LoanPro Glossary

Introduction

LoanPro is an advanced loan servicing platform. As such, we provide a wealth of options for setting up, servicing, and closing loans that aren’t available in other software packages. Thus, some of the terms we use will be unfamiliar to many. This article should be used as a glossary and will help with unfamiliar terms.  

If there are words or phrases you encounter in the software or this help system that are unfamiliar and not covered here, please reach out to a Help Materials team member so we can make sure the list is up to date.

Definitions

Actions & Results – This is a tool within LoanPro that allows agent users to quickly record when they have performed a certain action on an account, and select an associated result of that action. This helps agents follow compliance rules. Actions and results may be set up in Settings > Loan > Labeling > Action & Results. See, Actions & Results.

Activate/Activated – This refers to a “turning on” of a loan or lease.  When an account is activated, the calculations will begin to use actual dates and payment history. An account that has not been activated exists in an abstract piece of time with no sense of past or future. See, Activated Loans.

Additional Information – This is a group of numeric fields on an account such as (net amount, taxes, warranty, sales price, GAP) that can be updated manually to track information but they do not affect loan calculations. To get to the additional information tab, navigate inside a specific loan, click 'Account Setup'. Additional information is included in both 'Setup Terms' and 'Setup Tools'. See, Additional Information.

Additional User – This is a user associated with an account that is neither the primary or secondary customer. Additional users have access to account information, but they are generally not associated with the loan contract so they are not responsible for repayment of the loan.

Advancement – This is a transaction placed on an account that raises the principal balance (you can set up a specific date for the advancement to apply on the loan). You can log an advancement in Account Setup > Setup Tools inside a loan. See, Log an Advancement/Credit.

Advanced Configuration– The advanced configuration lets you select important settings for your loan. These are settings that adjust the type of calculations being made on the loan (Calculation Type, First Period Days, Interest Application, etc.). See, Advanced Configuration.

Agent User – This refers to users that have access to a tenant (company-level account) inside of LoanPro. Access to areas of the LoanPro software can be granted to agent users in the form of roles. See, Agent Users.

API – API stands for application programming interface and provides a way to send and receive information from a software application. The purpose of this is so that programs written in different programming languages can communicate with each other. Data can be safely sent and received from a proprietary application without giving access to the application’s code base. See, APIs 101.

Apply Date – The date of when any transaction will be charged on the loan.

APR – Annual Percentage Rate (APR) is a calculated rate that helps customers assess the actual cost of a loan including all fees and extra costs. APR is a number devised by the US government in an attempt to give consumers more accurate numbers to compare loan rates between lenders. See, APR.

Archived Account – In LoanPro, if an account is archived it means that the information on the account can no longer be updated and LoanPro's back-end processes will no longer run on the account. This means that when a loan is closed, you can choose to archive it. If you archive a loan, the numbers will no longer be updated every day and no rule evaluations will be run on the loan. See, Archived Loans.

Autopay(s) – This is a tool that allows users to schedule payments to be processed and applied automatically at a future date and time. Payments that have been scheduled using this tool are often referred to as AutoPays. AutoPays may be scheduled inside of an account in Servicing > AutoPay. See, AutoPay Overview.

Between Periods – This is a method of specifying how interest accrues, when the interest comes due, and how payments apply to the loan when payments are not made exactly on schedule. If a payment is made between periods, the interest from the entire payment period will still be applied. However, when the principal balance is lowered (by making a payment) this lowers the amount of interest paid per day.

Example
Say there are 30 days in a period and the loan is for $10,000. The borrower makes a payment after the first 9, so we multiple 10,000 by 9 and the second balance (say $9,500) by 20. Then we add these together and divide by 30 (days in period) to get the average daily balance. Then you can multiply the average daily balance by the daily interest rate to see how much interest is charged each day.

Between Transactions – This is a method of specifying how interest accrues, when that interest comes due, and how payments apply to the loan when payments are not made exactly on schedule. If a payment is made between transactions the payment will pay off the interest. Afterwards, the interest will start accruing again.

