Glossary

General

LoanPro is a very advanced loan servicing platform.  As such, we give many options for setting up, servicing, and closing loans that aren’t available in other software packages.  Some of the terms we use will therefore 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 leave them in the comments of this glossary article so we can make sure the list is up to date.

Definitions

Actions & Results – 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. Actions and results may be set up in Settings > Loan > Labeling > Action & Results.

Activate/Activated – This refers to a kind of “turning on” of a loan or lease.  Activating an account will cause the calculations on the loan to take into account actual dates and payment history.  An account that hasn’t been activated exists in an abstract piece of time with sense of past or future.

Additional Information – Group of numeric fields on an account that can be updated manually to track information but do not affect loan calculations.

Additional User – 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 fiscally responsible for the account.

Advancement – Transaction placed on an account that raises the principal balance.

Advanced Configuration– Refers to the advanced calculation settings on a loan. These would be settings that adjust the type of calculations being made on a loan (e.g. Calculation Type, First Period Days, Interest Application, etc.).

Agent User – This refers to users that have access to a tenant (company-level account) inside of LoanPro.

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 and so that data can be safely sent and received from a proprietary application without having to give away access to the application’s code base.

Apply Date – The date that a transaction or charge will begin to affect the calculations of an account.

APR – Annual Percentage Rate. Calculated rate that helps customers asses the actual cost of a loan. The APR is also used for the governmental regulation of lending.

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.

AutoPay – Tool that allows users to schedule payments to be processed and applied at a date and time in the future. 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.

Between Periods – 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 in accordance with the loan schedule.  In this method, payments made on dates other than schedule payment dates can affect the interest accrual in the next loan period depending on how you choose to have payments apply.

Between Transactions – 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 in accordance with the loan schedule.  In this method, if payments aren’t made exactly on payment due dates, payments will usually apply to all the interest that has accrued since the previous payment first and then to loan principal.

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

Brackets – Advanced search restrictions that allow you to filter accounts based off of ranges of system calculated amounts (e.g. Loan Aging, Days Past Due, Amount Past Due, etc.). Bracket ranges can be updated in Settings > Company > Brackets

Change Due Date – LoanPro tool that allows you to change or update due dates on an account.

Charge – Additional fee being applied to an account after origination (e.g. Late fees, Convenience fees, Repossession fees, etc.).

Checklist – List found within an account in Servicing > Checklist containing individual items that may be checked off on an account. Checklists are useful in classifying loans, and automating loan processes. Checklists may be created in Settings > Loan > Checklist.

Collateral – Individual or company property securing repayment of a loan. This property may be forfeited in the event of a default on the account.

Computation Field – User created field that is capable of performing calculations to display or store information, using user defined functions. Computation fields can be created in Settings > Loan > Custom Fields > Computation.

Context Engine – The Context Engine is a large database of retrievable variables, available for use throughout LoanPro Software.

Credit – Transaction placed on an account to forgive portions of the dept. A credit is different than a charge-off. Giving a credit is essentially forgiving dept.

Credit Limit – Closed-ended installment loan with the additional component of a lender-specified, maximum dollar-amount limit, that the borrower may access through additional advancements of funds by the lender. The maximum dollar-amount limit (credit limit) may be specified during the initial setup of the loan.

Cross Tenant Access – Ability to access multiple tenants (companies) within LoanPro. If a user has access to multiple tenants, they are said to have Cross Tenant Access.

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

Curtailment Dates – LoanPro tool that allows you to quickly update curtailments on an account.

Customer – This refers to borrowers, lessees, or potential borrowers or lessees inside of LoanPro.

Customer Website – Website provided by LoanPro that gives your customers a portal to login 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.

Custom Field – User created field that is not native to LoanPro Software. Loan custom fields can be found in Settings > Loan > Custom Fields.

Custom Forms – Forms that have been created within LoanPro that contain dynamic information that may be updated on a per customer basis. 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.

Custom Query – Report that allows users to pull any information tracked by LoanPro into an excel sheet. Custom Queries may be generated in Reports > Administration > 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, etc.).  Data options vary between sections.

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.

Dealer Profit – Capital gained by the dealer in the sale of loan collateral. This amount is static and does not take into account any loan information.

Delinquency – Period of time when a customer has failed to pay the amount due on their account.

