Loan Servicing
Overview
The Loan Servicing module in timveroOS manages the complete loan lifecycle after origination. Once contracts are signed, the system automatically creates loan entities and provides comprehensive servicing capabilities including payment processing, account management, and portfolio monitoring.
Credit System Architecture
The loan servicing module is built on a flexible credit framework that supports:
Multiple Credit Types: The system uses a discriminator pattern allowing multiple loan products:
Each product type has a unique identifier
Custom fields and logic per product
Shared servicing infrastructure
Account Structure: The debt structure uses named accounts, typically including:
PRINCIPAL - Outstanding loan balance
INTEREST - Accrued interest
LATE_FEE - Late payment charges
Custom accounts can be added for specific products
Operation Types: All loan transactions are operations:
Payment operations (customer payments)
Charge operations (fees, penalties)
Accrual operations (interest, late fees)
Adjustment operations (corrections, waivers)
This architecture enables configuration of various lending products while maintaining consistent servicing operations.
Loan Overview Interface
The system displays key loan information including:
Loan Status: Active, Void, Past Due, or other configured statuses
Loan Details: Amount, term, interest rate, and schedule type
Current Information: Last payment date, past due days, principal balance
Navigation Tabs: Organized access to detailed loan information
Core Servicing Components
Credit Data Tab
This tab displays the loan payment schedule with:
Due dates and payment amounts
Payment status indicators
Historical payment information
Schedule modification options
The system uses color coding for payment status:
Completed payments
Upcoming payments
Past due amounts
Future scheduled payments
Transactions Tab
Tracks all financial movements including:
Incoming Transactions:
Payments received via core banking integration
Payment system transactions
Manually registered payments
Payment source tracking
Transaction Management:
Mark transactions as unsuccessful
Process chargebacks
Register refunds
Adjust transaction details
Outgoing Transactions:
Refunds for erroneous payments
Adjustment transactions
System-generated corrections
Payments Tab
Provides detailed payment information:
Payment distribution across obligations
Allocation to principal, interest, and fees
Refund capabilities
Payment date adjustments
The system supports:
Full or partial refunds
Payment reallocation
Date corrections
Real-time debt recalculation
Calculation Details Tab
Offers detailed debt evolution tracking:
Component breakdown by obligation type
Principal balance changes
Interest accrual details
Fee and penalty calculations
Historical calculation audit
Participants Tab
Lists all parties involved in the loan:
Borrower information
Guarantor details
Collateral provider data
Contact information management
Role-based access control
Payment Processing
Payment Allocation
The system automatically allocates payments according to configured rules:
Past due obligations first
Current interest
Principal reduction
Fees and penalties
Payment Methods
Supported payment channels:
Online payments
ACH transfers
Phone payments
In-person payments
Mail payments
Payment Adjustments
Authorized users can:
Modify payment dates
Adjust payment amounts
Process refunds
Correct posting errors
Account Management
Schedule Modifications
The system supports various modification types:
Payment deferrals
Term extensions
Rate modifications
Payment amount changes
Status Management
Loan statuses update automatically based on:
Payment history
Days past due
Configured thresholds
Manual interventions
Collections Support
Delinquency Management
For past due accounts:
Automatic status updates
Collection queue assignment
Promise to pay tracking
Payment arrangement creation
Recovery Tools
Settlement processing
Charge-off procedures
Recovery tracking
Legal status management
Compliance Features
Regulatory Support
Built-in compliance capabilities:
Interest rate monitoring
Fee limitation enforcement
Required disclosures
Audit trail maintenance
Documentation
Automated document generation:
Payment receipts
Account statements
Payoff quotes
Collection notices
Integration Points
System Integrations
The servicing module connects with:
Core Banking: Payment posting and reconciliation
Payment Processors: Transaction processing
Document Management: Statement and notice generation
Collections Systems: Delinquency management
Reporting: Portfolio analytics
Data Flow
Real-time payment updates
Automatic status synchronization
Balance reconciliation
Transaction matching
Configuration Options
Servicing Parameters
Administrators can configure:
Payment allocation rules
Grace period settings
Late fee calculations
Status transition rules
Collection triggers
Operational Settings
Business day definitions
Holiday calendars
Notification templates
Escalation procedures
User permissions
Reporting Capabilities
Standard Reports
Available servicing reports include:
Aging analysis
Payment history
Delinquency trends
Collection effectiveness
Portfolio performance
Custom Analytics
Flexible report builder
Real-time dashboards
Automated report scheduling
Data export options
Best Practices
Daily Operations
Review payment exceptions
Process pending transactions
Monitor past due accounts
Address customer inquiries
Update account information
Month-End Procedures
Reconcile payment batches
Generate aging reports
Review delinquent accounts
Process write-offs
Prepare management reports
System Maintenance
Monitor performance metrics
Review error logs
Update configuration as needed
Maintain user access
Archive historical data
Common Scenarios
Payment Posted to Wrong Account
Identify the incorrect posting
Reverse the transaction
Post to correct account
Document the correction
Customer Payment Arrangement
Access account details
Calculate arrangement terms
Document agreement
Set up monitoring
Track compliance
Payoff Request
Generate payoff quote
Include per diem interest
Set expiration date
Process final payment
Close loan account
Performance Considerations
System Optimization
Indexed database queries
Cached calculations
Batch processing options
Asynchronous operations
Operational Efficiency
Automated workflows
Exception-based processing
Bulk operations support
Integration automation
Next Steps
With loan servicing configured, explore:
Covenants - Set up compliance monitoring
Analytics - Configure portfolio reporting
Data Integration - Connect external systems
For additional loan servicing support, consult your implementation team or system documentation.
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