Example
Say a loan starts on 03/9/22 and the first payment is due on 04/9/22. Interest will accrue every day. If the borrower makes a payment 10 days after the loan starts, they will be paying interest for those 10 days. The payment will still be due on 4/9/22, but the payment will only have to cover the remaining 21 days of interest and more money will be applied to the principal balance. If a borrower waits to make a payment they will pay the interest of each day since they last paid before the money is applied to the principal balance. There are other settings that can affect this so keep in mind this can change for specific situations.

Book Value – This is the actual value of the loan collateral. See, Collateral

Brackets – Brackets are designed to let you filter your reports and searches by a specific range for each bracket item (Loan Aging, Days Past Due, Amount Past Due, etc.). Your bracket filters can be found in the advanced option search; bracket ranges can be updated in Settings > Company > Brackets. See, Brackets.

Change Due Date – This is a LoanPro tool that allows you to change or update due dates on an account, one at a time, at any point during the life of a loan. To change a payment due date navigate to Account Setup > Setup Tools > Change Due Date. See, Change Due Date.

Charge – A charge is an additional fee applied to an account after origination (Late fees, Convenience fees, Repossession fees, etc.).See, Log a Charge.

Checklist – Checklist is a tool that helps users manage processes for loans that aren't natively supported by LoanPro. When a checklist item is marked as complete, the date and time is recorded in LoanPro so you can see when each item was completed. Checklists are useful in classifying loans and automating loan processes. Checklists can be created in Settings > Loan > Checklist. See, Checklists.

Collateral – This is individual or company property that secures the repayment of a loan. This property may be repossessed in the event of a default on the account. Within LoanPro, you can secure a loan with up to 50 items of collateral, or none at all. See, Add Collateral Information.

Computation Field – This is a user-created field that is capable of performing calculations to display or store information, using user defined functions. Computation fields keep track of values that are computed using existing system values. Computation fields can be created in Settings > Loan > Custom Fields > Computation. See, Create Computation Field.

Context Engine – The Context Engine is a large database of retrievable variables, available for use throughout LoanPro Software. Context engine variables can be used in several sections of LoanPro such as custom forms, notifications, and rules applied. See, Context Engine Glossary.

Credit – A credit is placed on an account to forgive portions of the debt. A credit is different than a charge-off; giving a credit is essentially forgiving debt, you can use credits to pay off a loan. See, Log an Advancement/Credit.

Credit Limit – This is a close-ended installment loan with the addition of a lender-specified, maximum dollar limit, that the borrower may access through additional advancements of funds by the lender. The maximum dollar limit (credit limit) may be specified during the initial setup of the loan. If a lender attempts to advance an amount that will cause the loan to exceed the borrower's credit limit, LoanPro will display a warning. See, Credit Limit.

Cross Tenant Access – This gives agents the ability to access multiple tenants (companies) within LoanPro, without different login credentials for each tenant. The user can then be designated different levels of access depending on the tenant they are working in. See, Cross Tenant Access.

Curtailment – A curtailment is a payment on a flooring loan.

Curtailment Dates –This is a LoanPro tool that allows you to quickly update curtailments on an account. The curtailment dates setup tool lets you update the curtailment dates for the loan, including curtailment dates that were entered as a part of the loan setup. See, Curtailment Dates.

Customer – This refers to borrowers, lessees, or potential borrowers or lessees inside of LoanPro. Any individual or company that can be associated to a loan. See, Customer Overview.

Customer Website – This is a website provided by LoanPro that gives your customers a portal to log in and view their account. From the customer website customers may take many actions on their account such as making payments, uploading documents, creating AutoPays, etc. Website access and settings are available in Settings > Website. See, Customer Website.

Custom Field – LoanPro lets you create custom fields to keep track of things that the system doesn't track by default. Custom fields are commonly used on custom forms. This is a user created field that is not native to LoanPro Software. Loan custom fields can be found in Settings > Loan > Custom Fields. See, Custom Field.

