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1989-08-07
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LOAN MASTER
Loan Processing System
Version 1.06
Date 07-30-89
Copyright 1989
Bottom Line Software
P. O. Box 1804
Burleson, Texas 76028-1804
817-447-5524
TABLE OF CONTENTS
License agreement and warranty . . . . . . . . . . . . . . . 1
Installation . . . . . . . . . . . . . . . . . . . . . . . . 2
Automatic installation . . . . . . . . . . . . . . . . . 2
WHEN ALL ELSE FAILS . . . . . . . . . . . . . . . . . . 2
Path to data files . . . . . . . . . . . . . . . . . . . 3
Menu operations . . . . . . . . . . . . . . . . . . . . . . . 4
Using the menus . . . . . . . . . . . . . . . . . . . . 4
Selecting menu options . . . . . . . . . . . . . . . . . 4
Data entry screens . . . . . . . . . . . . . . . . . . . . . 5
Data entry cursor control keys . . . . . . . . . . . . . 6
Date Screen . . . . . . . . . . . . . . . . . . . . . . 9
Loan look up menu. . . . . . . . . . . . . . . . . . . . 10
New Loan Screen . . . . . . . . . . . . . . . . . . . . 11
Loan Maintenance Screen . . . . . . . . . . . . . . . . 11
Browse screens . . . . . . . . . . . . . . . . . . . . . 11
Browse Cursor Control Keys . . . . . . . . . . . . . . . 13
Menu functions . . . . . . . . . . . . . . . . . . . . . . . 14
Setting up an existing loan . . . . . . . . . . . . . . 14
Add A loan Record . . . . . . . . . . . . . . . . . . . 14
Edit (change) a loan record. . . . . . . . . . . . . . . 15
Delete a loan record. . . . . . . . . . . . . . . . . . 15
Posting payments . . . . . . . . . . . . . . . . . . . . 15
The posting screen . . . . . . . . . . . . . . . . 16
Display loan transactions. (on screen) . . . . . . . . . 17
Update the parameter file. . . . . . . . . . . . . . . . 18
Year end close out . . . . . . . . . . . . . . . . . . . 20
Report menu functions . . . . . . . . . . . . . . . . . . . . 20
Print trial balance . . . . . . . . . . . . . . . . . . 20
Print data dump . . . . . . . . . . . . . . . . . . . . 21
Print past due report . . . . . . . . . . . . . . . . . 21
Print past due notices . . . . . . . . . . . . . . . . . 21
Print will be due notices . . . . . . . . . . . . . . . 21
Individual past due notices . . . . . . . . . . . . . . 21
Print loan statement . . . . . . . . . . . . . . . . . . 22
Special file maintenance menu . . . . . . . . . . . . . 22
End of year interest statements . . . . . . . . . . . . 22
Data fields, description . . . . . . . . . . . . . . . . . . 23
Visual update system . . . . . . . . . . . . . . . . . . . . 30
Updating the loan file . . . . . . . . . . . . . . . . . . . 31
Posting payments. . . . . . . . . . . . . . . . . . . . 32
Lying to the computer . . . . . . . . . . . . . . . . . 32
Entering Existing Loan Portfolios . . . . . . . . . . . . . . 32
Conversion date. . . . . . . . . . . . . . . . . . . . . 33
Sample setup of existing loan . . . . . . . . . . . . . 34
Existing Loan Setup Sheet . . . . . . . . . . . . . . . 38
New Loan Setup Sheet . . . . . . . . . . . . . . . . . . 39
Loan Master Reports . . . . . . . . . . . . . . . . . . . . . 40
Past Due and Will Be Due . . . . . . . . . . . . . . . . 40
Will Be Due Notices . . . . . . . . . . . . . . . 40
Past due notices . . . . . . . . . . . . . . . . . 42
Loan Master Files . . . . . . . . . . . . . . . . . . . . . 44
File specifications . . . . . . . . . . . . . . . . . . . . . 45
Field definitions for LMLOAN.DBF . . . . . . . . . . . . 45
Field definitions for LMPARM.DBF . . . . . . . . . . . . 46
Field definitions for LMTRAN.DBF . . . . . . . . . . . . 46
Existing Loan Setup Sheet . . . . . . . . . . . . . . . . . . 47
New Loan Setup Sheet . . . . . . . . . . . . . . . . . . . . 48
License agreement and warranty
By using this product, I agree to comply with the following
license agreement.
The program and the users manual contain valuable
intellectual property and trade secrets of Bottom Line Financial
Software, Inc. I understand that I may make as many copies as I
want for backup but I will not sell, rent, loan, give or
otherwise transfer possession of any copy of the program or of
any other materials supplied to any person or other entity.
I may use multiple copies of this software on different
computers in the same office at the same time. I may not use
multiple copies at different offices (addresses). Each different
office, branch, physical location, or address requires a new paid
licensed copy.
This product is supplied with only one warranty. Within 30
days of receipt, if this product fails to perform any advertised
function, I may return it postage prepaid, with a printout of
any erroneous result, or a written description of the advertised
function which failed, for a full refund. Computer rounding
differences are not considered to be erroneous operation.
Bottom Line Financial Software disclaims any other warranty
expressed or implied, including without limitation, the
warranties of merchantability or fitness for any purpose.
IN NO EVENT SHALL BOTTOM LINE SOFTWARE BE LIABLE
FOR LOSS OF BUSINESS PROFITS OR LOSS OF INTEREST INCOME
OR LOSS OF PRINCIPAL PAYMENTS, OR LOSSES CAUSED BY USE
OF SCHEDULES, REPORTS, SCREEN DISPLAYS OR ANY OTHER
OUTPUT FROM THIS SOFTWARE, OR LOSSES CLAIMED BY DEBTORS
OR CREDITORS OF LICENSED OR UNLICENSED USERS OF THIS
SOFTWARE.
Both the software and the manual are furnished under the
terms of this license agreement. Both are copyrighted by Bottom
Line Software and neither may be reproduced or copied except in
accordance with the terms of the license agreement. Both the
Software and the manual are, and remain the property of Bottom
Line Software.
Information in this document is subject to change without
notice.
LOAN MASTER Loan Processing System 1
Installation
Automatic installation
The distribution disks include a completely automatic, menu
driven, installation program. This installation system consists
of several files. To use this system, place the distribution
disk in drive A:
Log on to drive by typing the command:
A:(return)
The colon is required.
When you see the A prompt, type the command:
Menu(return)
and select either hard disk or floppy disk installation.
NOTE:
The autoinstall program does not alter of create a
CONFIG.SYS file. YOU MUST HAVE ONE! SEE THE NEXT SECTION.
WHEN ALL ELSE FAILS
LOAN MASTER loan accounting system uses as many as ten
different files, all at the same time.
DOS uses a minimum of 3 files. Unless it is commanded to
allow more, DOS allows only 8 files to be opened. Eight minus
three leaves only five files available for Loan Master.
The normal default DOS configuration will result in the
system crashing every time you try to run it. Now please read
the following to find out how to make it work.
On your boot disk, or in the root directory of your hard
disk C:, you will find a file called CONFIG.SYS. Display the
content of this file on your screen by typing the following
command:
type d:config.sys(return)
LOAN MASTER Loan Processing System 2
d: indicates the disk drive where the file is located,
either A: or C: usually. The colon is required. (return) means
press the return key. Do not type the letters "(return)".
If the file exists, you will see something like this:
A>type config.sys
files=10
buffers=10
device=ansi.sys
The line beginning with files= is the line in which we are
interested. The number after the = must be 15 or greater. 20 is
good.
You can use your word processing program or any text editor
to change the file if it needs changing. If you use a word
processing program, BE SURE to tell the word processing program
that the file is an ASCII text file when you load it AND AGAIN
when you save it. If this file does not exist on your boot
disk, use the DOS COPY command to copy the sample file to your
boot disk. The sample CONFIG.SYS file is included along with the
other files in this archive.
