January 16, 2015

RETAIL Fee Processing

Retail Fee Processing

The RETAIL Fee Processing capabilities are robust and flexible and provide many opportunities to enhance your organization’s profitability.

RETAIL Fee Processing has the following attributes:

  • Established at origination or can be added to an existing loan
  • Earned immediately or earned over the life of the loan
  • May be designated as rebatable or non-rebatable
  • Fees can exist on the Commitment/Line or the Loan, depending on the type of fee.
  • Option to include or exclude fees from APR and Interest Rate verification

The RETAIL Fee Processing is fully compliant with federal regulations and guidelines such as FASB 91.

Through the use of the General Ledger interface, full accounting and reporting is available for every fee and fee type processing on the system. Fees can be interfaced to GL as Fee Interest Income or Fee Income.

Below is a list of some of the fee types that are applicable to retail processing:

  • New Loan Fees
  • Miscellaneous Fees
  • Other Charges
  • Fees/Expenses
  • Extension Fees
  • Membership Fees
  • Extension Fees
  • Termination Fees
  • Late Fees

Line of Credit functionality permits:

  • Advance fees (can be automatically assessed)
    • A flat fee
    • A percentage of the advance amount
    • Assess advance fees into
      • unpaid other charges
      • unpaid miscellaneous fees
  • Membership Fees
    • A flat fee
    • A percentage of the Loan Balance, Current
    • A percentage of the line amount
    • Assess membership fees into
      • unpaid other charges
      • unpaid miscellaneous fees
  • Overline Advance Fees
    • A flat fee

Fees can be earned using the following methods:

  • Immediate
  • Accrual
    • Pro rata (daily)
    • Simple Interest (daily)
    • 78s (monthly)

Options are provided to include/not include a fee in Interest Paid YTD for end of year reporting.

The system provides for unlimited upfront fees and costs.

Fees and Costs

  • Fees and costs accrue independently from the loan
  • Costs can exist on a loan even if the cost is greater than the loan

Depending on the type of fee, the fee may or may not be included in payoff processing.