Posting a Modification

General

AutoPal offers several useful tools that help make the loan servicing process easy! One such tool is the “Modification” tool, which allows you to re-access the loan terms, and update them on a given date in the loan timeline. This is not an edit tool, but should be viewed as a refinance tool, allowing you to make specific changes to the loan balance, interest rate, or even payment frequency without altering loan history.

How To

The modification tool can only be used on currently activated loans. Begin by accessing the loan you would like to modify, and select the “Initial Setup” tab from the left-hand column. Once selected, you will be redirected to the following page:

modify-tool

Once on this page, you will notice a series of tools located in the upper right-hand corner of the initial setup page. One of which is labeled “Modify”. When selected, you will receive the following text prompt:

modify-loan-text

It is very important to understand that the Modification Tool is intended to be used as a refinance tool, and should not be used as an edit tool. Changes being made to the original loan terms (e.g. Contract Date, First Payment Date, Original Term, etc.) should be facilitated by deactivating the loan, and re-saving terms in the initial setup. As previously stated, the modification tool allows you to make changes on the loan from a given point (for example subsequent to the 6th scheduled payment) forward, without losing loan history. With this in mind, select the Continue with Modification icon to begin the modification process. Once selected you will be redirected to the following screen:

new-modification

You will notice the “New Modification” page has several similarities to standard initial loan setup, with some key differences. Mainly the inclusion of the “Modification” section at the top of the page, and the “Previous Setup” information at the bottom of the page.

Modification Section

The modification section allows you to set some key elements of the modification process.

  • Select Payoff Date: This drop-down menu allows you to select a ‘payoff date’ or ‘closure date’ of the original set of loan terms. When a date is selected in this section, the payoff for the date selected will autofill into the “Loan Amount” section. This value will include all interest, principal, fees, and escrow due on the account as of the selected date. It is not necessary to use this option, and mainly exists to help you calculate payoff as of the modification date.
  • Most Recent Activity: This option gives you the date for the last human change on the loan.
  • Modification Transactions: Due to the fact that there are several different ways a loan can be modified and many configuration options on the loan level, AutoPal offers different options pertaining to past transactions on modified accounts.
    • By selecting “Modify After Last Transaction” when a modification is done, AutoPal will not allow you to modify a loan previous to the most recent transaction history.
      The other option “Move Payments and Charges” will let you modify the loan at any point after the contract date (or most recent modification) and it will move payments and charges that occurred after that date so that they can be accessed and edited once the modification is complete.

Loan Terms

The “Loan Terms” section is no different while modifying a loan compared to creating a loan.

modification-loan-terms

Simply enter the new terms that will apply to this account as of the new contract date. Please also note that the “Total Loan Amount” and “Contract Date” fields have auto-filled based on our previous selection of “Payoff Date” in the section above. You are free to manipulate these values as you see fit. In this circumstance we will enter a loan value of $8000, and increase the interest rate from 3.99% to 6.99% for 36 months, beginning on 12/1/2016.

The remaining sections on the modification setup page function exactly as they do during the standard loan creation. For further information on their use, please see the following article: Standard Loan Creation:

calculate-save-icon

Once you are comfortable with the values entered for the modification, select the “Calculate / Save” option at the bottom of the page to create the new payment schedule:

modification-terms

Once calculated select the “Activate Loan” icon to finalize the modification!

Notes

It is important to note that loans can be modified multiple times, though it is recommended by AutoPal to try and keep modifications to less than 3 per account in order avoid overlapping of dates. Additionally, in order to make the modification process as transparent as possible, AutoPal will provide an easily accessible history of all previous loan setups. These can be useful in the event of audits, or simply for your review.

View From Transactions Tab

Once the now modified loan has been activated, you will be able to view the “Transactions” tab of the loan and the newly modified loan schedule.

new-schedule

Upon review of the transactions tab, you will notice a green entry labeled “Loan Modification”, representing the new contract date on the loan. You will also notice that the schedule of payments has started over at Scheduled Payment 1, due to the fact that the modification acts as a completely new contract.

Deleting a Modification

In the event that a modification is entered in error, or there was a major mistake with the creation of the modification, it is possible to delete the modification and revert to the previous loan setup with ease. Simply access the “Initial Setup” of the now modified loan.

cancel-modification

Simply select the “Cancel Modification” icon in the upper right-hand corner and follow the prompt to fully remove the modification from the system.

Due to the intricacies of loan modification, if you have any questions concerning the process, or require assistance, please feel free to contact our helpful support staff.

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