Path to data files
The Loan Processing system must know where to find it's
data files. The path to the data files is stored in a file named
LMPARM.DB. This file MUST be in the same directory as the program
file LMMENU.EXE. You will find a menu option to update this file
and change the data path.
Alternatively, there are two beginning files furnished.
LMPARM.HD and LMPARM.FD. these are the hard disk and floppy disk
version. The hard disk version specifies that the data files are
in the same directory as the program. The floppy disk version
specifies the data files are on disk B: (and the program file is
on disk A:)
If you are using a floppy system copy the file LMPARM.FD to
your program disk and place all the other data and index files on
another disk in drive B: The program disk will go in drive A:
LOAN MASTER Loan Processing System 3
Help function
Loan Master has a built in help function. Help screens are
available to instruct the operator on various functions and
operations. On screen help is not always available. When it is,
it is accessed by pressing the function key marked F1.
Help screens appear as windows. In some cases, the amount
of text required will not fit in the space available. In these
cases help screens can be scrolled to display more text by
pressing the down arrow or the PgDn keys.
To exit a help screen, press the Esc key. In some cases you
will need to press it twice.
Menu operations
Loan Master is completely menu operated. You never have to
remember any commands.
A menu is a list of tasks, or functions the program can
perform. Entering a new loan, is a menu function. Printing a
trial balance is a menu function. Since one menu cannot display
all the possible functions the system can perform, related tasks
are listed together on menus.
Using the menus
Menus consist of a list of options, or items, preceded by
an option number. The option number is listed to the left of the
menu item. To keep the screen clean and readable, menus are
limited to no more than eight options plus the ninth, return
option. Option 9 is always return.
The return option takes you back to the point in the program
from which you came to the current menu. This may be to a
previous menu or to some other function.
The return option on the main menu returns you to DOS, or to
your automatic menu system, if you have one installed on your
machine.
Selecting menu options
There are two ways to select a menu option.
LOAN MASTER Loan Processing System 4
If you know exactly what you want to do and how to do it,
simply press the numeric key corresponding the menu option. To
select option 3, press the 3 key. You may select either the 3 key
on the typewriter keyboard, or if the NumLock key is set to
numbers, you may use the 3 key on the numeric key pad. DO NOT
use the function key labeled F3.
If you are a new user and not yet confident in your
knowledge of the menu options and the functions they perform, you
may use the cursor keys, or to select a menu option.
Cursor key selection is done by highlighting a menu
selection and pressing the return key.
Highlighting means that one selection will be displayed in a
manner that is noticeably different from the rest of the options.
Highlighting usually results in the selected option being
displayed in reversed colors. Some computer video displays may
handle this in a different manner.
When an option is highlighted, selected, a message will
appear at the bottom of the screen. This message will give
additional information about the selected option.
To select an option, press either the or the keys. If
you press the up key, the highlight bar will jump to the next
higher option on the screen (Lower number, higher physical
position). The down key has the opposite effect.
The highlight bar will "roll around" from top to bottom or
from bottom to top. If you press Up when the bar is on the top
selection, it will "roll around" to the bottom selection and vice
versa.
It is always possible to select any option with either key.
It is never necessary to change keys after you have selected the
key to press.
Data entry screens
When the program needs information from the operator, it
displays a data entry screen. Usually data entry screens occupy
the entire screen. Occasionally, as in the case of a simple yes
or no answer, the computer will open a small window on the screen
and ask "Is this the loan you want? Y/N". in this instance the
remainder of the screen will stay as is was before.
Data entry screens use prompts ( messages, questions ), to
ask for data. It uses fields to receive data. A field is a
specific, isolated, identified, delineated, area in which data is
entered on the screen, stored, in memory or on disk.
LOAN MASTER Loan Processing System 5
Usually prompts will appear on the screen followed by the
data field to its immediate right. This is not always the case.
The prompt may be below, above, left, or right of the data field.
It is the responsibility of the programmer to make it evident to
the user which field refers to which field.
When the prompts and fields are printed on the screen, the
fields may or may not already contain data. If the program is
building a new record, the data fields will be empty. If the
operator has asked to edit an old record, the fields will contain
the old data.
If the program is asking a question to verify a command you
have already given, or implied, the response field will contain a
default answer. A default answer is the answer the computer will
use unless you tell it something different. If you ask to delete
loan number 33, the program will find it and display it on the
screen. It will then ask you, "Is this the loan you want to
delete? Y/N". The response field will contain a "N". "N" then, is
the default answer. If you simply press the <Return> key, you
have answered "N". The purpose for this manner of operation is to
require the operator to think about the answer and to take a
positive step, pressing "Y" before deleting a loan.
Data entry cursor control keys
During data entry, you will move the cursor around the
screen and enter or change data until you have it like you want
it. You will use the cursor control keys to control the cursor.
The cursor control keys are controlled by the NumLock and
the Shift keys. The NumLock key toggles the numeric key pad back
and forth between the numeric mode and the cursor control mode.
The Shift key does the same thing but on a temporary basis.
for example: You have the numeric key pad set for cursor control.
You move the cursor to a numeric entry. Next press and hold down
the shift key, this action changes the numeric keypad to numeric
entry. You now enter your number (still holding down the shift
key) and then release the Shift key. The numeric key pad shifts
back to cursor control.
LOAN MASTER Loan Processing System 6
DATA ENTRY CURSOR CONTROL KEYS
If you are a WordStar fan, you will find the Wordstar
diamond works pretty much as you would expect but none of the
other WordStar commands are implemented.
^ Indicates the Control key labeled Ctrl. Thus ^LeftArrow means
hold down the control key while pressing the LeftArrow key.
This key: Does this:
Home Move the cursor to the beginning of the current
field.
^Home Move the cursor to the beginning of the first
field on this screen.
End Move the cursor to the last character of the
current field.
^End Move the cursor to the beginning of the last field
on this page.
UpArrow Move the cursor to the previous field.
DownArrow Move the cursor to the next field. Will not end
the current input screen by continuing to the next
screen.
RightArrow Move the cursor one character to the right in
the current field.
^RightArrow Move the cursor to the beginning of the next
word in the current field.
LeftArrow Move the cursor to the left one character in the
current field.
^LeftArrow Move the cursor to the beginning of the
current word. If it is already at the
beginning, move it to the beginning of the
previous word.
^T Delete from the cursor to the end of the current
word.
^Y Delete from the cursor to the end of the current
field.
PgUp PgDn Save the data on the current screen and continue
to the next screen.
LOAN MASTER Loan Processing System 7
Esc Continue to the next screen. Do not save the
changes, if any that were made to the current
screen.
^U Restore the current field to its original value.
This only works before the cursor is moved out of
the field. Once the cursor has been moved, the
only way to restore the original value is to
retype it.
Backspace Delete the character to the left of the cursor.
Delete Delete the character under the cursor
Insert Toggle between insert and typeover modes.
LOAN MASTER Loan Processing System 8
Date Screen
This screen is the first data entry screen you will see when
the program starts. This screen is first because it is the most
important data the program will ask of you.
If you make a mistake on one of the loan input screens, you
will affect only that individual loan. If you make a mistake on
this screen, you will affect every loan in the file.
When this screen is displayed, the computer reads the date
from its internal calendar and tells you what it is:
I think the date is 04/04/89
It then reads the date the file was last updated and tells
you that date.
The last update was 04/01/89
You are asked to verify the date. If your computer's
calendar is set incorrectly or not set at all, this date will not
be correct. You can set the date to any date you want, after the
date of the last update. Normally you will set this date to the
current date (the date of the day you are doing the work).
Occasionally, you will set it to a date before the current date.
How is this date used?
