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Loan Extensions 4.0
CompuSource recommends refinancing a loan when the credit union wants to do a loan extension. If the credit union has a signed Loan Extention Agreement, the following changes may be made in the Loan Master File Maintenance. Make hard copies of the Loan Maintenance before and after changes.
If changing the due date, day of month, or the loan to something other than the original first payment date day of the month, follow these directions:
- Make the changes below - steps 1 to 5 - using the new day of the month selected that the payment will be made.
- In Loan Maintenance, change Field #23 - First Payment Date to reflect the new day of the month you have selected. The month and year will remain the same.
See example below.
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In 4.0, Loan Maintenance is under the Maintenance Routines Menu. To get to Loan Maintenance from the Master Menu, select 4 - Maintenance Routines Menu and 4 - Loan Master File Maintenance.
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If NOT changing payment due date (not change day of month the payment is due) to other than the original first payment date, follow these directions:
- In Loan Maintenance, change Field #7 - Closed/Open End Code to Closed End/Open End Delinquency.
- In Loan Maintenance, change Field # 34 - Next Payment Date to the date the payment will be due after the extension period.
- In Loan Maintenance, change Field #51 - Paid Thru Date to the date they have satisfied their payments thru taking into consideration the extension period. (This date is usually the same as the Next Payment Date.)
- In Loan Maintenance, change Field #48 - Partial Payment Amount to zero ($0.00).
- In Loan Maintenance, change Field #32 - Delinquent Principal to zero ($0.00).
Remember to press Escape and Update Maintenance Entry upon exitting the program.
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Example: You want to do a 3-month extenstion and change the payment to be the 30th of the month. The First Payment Date is 4/15/04, the Next Payment Date is 5/15/06, the Paid Thru Date is 5/15/06. Change the First Payment Date to 4/30/04, change the Next Payment Date to 8/30/06 and change the Paid Thru Date to 8/30/06.
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Take notice when changing the month/year of the dates if the extension crosses a year-end month.
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