Custom Forms – These are forms that have been created within LoanPro that contain dynamic information that may be updated on a per customer basis. These forms pull information from customers, loans, and other items you've saved in LMS. For example, loan contracts can be created as custom forms. Once a contract has been created as a custom form, each time the custom form is generated, the contract information will match the loan information of the account for which the form was generated. See, Custom Forms.

Custom Query – This is a report that allows users to pull any information tracked by LoanPro into an excel sheet. This lets you export present values and calculated numbers in LoanPro. Custom Queries may be generated in Reports > Administration > Custom Query. See, Custom Query.

Data Options – This refers to the available options for data displayed within sections of LoanPro (e.g. Excel Data Dump, Schedule Report,  Email List). Data options vary between sections. See, Data Options.

Discount - This refers to an amount of principal that was withheld by the lender when a loan was funded. This amount is by definition part of the principal balance on a loan before it is paid, but becomes a revenue to the lender when the principal is paid back. See, Discount.

Dealer Profit – This is the amount the dealership made (gross profit) on the sale of the loan collateral. This amount is static and does not take into account any loan information.

Delinquency – This is the period of time when a customer has failed to pay the amount due on their account. The delinquency report shows you which of your customers owe you money. See, Delinquency Report.

Delinquency Buckets – This is the number of payments that a loan is past due, each delinquency bucket represents a missed payment on an account. To see the delinquency buckets on an account, navigate to Reports > Calculated > Delinquency Buckets. See, Delinquency Buckets.

Document – LoanPro lets you upload documents for specific accounts. These are files that have been saved within LoanPro that may be downloaded for later use. You also have the option to upload documents for specific customers. Loan documents can be saved inside of an account in Servicing > Documents. See, Document.

DocuSign – This is a service that facilitates the signing of documents online in a legally binding way. LoanPro is integrated with DocuSign so you can easily have your customers sign custom forms you have created. See, DocuSign.

Escrow – This is a tool that lets you add additional amounts to regularly scheduled payments outside of other parts of the loan (interest, principal, discount, fees, etc.). Adding escrow to an account is similar to adding an additional fee to each payment. See, Escrow.

Escrow Buckets – This is a system for classifying escrow on an account. Each escrow bucket has three main sections (transactions, adjustments, and settings). Escrow buckets may be created in Settings > Loan > Escrow > Buckets. See, Escrow Buckets.

Escrow Calculator – This is a tool within LoanPro that is designed to help you compute the per-period escrow amount for a loan account in the loan setup section. See, Escrow Calculator.

Event Based Notifications – These are notifications (SMS, email, system, mail house, webhook) that are designed to notify your borrowers and employees of what changes may be made to the loans inside the LoanPro system. Event based notifications are sent out when specific events occur in the customer's account. Event based notifications can be created in Settings > Company > Notifications >  Event Based Notifications. See, Event Based Notifications.

Finance Charge – This is the amount that the customer will pay for the loan, apart from the actual loan amount. Depending on settings, this will include scheduled interest, escrow, and the underwriting fee at loan origination. This number will not include principal or fees charged after origination.

GAP Insurance – Guaranteed Asset Protection (GAP) Insurance is insurance that can be purchased to make up the difference in the event that collateral is claimed as a total loss, and the amount of compensation received for the collateral from insurance is not enough to pay off the remaining balance on the loan account. This is commonly used in auto lending.

Grouping – This is an advanced search restrictions that allow you to filter accounts based off of several classification systems available within LoanPro (e.g. Portfolio, Source Companies, Checklists) most of these options can be selected from a drop-down list. See, Grouping.

Human Activity – These are actions taken by an agent user on an account in LoanPro. For the Last Human Activity Date to be updated on an account, a user must update and save information within the account. Simply opening the account will not update the Last Human Activity Date. This is the most recent date as of quoted date that activity has been done on the account, excluding activities performed by LoanPro software. See, Human Activity.

Import – The import tool is a means of moving data into the system in bulk, while maintaining accuracy. To import data, you create a .csv file with the data you want to move into LMS, and then the software can check that the data works with our system. The Import tool is found in Settings > Company > Import. See, Import.