When the computer starts updating the loans in the file, It
computes interest and checks for past due status and late charges
beginning the day after the date of the last update, and
continuing to the date you set as the current date.
If you set the current date before or equal to the date of
the last update, nothing will happen. The computer will read the
file and look at all the loans, but since the days between the
date of last update and the current date are 0 or less, it will
skip them all.
If you don't want to update the file.
The file is not updated unless you select the update option
from the menu.
LOAN MASTER Loan Processing System 9
Loan look up menu.
The loan look up menu displays a screen that looks like
this:
Loan Processing
Locate individual loan
1) Locate loan by borrower name.
2) Locate loan by loan number.
3) Locate loan by customer number.
9) Return.
This look up screen is a menu just like the other menus. See
the Menu instructions for details of how it works.
If you select option 1), locate by name. You will be asked
to enter the borrowers name. The search method used is very
broad. If the name or characters you enter appear ANYWHERE in the
name field, the loan will be displayed. Upper and lower case are
ignored.
Loan look up example:
If you enter the characters "Smith", (With out the quotes),
the search will find all of the following loans:
Smith, Jack
SMITH, JACK
Smithfield, Susan
William T. Smith
James R. Goldsmith
The search begins at the beginning of the file and continues
through the file one loan at a time. As each match is found, the
loan will be displayed on the screen and you will be asked if
this is the loan you want. You may respond either Y or N. No
other response will be accepted.
If you respond "N", the search will continue to display the
next matching record until you respond "Y" or until there are no
more loans to check.
When you respond "Y", this is the loan you want, the program
will continue with the requested operation, using the loan you
just selected. If you told it to delete a loan it will delete it,
LOAN MASTER Loan Processing System 10
if you told it to send it a past due notice, it will print the
notice for this loan, etc.
New Loan Screen
This screen us used only to set up a new loan. It cannot be
used to set up an existing loan. Much of the data needed to keep
the status of a loan is computed and changes frequently. This
data is not entered when the loan is new but is computed later by
the computer. This computed data is not displayed on this screen.
Loan Maintenance Screen
This screen is used to display the information about a loan
on the screen. At your option, you may change any data that is
not restricted for security reasons.
This screen displays all the information stored for each
individual loan, including the data computed by the computer
during the update process.
To change data on this screen, move the cursor to the field
you need co change by pressing the up or down arrow key. The down
arrow key moves the cursor down the left column to the bottom and
then up to the top of the right column and continues on down to
the bottom of the left column.
When the cursor is in the field you need to change, you can
enter new data, or change the old data. See the section on cursor
control and editing key functions for more detail.
Browse screens
The browse screen options allow you to browse through the
data files. Each data record is displayed on one line across the
screen. Several records are displayed on each screen with the
fields appearing in columns.
The browse screens use the real field names from the data
files. These names are somewhat more cryptic than the data input
screen prompts but they are readable. They are listed in the
section on the data files. See Data File Specifications for
details of the field names.
LOAN MASTER Loan Processing System 11
The browse screen looks like this:
Record 1 of 136
CUST_NO LOAN_NO CUST_NAME MAKER1
33 1 Smith, Bob Smith, Bob
22 1 Jackson, Wm Jackson, Thomas
22 1 Jackson, Wm Jackson, Thomas
The record contains many more fields than can be displayed
on the screen on a single line. To accomplish the goal of one
loan on one line, the line scrolls across the screen. As you use
the cursor keys to move your view to the right, the columns on
the left side of the screen scroll off the screen to the left
while the formerly invisible columns to the right of the screen
scroll onto the screen from the left.
Try it. It much simpler to do than to describe.
LOAN MASTER Loan Processing System 12
Browse Cursor Control Keys
This key Does this:
Up Move the cursor up one line, (record, loan,
transaction)
Down Move the cursor down one line, (record, loan,
transaction)
Right Move the cursor one column (field) to the
right. If the cursor is in a field and the
editing mode is on, move the cursor one
character to the right.
Left Move the cursor one column (field) to the
left. If the cursor is in a field and the
editing mode is on, move the cursor one
character to the left.
<Return> Turn on the editing mode (feature) and edit the
data in the currently selected field. If the edit
mode is already on, quit editing the current
field, keep the edited field and continue on the
next field to the right.
^ CtrlUp Not used.
^ CtrlDn Not used.
^ CtrlRight Scroll the entire data base one column to the
left. (Moves the cursor to the right)
^ CtrlLeft Scroll the entire data base one column to the
right. (Moves the cursor to the left)
PgDn Move down one page (further into the data base).
PgUp Move up one page (back towards the top of the
database).
^PgUp Move to the top, first record in the data
base.
^PgDn Move to the bottom, last record of the data
base.
End Move to the right most column on the screen.
Home Move to the left most column on the screen.
LOAN MASTER Loan Processing System 13
^End Move to the last field to the right of the current
record and scroll the screen so that field is in
the right most column of the screen.
^Home Move to the first field of the current record
and place the first field of each record in
the left most column on the screen.
Esc Exit the browse function and return to the menu.
Menu functions
Setting up an existing loan
To place an existing loan on the computer, you must first
accumulate all the data needed by this screen and then enter it.
it is recommended you use a data entry form to first assemble and
organize the necessary data and then enter the data from the
form.
See the section on data fields for details of exactly what
each field means and how it is used.
Add A loan Record
This function is used to add a new loan to the data base. It
displays the new loan data entry screen and prompts the operator
to enter the data necessary for the program to begin processing
the new loan.
This screen is necessary but not sufficient for adding an
existing loan to the data base. An existing loan is a loan that
has already been funded and has already earned some interest or
possibly had payments made.
To enter an existing loan, the operator must first set it up
as a new loan using the add a new loan function. When this has
been done, the data requested on the existing loan data entry
form must be looked up or calculated. The existing loan data
entry form is then used in conjunction with the loan maintenance
(Edit a loan record.) screen to enter the data necessary to
inform the program about the loan's present status.
LOAN MASTER Loan Processing System 14
Edit (change) a loan record.
This screen displays all the data in the file for each
individual loan. You can use this screen to just view the data on
the screen, or you can change the data to correct errors.
See the section on data entry screens for instructions on
entering and changing data.
To view a loan on this screen you must identify it either by
name or number. See the section on the loan look up menu.
Delete a loan record.
This option us used to delete a loan from the file. You
cannot delete a loan until it has been paid off.
You must first use the loan look up screen to identify the
loan you want to delete. If it is found, you will be asked to
identify it. "Is this the loan you want to delete? Y/N". If you
answer "Y", the program will check to be sure the loan is paid
off. If it is, it will be deleted. You cannot recover it. It is
GONE.
If the loan is not paid off, it will not be deleted.
To delete a loan that is not paid off, it is necessary to
post a fictitious interest and principal payment for the amount
due.
Posting payments
When the posting option is selected, you will first be asked
to identify the loan which is to be posted by customer and loan
number. Enter these two numbers and press the return key. The
loan requested, if found, will be displayed on the posting
screen. That screen looks like this:
This screen does not display all information about the loan.
It does however display the information needed to identify the
loan and the information needed to post a payment.
LOAN MASTER Loan Processing System 15
The posting screen looks like this:
Post a payment transaction
Cust : 1234 Loan : 2 : Jones, Robert A.
Date of last update : 02/15/86
Total interest due to date : 66.33
Interest due, not yet paid : 33.41
Principal due, not yet paid : 166.87
Late charges due, not yet paid : 0.00
Enter date of transaction : 02/15/86
Enter amount of interest payment : 0.00
Enter amount of principal payment: 0.00
Enter amount of late charge paid : 0.00
Before posting payments turn to the section on cursor
control and editing keys for instructions on how to navigate the
posting screen and to enter and change (edit) or re enter data.
To post a payment:
1) Verify the customer number, loan number and customer name on
the screen to be sure you are posting the correct loan.
