of some of those regulations include:

• States may require specific regulations on how much institutions can assess for late charges.
• Maintenance fees may be allowed or disallowed based on the state you do business in.
• States may also establish maximum interest rates.

GOLDPoint Systems tools are flexible to adapt to your state’s regulations, as well as your institution’s preferred methods. Any regulation your state can throw at you, our system can handle it. One tool we offer is the Loans System Setup Screens Loan Pattern Setup screen in CIM GOLD.

What Is a Loan Pattern?

A loan pattern allows your institution to set up record/field defaults so when that type of loan is boarded through GOLDTrak, Loan Gateway, GOLDAcquire Plus, or another API, applicable fields will already be populated with loan information. You go through the basic loan setup screens and enter the data that will always be constant for each loan of this type, such as:

• payment method
• late charge code
• interest rate
• interest calculation method
• general category
• amortization code, and
• payment application

You can create as many loan patterns as you want to cover a variety of loan types.

The setup to ensure loans are boarded and funded correctly requires knowledge of our system. The Loan Pattern Setup help attempts to describe the detailed steps required; however, you will likely need assistance from your GOLDPoint Systems account manager the first few times you set up loan patterns.

Once you understand the procedure and you have security clearance to use this screen, you can set up as many loan patterns as your institution needs. Usually, these steps are completed when your institution converts to GOLDPoint Systems. However, additions and modifications can be made using these same steps.

Real-Life Application

Recently, North Carolina passed a bill that allowed origination and late fees on consumer loans to increase for the first time in 28 years.

The maximum late fee can be no higher than 4 percent of the past due amount, or $35, whichever is higher, for some types of consumer loans.

If you were an institution that does business in North Carolina with a loan type that qualifies for this regulation, you would use the Loan Pattern Setup screen to change the Charge Minimum Fee of field to “35.00.”

Then any loans opened using that Loan Pattern would then use the new limits you set.

For more information on Loan Patterns, see the Loan Pattern Setup Screen help in DocsOnWeb.