Phoenix Release Notes

  • Updated

Phoenix Release Notes

1.   Preface 

This is a living document, and its contents may be updated often. Make sure that you have the latest version for use.

This document provides information about the new and enhanced functionality in Q2 Loan Servicing and Q2 Marketplace, Phoenix General Availability (GA) release. You can access the release notes of the previous releases from the Q2 Customer Portal.

The contents of this document are applicable to all the customers who have installed the Q2 Loan Servicing and Q2 MarketplacePhoenix version (2.7016.99) for the first time or have upgraded from an earlier version.

1.1 Purpose of this Document

This document provides information on the following for the Phoenix release:

1.2 Intended Audience

The audience of this document includes business users, implementers, and system administrators.

1.3 Prerequisites for Use

This document assumes a basic knowledge of the product concepts, the product release, and the Salesforce platform.

1.4 List of Abbreviations

Abbreviated Term  Description
   
   
   

2.   Introduction

These release notes may be updated after the first release. Any changes to the contents of these release notes are listed in the Change Record section.

3.   Installation Information

Contact your Q2 Professional Services team or the Customer Success team for information on the package dependency and installation order of the packages required to install and set up the latest version of Q2 Loan Servicing and Q2 Marketplace.

4.   Upgrade Considerations

For information on the upgrade steps, see release-related steps in the Q2 Product Upgrade Guide.

5.   System Performance

To view the batch jobs performance statistics for Q2 Loan Servicing and Q2 Marketplace without customizations under test conditions, see the Q2 Performance Benchmarking Guide.

6.   New Features and Enhancements

This section briefly describes the new features and enhancements added in the Phoenix release of Q2 Loan Servicing and Q2 Marketplace.

Note:

For a detailed description of the new features and enhancements, see the following guides published over the Q2 Customer Portal:

  • Q2 Loan Servicing and Q2 Marketplace User Guide

  • Q2 Loan Servicing and Q2 Marketplace Administration Guide

6.1 Accounting

6.1.1 Accounting Module (JIRA ID: ND-2383)

Feature Description

A new accounting module has been introduced in the Phoenix release. It is now possible to setup and create accounting entries for any of the transactions that have taken place in the loans system. The new accounting module allows you to setup accounting based on records returned by a user defined query. This gives flexibility to the user to for example define different accounting entries for the different transaction types present in other loan transactions. Or even define different accounting entries for the different types of payments.

6.2 Batch Processing

6.2.1 DAG based batch processing (JIRA ID: ND-2575)

Feature Description

Users can now define the order in which batch jobs are to be run and even chain custom batch jobs as part of the SOD job processing. You will also be able to remove batch jobs that are not relevant for you thereby increasing the batch performance.

6.3 Contingency Status Code

6.3.1 User Defined Contingency Status Code (JIRA ID: ND-2569)

Feature Description

It is now possible to define your Contingency status code. As part of the Contingency status code definition you will be able to select which actions out of a set of predefined actions should be performed when the applying the status code on the contract. A new field called contingency status code has been introduced in the Loan Contract. This will enable users to define a different set of accounting entries for loans depending on the contingency status code.

6.4 Deposits and Redraw

6.4.1 Linking Deposits with Loan Contracts (JIRA ID: ND-2656)

Feature Description

It is now possible to link Deposit accounts to Loans. After creating a Loan user can link one or more deposits to the loan. These deposits can have their own interest rate based on which the interest applied on the Loan will be reduced. The Deposits amounts can be increased or decreased with the help of a new API that has been provided. The system can be configured to increase the deposit amount when an excess payment is made on the loan. This amount can then be withdrawn using the API provided.

6.5 Fees

6.5.1 Adding Fees to Bill Amount (JIRA ID: ND-2565)

Feature Description

Users can define if fees are to be added to the Bill amount during Bill generation.

6.6 Fee Amortization (JIRA ID: ND-2559)

Feature Description

Fee amortization is now enabled in the system. The user can define a fee as amortized as part of the Fee setup. During creation of the contract, the system will apportion the fee portion equally amongst all installments.

6.7 Fractionalization

6.7.1 Priority based payout (JIRA ID: ND-2552)

Feature Description

You can now prioritize the order in which investment orders are to be paid out when a borrower makes payment. The system will first apportion the interest and Principal portion in order of their priority. The Investment Order priority is determined by the Priority mentioned on the Investor.

6.8 Holiday Treatment

6.8.1 Holiday Treatment for LOC due date (JIRA ID: ND-2566)

Feature Description

Users can now define the Holiday treatment parameters in Line of Credit Products. Based on the product parameters, the bill due date will be moved forward or backward.