2) Observe the date of the last update. It should be today's
date if the posting date is today. If not today's date, it
should be the same as the posting date for the transaction.
If these dates do not agree, the interest accrual will not
be accurate as of the posting date.
If your policy is to charge all interest accrued as of the
posting date, it is vital that the two dates agree.
In the event the payment was due only a few days ago and you
intend to charge only the interest due, not yet paid, the
date of update should be equal to or later than the maturity
date of the payment.
3) The top half of the box displays the following information:
Date of last update
Total interest accrued to date
Interest due not yet paid
Principal due not yet paid
Late charges due, not yet paid
LOAN MASTER Loan Processing System 16
This information is just that, information. This is data you
will need to know to determine how to divide the payment
amount between interest and principal.
4) The bottom half of the screen is the information you must
enter to post the payment.
5) Re read step 2) above. Next enter the posting date of the
transaction.
6) Enter the amount of the payment to apply to interest, if
any. It is not required to collect the interest. If you do
not, it will simply carry forward. It will not be added to
the interest paid or paid YTD however.
7) Enter the amount to apply to the principal. If any. Again as
for the interest amount, it is not required that you make a
principal payment. If desired, or if need be, the entire
amount may be applied to interest.
It IS POSSIBLE to overpay the interest. If you do, the
interest accrued field will show a negative number.
8) Enter the amount of late charge collected, if any.
9) Press return or PgDn to exit the payment screen.
10) You will be returned to the look up screen and asked to
enter a new customer and loan number. You may continue to
post additional loans until all payments are posted. You are
not required to post them in any specific order.
11) To QUIT posting, enter customer number 0 and loan number 0
followed by pressing the return key.
Display loan transactions. (on screen)
This function displays all transactions stored in the
transaction file for the requested loan. The display looks
somewhat like an amortization schedule or perhaps a ledger card.
When you have selected a loan, the program reads the
transaction file and sorts it into order by transaction date and
loan numbers so that it can display only the transactions for the
loan you requested and so that they will be displayed in date
order.
When the screen is full, approximately twelve transactions,
the display will stop and wait for you to view the screen. To
continue to the next transactions, press the return key.
LOAN MASTER Loan Processing System 17
Pressing the return key does two things. It resets the
pointer in the transaction file back in time by two transactions
and then displays twelve more. This is done to give some
continuity from one screen to the next.
Update the parameter file.
Updating the parameter file is done with a data entry
screen, It works just like the other data entry screens. See the
Data entry section for details of data entry.
The parameter file data entry screen looks like this:
Company name :
Address :
Address :
Address :
Days past due notices :
Days will be due notice :
Visual update :
Last master file update :
The parameter file is a data file that stores information
about how the user wants the system to work. The information
stored in this file includes:
Name of user 30 characters
Line 1 of user address 24 characters
Line 2 of user address 24 characters
Line 3 of user address 24 characters
The name is used as part of the header
on the printed reports. When an address
is needed, as on past due notices, this
is the address used.
It is good collection strategy to place
your phone number in the last line of
the address.
LOAN MASTER Loan Processing System 18
Past due limit 2 digits
This is number of days past the due date
that a loan will be marked to produce a
past due notice.
If this field is set to 10 (days), the
loan will receive a past due notice when
it becomes ten days past due.
Will be due limit 2 digits
This field holds the number of days
prior to the payment date at which the
loan should receive a will be due
notice.
If this field is set to 7, a loan with a
payment due on the 20th, will receive a
will be due notice on the 10th.
Do not set this limit very high. If a
notice is received more than about 7 to
10 days early, it will be forgotten
before the due date.
Visual update flag True or False.
Many of the functions which read and
update the files, have visual indicators
which can be displayed on the screen.
These indicators give the status of and
track the progress of the update. These
visual updates do slow down the update
process, and may be turned off.
Setting this flag to True, "T" means the
visual screens will be displayed. If the
flag is set to False, "F" they will not
be displayed.
Date last file update.
This is the date of the most recent file
update to the master file. ON this date,
all loans were processed. The interest
and late charges were calculated, due
and past due dates were set. The file is
LOAN MASTER Loan Processing System 19
ready to print past due or will be due
notices for this date.
This date is read from the system clock
- calendar. It is important that the
clock be set correctly each time the
program is run.
Year end close out
This function is run each year after the December 31st
update and after the year end interest statements have been
printed.
The purpose of this function is to reset the year to date
totals to zero. Interest paid year to date and late charges
paid year to date are reset to zero.
This function can be run at any time if desired. If it is
NOT run at year end, there is no automated way to recover the
year end status of each loan except to return to the year end
backup file. You did keep a backup didn't you?
Report menu functions
Most printed reports are selected from this menu. Year end
reports like interest paid reports for borrowers are located on
the additional file maintenance menu.
Print trial balance
The trial balance report list all loans. Totals are
accumulated for important dollar amounts like current balance,
interest accrued etc.
This report is used for balancing the loan portfolio with
the general ledger, for quick look ups, when the computer is off,
etc. Do not depend on this report for hard copy backup. Use the
file data dump for that purpose.
LOAN MASTER Loan Processing System 20
Print data dump
The data dump report prints every field for every loan in
the data base. The primary purpose of this report is hardcopy
backup. It will also be useful for quick look ups when the
computer is not available and for some auditing functions.
Print past due report
The past due report lists all loans that are past due. This
report is used for collections efforts and auditing. It lists all
dollar amounts and dates related to the past due status of the
loan.
Print past due notices
This function is not a single report but a series of reports
(notices) for each past due loan. The notice lists the borrower,
and the status of the loan along with a message informing the
borrower the loan is past due and requesting payment.
Print will be due notices
Will be due notices, sometimes called payment billings
are notices to the borrower before the due date of each payment.
They remind each borrower a payment will be due soon. Do not
mail these notices so early that the borrower will have time to
forget. The borrower should receive this notice not more than
four or five days before the payment is due.
In the case of annual or quarterly payments, an earlier
notice would be appropriate, perhaps 30 days early.
Individual past due notices
Individualized past due notices are printed one loan at a
time for loans selected by the operator. Rather than a canned
notice, the operator selects the text, or message of the notice.
The program supplies the status information.
LOAN MASTER Loan Processing System 21
Print loan statement
This function prints a statement listing the transactions
for a loan selected by the operator.
The program reads the transaction file, selects the
transactions for the selected loan and sorts them into date
order. They are then printed in a statement format.
This report prints a computed balance. This balance is
computed from the transactions found in the file. T H I S
BALANCE WILL NOT BE CORRECT unless the file contains all
transactions, including the original setup. When a loan is set
up on the system, the original amount is placed in the
transaction file as a principal advance, (negative payment
amount). If the loan is not set up properly, the principal
payment transactions will simply start subtracting from zero.
Special file maintenance menu
This menu lists file maintenance options that are done on a
less frequent basis than most of the other maintenance options.
End of year interest statements
At the end of each year, before performing the year end
closeout. The program will, if requested, print statements for
each borrower listing the amount of interest paid during the
preceding year.
The Statement lists other status information such as past
due status, late charge status, etc.
This is not a single report, but a series of statements, one
for each loan in the file. If a customer has three loans, he
will receive three statements.
LOAN MASTER Loan Processing System 22
Data fields, description
Customer no.
Required. The customer number is a unique number assigned
to each individual borrower. If a borrower has more than one
loan, this number is used to group the borrower's loans together.
If you like, this number can be used to group loans of
different borrowers.
Loan number.
Required. The loan number is a number assigned to uniquely
identify each individual loan. This is different from the
customer number. A customer can have several loan numbers but
only one customer number.
Loan numbers should be unique. No two loans should have the
same number. The program will work if they do, but locating
accounts by loan number will be slightly more difficult.
