Introduction
The Additional Loans/Advances section provides centralized controls for how the system manages secondary loans beyond the initial funding. These settings streamline how supplemental funds are serviced, including how interest is calculated, how and when borrower draw requests are approved, and whether penalties are applied to additional draws. Built primarily for Construction and Fix & Flip loans, this area ensures lenders can configure their repayment and servicing preferences with flexibility.
Navigating to This Section
Click the Gear icon in the top-right corner to open Settings.
Select Company Settings.
Use the left-hand navigation menu to expand Loan Servicing > Additional Loans/Advances.
Select the desired subsection.
Tip: If you cannot access this section, check your permissions or contact your administrator.
This section manages how interest is calculated and applied to additional loans. Users can configure PAD collection, interest calculation style, and rounding behavior.
This setting defines how interest is applied on draws and how approval and adjustment dates are determined. It also includes options for fee management and early termination types.
This enables the Early Termination Penalty Field for Construction and Fix & Flip loans. It allows penalties to be applied on a per-draw basis.
Reminder: Early Termination Penalties apply exclusively to Construction and Fix & Flip loans.
FAQs
Can early termination penalties be used for all loans?
They’re limited to Construction and Fix & Flip loans, where draw-based penalties are most relevant.
What happens if interest is deferred until the next draw?
It will be automatically rolled into and collected with the borrower's next disbursement.
Can interest adjustments be handled manually?
Yes, simply disable PAD to take full manual control over interest adjustment timing.
Need Further Assistance?
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📧 Email: support@mortgageautomator.com
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