REVERSING A REFINANCED LOAN

 

To reverse a refinanced loan, you must reverse both the ‘Payoff Refinance’ of the old loan, and the advance done on the new loan. 

 

1.   Print the histories of both the new loan and the payoff of the old loan.  

 

2.   Check the system date.  If the loan is being reversed on the same day it was issued proceed to step

      number 3. 

 

      If the loan date is not the current system date and no other transactions have been done to the new loan, change the posting date as follows:

                   1)   Access the 'Voucher Display Reprint' transactions in Program #2          

                   2)   Use the ‘Down Arrow’ key to move the cursor to the ‘Change Posting Date’ field.

                   3)   Press the ‘HOME’ key.

                   4)   Change the posting date to agree with the date the loan was originally entered.

                   5)   Enter ‘Y’ to confirm this change.

 

3.   Access the 'New Loan/Advance' transactions.

 

4.   Enter the 'LOAN NOTE NUMBER' of the New Loan, which is going to be reversed.

 

5.   In the ‘Loan Type’ field enter ‘RF’

 

6.   Your cursor is now in the ‘Prior Refinanced Amount’ field.  Enter the amount of the payoff of the old loan with a minus sign (-) before it.  (You will see this amount on the history printout.

      NOTE:  This payoff is the total of both principal and interest.)

 

7.   In the ‘INSURANCE CODE/PREMIUM’ field choose the correct entry as follows:

                   1)   If the original loan did not have insurance, skip this field.

                   2)   If the original loan had monthly-add-on insurance and a code was entered in this field,

                         enter ‘N’ to indicate there is no loan insurance for this note number.

                   3)   If a premium was added to the original loan, enter the same amount with a minus sign (-)

                         before it.

 

8.   Press the 'ENTER' key until you reach the fields to enter 'NEW LOAN FUNDS'.  

 

9.   Choose the same field that was used for the original loan (check, cash or transfer).

 

10. In the appropriate field enter the amount of funds advanced on the original loan with a minus sign (-) in front of it.

 

11. If the ‘Transfer to Shares’ field was used, enter the share type the funds were transferred to in the appropriate field.

 

12  The new loan balance displayed on this screen should now be zero. 

 

13. No more changes need to be made on this note number, so press 'ENTER' until you are prompted to press ‘F11’ for the voucher.

 

14. Enter your Teller Password but do NOT print the voucher.  

 

15. Press ‘ESC’ and use the arrow key to highlight ‘Loan Payments/Charges’

 

16. Enter the ‘LOAN NOTE NUMBER’ of the note that was paid off.

 

17. Choose transaction code #040 Payoff-Refinance.

 

18. In the ‘Desired Transaction Amount’ field enter the entire amount (principal + interest) of the original ‘Payoff Refinance’ with a minus sign (-) in front of it.

 

19. In the ‘FINANCE CHARGE’ field enter the amount of the payoff that was applied to finance charge

      with a minus sign (-) in front of it.

 

20. The projected loan balance shown in this transaction window should now be the same as it was before the payoff.  (Refer to the history printout.)

 

21. Press ‘F11’ to view the voucher, enter your Teller Password and press the ‘F9’ key to print the voucher and enter the transactions.