If you have two loans with the same number and request a
display of one of them, you will see them both, (or all if more
than two) they will be displayed sequentially in the order they
are in the file. You will have to step through them one at a
time until you find the one you want.
Customer name.
Optional. The program does not care about this field but
you will find the reports hard to read if you leave it out. The
customer name is printed on each report to make each item easier
to identify.
Maker1 etc
The makers are the people who signed the note and guarantee
to pay it. All these fields are optional.
The maker may be or may not be the same as the customer
name. The customer name may be Industrial Cleaning Service and
the maker may be Sue Smith the owner.
LOAN MASTER Loan Processing System 23
Comments (two lines)
These lines are optional and may contain any data you wish.
Original amount
Required. This is the face amount of the note. this is the
amount the computer will start with to compute the scheduled
balance which us used to determine if the loan is keeping pace,
falling behind, or gaining on the original agreed payment
schedule.
Current Balance
Required. Computed. This is the amount remaining unpaid.
Each time a principal payment is paid, this amount is reduced by
the principal amount paid. This amount should always be less than
or equal to the scheduled balance. In real life however,
payments are made late, payments are made early, some months have
more or less than 30 days, etc. It will not be uncommon to find
the current balance slightly above the scheduled balance.
This balance should not exceed the scheduled balance by more
that about five or six days interest accrual. If it exceeds the
scheduled balance by more than fifteen days, and especially if
the difference is growing from payment to payment, some
collections efforts should be considered.
Regular payment
Required. Entered. This is the amount of the regularly
scheduled payment. If there is a balloon payment, see the next
field.
Balloon payment
Required. Entered. This is the total amount including
interest of the balloon payment. If there is no balloon payment,
this field should contain zero, $0.00.
LOAN MASTER Loan Processing System 24
No. Regular payments
Required. Entered. This is the number of regular payments.
If all payments are the same amount, this is simply the total
number of payments. If the final payment is a balloon, the
number of regular payments will be one less than the total number
of payments.
No. Balloon payment
Required. This is the payment number of the balloon
payment. The program always assumes there is only one balloon
payment. If the loan is payable in 35 installments of $200.00 and
one final installment of 6,250.00 the number of the balloon
payment is 36.
No payments per year
Required. This is self descriptive. If their payments are
monthly, this is 12. if the payments are quarterly, this is 4.
Etc. NOTE, only commonly used schedules are supported, 52, 13,
12, 6, 4, 2, and 1.
Rate, original
Required. This is the original interest rate on the loan.
If the rate is fixed, this rate will be used throughout the life
of the loan.
This is the rate that will be charged on the first days of
the loan.
If the loan is a variable rate loan, this field IS NOT
CHANGED. If the rate is variable, change the Rate, current field.
Rate, current.
Required. This is the rate used to do the actual interest
computation during the update. When the loan is new, this rate
will be the same as the rate, original. If the rate is changed
after the loan begins to accrue interest, this is the rate to
change.
LOAN MASTER Loan Processing System 25
Interest basis
Required. This is the basis by which the interest is
computed. The update always computes interest every calendar day
during the life of the loan, one day at a time.
Each day the interest formula is computed for every loan.
This is the formula:
(Current balance) x (rate, current)
Daily accrual = ------------------------------------------
(Basis)
The basis can be either 360 or 365. Most banks use 360. This
practice increases your interest income by 1.3889%.
WARNING:
IF YOU DO NOT KNOW WHAT YOU ARE DOING, USING THE 360 DAY
BASIS CAN CAUSE YOU TO RUN AFOUL OF REGULATION Z AND OF
STATE USURY LAWS.
WE RECOMMEND YOU ALWAYS USE THE 365 DAY BASIS.
Date of note
Required. This is the date of the note. The date on the
document. It is usually, but not always, the date the document
was signed. It is the date at which interest will begin to
accrue.
If you need the interest to begin accruing at some other
date, you will have to lie to the computer about the date of the
note.
Date of first payment
Required. This is the date the first payment, payment
number one, is due. This will usually be one month after the date
of the note. All future payment dates will be calculated from
this date.
LOAN MASTER Loan Processing System 26
Date next due
Required. Computed. This is the next scheduled maturity
date. This date is updated every time a payment matures whether
or not the payment is made. This date will always be a future
date.
Even when the loan is past due and the payments are not
being made, this date continues to increment to reflect the fact
that a payment is coming due even though we know it will most
likely not be made.
Date (of) payment due
Required. Computed. This is the most recent date for which
a payment was due but not yet made.
This is the date that keeps up with the past due pr prepaid
status of the loan. If this date is in the future, the loan is
current or prepaid. If this date is in the past, the loan is
past due.
Today is June 20. A payment was due on April 15, May 15, and
June 15. The April payment was made on time. The May and June
payments have not yet been made. The date due (date of payment
due) is May 15. We say "The loan is due for may 15th." It is 36
days past due. (May 15th to June 20.) The date next due however
is July 15. Another payment is due on that date whether or not
the prior payments have been made.
Today is September 5. A payment was due June, July, August,
and September first. They were all made on time. The loan is "due
for Oct. 1". The date payment due is 10-01-xx. the date next due
is also 10-01-xx.
Date last payment
Required. Computed. This is the date on which the last
payment was credited. This may or may not be the same as the
actual posting date because the operator can tell the posting
routine what date to credit the payment.
LOAN MASTER Loan Processing System 27
Date last transaction
Required. Computed. This is the date of the last
transaction, any transaction. If the last transaction was a
payment, these two dates will be the same. If the last
transaction was for example a late charge assessment, the dates
will not be the same.
Date last update
Required. Computed. This is the date of the last update.
It is the date the operator entered as the date of the last
update. It may or may not be the same as the actual calendar date
the update was done.
It is however the latest date through interest has been
calculated and for which past due status has been checked.
It is most important to update the file before posting
payments or printing past due notices or past due reports.
Date maturity
Required. This is the maturity date of the loan. On this
date, the final payment of all remaining interest and principal
is due. If the loan is a balloon note, this date is the same as
the balloon payment date.
Interest accrued
Required. computed. This is the amount of interest which
has accrued on the loan and which has not yet been paid. This
amount may or may not be due.
Every update computes the interest due since the date of the
last update and adds it to this amount. This happens every day.
When an interest payment is posted, this amount is reduced by the
amount of the interest payment.
LOAN MASTER Loan Processing System 28
Interest due, unpaid
Required. Computed. This is the amount of interest due and
unpaid. Every payment date, the entire amount of interest in the
accrued interest field is moved into this field. Note that it is
moved, not added.
The program assumes that at each payment date, all interest
is due. Contact Bottom Line, f you need an exception to this
rule.
Each time an interest payment is posted, the payment amount
is subtracted from this field.
Interest paid (life)
Required. Computed. This is the total of all interest
payments on this loan since it started. This amount is kept for
reference only.
Interest paid (YTD)
Required. Computed. This is the total interest paid on this
loan since the end of last year. Note that this is PAID, not
ACCRUED. This amount is reset to zero at year end.
Late Charges due, unpaid
Required. Computed When a loan is new, this field is zero.
Each time a late charge is assessed, it is added to this field.
When late charge payments are posted, they are subtracted from
this field.
Late charge paid
Required. Computed. This is the total of all late charges
paid since the loan was new. Each time a new late charge payment
is posted, the amount is added to the field.
LOAN MASTER Loan Processing System 29
Late charge paid YTD
Required. Computed. This is the same as the previous
thanks field except it is reset to zero at year end.
Principal due
Required. Computed. This is the amount of principal
required to bring the current balance in line with the originally
scheduled repayment plan. This is more or less meaningless if it
is negative. A negative number indicates the loan is prepaid.
If this amount is positive, a payment has matured and not
yet been paid.
Visual update system
In many cases, computers are somewhat confusing and
frustrating. Computers usually do things in the dark. We can't
see what is going on and we can't understand the results.