6.8.2 Pre-bill days to count only working days (JIRA ID: ND-2567)

Feature Description

The pre bill days can be configured to count only working days to determine the number of days prior to bill due date that the bill is to be generated.

6.9 Interest Rates

6.9.1 Defining Rate Schedule in Loan Product (JIRA ID: ND-2538)

Feature Description

The rate schedule can now be defined at the Loan Product. Users can now define the interest rate and the tenor for which the interest rates are applicable. During contract creation, the system will automatically populate the rate schedules based on the Product definition.

6.10 Payments

6.10.1 Datewise payment application order for Loans (JIRA ID: ND-2383)

Feature Description

The Datewise payment application order is now available for simple loans which have interest posting transaction enabled. Datewise application order applies the payments to the interest and Principal portion for the earliest unpaid date before moving on to the Interest and Principal due for the next date.

6.11 Schedules Definition

6.11.1 Define Proposed Payment plan without Amounts (JIRA ID: ND-2541)

Feature Description

In the proposed payment plan the payment amounts need not be specified. User can give the EMI amount to only specific schedules. The system will then calculate a constant EMI for the remaining schedules for which the amount is not specified.

6.11.2 Interest only Period (JIRA ID: ND-2540)

Feature Description

It is now possible to define the Interest only period in the proposed payment plan. This enables users to define Interest only periods interspersed with Equated installment payments. For example, user can define monthly interest only payments with Quarterly equated installment payments.

6.11.3 Specifying payment dates with irregular frequency (JIRA ID: ND-2542)

Feature Description

You can now define schedules with payment dates having irregular frequency in the Proposed Payment Plan. For example, the user can define consecutive repayment schedules falling on

  1. 25-Oct-2018

  2. 15-Nov-2018

  3. 13-Dec-2018

7.   Fixed Issues

This section describes the bugs fixed in the Phoenix release of CL Loan & Marketplace.

7.1 Payoff Quote API failure (JIRA ID: MD-322)

Bug Description

Payoff Quote generation API was failing due to all fields not being queried.

7.2 Expiry Date field in Marketplace Application (JIRA ID: MD-327)

Bug Description

The expiry date field provided was not getting updated during creation of Marketplace application.

7.3 Wrong Transaction Amount during IO Sale (JIRA ID: MD-341)

Bug Description

The Transaction amount during Sale of an Investment order was wrongly being updated with the IO Amount. It has now been modified to get updated with the buying price.

7.4 Loan Cancellation (JIRA ID: MD-346)

Bug Description

Loan Cancellation was failing with null pointer exception when multiple disbursement schedule records are present.

7.5 Charge off amount for Metro 2 (JIRA ID: ND-1716)

Bug Description

The current payment amount was not equal to the charged off amount for written off loans due to rounding error. When reporting the charged off amount, each of the individual charged off components were rounded individually and added. Now after addition, they are rounded to report the charge off amount.

7.6 Charge off amount reporting in Metro 2 File (JIRA ID: ND-2603)

Bug Description

The charged off amount was not getting rounded during metro 2 file generation

7.7 Metro 2 file generation failing (JIRA ID: ND-2609)

Bug Description

Metro 2 file generation failing with error “Aggregate rows returning too many rows”. Source code optimized to query only required data.

7.8 Billing and Payoff in AMZ Loans (JIRA ID: ND-2660)

Bug Description

Billing and payoff jobs have been optimized for AMZ loans to avoid failing due to Salesforce Limits.

7.9 Accrual Stop Indicator (JIRA ID: ND-2666)

Bug Description

System was continuing to accrue even though Accrual Stop indicator flag is checked. This has been rectified.

7.10 Debit date on APS incorrect (JIRA ID: ND-2681)

Bug Description

The Debit date on the Automated payment setup is getting updated incorrectly for Semi-monthly PD loans. This was happening in case the number of days between the 1st and 2nd payment days is less than 5 days.

7.11 FIT contracts not getting created with Interest Posting enabled (JIRA ID: ND-2685)

Bug Description

Contract creation for product with Funding in Tranches enabled are not getting created if Interest Posting is also enabled. This was because next Interest posting date was not getting calculated properly. Source code fixed to calculate next IPT date after first disbursal.

7.12 Loan Payment Transaction Reversal failure (JIRA ID: ND-2694)

Bug Description

Loan Payment transaction reversal failing if the Tax paid and tax remaining fields on the charges object is null. Null checks have been added.

7.13 Interest Accrual Entry incorrectly calculated (JIRA ID: ND-2698)

Bug Description

For loans with Interest posting enabled, the Interest Accrual Entry transaction amount not taking the Interest Posted amount. This has now been fixed.

