When a borrower's payment or charge is not expected on the scheduled date, you may need to mark it as unpaid. This guide outlines the steps to mark a payment as unpaid and reschedule it for a later date.
Recording an Unpaid Borrower Payment
Open the funded loan in question.
Go to Payments, Adjustments & Charges section either by scrolling down the page or selecting it in the left-hand navigation.
Click the + Adjustment option.
Select Mark as Unpaid / Reschedule.
In the Select Payment/Charge field, choose the payment you would like to mark as unpaid.
In the Date Recorded field, select the date the payment was recorded as unpaid.
Optionally, select Charge Interest to apply interest to the payment.
If the borrower has paid part of the outstanding balance, you can enter this amount in the Payment Amount section.
Optionally, to move the payment to the end of the loan term, select Defer to Renewal.
If you choose to pay your investors regardless of the payment being outstanding, select Pay Investor Regardless.
Optionally, enter a fee to charge the borrower in the Charge / Fee field
When ready, you have two options:
To leave the payment unscheduled, select the Confirm button.
-or-
To reschedule the payment and fee, select Confirm & Add Payment. (Additional steps discussed in the next section).
Note: If you have entered a Payment Amount or a Fee, ensure they are distributed to the correct parties by selecting the(
) icon.
Rescheduling a Missed Borrower Payment
Optionally, this workflow is for when you would like to reschedule the unpaid borrower payment and the fee.
When selecting the Confirm & Add Payment button, this will open the Add Payment window.
Select the date the payment will be scheduled for in the Date field.
Select the method that the payment will be received in the Method field.
Verify the Payment Amount is correct.
Optionally, you can enter additional details in the Reference # and Memo fields for tracking purposes.
Verify the Apply Amount is correct. If needed, select the chevron (
) to manually adjust the distribution.Select the Add Payment button to complete the process.
Note: If Method selected is PAD the payment will appear in EFT file when generated from report Debit (Borrowers). You will see and can select the Create PAD File button to generate an EFT file so you can submit it to the bank right away.
Tip: Select the Wand icon(
) beside each line item to automatically distribute the payment amounts.
Caution: When you select the Back (Undo & Review "Mark as Unpaid") button to make any corrections to Mark as Unpaid / Reschedule window, it will clear all fields.
FAQ
Q: What is the difference between marking a payment unpaid and marking it NSF?
A: Mortgage Automator assumes all scheduled payments are paid on their due date. The Unpaid option is used when a payment was not actually received; it reverses the payment and returns it to outstanding status. The NSF option is used when a payment was attempted but rejected by the bank. This also reverses the payment but records it as a failed transaction and allows NSF fees to be applied.
Q: Who receives the funds from the Charge / Fee?
A: By default, these fees are distributed to your operating company. To change this, select the Distribution icon to the right of the text field.
Q: Can I record unpaid payments for multiple loans at once?
A: Yes. You can process unpaid payments in bulk by going to Servicing > Processed Payments, selecting the payment date, choosing the relevant loans, and then selecting Adjustment > Mark Payment as Unpaid.