You can use the Expected P&I view and the Cash Flow Reconciliation view to help reconcile the pool cash balance in a P&I account. You can also use the following reports, which correspond to the views, but provide more detail:

• The Test of Expected P&I report compares the actual P&I balance to the expected P&I balance. Do not run this report for bi-weekly pools; it uses a monthly payment factor, so it is not applicable for bi-weekly loans. This reconciliation calculates what the expected P&I balance for any one pool should be, and then compares the expected balance to the actual reported balance. The expected balance is calculated by items such as prepaid and delinquent loans and payoffs, not by deposit and remittance activity (which is what is done in the Cash Flow Recon report). Any difference indicated by this report might be the result of a remittance error, or a failure of the service r to fund the account for interest on curtailment, or liquidation shortfalls.

  Note: The reconciliation for IR pools is completely different than reconciliation for CD pools because P&I payments are held one month longer for IR than for CD pools.

• The Cash Flow Reconciliation report compares the beginning and ending pool P&I balances, adjusting for activity to see if the balance "rolls forward" correctly. It shows the total Projected P&I Pool balance and the total Reported P&I Pool balance. The report will also show any differences between these two figures. The previous month's P&I Balance, the most recent month's P&I Collections, Service Fees, and Remittances also appear.

• Security to pool balances do not reconcile:
  • If the security balance is incorrect, it causes a difference between the amounts remitted and the amounts collected, which causes differences between actual and expected P&I.
• Not funding interest due when a pool is formed in the same month that the loans are closed:
  • Servicing Director calculates the correct amount of interest to be remitted, for those loans where interest must be remitted that will never be received, but you must enter an interest expense as an adjustment to pool cash. You can use the Pool Interest Expense for Same Month Pooling report to determine the amounts to fund.
• Not funding principal and/or interest due that will not be received for other reasons:
  • As with the item above, if you have to remit principal and/or interest that will not be received when the loan is in the pool, you must make a pool cash adjustment.
• Changing the way service fees are taken in the middle of the month:
  • If you select or clear the Deposit Interest Net of Service Fee option (on the Investor Detail screen - Funds Appl tab in Investor Accounting), you must do so after the cutoff and before you run your end of day events in Event Manager for the first day of the new cutoff period.
• Not doing a manual withdrawal for service fees if they are not netted out of deposits:
  • If you do not select the Deposit Interest Net of Service Fee option (on the Investor Detail screen - Funds Appl tab in Investor Accounting), you must do a withdrawal for the service fees manually. After the cutoff, open the Pool Cash screen (click Options > Pool Cash in Pool Reporting) and enter a manual adjustment for the service fee shown on the Pool Cutoff screen - Loan Activity tab in Pool Reporting.
• Trying to use the Expected P&I report for bi-weekly loans:
  • This report uses a monthly payment factor, so it is not applicable for bi-weekly loans.
• Slight differences between pool and loan level interest due amounts for other SS and MRS pools:
  • Neither of these reporting types are true pools but are actually just scheduled/scheduled loans.
• Expecting the Principal Due and Interest Due columns on the Pool Roll Up report to balance to the penny:
  • You will see slight differences. The comparison is intended to pinpoint gross miscalculations.

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