Default Payoff/Small Balance Write-off Process

General

A major function of LoanPro software is to make common company processes as streamlined and effective as possible, to save users on time and manpower. This article will cover how this is generally accomplished with the Payoff/Small Balance Write-off process.

Diagram

The flow chart below outlines all the changes and processes implemented by LoanPro to close out loan accounts if there is a small balance left remaining on the account after maturity. 

The Process

In the event that a loan account has a balance between $25.00 and $0.00 the Payoff/Small Balance Write-off Process will be implemented by LoanPro.

  • If the payoff amount is between $25.00 and $0.00, the loan is in an 'Open' status, the 'Closed Date' Field is blank or null, a payment was made today, and the loan is not charged off, the loan will be assigned the 'Open - Pending Payoff' status.
  • If the payoff amount is between $25.00 and $0.00, the loan is in the 'Open - Pending Payoff' status, and the last payment was made 7 days ago, the remaining balance on the loan account will be credited.
  • If the payoff amount is $0.00, the loan is in the 'Open - Pending Payoff' status, the last payment was made 7 days ago, the loan is not charged off, OR the payoff amount is between $0.00, the loan is in the 'Open - Pending Payoff' status, and the account was credited today, the loan will be assigned the 'Paid Off- Paid in Full' status, the 'Closed Date' will be set to the current date, and the 'Credit Status' will be set to 13 - Paid or closed account/zero balance.
  • If the payoff amount is $0.00, the loan is in the 'Paid Off - Paid in Full' status, the 'Closed Date' was 30 days ago, the loan will be archived. 
  • If the payoff amount is greater than $25.00, the loan is in the 'Open - Pending Payoff' status, OR the loan is in the 'Paid Off - Paid In Full' status, the payoff is greater than $0.00, and the loan has been credited, the loan will be assigned the 'Open - Repaying' status, the 'Closed Date' field will be cleared, and the 'Credit Status' will be set to 0 - AUTO - Allow system to manage this field.

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