Delinquency buckets show how many payments a loan is past due, each delinquency bucket represents a missed payment on an account.
To see the delinquency buckets on an account, open the account and navigate to Reports > Calculated > Delinquency Buckets.
The Delinquency Buckets section displays four columns:
- Delinquency Bucket - This column displays each delinquency bucket (i.e. missed payment) on an account. Bucket 1 represents the most recent missed payment, Bucket 2 represents the second most recent missed payment, Bucket 3 the third and so on.
- Date - This column displays the date of the delinquency bucket.
- Amount Due - This column displays the total remaining amount due for each bucket.
- # Of Days Past Due - This column displays the number of days past due for each bucket to the current date.
As new payments are logged on the account, they will go towards the Amount Due of the first Delinquency Bucket as shown below:
In this example, there was a recent payment logged on this account for $558.86, so the Amount Due was lowered to $7.28.
Delinquency Buckets In Rules
Delinquency bucket variables can be used in rules. This is done most often in conjunction with an Amount and Days Past Due rule applied. Usually, customers want to do something like this:
If a certain percentage of the payment has been made, reset the amount and days past due to 0. The rule used to do this will look something like the following:
(<= (-> status-delinquent-bucket-balance :LARGEST-BUCKET :amount-due) (* (-> status-delinquent-bucket-balance :LARGEST-BUCKET :scheduled-payment) 0.1))
The delinquency bucket balance variable has a property called LARGEST-BUCKET. This will contain the information about the highest numbered bucket. This means that if the system has information for a loan on buckets 1, 2, and 3, bucket 3 will be identified as the largest bucket and it's information can be accessed using the LARGEST-BUCKET property.
The rule above will evaluate to true if the amount due in the largest bucket is less than or equal to 10% of the payment amount for that bucket. Remember, each bucket corresponds to a specific payment. The 0.1 can be easily changed in this rule to the decimal equivalent of any percentage of the payment. This rule can then be used to reset the amount and days past due.
Note: The delinquency bucket doesn't take fees paid into account. That means that if a payment for $100 came due, and $90 was paid, but $10 of it went towards fees, only $80 would apply to the payment amount. This means that only 80% of the payment would show as paid.