1. Determine if an advance is needed. Note – this is only done on the night of the remittance, for the Investor ID remitting. Remittances for other Investor IDs occurring on other nights are not considered.

• For each pool determine the balance after the remittance (+/-).
• Sum the pool balances of the investor remitting to get a total.
• If the total is positive, there is no advance, the advance is $0.00.
• If this total is negative, and there is no existing advance, this is the new advance amount
• If the total is negative, and there is an existing advance, the amount left to be advanced will be the new advance amount less the old advance amount (the amount the advance increased.)

1. Determine the amount of Excess Funds used.

• Sum total of payments that have been remitted, or will be remitted but have not been received by pool for the Investor IDs being remitted.
• If there is no advance, the Excess Funds used is equal to the total amount delinquent (all delinquent payments were covered.)
• If there is an advance, the Excess Funds are the total delinquent payments less the advanced amount (that amount not advanced on delinquent payments).

Recovering advances Nightly

1. Calculate total deposits received by Bank Account (Not investor ID)
2. Calculate total of the deposits received that were received on delinquent loans (these are the advances that need to be recovered) and add to existing Delinquent Payments Received total.
3. Subtract the total received from the Excess Funds remaining.
4. If the Excess Funds remaining is zero, or goes to zero, and payments have been received on delinquent accounts, then a portion of the advance can be recovered.
5. If by the time the Excess Funds goes to zero, an amount equal to or greater than the Advance Balance has already been received in delinquent payments, the entire advance will be recovered.
6. The Pool Advance and Recovery Journal displays these amounts. Read from left to right. The –Daily—amounts are the collections received on that day, and the –Ending— amounts are after applying the day’s payments.

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