Loan Master has a visual update system that, if selected,
displays information about the update procedures continuously on
the screen. These screens range from a very simple record
counter telling which record is being updated to the very complex
and busy data file update screen that displays the contents of
each field before and after the update, and optionally stops for
you to inspect the record in its before and after state.
To use this system you must turn it on. Turning on the
simple screens is done through updating the parameter file. Set
the visual update field to "T", (true).
The data file update is turned on or off when the update is
started. This function slows the update function considerably.
For this reason, it can be turned off even when the other visual
functions are on.
This allows you to have visual status updates during
printing the reports but not during the data file update.
To get acquainted with the system, turn it on when you start
the update procedure, request the pause after each loan function.
When the update starts, the loan status will be displayed on the
screen in the before columns. The interest and status
information is updated and then the new status is displayed in
the after columns. The screen will display the "Press any key to
continue..." message at the bottom of the screen. You can now
LOAN MASTER Loan Processing System 30
inspect the loan status before and after the update calculations.
When you are ready, press the return key and the next loan will
be processed.
For normal operations, you will probably want to turn this
option "on" in the parameter file and turn it "off" for the
update. If you like, you can turn the update display "on" and
the "pause" off. This will result in displaying the loan status
on the screen as each loan is updated but the screen will not
pause for inspection before updating the next loan.
Updating the loan file
A loan earns interest every day, one day at a time. It earns
interest whether you turn on the computer or not. If you must
keep up with very many loans, a payment may come due on any day
of the month.
Loan Master loan accounting software expects to keep up with
an un limited number of loans. It must compute interest on every
loan every day and it must check every loan every day to see if a
payment is due or if it has reached final maturity. This is
exactly how the loan file is updated. Every loan is updated every
day, one day at a time.
We know that you are not going to come to the office and run
the computer EVERY DAY to update your loan file. Thus, the
computer must be able to keep up with the days you miss and
"catch up".
This is how it works. In the parameter file, the program
stores the date of last file update. When the program starts,
the first thing it does is read the system clock and the
parameter file and display the date. "I think today is 03-31-89",
and the date of last update. The program MUST know today's date.
If your system clock is not correct, you must enter the correct
date when this screen is displayed.
As soon as the program knows the correct date, it compares
it to the date of last file update. It then knows how many days
you have skipped. If today's date is 03-20-89 and the data of
last file update is 03-17-89, you have skipped the 18th and the
19th, two days. It needs to update for three days however to
update through the 20th.
In this case, if you order a file update, the program will
read the entire file, one loan at a time, and add one days
interest and check maturities for the 18th. As soon as this
process is finished, it will immediately be repeated for the
LOAN MASTER Loan Processing System 31
19th, and then again for the 20th. When the process is finished,
the entire file will be updated current for 03-20-89.
Posting payments.
The last update was the 17th and you received a payment on
the 18th. If you post the payment before the update. Credit will
be given as of the 17th. You will lose interest for the 18th and
19th on the amount of the principal reduction. If the payment
amount is $100.00 and $80.00 is interest, you will lose three
days interest on 20.00. About two cents.
On the other hand, if you post the payment after the
update, the customer will loose credit for the 19th and the 20th,
about one and one third cents.
Lying to the computer
If you process a large number of loans, or if the amounts
are large enough to make the above numbers significant, you can
get it exactly right by lying to the computer. This is how you
do it.
When you order a master file update, you are told the date
of last master file update and asked for the date of this update.
In the above example, today is really the 20th but you can tell
the program to update for the 18th and it will update only one
day. You can then post the payments received on the 18th and then
update again, telling the program to update for the 19th. etc.
Entering Existing Loan Portfolios
To enter a portfolio of already existing loans successfully,
you must understand how the update process works, and why it
works that way. If you have not already done so, read the section
titled "Updating the loan file"
Now that you understand how the update works, you are ready
to understand the process of entering a portfolio of existing
loans.
The first step is to reproduce a supply of the new loan
setup sheets and the existing loan setup sheets. You will need
one of each for every loan you want to add to the system.
You should have an amortization schedule for each loan. If
you don't, you must have or compute two numbers. You must know
the balance due and the interest due. It is nice to know the
late charges due if any but not required. If you do not know the
LOAN MASTER Loan Processing System 32
late charges, the system will keep up with them in the future but
it cannot go backwards.
Other numbers. Interest paid year to date is nice to know.
If you have it, you can print a year end tax statement for each
borrower. If you don't have it and can't or don't want to get it,
the system will keep up with it in the future. It just will not
be complete the first year.
Conversion date.
You must pick a conversion date. It can be any date that is
convenient for you. January first is exceptionally nice but
usually not practical. If you can use January first, you can
forget about all the year to date numbers and let the computer
compute them for you during the new year.
When choosing a conversion date, be sure to allow yourself
enough time to complete the preparations needed. This is what
you must do to prepare. Complete the new loan setup sheet and
the existing loan sheet for each existing loan. Mostly this is a
job of copying data from the note to the setup sheet. Some of the
information must be calculated. You MUST calculate the balance
due and the interest due on the conversion date for each and
every loan.
When all the setup sheets are complete, at least a day or
two before the conversion date, Enter all the data. The process
is as follows.
Select the menu option to Add a new loan to the data base
and enter the data from the new loan setup sheet. Next select
the File maintenance procedures from the main menu. From that
menu, select the option to Edit (change) a loan record. You can
now recall the new loan you just entered and add the numerical
data you have gathered and calculated.
Repeat this process until all loans are entered.
When all data is entered, select the printed reports menu
and print a trial balance. Check this report to see if the totals
add up to what you expected. If not you can use the trial
balance to look for errors. Errors in amounts not displayed on
the trial balance can be found by printing a data dump. The data
dump is a very long report because it lists all data for every
loan.
Setting the update date in the parameter file
When the data has been entered, you have a computer file
that contains the data for every loan as of the conversion date.
In other words, the conversion date is the date of last update.
LOAN MASTER Loan Processing System 33
Select the file maintenance menu. From that menu select the
option to update the parameter file. Use the down arrow key to
step down to the item labeled "Date of last master file update".
Change that date to the conversion date. Your installation is
now complete and you are ready to update.
!!! BEFORE YOU RUN THE UPDATE PROCEDURE, MAKE A BACKUP COPY OF
YOUR MASTER FILE !!!
It is called LMLOAN.DBF.
Sample setup of existing loan
The loan:
Loan date 01-01-88
Date first payment 02-01-88
Face amount 36,0000.00
Interest rate 13.25%
Payment amount 1,217.32
Number payments 36
LOAN MASTER Loan Processing System 34
An amortization schedule is available. It is reproduced
here.
