When reviewing a loan history, you may find that a late charge was assessed on the same transaction date that a regular payment was made on the loan, and you may question why the late charge was assessed.
In the case of the loan you are reviewing, you may find that the payment was made and posted after the late charge was already assessed.
Workaround:
Late charges for a loan are assessed based on the value in the Grace Days field. In the Servicing Director calculation of grace days, the due date is included in grace days. The late charge is assessed at the end of the last grace day (when the posting date is changed).
For example, if a payment is due on the 1st, Grace Days is set to 15, and no payment is received, a late charge will be assessed at the end of day on the 15th. When the posting date is changed from the 15th to the 16th. If payments are due on the 1st and you want to access late charges at the end of day on the 16th, set your Grace Days to 16.
ArticleNumber:
000065077