### Introduction

We understand what it's like to be a lender: it can be complex. Our goal is to make the process of servicing loans as simple as possible for you, so you can focus on lending. As you know, interest is a crucial part of your lending business. We recognize this, and, using your feedback, we have focused on a new Interest Adjustment Tool to give you more control over the loans you manage. The new tool is available in the newest update and allows you to increase or decrease due interest on upcoming payments.

#### LoanPro's Solution

Like we mentioned, interest is crucial to lending. At times, you may find yourself in a situation where you need to adjust the interest on the scheduled payments of a loan. In the past, adjusting interest in LoanPro's LMS was less than straightforward, requiring users to use advancements or fees. Although this practice worked, it was convoluted and unintuitive.

Our new tool removes the confusion entirely. It can be accessed on every loan just like any other loan setup tool, and the process is incredibly simple.

While it benefits all users, it is especially useful for those who import existing loans into LoanPro's LMS and need an easy way to adjust interest to match their records. The tool is also useful for situations where you lend to borrowers who meet the requirements for special interest rates, such as those who fall under the Servicemembers Civil Relief Act (SCRA).

There are two types of interest adjustments: interest increases, and interest decreases. These do exactly what you are expecting, so we'll skip the definitions. What is important to know is how the adjustments affect the payment's principal amount and total payment amount. In short, interest and principal have an inverse relationship with each other—if one increases, the other decreases an equal amount, thus leaving the total payment amount unchanged. Here's a breakdown of what we mean.

Say your borrower has a total payment amount of $300. Of that$300, $100 of it is interest, while the other$200 is principal. But you want the interest amount to be $200 instead, so you make an interest increase adjustment. Now, the interest amount is$200, but the principal is changed to \$100 since the total payment amount will always remain unchanged. Here's a breakdown of what we mean:

Perfectly balanced, as all things should be.

If you would like to learn more about how interest is applied to loans, our Interest Application article is a good source.

#### Using Interest Adjustments in LoanPro

To make an interest adjustment, begin by navigating to the loan you'd like to adjust. From there, select Account Setup > Setup Tools > Interest Adjustments. On the Interest Adjustments page, you can see the history of interest adjustments on the loan. You can also create a new one; to do so, select 'Add'.

Next, you get to determine the adjustment settings. Here's a breakdown of what options are available to you.

• Title – allows you to name to your adjustment for easier reference later
• Type – allows you to either increase due interest or decrease due interest