Payment defaults
Streamline your payments with customizable defaults.
When an agent user starts logging a payment, they can choose options for how the payment is made, what parts of the loan it will apply to, and other details. Payment Defaults are the values that LMS automatically loads in for each option, and by customizing those defaults to match your loan products and lending model, you can make it easier for your agents to take payments. The settings can still be changed as a servicer logs the steps.
These same defaults are used in the API for any fields not included in your payload.
How payment defaults work
Any set defaults will appear when a servicer logs a payment. Defaults allow lenders to set their preferred settings but they can be changed by the servicer at the time of payment.
To set the defaults for new payments, navigate to Settings > Defaults > New Transaction > Payments inside your company account.
The first thing to note is the drop-down options for Loan Class and Loan Type. In the same way that the system uses loan-type specific defaults when first creating a loan, it also draws from a set of payment defaults that are specific to each combination of loan type and loan class. (A real estate lease will have a different set of defaults from an automotive lease, which has a different set from an automotive installment loan, and so on.)
First, select the right combination of class and type. Then, click the ‘Edit’ button in the top right corner. Here's a breakdown of all your options:
| Default | Description |
| Payment Type | Payment Type (or ‘waterfall application’) determines the order in which the money goes to different parts of the loan, like principal, interest, fees, or escrow. |
| Payment Method | Payment methods refer to the actual way that money comes from a borrower to you, like cash, bank cards, or bank accounts. |
| Extra Towards – Between Periods |
If a borrower pays more than is currently due, the extra towards settings will determine where that money goes—much like how payment type determines where money goes when there's not enough to cover everything that's due when the payment is made. There are different options depending on the loan's interest application setting, so the payment default has a field for both, and will pull the extra towards setting that's correct for each loan. |
| Extra Towards – Between Transactions | This is just like the above setting, but will be used when the loan's interest application setting is Between Transactions. |
| Service Fee | This determines whether or not the payment will include a convenience fee. |
| Authorization Type | When the payment method is ACH, you'll be asked for an authorization type, (WEB, CCD, PPD, or TEL) which tells how your received the borrower's permission to make a draw from their bank account. |
| Early Payment | If a borrower makes a payment before the due date, this setting determines whether they get the benefit that payment counting toward the loan immediately, or whether the loan should behave as though the payment were made on the scheduled date. |
| Reset Past Due | If the loan is past due and a borrower makes a payment that doesn't cover the entire due amount, this setting determines whether you still regard them as past due, which may affect your credit reporting or other processes. |
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