Introduction
Standard fee and early termination penalty settings help automate discharge-related costs while maintaining flexibility. These configurations let you set default discharge, foreclosure, and Power of Sale fees, as well as define how early discharge penalties are calculated—ensuring consistency across loan payoffs.
Navigate to This Section
Click the Gear icon in the top-right corner to open Settings.
Select Company Settings.
Expand Loan Servicing > Discharge.
Click Standard Fees.
Tip: If you do not see this option, confirm your permissions or contact your administrator.
Standard Fees
Setting | Description |
Enable Discharge Fee | Adds the Discharge Fee field in the discharge section. A default fee can be set to auto-populate when processing discharges. |
Enable Discharge Statement Prep Fee | Adds the Discharge Statement Prep Fee field in the discharge section. You can set a default value to pre-fill during discharge. |
Power of Sale Fee | Adds a Power of Sale Fee field in the Power of Sale section. A default value will auto-fill when initiating this discharge method. |
Foreclosure Fee | Adds a Foreclosure Fee field to the Foreclosure section. A default amount can be set to appear automatically during foreclosure processing. |
Tip: Default values save time and reduce errors during discharge. You can still customize fees per loan as needed.
Early Termination Penalty
Setting | Description |
Early Termination Penalty Fields | Enter a numeric value and choose whether the penalty applies in months of payments or days. This determines the length of the penalty window. |
Starting From Funding, Renewal, or Additional Draw Date (Instead of Earliest Upcoming Payment Date) | The penalty will be calculated as of the most recent adjustment. Whether that be as of Funding, Renewal, or Additional Draw Date |
Use the Initial Loan Amount and Rate To Calculate the Penalty | Calculates the penalty based on the original loan amount and interest rate at the time of funding. |
Use the Loan Amount and Rate at the Last Renewal to Calculate the Penalty | Calculates the penalty based on values recorded during the most recent renewal. |
Use the Loan Amount and rate at Discharge to Calculate the Penalty | Uses the loan amount and interest rate active at the time of discharge for penalty calculation. |
Warning: Penalty calculations may impact legal compliance or investor payouts—confirm settings align with your policies.
FAQs
Can I change the default fee on a per-loan basis?
Yes. While defaults auto-fill, you can override them in individual loan files.
Do all penalty methods use the same calculation logic?
No. The system calculates penalties based on your selected loan figures and timeline settings.
Is the penalty mandatory for early discharge?
No. You can disable or adjust it as needed per loan or policy.
Need Further Assistance?
For additional support, contact us:
📧 Email: support@mortgageautomator.com
💬 Live Chat: Click the question icon at the top-right corner of your screen.