Setting Up States and Regions

Setting Up States and Regions

You must set up your state or region records before you can add any loans to your system. When you set up this table, you enter late charges and NSF fee information individually for each state or region.  You use the states listed in this table in the loan setup.

Note: You change a value for a state or region after setup, you can run the late charge prohibit update, the NSF fee update and or the late charge max/min update to change the loan level state/region value to match the new value.


To set up a State or Region:
  1. Access the system administration application.
  2. Access table setup.
  3. Select the state, region, and county from the list.
  4. Select open.
  5. Select new.
  6. Select the state and region postal code from the code drop down list which contains abbreviations for all 50 states.
  7. Enter the following information:
  • Minimum field: Enter the minimum interest rate allowed for loans in this state.
  • Maximum field: Enter the maximum interest rate allowed on loans in this state.
  • Fees field: Enter the amount of fees to be collected at payoff, at the state level.
  • Days allowed for lien release field: enter the number of days after payoff the lien release must be completed. This number can be found on the document tracking screen in customer service.
  • Payment cushion field: Enter the number of months escrow payment cushion is allowed for this state.
  • Analysis month field: Enter a number for the month that an analysis payment change takes affect for loans in this state. For example, type 1 for January.
    Note: This field is a required field, leaving blank can cause  problems with escrow.
  • If combined state and federal income tax reporting is required for this state, select combine Fed/State check box.
  • If there are state regulations that must be considered in the PMI cancellation process, select the PMI legal issue's check box.
     8.  Select the fees tab.
     9.  If this state prohibits late charges from being assesed on a borrower's first mortgage, select the prohibited on firsts check box.
    10.  Enter the following:
  • Maximum on firsts field: Enter the maximum late charge allowed on first mortgages in this state.
  • Minimum on firsts field: Enter the minimum late charge allowed on first mortgages in this state.
  • If this state prohibits late charges from being assessed on a borrower's second mortgage, select the prohibited on seconds check box.
  • Maximum on seconds field: Enter the maximum late charges allowed on second mortgages in this state.
  • Minimum on seconds field: Enter the minimum late charges allowed on second mortgages in this state.
     11. NSF fee on first mortgages, enter the NSF feel allowed on first mortgages in this state.
  • Conv, VA and other loan types field: Enter the NSF fee for conventional, VA and other types of mortgages.
  • FHA loans field: Enter the NSF fee for FHA loans.
     12. Add late charge assessments as needed.
     13. Select the interest tab.
     14. If this state requires you to pay interest on escrow funds, select the interest on escrow required check box.
  • Select the accrued past payoff check box if this state requires to pay interest on escrow past the payoff date.
  • Select the interest on tax only check box if this state requires you to pay interest only on the tax portion of the escrow balance.
  • Interest rate field: Enter the interest rate you must use to calculate the amount of interest this state requires you to pay.
  • Balances included drop-down list: Select the balances you want to include in your interest on escrow calculation.
  • Payment frequency drop-down list: Select the frequency for the interest payments in this state.
  • Calculation method drop-down list: Select the method this state requires you to use when you calculate interest on escrow. If you select monthly, you must enter a value in the monthly accrual day field.
  • Monthly accrual day field: Enter the day of the month on which this state require you to accrue interest on escrow for loans.
    Note: a value of o indicates that the accrual should occur on the last day of the month.
     15. Select ok to save your changes.
           

ArticleNumber:

000048558

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