Interest – Interest is money paid regularly at a predetermined rate as a price for borrowing money. This is calculated by a percentage of the principal amount, based off a mutually agreed upon yearly rate. Interest accrues daily and borrower must pay all interest before an account is closed out.

Interest Application – In LoanPro, the interest can be calculated one of two ways. It can either be the total interest that will accrue in a payment period (between periods), or it will be the amount of interest that accrued since the last payment was made (between transactions).  It may seem like these two concepts are the same, but they will only be similar if customers make payments on the correct due dates in the correct amounts.  If a borrower pays early with a between periods interest application for example, all the interest from the payment period will still be due. In the same scenario, but with a between transactions interest application, less interest will be due because only the interest accrued since the last payment will be due. See, Interest Application.

IP Restrictions – LoanPro gives you the option to restrict access to the software by internet protocol (IP) address. These restriction settings allow and prohibit login to your company from specific IP addresses (login locations). IP Restrictions may be updated in Settings > Company > IP Restrictions. See, IP Restrictions.

Loan Settings – This section of a loan lets you control all settings that don't directly affect how the loan is calculated. The loan settings generally affect the classification of an account (e.g. Loan Status, Credit Status, EBilling). Loan settings are located at Loan Settings > Settings inside of every loan account. See, Loan Settings.

Log Date – The date that a transaction or charge was created in the system.

Merchant Services Provider – This refers to any company that provides payment processing services for another company through credit/debit card, eCheck, ACH, or EFT. In order to process bank card payments, a merchant (any company that accepts cards) will need a merchant services provider. See, Merchant Services Provider.

Modification –  A loan modification is like a new loan that is placed on top of an old loan. This tool lets you update settings, numbers, and calculations on an account. Performing a modification on an account writes a new contract for the account while saving the original loan information and loan history. See, Modification.

Next Payment Due Date – This refers to the next date a loan or lease payment will come due. This date is never in the past. It is often assumed that this refers to the first payment or the last payment that was missed on a loan or lease, which is not correct. See, Payment Date Application.

On-After Process – This is a process that occurs automatically within LoanPro after a transaction has been logged on an account (capturing of numbers, updating numbers, running rules, etc.).

Payment Breakdown – Payment breakdown is a specified application of a payment to different components of a loan (interest, principal, fees, etc.). See, Run Payment Breakdown Report.

Payment Method – This is the means used to make a payment (cash, credit card, check). See, Add a New Payment Method.

Payment Profile – This is a specific credit/debit card or bank account.  So, while credit card is a payment method, Wells Fargo Visa 9999-9999-9999-9999 is a payment profile. See, Payment Profile.

Payoff – Payoff is the amount remaining to be paid on an account to completely close out the loan. This would be the sum of all accrued interest, fees, escrow and principal remaining on an account.

Per diem – Per Diem is the dollar amount of interest that accrues daily on an account (also referred to as Daily Change).

Principal – This is the original amount of money that has been lent to the borrower.

Portfolios –Portfolios are designed to help your company specify groups of loans. They can be used to group things like location, loan size, investor, servicing company or any other form of grouping that your company desires. To create a portfolio navigate to Settings >Loan> Portfolio> Portfolio Categories inside your company account. See, Portfolio Overview and Portfolios.

Promises – This is a LoanPro tool that allows you to record commitments made by customers to take a certain action on their account on a certain date (e.g. make a payment, update insurance info). This tool helps you keep track of what your customers tell you they will do, this information is then made available inside of each account and in the promises report. To create a promise, within a specific loan click Servicing > Promises. See, Promises Overview.

Process Date – The process date is the date that the funds are actually transferred to complete a transaction on an account.

Process Wizard – Process wizards are set up to guide you through a complex process. This guided process helps LoanPro users take actions on accounts without a high risk of error. A wizard will move the user between pages inside a loan in a specified order. Wizards can also show information pages that will display loan values and other information to guide the user through the wizard process. Process wizards may be created in Settings > Loan > Process Wizard. See, Process Wizards and Process Wizards 101.

