In this situation, the most important piece of information you need to know is whether the loan category uses Escrow Partial Pay. You can determine this by taking the following steps:
- Launch Tool #458 "Loan Category Configuration"
- Enter the correct Loan Category code
- Select F17 - Payment Controls
- See whether or not "Allow teller to post partial payments" is checked
- If partial payments are allowed on the loan, see whether or not "Allow partial escrow payments" is checked
If partial payments are allowed, but escrow partial payments are not, you should know that the system will attempt to take an escrow payment with every payment. It will divide the payment according to the payment matrix.
For example, escrow is last in my payment matrix and my total loan payment = $500 (principal and interest payment = $400 and escrow payment = $100). On the day of my payment there is $250 interest due. If I make a payment of $300, the system would take $250 to cover the interest and transfer the remaining $50 as an escrow payment. If I come in with $500 the very next day and make a payment on that loan, $400 will go toward principal and interest and $100 will go as an escrow payment.
To avoid this behavior, you may either turn on escrow partial pay or you may use the payment matrix override when accepting partial payments on these loans.
If partial payments are allowed AND escrow partial payments are allowed as well, the system will use the partial pay bucket to keep track of the full payment (principal and interest, plus the escrow payment) in order to decide how much escrow should be taken with any particular payment. It will divide each payment according to the payment matrix and the amount (if any) in the partial pay buckets.
For example, escrow is last in my payment matrix and my total loan payment = $500 (principal and interest payment = $400 and escrow payment = $100). I come in and make a $425 payment. Under these configuration settings, the first $400 would go toward principal and interest and the system would make a $25 escrow transfer payment. The total partial payment amount would be $425 of which $400 would be loan partial pay and $25 would be escrow partial pay. On my next payment the system would first seek to satisfy the remaining $75 of the escrow payment. Once that was reached, the next payment date would be advanced and leftover funds would be put toward the next payment due.