7.14 Investor Payout not matching the Loan payment amount (JIRA ID: ND-2700)

Bug Description

The Investor payout amount is being rounded even though the rounding parameters in the Loan Product is not enabled. The investor payout amount calculation is modified to follow the rounding parameters mentioned in the Loan product.

7.15 Interest Rate not getting resolved during reschedule (JIRA ID: ND-2702)

Bug Description

For floating interest rate contracts, if a new value is added in the rate schedules, the interest rate is not getting resolved with the new values. This has not been fixed.

7.16 Refinance amount (JIRA ID: ND-2719)

Bug Description

When refinancing loans with rebate amount, there is a difference between the expected refinance amount and the actual refinance amount calculated by the system. This was due to the fact that the rebate amount was being rounded differently in each of the calculations. Source code has now been modified to round the rebate amount during payoff amount calculations.

7.17 Get Next cycle date API giving error (JIRA ID: ND-2769)

Bug Description

When first due day is passed as null, the get next cycle date API is failing. Source code has been modified to derive the due day from the first payment date if first due day is null.

Note:

For the issues fixed in a release, see the Post GA section of that release notes. For example, a fix released in a patch on the Summer release is listed in the Post GA section of the Summer RNs.

8.   Known Issues

This section briefly describes known issues known in the Phoenix release of Q2 Loan Servicing and Q2 Marketplace.

Issue ID Description Workaround
     

9.   New and Modified Objects

This section briefly describes the new and modified objects in the Phoenix release of Q2 Loan Servicing and Q2 Marketplace.

Note:

For more details on the added and modified objects, see Q2 Loan Servicing and Q2 Marketplace Data Dictionaries Guide.

9.1 New Objects

The following table describes the objects added in the Phoenix release of Q2 Loan Servicing and Q2 Marketplace.

Object Name Field Name Description
Deposit   Contains the information related to Deposits linked to the loan contracts
Rate Schedule   Contains the rate schedule setup which is linked to the Loan Product
Contingency Status Code   New object which contains all the contingency status codes and the parameters associated with each of them.

9.2 Modified Objects

The following table describes the objects modified in the Phoenix release of Q2 Loan Servicing and Q2 Marketplace.

Modified Object Added/Modified Field Field Description
Account Priority The Priority assigned to the Investor during Payout
Charge Included_In_Bill_Id Contains the Bill id in which this charge has been included
Charge Include_In_Schedule_Id Contains the schedule id for which the charge has been created in case the charge is part of the repayment schedules
Fee Include_In_Schedules Determines if the Fee is to be amortized
Interest_Posting_Transaction Deposit_Interest_Posted__c Contains the Deposit interest calculated for the Interest posting period
Investor_Loan Priority Priority gets defaulted from the priority mentioned in the Account. Used during Investor Payout
Loan_Account Add_Fee_Amount_To_Bill Determines if charges should be added to Bill.
Loan_Account Adjust_Deposit_Amount_In_Payoff Determines whether Deposit amount should be considered during Payoff
Loan_Account Deposit_Interest_Accrued The total interest accrued on the deposits associated with the loan
Loan_Account Deposit_Interest_Posted The total interest posted on the the Deposits associated with the Loan
Loan_Account Deposit_Payment_Offset_Days The number of days after bill due date after which a payment will be created against the due bill if the bill has not
Loan_Account Fees_Billed The total Fees that has been added to the Bill that have been
Loan_Account Next_Deposit_Payment_Date The next date on which the system should try paying the bill with the Deposit payment if any
Loan_Account Scheduled_Fee_Amount_In_PayOff Determines if the future fees that are in schedules, should be included in the Payoff amount
Loan_Account Total_Scheduled_Fee Total fees that are present in schedules. Used in Payoff quote generation
Loan_Account Next_Due_Date_Without_Holiday_Treatment Used for Line of Credit Contracts to determine the next billing date in case of Holiday treatment
Loan_Payment_Transaction Deposit_Snapshot Contains the snapshot of the values of the Deposit before the payment transaction
Deposit The amount of spread that goes towards deposit incase of excess payment
Loan_Product Add_Fee_Amount_To_Bill Determines if charges should be added to Bill.
Adjust_Deposit_Amount_In_Payoff Determines whether Deposit amount should be considered during Payoff
Periodic_Fee_Setup Frequency The frequency of periodic fee generation. Currently the frequency is only allowed to be the same as payment frequency
Start_Date The date from which the periodic fees should be created
Terms The number of terms for Periodic fees
Total_Amount The total amount for which the periodic fees should be created

10.   New and Modified APIs

This section briefly describes the new and modified APIs in the Phoenix release of Q2 Loan Servicing and Q2 Marketplace.

