Introduction
This article explains how to configure interest and per-diem payment calculations during the discharge process. These options help you manage rounding, penalty holdbacks, and discharge-specific fees for improved financial accuracy and flexibility.
Navigation to This Section
Click the Gear icon in the top-right corner to open Settings.
Select Company Settings.
Expand Loan Servicing > Discharge.
Click Payment Method & Calculations.
Tip: If you don’t see this section, check user permissions or consult your administrator.
Payment Method & Calculations
Daily Per-Diem for Interest Adjustment Calculations at Discharge
Setting | Description |
Round | Calculates using a rounded result (e.g., round($120,000 × 10% ÷ 360)). |
Do Not Round | Uses the full decimal result without rounding. |
Reminder: Rounding settings can significantly impact interest totals—review with your finance team.
Calculation Settings
Setting | Description |
Exclude the Day of Discharge From Per-Diem Calculation | Enable this option to exclude the discharge date when calculating per-diem interest. This is helpful when interest is not charged on the final day. |
Remaining Holdback/PPI as Per-Diem to Maturity Date for Fully Prepaid Interest Only Loans | For fully prepaid interest-only loans, enable this option to charge any remaining holdback as per-diem up to the original maturity date if the loan is discharged early. |
Charge Additional Per-Diem on Custom Discharge Fees | Enable this setting to apply extra per-diem on any custom discharge fees configured at the loan level. |
Use Interest Portion of Next Installment as Discharge Per-Diem | When enabled, this forces the interest portion of the next upcoming installment to be used as the per-diem amount at discharge. |
Reminder: Per-diem methods apply only during the discharge process.
FAQs
Does rounding affect the final payoff amount?
Yes. Rounding can slightly adjust interest totals at discharge.
What happens if the maturity date has passed?
Per-diem calculations stop at the maturity date unless custom settings apply.
Can I use both rounding and next installment methods together?
Yes. These settings can be used in combination, depending on discharge rules.
Need Further Assistance?
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