Introduction
The Draw Request Settings section allows lenders to control how borrower advances are processed. This includes setting defaults for interest handling, approval dates, and loan-related fees. Proper configuration ensures accurate interest calculations, streamlined operations, and more predictable servicing workflows.
Navigating to Draw Request Settings
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.
Click Draw Request Settings.
Tip: If you cannot access this setting, ensure you have the necessary permissions or check with your administrator.
Draw Request Setting
Draw Request Setting
Defines how interest is applied to borrower draws.
Option | Description |
Charge Interest at Monthly Payment | Interest is charged as part of the borrower’s regular monthly payment schedule. |
Defer Interest Payments Until Next Advance | Interest is postponed and applied with the next borrower draw. |
Note: Interest Reserve defaults are not available. For bulk approvals, interest defaults to the regularly scheduled monthly payment.
Bulk Approve Date Options
Sets the default date used for bulk draw approvals.
Option | Description |
Use the Lender Approval Date | Uses the lender's approval date for the draw request. |
Use the Borrower Request Date | Uses the borrower’s original request date. |
Use the Greater of Lender Approval or Borrower Request Date | Takes the later of the two dates to determine the effective approval date. |
Decide at the Time of Approval | Allows manual date selection during the approval process. |
Interest Adjustment
Configures when and how interest adjustments are applied post-advance.
Option | Description |
Upon Funding | Interest is adjusted and paid immediately upon funding the draw. |
At Next Payment | Adjustment is included with the borrower’s next scheduled payment. |
Postpone to Next Scheduled Payment Date | Postpones interest adjustment one full cycle beyond the borrower’s upcoming payment date. |
Take Interest Adjustment from Additional Loan Amount | Deducts the adjustment from the disbursed loan amount. |
Fees
Manage and apply fees to additional borrower advances.
Field | Description |
Fee Name Field | Input the name or label for the fee. |
Fee Amount Field | Enter the dollar amount of the fee. |
Trash Icon | Remove a listed fee. |
Add Fee Button | Add a new fee to the draw request. |
Take Fees from Additional Loan Amount | Deducts fee amounts from the disbursed draw. |
Early Termination Type
Defines early repayment conditions and restrictions.
Option | Description |
Fully Closed | No early repayment allowed before the end of term. |
Closed Variable | Limited flexibility with early repayment penalties. |
Fully Open | Allows early repayment without penalties. |
Closed, Then Open | Locked in for an initial period, then opens for early repayment. |
Minimum, Then Open | Requires a minimum period before allowing early repayment. |
FAQs
When should I enable "Defer Interest Payments Until Next Advance"?
Enable this if you want to postpone charging interest until a future draw request is made. It offers short-term payment relief to borrowers.
What does "Decide at the Time of Approval" mean for bulk approvals?
This option lets the approver select the appropriate approval date manually instead of relying on predefined logic.
How does "Postpone to Next Scheduled Payment Date" affect interest?
When enabled, the system waits one full cycle beyond the borrower's next scheduled payment before applying the interest adjustment.
Can I remove or edit fees during draw setup?
Yes. Use the Trash Icon to remove a fee or edit fee fields before submitting the draw request.
Need Further Assistance?
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📧 Email: support@mortgageautomator.com
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