Create New Payment Type


Payment types in LoanPro allow you to choose the order in which payments should apply to the different loan parts (interest, principal, standard fees, payoff fees, discount, escrow, individual escrow buckets). The payment application to the different loan parts is often referred to as waterfall application. This article will go over how to create a new payment type.

How To

Payment types can be created and edited by navigating to Settings > Loan > Payments > Types within your company account.

To add a new payment type, click Add.

Now you can enter the information for the payment type. First, enter a title for the payment type in the Title field.

Next, choose the order of application from the Payment Application selection area. To specify the order of application, click the loan portion that you want the payment to apply to first and then click  to add it to your chosen order. Repeat this process with the other loan portions in the order you want payments to apply to them.

Since discount is a portion of principal, choosing "Due Discount" will also choose " Due Principal" and vice versa. Whichever one you actually select is the one that payments will apply to first.

If you select “Due Escrow” from the payment portions, a new selection will appear that will let you specify the order the payment will apply to individual escrow buckets. You can add escrow buckets to the application order in the same way as you add other payment portions.

If a payment is not fully applied using a particular payment type, the unapplied portion will apply to principal by default. For example, if you were to use a payment type that only applied to standard fees, but there were no outstanding fees on the loan, then the payment would apply to principal instead.

Finally, you can enter a description of the payment type in the description field. This description will be accessible when a payment is logged so you can better understand the payment application.

The Example portion of the page will give you an idea what this will look like on the Payments tab inside a customer account.

Once you have entered the information for the payment type, click Save to save it. You are done!

Note: You also have the option to activate/inactivated payment types. This will affect if they are visible or not in other areas of LoanPro. This is done by clicking the checkmark or x icon to the right of the payment type.

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