Introduction
Setting custom pay dates allows lenders to establish unique payment schedules for borrowers and investors. You can also configure loan maturity dates based on the final payment and determine if trust reduction and lender spread dates should align with borrower payments or remain tied to the investor’s default schedule.
Navigating to This Section
1. Click the Gear icon in the top-right corner to open Settings.
2. Select Company Settings.
3. Use the left-hand navigation menu to find and expand Loan Setup/Origination.
4. Locate Payment Method & Calculations.
Tip: If you cannot access Payment Method & Calculations, ensure you have the necessary permissions or check with your administrator.
Pay Date
Configuring Pay Date Settings
Setting | Description |
Custom Borrower Payday and Investor Payout Day | Assign different payment dates for borrowers and investors to match their cash flow preferences. |
Convert Monthly Loan Term to Payments Per Year | Converts a standard monthly loan term into a fixed number of payments per year, ensuring the maturity date aligns with the final payment. |
Align Trust Reduction / Lender Spread Date with Borrower’s Payment Date | Synchronizes trust reduction and lender spread dates with the borrower’s payment schedule. If disabled, these dates follow the investor’s default payday. |
Best Practice: Aligning investor payouts with borrower payments minimizes cash flow delays and ensures seamless transactions.
FAQs
Why would I set custom borrower and investor paydays?
Customizing pay dates ensures that borrowers and investors receive and send payments according to their financial cycles, improving cash flow management.
What happens if I don’t align trust reduction with borrower payments?
If not aligned, trust reduction and lender spread dates follow the investor’s default schedule, which may cause timing discrepancies in interest distribution.
Can I change payment schedules after loan origination?
Yes, but adjustments may impact interest accruals, investor returns, and loan maturity calculations, requiring careful review before making changes.
Need Further Assistance?
For additional support, contact us:
📧 Email: support@mortgageautomator.com
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