Note:

For more details on the added or modified APIs, see Q2 Loan Servicing and Q2 Marketplace REST APIs Guide.

10.1 New APIs

API Name Description
Change Deposit Action This API is for changing the deposit amount for deposits linked to Loans.
   

10.2 Modified APIs

There are no APIs modified in the Phoenix release of Q2 Loan Servicing and Q2 Marketplace.

11.   Global Methods

This section briefly describes the global methods that are added or modified in the Phoenix release of Q2 Loan Servicing and Q2 Marketplace.

Note:

For more details on the added and modified global methods, see Q2 Loan Servicing and Q2 Marketplace Global Methods Guide.

11.1 New Global Methods

The following table describes the global methods added in the Phoenix release of Q2 Loan Servicing and Q2 Marketplace.

Class Name Global Method Name Description
     

11.2 Modified Global Methods

The following table describes the global methods modified in the Phoenix release of Q2 Loan Servicing and Q2 Marketplace.

Class Name Global Method Name Modifications
     

12.   Post GA Release

Follow this section for the details on the issues fixed in the patches on the Phoenix release of the following packages:

  • Q2 Loan Servicing

  • Q2 Marketplace

  • CL Common

12.1 Issues fixed in Q2 Loan Servicing 2.7016.116

12.1.1 Payoff Quote generated using the API is not matching with the Payoff Quote generated from the UI (Jira ID: PDRFF-2947/ND-7890)

Issue Description

When a user is using the global class to generate a Payoff Quote, the generated Payoff Quote is not matching the Payoff Quote generated from the UI.

Example to understand the behavior after the fix

  1. Create a loan contract on February 03, 2022, with the following values:

    • Loan Amount = $10,000

    • Interest Rate = 15.7%

    • Term = 12

    • Payment Frequency = Monthly

    • Time Counting Method = Month and Days

    • EMI amount = $905.89

  2. Approve and disburse the loan.

  3. Move the Current System Date to March 03, 2022, reschedule the loan with the following values:

    • Repayment Start Date = December 03, 2022 (such as to skip the payments from April 03, 2022 to Nov 03, 2022)

    • Term = 11

  4. EMI amount = $999.37 form December 03, 2022.

  5. Move the Current System Date to December 03, 2022, the values are updated as follows:

  6. Today's Payoff = $11,217.07

    ($10,000 (Principal) + ($130.83+$999.37) (Interest posted/Remaining) + $86.9 (Interest remaining on Closed IPT))

  7. Generate Payoff Quote on December 03, 2022

    • Payoff Amount = $11,217.07

      The Payoff Quote generated using the script through Global API call or using the UPI must match.

Resolution

The issue is now fixed and the Payoff Quote generated using the script through Global API call or using the UPI are matching with each other.

12.2 Issues fixed in Q2 Loan Servicing 2.7016.114

12.2.1 LoanPaymentTxnClearing job is failing and displaying an apex heap size error (Jira ID: PDRFF-2861/ND-7815)

Issue Description

LoanPaymentTxnClearing job when configured with Batch Size value set to 400, is failing with the following error:

Error Message

Apex heap size too large exception

Resolution

LoanPaymentTxnClearing job must be configured with Batch Size value set to 150 so that it works without any errors.

12.2.2 The ExcessForAmzBasedLoansJob is considering the records of loan contracts with Closed - Written off status and is displaying an error for these contracts (Jira ID: PDRFF-2939/ND-7816)

Fixed Version

This issue has been fixed in the following version:

  • Q2 Loan Servicing Pheonix (2.7016.114)

Issue Description

ExcessForAmzBasedLoans job is failing and displaying the following error message, while creating a payments for Closed-Written-off contracts:

Error Message:

This is a written off loan. You will have to select the Write Off Recovery Payment option

Resolution

The issue is now fixed and the loan contracts with the Closed -Written -off or Closed- Obligation Met statuses are not being considered for the execution of the ExcessForAmzBasedLoans job.

Note:

If there is an excess amount present on the loan contract, the user must now manually create an LPT to apply the excess amount on the loan contract only then the contract status can be updated as Closed -Written off.