Delinquency Buckets – Amount of payments that a loan is past due, each delinquency bucket represents a missed payment on an account. 

Document – File that has been saved within LoanPro that may be downloaded for later use. There are multiple locations for storing documents throughout LoanPro, one example is Loan Documents. Loan documents can be saved inside of an account in Servicing > Documents. 

DocuSign– Service that facilitates the signing of documents online in a legally-binding way.

Escrow – Functionality that is designed to let you add additional amounts to regularly scheduled payments that don’t apply to any other important part of the loan (e.g. interest, principal, discount, fees, etc.). Adding escrow to an account is similar to adding an additional fee to each payment.

Escrow Buckets – System for classifying escrow on an account. Escrow buckets may be created in Settings > Loan > Escrow > Buckets.

Escrow Calculator – Tool within LoanPro that is designed to help you compute the per-period escrow amount for a loan account.

Event Based Notifications – Notifications (sms, email, system, mail house, web hook) that are sent based off events.  Events are generally user actions on accounts. Event based notifications can be created in Settings > Company > Notifications >  Event Based Notifications.

Finance Charge – 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 Insurance. 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 – Advanced search restrictions that allow you to filter accounts based off of several classification systems available within LoanPro (e.g. Portfolio, Source Companies, Checklists, etc.).

Human Activity – Actions taken by an agent user on an account in LoanPro. In order for the Last Human Activity Date to be updated on an account, a user must update and save a information within the account. Simply opening the account will not update the Last Human Activity Date.

Import – Tool that allows users to quickly update, edit, or delete large amounts of information in LoanPro, using excel files. The Import tool is found in Settings > Company > Import.

Interest – Amount of money that is equal to a percentage of the principal amount that accrues daily on a loan account based off of a mutually agreed upon yearly rate. The borrower will need to pay all accrued interest before an account is closed out.

Interest Application – In LoanPro, the interest that a payment will apply to can be calculated in 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.

IP Restrictions – Restriction settings that allow or prohibit login to your company from specific IP addresses (login locations). IP Restrictions may be updated in Settings > Company > IP Restrictions.

Loan Settings – Settings that do not directly affect the calculations of a loan. The loan settings generally affect the classification of an account (e.g. Loan Status, Credit Status, EBilling, etc.). Loan settings are located at Loan Settings > Settings inside of every loan account.

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.

Modification – Tool with which you may update settings, numbers, and calculations on an account. Performing a modification on an account is essentially writing a new contract for the account while saving the original loan information and loan history.

Next Payment Due Date – This refers to the next date on which 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.

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

Payment Breakdown – Specified application of a payment to different components of a loan (e.g. interest, principal, fees, etc.).

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

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.

Payoff – 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 – Amount of interest that accrues daily on an account (also referred to as Daily Change).

Principal – Money that has been lent to the customer that is used for interest accrual calculation.

Portfolio(s) – A classification system available within LoanPro that allows companies to specify groups of loans.

Promises – 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, etc.).

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

Process Wizard – Guided process that helps LoanPro users take actions on accounts without a high possibility of error. Process wizards may be created in Settings > Loan > Process Wizard.

Restriction Group  Group of restrictions that 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.

Resume Interest – Starts interest accrual again on an account after a Suspend Interest has been placed on the account.

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

Role – Set of access settings available for users within LoanPro. Roles can be viewed and edited in Settings > Company > Access > Roles.

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

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.

Rules Applied – LoanPro tool that allows users to create rules to perform specific actions on accounts when accounts meet a specified set of criteria.

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

Shortcut – Quick access button available in the loan summary of an account. You may edit user shortcut groups in Settings > Company > Access > Shortcuts.

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

Stoplight – Classification system designed to give you an idea of the overal "health" of an account at a glance.

Sub-Portfolio – Further classification 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.

Suspend Interest – Stops new interest from accruing on an account starting from a specified date.

Tenant – A tenant is a company-level account inside of LoanPro software. A single company can have more than one tenant inside LoanPro.

Tools – Section within LoanPro containing useful advanced loan servicing tools.

Total Sales Price – 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 – Notifications (sms, email, system, mail house, web hook) 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.

Underwriting Fee – 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 – Vehicle Identification Number. The identifying code for a specific automobile. No two vehicles will have the same identification number.

Warranty – Guarantee 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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