no Date Date Interest Principal Balance Cumulative
due paid payment payment remaining interest
1 02-01-1988 _______ 397.50 819.82 35,180.18 397.50
2 03-01-1988 _______ 388.45 828.87 34,351.31 785.95
3 04-01-1988 _______ 379.30 838.02 33,513.29 1,165.25
4 05-01-1988 _______ 370.04 847.28 32,666.01 1,535.29
5 06-01-1988 _______ 360.69 856.63 31,809.38 1,895.98
6 07-01-1988 _______ 351.23 866.09 30,943.29 2,247.21
7 08-01-1988 _______ 341.67 875.65 30,067.64 2,588.88
8 09-01-1988 _______ 332.00 885.32 29,182.32 2,920.88
9 10-01-1988 _______ 322.22 895.10 28,287.22 3,243.10
10 11-01-1988 _______ 312.34 904.98 27,382.24 3,555.44
11 12-01-1988 _______ 302.35 914.97 26,467.27 3,857.79
-------------------------------------------------------------------------------
12 01-01-1989 _______ 292.24 925.08 25,542.19 4,150.03
13 02-01-1989 _______ 282.03 935.29 24,606.90 4,432.06
14 03-01-1989 _______ 271.70 945.62 23,661.28 4,703.76
15 04-01-1989 _______ 261.26 956.06 22,705.22 4,965.02
16 05-01-1989 _______ 250.70 966.62 21,738.60 5,215.72
17 06-01-1989 _______ 240.03 977.29 20,761.31 5,455.75
18 07-01-1989 _______ 229.24 988.08 19,773.23 5,684.99
19 08-01-1989 _______ 218.33 998.99 18,774.24 5,903.32
-------------------------------------------------------------------------------
20 09-01-1989 _______ 207.30 1,010.02 17,764.22 6,110.62
21 10-01-1989 _______ 196.15 1,021.17 16,743.05 6,306.77
22 11-01-1989 _______ 184.87 1,032.45 15,710.60 6,491.64
23 12-01-1989 _______ 173.47 1,043.85 14,666.75 6,665.11
24 01-01-1990 _______ 161.95 1,055.37 13,611.38 6,827.06
25 02-01-1990 _______ 150.29 1,067.03 12,544.35 6,977.35
26 03-01-1990 _______ 138.51 1,078.81 11,465.54 7,115.86
27 04-01-1990 _______ 126.60 1,090.72 10,374.82 7,242.46
After careful planning, we determine our conversion date
will be August 15, 1989.
First, locate the conversion date on the schedule. The
exact conversion date will most likely not be there. Draw a line
across the schedule between the two payment dated immediately
before and immediately after the conversion date.
Second, draw another line between the January payment of
this year and the December payment of the previous year.
LOAN MASTER Loan Processing System 35
Referring to the schedule, we determine that the borrower
has not yet paid the payment due on August 1, 1989. The last
payment was the July first payment.
Referring to the schedule, we see that after the July
payment, the remaining balance was $19,773.23
On August first the interest due was $218.33.
On August 15th, the conversion date an additional 14 days
interest will be due. We calculate this amount as follows:
14 days
14 days interest = .1325 x $19,773.24 x ------------
365 days
14 days interest = $100.49
Total interest due
on conversion date
Interest due 08-01-89 $218.33
Interest for Additional
14 days $100.49
-----------------------------------------
Int due conversion date $318.82
If we are charging late charges, we determine that the
payment is late enough to charge a late charge. Our late charge
is 5% of the payment amount or 0.05 x 1217.32 = 60.87
We add up the interest paid each month from the schedule and
determine that the total interest paid year to date is $1827.20.
This is the total interest paid beginning with the January
payment. The two lines you drew on the chart identify the
payments paid this year. The interest payments between these
lines make up the interest paid YTD. DO NOT ADD IN THE INTEREST
FOR PAYMENTS THAT HAVE NOT BEEN PAID!
LOAN MASTER Loan Processing System 36
We now have identified these amounts. As of the conversion
date:
Balance due 19,773.23
Interest due 318.82
Interest paid YTD 1,827.20
Late charge due 60.87
late charges YTD 0.00
Transfer these amounts to the existing loan setup sheet.
You will now have two loan setup sheets, a new loan setup sheet
and an existing loan setup sheet.
They look like this:
LOAN MASTER Loan Processing System 37
Existing Loan Setup Sheet
Date of setup: 08_/15_/89 Entered by : Bob_________
Customer No. 76543_____ Rate, original 13.25_______
Customer NameSmith, Sam________________ Rate, current 13.25_______
Loan No 3_________ Interest basis 365_________
Maker 1 Smith, Sam________________ Date of note 01_/01_/88_
Maker 2 __________________________ Date first pmt 02_/01_/88_
Maker 3 __________________________ Date next due 09_/01_/89_
Maker 4 __________________________ Date pmt due 08_/01_/89_
Comments __________________________ Date last pmt 07_/01_/89_
__________________________ Date last tran 07_/01_/89_
Date last updt 08_/15_/89_
Original amt _36,000.00__
Date maturity 01_/01_/91_
Current bal _19,773.23__
Interest accrued318.82______
Scheduled bal_18,774.24__
Int due, unpaid 218.33______
Regular pmt _1217.32____ Int paid (Life) 5684.99_____
Balloon pmt ____________
Int paid YTD _1827.20____
No reg pmts _36_________
Lt Chg Due, unpd_60.87______
No balloon pmt ___________
Lt Chg pd(life) _-0-_______
No pmts per yr _12_________
Lt Chg paid YTD __-0-_______
Principal due _218.33_____
LOAN MASTER Loan Processing System 38
New Loan Setup Sheet
Date setup: 08_/15_/89_
Entered by: Bob________
Customer no. _76543_______________________ Loan Amount _36,000.00
Loan no. ______3_______________________ Payment amt Reg __1,217.32
Customer name __Smith, Sam______________ Pmt amt Balloon __________
Number reg pmts __36______
Maker 1 __________________________________
Balloon at pmt # __________
Maker 2 __________________________________
No. pmts per year____12____
Maker 3 __________________________________
Interest rate 13.25_____
Maker 4 __________________________________
Interest basis 365_______
Comments: Date of note 01_/01_/88_
__Home improvement__________________ Date first pmt 02_/01_/88_
__Swimming pool_____________________ Date maturity 01_/01_/91_
LOAN MASTER Loan Processing System 39
Loan Master Reports
The loan processing system produces these reports:
Trial Balance Report
Data File Dump
Past Due Loans Report
Past Due Report Standard
Past Due Report Custom
Will Be Due Notice (Billing Statement)
Loan Transaction Statement
Year End Interest Statement
Past Due and Will Be Due
The numbers on the past due report do not agree with the
numbers on the will be due notice, Why?
The past due notice gives the status of the loan as of a date
on the past. The date of the payment missed.
The will be due notice gives the anticipated amounts due at a
date in the future, the date the payment will be due.
Will Be Due Notices
The Will Be Due notice lists this information.
Date of notice
Date payment will be due
Interest due
Principal due
Late charge due
Date of notice
The date of notice is the date the loan was last
updated. This date is used in case a payment has been made
since that date but which has not yet been posted to the
account.
LOAN MASTER Loan Processing System 40
Date payment will be due
This is the date the next payment will mature. The next
regularly scheduled payment will be due on this date.
Interest due
This is the anticipated amount of interest due on the date
of the next regularly scheduled payment date. This amount
includes all interest accrued through the date of the notice
plus the interest that will accrue from the date the notice
is printed to the date the payment is due.
NOTE that this is ALL interest accrued and not paid as of
the date of the next payment.
Principal due
This is the anticipated principal that will be due on the
next regularly scheduled payment date. This amount is calculated
by taking the principal due amount and adding the anticipated
principal component of the total payment amount as of the date of
the next payment.
EXAMPLE
The payment is due in 4 days. The interest accrued as of
today is $233.00, four days interest is 36.00. The interest that
"Will be due" in four days is $233.00 + 36.00 or $269.00.
The principal due today is $14.00. The payment due in four
days is $300.00.
LOAN MASTER Loan Processing System 41
The principal due in four days will be:
Payment due $300.00
Interest due 269.00
---------------------------
Principal component 31.00
of this payment
Principal due now
from prior payments 14.00
-----------------------------
Total principal due 45.00
NOTE:
Total principal due 45.00
Total interest due 269.00
-----------------------------
Total amount due 314.00
Total amount billed 314.00
Scheduled payment 300.00
The will be due notice has billed the customer for the amount
needed to bring the note current, not just the amount of the
regularly scheduled payment.
Past due notices
The past due notice is easer to understand then the will be
due notice. The past due notice lists this information:
Interest Due
Principal Due
late charge due
Each of these amounts comes directly from the master file
with no calculations or assumptions or projections.
The interest due is the amount of interest which has matured
but has not been paid. It is not the total interest accrued. See
the date definitions for an explanation of the difference.
The principal due is the amount of principal which has
matured but which has not been paid.
