These are instructions for generating a liquidation schedule for a Scheduled/Scheduled loan when the loan is transferred out of the pool. It is important to follow the order for these steps.
Note that you need to run all of your nightly events in between running the payoff and transferring the loan.
Steps:
- Payoff the loan. Since this isn't a "real" payoff, delete any fees or such from the quote to simplify the reversal.
- Run nightly events.
- The next day, check that a liquidation schedule was created. Do this by running the Liquidation Schedule Daily report. (Pools, Daily reports) If you do not have a liquidation schedule, the Payoff Activity update may not have run. Do not continue on until you resolve this, and verify the information on the liquidation schedule. Note that after the cutoff date, after the Pool Cutoff has run, you will be able to edit this in Pool Reporting, and change the Reason for Removal to “Repurchase Delq Loan”. (To do this, select “Liquidations” from the first Pool Cutoff tab, then “Detail”.)
- Transfer the loan to the new investor.
- Reverse the payoff.
If this all happens before a cutoff, you are in great shape for the "from" investor. You will have to correct the remittance totals for the "to" investor, however.
If you have to cutoff the investor tonight, (that is, the payoff occurs before the cutoff, but the Loan Transfer occurs after the cutoff) you will have to make a couple of adjustments.
- For the investor the loan is being transferred to, you will need to add the loan to the cutoff manually if you need to report at this cutoff (as it won't be transferred until the next day). You can do this by clicking the "Modify" button from the Cutoff Summary screen. After adding you will have to edit the record to include the balances.
- Next month the "from" investor will show the loan again. Delete this Loan cutoff record (“Sold” record) from the "Modify" screen.
A couple of different options:
- Payoff the loan, and instead of transferring the loan and reversing the payoff, set up a new loan for the new investor.
- Transfer the loan without paying it off, and reversing the payoff. This can be done for those investors that do not require a liquidation schedule. With this option you will have to manually edit the remittance amounts at the Loan Level, and will need to be sure to make all of the proper Pool Level adjustments.
Other notes:
If you manually add a record to a cutoff, there is a “hidden” field, NormalPrinBal, which will be zero. If the record is manually added to an A/A investor (like your portfolio “investor” or Fannie Mae A/A) it will not matter that this field is zero. It is only a problem if the record is added to an S/S investor. This field is used in the calculation of weighted rates for the pools, and could cause and incorrect rate to be calculated, or a divide by zero problem if the “Recalculate at Cutoff” option is selected. If the instructions listed here are followed, however, you should never need to manually add a record to the S/S investor.
*** Adjusting a payoff record before the monthend cutoff ***
Go to the last monthly cutoff for the investor. Click on "Loan Detail" and enter the loan id of the loan you wish to modify. Now click "Select Cutoff". That will bring up a list, and you will be able to see all of the cutoff records for this loan in the list. Keep in mind that if you see both a Paid off and a Sold record in the list for the next cutoff for the same investor, the “Sold” one will be deleted when the regular monthly cutoff runs. You can select any record and make any edits needed. You can also delete records if needed.
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000045361