Account Modification
Updated 6 months ago
Introduction
Making loan modifications, or changing the terms of a loan part way through the loan, is possible in LoanPro. A loan modification is essentially a new loan that is placed on top of an old loan. The history and transactions from the old loan are present, but the terms of the new loan take precedence.
This tool is only available on activated loans. The terms of inactive loans aren't locked in, so you can change them through the normal Setup Terms page.
Modifying a Loan
To modify a loan, navigate to Account Setup > Setup Tools within any activated loan. Then select "Modification" from the drop-down menu.
Click the blue "Modify Loan" button on the far right, which pulls up this window.
It starts with a quick warning. If you’re sure you want to modify the loan, enter the date the modification will apply in the “Modification Date” field, then click "Continue".
Expand the Full Text of the Warning
If you want to edit any other loan values, simply inactivate this loan, edit the values, save and activate. Using this tool will reset the loan as of the modification date. Meaning it is like creating a new loan as of the date, merged with the history on the loan prior to the modification. This will fully reset values such as Change Due Dates, Suspend/Resume Interest, Days Past Due, Amount Past Due, etc. Also keep in mind that you have to reset any escrow adjustments to apply post modification as those are also modification specific values.
Entering modification terms works like it does when you create a new loan, except that you have a “Payoff Date” drop-down and “Last Activity” field at the top of the page. Select a date from the Payoff Date drop-down to change the value in your “Total Amount” field to the payoff for a specific date. Enter the loan terms, escrow calculator information, additional information, advanced configuration data, and late fee configuration for the modification. Click "Save & Calculate" and then "Activate" to continue.
The modifications page shows each of the modifications on the account. Click the information button on the far right to view information about any of the modifications. If an account has been modified, a "Cancel Modification" button will appear at the top of the Setup Terms page. You can cancel any modifications on an account as long as you cancel them in reverse chronological order.