Loan Modification - Overview

To modify an existing loan, click on the loans tab in the menu bar.
Search for the loan you wish to make adjustments to and click on the View button.

Once the loan is selected for viewing, all of the loan modification options will be available under the "Modify Loan" drop-down menu.

The options available through the Modify Loan menu include:

• Interest Rates - changes the interest rate for the current loan Pay Period, by selecting an effective date, to begin applying the desired interest date on a Per Diem basis.
• Add / Modify Loan Principal - allows a lender to add to the principal for the existing loan during a current Pay Period. 
• Late Fees - changes the way late fees are applied to a loan. Allows the lender to change the number of days for the grace period if selecting either of the options that will collect a fee.
  • Example: Switching from a percentage fee to charging a flat fee if a late fee charge is expected. Or, forgoing a late fee altogether by selecting the "No Late Fees will be charged" option. 
• Extensions - allows the lender to add periods (terms) to an existing loan. For now, the only Extension Type is "Simple".
  • Example: In a scenario with a 5-year loan, 60 periods (terms) are standard, but this option will permit for an extension of the loan's life. Adding 12 periods will edit the loan's schedule to a total of 72 periods (terms). 
• Payment / Amortization - This allows a lender to edit the payment terms for a current open period.(Open - a period that has not had a payment made to it.)
  • Changing the details to a pay period this way helps if the lender is looking to switch between amortization or a fixed payment. You'll have the option to apply these changes to the remaining periods of the loan.
• Modify Due Date - changes the due date for the current pay period. Allows the lender to decide whether or not they will be collecting interest for the gap between due dates, which will be added to the following scheduled payment.

A walkthrough for each of these options is available in further articles of this Loan Modification guide.