Restriction Group – Restriction groups give you the ability to define the access an agent user has to groups of loans. These restrictions control the permission within a loan, are based on rules, and are created at the company level. These restrictions can be applied to a user if the account they are working on meets a specific set of criteria. To create a restriction group, navigate to Settings > Company > Access > Restriction Groups. See, Restriction Group.

Resume Interest –This starts interest accrual again on an account after a suspend interest has been placed on the account. See, Suspend/Resume Interest Accrual.

Reversed Payment – This is a payment (marked red in Servicing > Payments inside of an account) that is no longer applying to an account. See, Reversed Payment .

Role – Roles are custom access levels that you can assign to agent users within your company. You can create an unlimited number of roles. Roles can be viewed and edited in Settings > Company > Access > Roles. See, Role.

Roll Payment – This refers to using the payment equation to solve for one or more loan terms by entering a specific payment amount. See, Roll Payment.

Roll Schedule – This refers to a customized payment schedule where payment periods or groups of payment periods can have different payment amounts and interest rates. See, Roll Schedule.

Rules Applied – This is a LoanPro tool that allows users to create rules to perform specific actions on accounts when accounts meet a specified set of criteria. With this tool, you can create your own list of conditions and then specify how a loan should change when a condition is met. You can create a rule in Settings > Company > Rules Manager within your company account. See, Rules Applied.

Sales Price – This is the initial cost of the collateral to the borrower. This amount is static and does not take into account any loan information. See, Setup Terms.

Shortcut – LoanPro makes it easier to perform common tasks inside your account by letting you create a group of shortcuts. These shortcuts appear as a set of icons in the header of each customer account. You may edit user shortcut groups in Settings > Company > Access > Shortcuts. See, Shortcut.

SMS Message – These are text messages that are sent to customers within LoanPro. These texts may be sent manually, or automatically based off of triggers or events. See, SMS Message.

Stoplight – This is a classification system designed to give you an idea of the overall standing of an account at a glance using traditional stoplight colors: red, yellow, and green. You can either manually assign a stoplight to an account or you can configure the system so it will assign a stoplight based on your company rules. To set up rules for automatic stoplights, navigate to Settings > Loan Alerts > Stoplight. See, Stoplight.

Sub-Portfolio – Further classification is available within primary and secondary portfolios. Primary and secondary portfolios may contain several sub-portfolios. Sub-portfolios cannot be shared between multiple primary or secondary portfolios. See, Sub-Portfolio.

Suspend Interest – This stops new interest from accruing on an account starting from a specified date. See, Suspend Interest.

Tenant – A tenant is a company-level account inside of LoanPro software. A single company can have more than one tenant inside LoanPro. This is where multiple users share access to the software, you might have dozens of individual agents, each with their own account in LoanPro, but they're all working at the same company.

Tools – This is a section within LoanPro containing useful advanced loan servicing tools. See, Setup Tools.

Total Sales Price – This is the amount that the customer will pay for the loan, apart from the actual loan amount. Depending on settings, this will include scheduled interest, escrow, and the underwriting fee at loan origination. This number will not include principal or fees charged after origination.

Trigger Based Notifications – These are notifications (SMS, email, system, mail house, webhook) that are sent based off of rules that have been written by a user.  These rules are generally based off of actions that happen on accounts automatically within the software, not user actions. Trigger based notifications can be created in Settings > Company > Notifications > Trigger Based Notifications. See, Trigger Based Notifications.

Underwriting Fee – This is a fee associated with the creation of a loan. The Underwriting Fee field in the initial setup of an account is added to the principal amount for most loan calculations. However, using the field properly is necessary for the calculation of the loan APR.

VIN – A vehicle identification number (VIN) is the identifying code for a specific automobile. No two vehicles will have the same identification number.

Warranty – A warranty guarantees that the seller of a product will repair damage or defects of the product for a certain period of time. The Warranty field that may be used to track information regarding customer warranties can be found in the Additional Information of an account.


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