LOAN MASTER Loan Processing System 42
The late charge due is the total of all late charges which
have been assessed but which have not yet been paid.
LOAN MASTER Loan Processing System 43
Loan Master Files
The Loan Master Loan processing system stores a considerable
amount of data on the disk drive. Data is stored in these files:
1) LMLOAN.DBF The loan data base file.
2) LMTRAN.DBF The transaction database.
3) LMTRAN.NTX The transaction index file.
4) LMPARAM.DBF The parameter file.
5) HELP.DBF The help system.
6) HELP.DBT The help screens text.
7) HELP.NTX The help system index.
LOAN MASTER Loan Processing System 44
File specifications
Field definitions for LMLOAN.DBF
Field name Data type Size Dp
CUST_NO Numeric 8 0
LOAN_NO Numeric 8 0
CUST_NAME Character 24
MAKER1 Character 24
MAKER2 Character 24
MAKER3 Character 24
MAKER4 Character 24
COMMENT1 Character 24
COMMENT2 Character 24
ORG_AMT Numeric 12 2
CUR_BAL Numeric 12 2
SCH_BAL Numeric 12 2
PMT_AMT_RG Numeric 12 2
PMT_AMT_FN Numeric 12 2
RATE_ORG Numeric 7 4
RATE_CUR Numeric 7 4
BASIS Numeric 3 0
N0_PMTS Numeric 3 0
FINAL_PMT Numeric 3 0
DATE_NOTE Date 8
DATE_FIRST Date 8
DATE_NEXT Date 8
DATE_DUE Date 8
DATE_LAST Date 8
DATE_TRAN Date 8
DATE_UPD Date 8
DATE_MTY Date 8
PMTS_MTD Numeric 3 0
PMTS_PAID Numeric 6 2
PMT_FREQ Numeric 2 0
INT_ACCRD Numeric 12 4
INT_DUE Numeric 12 2
PRIN_DUE Numeric 12 2
LC_DUE Numeric 12 2
LC_PAID Numeric 12 2
LC_YTD Numeric 12 2
INT_PAID Numeric 12 2
INT_YTD Numeric 12 2
LOAN MASTER Loan Processing System 45
Field definitions for LMPARM.DBF
Field name Data type Size Dp
NAME Character 30
ADDRESS1 Character 24
ADDRESS2 Character 24
ADDRESS3 Character 24
PDLIMIT Numeric 2 0
WBLIMIT Numeric 2 0
VISUAL Logical 1
LSTFILEUPD Date 8
PSWDMASTER Character 12
Field definitions for LMTRAN.DBF
Field name Data type Size Dp
CUST_NO Numeric 8 0
LOAN_NO Numeric 8 0
TRAN_DATE Date 8
TRAN_CODE Numeric 4 0
TRAN_RATE Numeric 7 4
DAYS_ACCR Numeric 4 0
INT_ACCD Numeric 12 4
INT_PAID Numeric 12 2
PRIN_PAID Numeric 12 2
LC_PAID Numeric 12 2
LOAN MASTER Loan Processing System 46
Existing Loan Setup Sheet
Date of setup: ___/___/___ Entered by : ____________
Customer No. __________ Rate, original ____________
Customer Name______________________ Rate, current ____________
Loan No __________ Interest basis ____________
Maker 1 ______________________ Date of note ___/___/___
Maker 2 ______________________ Date first pmt ___/___/___
Maker 3 ______________________ Date next due ___/___/___
Maker 4 ______________________ Date pmt due ___/___/___
Comments __________________________ Date last pmt ___/___/___
__________________________ Date last tran ___/___/___
Date last updt ___/___/___
Original amt ____________
Date maturity ___/___/___
Current bal ____________
Interest accrued ____________
Scheduled bal ____________ Int due, unpaid ____________
Regular pmt ____________ Int paid (Life) ____________
Balloon pmt ____________ Int paid YTD ____________
No reg pmts ____________ Lt Chg Due, Unpd ____________
No balloon pmt ____________ Lt Chg paid(life) ____________
No pmts per yr ____________ Lt Chg paid YTD ____________
Principal due ____________
LOAN MASTER Loan Processing System 47
New Loan Setup Sheet
Date setup: ___/___/___
Entered by: ___________
Customer no. _____________________________ Loan Amount __________
Loan no. ______________________________ Payment amt Reg __________
Customer name ___________________________ Pmt amt Balloon __________
Number reg pmts __________
Maker 1 __________________________________
Balloon at pmt # __________
Maker 2 __________________________________
No. pmts per year__________
Maker 3 __________________________________
Interest rate __________
Maker 4 __________________________________
Interest basis __________
Comments: Date of note ___/___/___
____________________________________ Date first pmt ___/___/___
____________________________________ Date maturity ___/___/___
LOAN MASTER Loan Processing System 48
INDEX
Basis . . . . . . . . . . . . . . . . . . . . 6, 22, 26, 38, 39, 45, 47, 48
Conversion
conversion date . . . . . . . . . . . . . . . . . . . . . . . . . 33
Cursor control . . . . . . . . . . . . . . . . . . . . 3, 6, 7, 11, 13, 16
Customer no . . . . . . . . . . . . . . . . . . . . . . 23, 38, 39, 47, 48
Data dump . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 20, 21, 33
Data entry . . . . . . . . . . . . . . . . . . . . . 3, 5-7, 9, 14, 15, 18
Data fields . . . . . . . . . . . . . . . . . . . . . . . . . 3, 6, 14, 23
Delete . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 6-8, 10, 15
Display . . . . . . . . . . . . . . . . 2-4, 6, 10, 11, 15, 17, 23, 30, 31
Edit . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 6, 13-16, 33
Existing loan . . . . . . . . . . . . . . . 3, 4, 11, 14, 32-34, 37, 38, 47
Field . . . . . . . 4-8, 10, 11, 13, 14, 17, 19, 21, 23-25, 29, 30, 45, 46
License agreement . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 3
Loan look up . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 10, 15
Loan maintenance . . . . . . . . . . . . . . . . . . . . . . . . 3, 11, 14
Loan no . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38, 47
Maker . . . . . . . . . . . . . . . . . . . . . . . . . 23, 38, 39, 47, 48
Menu . . . . . . . . . . . . . . . . . 2-5, 9, 10, 14, 15, 20, 22, 33, 34
New loan . . . . . . . . . . . . . . . . 3, 4, 11, 14, 32, 33, 37, 39, 48
Notices . . . . . . . . . . . . . . . . . . . 3, 4, 18, 20, 21, 28, 40, 42
Past due . . . . . . . . . . . . . . . 3, 4, 9, 11, 18-22, 27, 28, 40, 42
Past due report . . . . . . . . . . . . . . . . . . . . . . . . . 3, 21, 40
Posting . . . . . . . . . . . . . . . . . . . . . . . 3, 15-17, 27, 28, 32
Report menu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 20
Reports . . . . . . . . . . . . . . . 1, 4, 18, 20, 21, 23, 28, 30, 33, 40
Setup sheet . . . . . . . . . . . . . . . . . . . . . 4, 33, 37-39, 47, 48
Statement . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 22, 33, 40
Transaction statement . . . . . . . . . . . . . . . . . . . . . . . . . 40
Trial balance . . . . . . . . . . . . . . . . . . . . . . 3, 4, 20, 33, 40
Updating
file update . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Visual update . . . . . . . . . . . . . . . . . . . . . . . . 3, 18, 19, 30
Will be Due . . . . . . . . . . . . . . . . . . . . 3, 4, 18-21, 36, 40-42
Year end . . . . . . . . . . . . . . . . . . . . 3, 20, 22, 29, 30, 33, 40
YTD . . . . . . . . . . . . . . . . . . . . . . . 17, 29, 30, 36-38, 45, 47
LOAN MASTER Loan Processing System 49
