The transactions report shows a live Amortization Schedule for a loan. This report will show the remaining balance on the loan, payments made and their breakdown, charges incurred, credits, advancements, forecasted payments, and the current date. In essence, it gives you a complete view of the entire loan terms both past and future.
As a result, the transactions report is one of the most powerful tools in LoanPro, since it gives you one simple way to view almost all of the information for a loan. To help with understanding the report, this article will cover the different sections of the transactions report and how to interact with it.
Note: The numbers on the transactions report are always up to date. In order to accurately compute these numbers, LoanPro calculates interest each day. This calculation is very resource intensive, and the longer the loan term, the more time the calculation takes. Because of this, LoanPro has a safeguard against loans that have a very long/infinite term. If a loan has four payments in a row that apply to interest only, the Last As Final flag is turned on. This will cause the final payment to balloon, instead of extending the term for a large number of periods.
The Last-as-Final flag will not be removed (even if the customer is making their payments) unless the loan term will not extend for more than 4 payments in the future from either today or the original loan maturity date, whichever is furthest the future. If the customer is getting close to the balloon payment, this may affect the amount that shows as due on the loan.
Keep this in mind, when looking at the transactions report. The loan is OK, and the numbers are correct.
Opening the Transactions Report
To open the transactions report, navigate to the target loan and then to Reports > Transactions. Once there, the transactions report will load showing the live Amortization Schedule.
In the report, there are two main sections: the amortization schedule, and the summary.
In the above picture, the amortization schedule is on the left, while the summary is on the right.
The summary section is relatively straightforward. It goes over some of the loan settings, and the amount that has been paid in interest, fees, principal, discount, and escrow. In addition, it shows the remaining principal, remaining interest, the current payoff, and the original final payment information.
At the top of the summary section is a graph that shows the breakdown of what’s been paid, such as how much has gone to interest, fees, and principal.
The Amortization Schedule is where the transactions report shines. The schedule is live and up-to date, allowing you to see where money is going and the current state of the loan. It also allows you to expand and hide information, and it forecasts what would be applied in the future.
To toggle the expansion of any transaction, click on the blue title of the transaction.
Scheduled Payments show the amount that came due/will come due with each payment. Because of this, scheduled payments may change when payments are made on the loan, because the amounts that came due/will come due may change.
For Simple Interest loans, these payments are calculated as the average daily balance multiplied by the daily interest rate multiplied by the number of days in the period. The average daily balance is calculated by taking the sum of the principal balance each day in a payment period and dividing that total by the number of days in the period. The average daily balance is affected by payments that have been made and by forecast payments. That means that the breakdown for scheduled payments will often match that of forecast payments, but not in some circumstances like when the first period is irregular and accrues more interest than the due payment amount, or when a payment has been missed on the loan, because past missed payments don’t have a forecast payment associated with them.
Schedule payments are shown in white on the transactions report, and by default are not expanded.
Forecasted payments are predictions of how future payments will be applied to the loan. These payments are calculated assuming that the borrower pays only the payment amount on the payment due date in the future. In other words, when a payment is paid early or late, the numbers for the actual applied payments payment may not match the numbers that were on the original forecasted payments. Because of this, you may want to hide the forecasted payments by suspending them to get a different look at the future of a loan.
Forecasted payments are shown in a faded yellow color and are expanded by default.
Actual payments show the payments made by the customer. This allows you to see how much a borrower paid and when, as well as the breakdown of the payment. If a payment made by a customer applies to several scheduled payments, then the applied payment will be broken up to help show how much applied to which amount. The fragments of a payment will all share the same title and the same transaction ID, as shown in the image below.
Actual payments are highlighted in a light blue, and are expanded by default
Credits apply like actual payments on loans as far as the interest and principal balance are concerned (this, of course, depends on the settings used when the credit is made). Credits are shown in green on the schedule, and are expanded by default.
Advancements increase the principal balance of the loan. They are shown in a light red-purple color and are not expanded by default. Since they add to the principal balance, the advancement amount is surrounded by parenthesis.
The current date is shown in black. This listing gives options to show or hide history and forecast, which may be helpful if you want to see only the past or future of the loan. This transaction listing makes it easy to find your place in the transactions listing.
Charges are shown in orange. The color of the charge gives more information about the settings of each charge. Light-colored charges with a dark border represent standard charges that are being included in the past due calculations for the account. The light-colored charges without a dark border represent standard charges that are not being included in the past due calculations of the account. The dark-colored charges are payoff-only fees.
Amount and Days Past Due Adjustments
The transactions report will also show you when the amount or number of days past due has been adjusted. These transactions are white like scheduled payments.
Finally, if you see a to the right of an actual payment or credit, that means that transaction has been flagged as a charge off. If you see an * to the left of a scheduled payment date, that means that due date has been changed. If you see the icon, it means the amount shown for that period has been rounded.