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.
To modify a loan, navigate to Account Setup > Setup Tools > Modification inside any loan account.
Click Modify Loan.
This will bring up a warning popup. If you’re sure you want to modify the loan, enter the date the modification will apply in the “Modification Date” field. Click Continue.
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 save your modification.
The modifications page shows each of the modifications on the account. Click the information button to the left 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.