12.2.3 For an FAMZ contract, the system is calculating the Interest Remaining value for future dated Payoff Quote incorrectly (Jira ID: PDRFF-3011/ND-7813)

Fixed Version

This issue has been fixed in the following version:

  • Q2 Loan Servicing Pheonix (2.7016.114)

Issue Description

The system is calculating the Interest Remaining incorrectly for the future dated Payoff Quote, when the Payoff Date is after the Next Interest Posting Transaction Date and where the loan is rescheduled twice and it has a combination of closed and open IPTs. In such a scenario, although the Interest Remaining is a components of the Amortization Schedule, the system is considering it once again during the payoff thus calculating the Interest Remaining value for future dated Payoff Quote incorrectly.

Example to understand the behavior after the fix

  1. Create a loan contract with the following values on June 15, 2023:

    • Time counting method = Month and Days

    • Default Interest Rate = 8.92%

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Reschedule Option on Excess Payment = Keep Same Payment Amount

    • Pre-bill Days = 28

    • Payment Application Order = Date

    • Payment Application Mode = Current Dues

    • Billing Method = Flexible Repayment

    • Interest Rate Change Method = Keep Same Payment Amount

    • Loan Amount = $10,500

    • Term = 36

    • Payment Frequency = Monthly

    • Payment Start Date = July 15, 2023

    • Add Rate Schedule with Interest Rate = 8.92%

    • Start Date = June 15, 2023

  2. Approve and disburse the loan.

  3. Move the Current System Date to July 24, 2023.

    The values are updated as follows:

    • Last Accrual Date = July 15, 2023

    • Interest Remaining = $78.05

    • Interest Accrued = $22.85

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

    • Today's Payoff = $10,600.90

  4. Reschedule loan with the following vales:

    • Repayment Start Date = October 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 36

    • Add Repayment Plan with Payment Type = EMI

    • Payment Amount = $333.51

    • Term = 35

    • Payment Start Date = October 15, 2023

    The values are updated as follows:

    • Last Accrual Date = July 24, 2023

    • Interest Remaining = $100.9

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  5. Move the Current System Date to July 26, 2023.

    The values are updated as follows:

    • Last Accrual Date = July 24, 2023

    • Interest Remaining = $100.9

    • Interest Accrued = $5.20

    • Interest Paid = $0

    • Principal/Advance Remaining = 10,500

  6. Reschedule loan once again with the following values

    • Repayment Start Date = October 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 36

    • Add Repayment Plan with Payment Type = EMI

    • Payment Amount = $333.51

    • Term = 35

    • Payment Start Date = October 15, 2023

    The values are updated as follows:

    • Last Accrual Date = July 26, 2023

    • Interest Remaining = $106.10

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  7. Move the Current System Date to August 08, 2023

    • Today's Payoff = $10,637.32

    • Payoff Amount on Payoff Page = $10,637.32

    • Last Accrual Date = July 26, 2023

    • Interest Remaining = $106.10

    • Interest Accrued = $31.22

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  8. Create payoff Quote with Payoff Date as October 16, 2023.

    The values are correctly updated as follows:

    • Total Payoff Amount on Payoff Quote for October 16, 2023 = $10,814.22

    • Last Accrual Date = July 26, 2023

    • Today's Payoff = $10,637.32

    • Payoff Amount on Payoff Page = $10,637.32

    • Interest Remaining on October 15, 2023 IPT = $106.10

    • Interest Remaining = $106.10

    • Interest Accrued = $31.22

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

Resolution

The issue is now fixed. The system is calculating the Interest Remaining value for future dated Payoff Quote correctly.

12.3 Issues fixed in Q2 Loan Servicing 2.7016.112

12.3.1 The system is displaying an incorrect schedule after an automatic rescheduling, when Reschedule Option on Excess Payment is set to Change Payment Amount (Jira ID: ND-7257)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

In an FAMZ loan, the system is displaying an incorrect schedule after an automatic rescheduling, when Reschedule Option on Excess Payment is set to Change Payment Amount.

Example to Understand the Behavior after the Fix

  1. Create an FAMZ Lending product with the following values:

    • Time counting method = Month and Days

    • Default Interest Rate = 15.7

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Reschedule Option on Excess Payment = Change Payment Amount

    • Pre-Bill Days = 28

    • Payment Application Order = Date

  2. Set the Current System Date to February 15, 2022, and create a loan contract with the following values, and then approve and disburse the loan:

    • Loan Amount = $10,500

    • Term = 36

    • Interest Rate Change Method = Change Payment Amount

    • Payment Frequency = Monthly

    • Payment Start Date = March 15, 2022

  3. Move the Current System Date to March 12, 2022.

    The values are updated as follows:

    • Last Accrual Date = February 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $123.64

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

    • Today's Payoff = $10,623.64

  4. Reschedule the loan to skip a pay with the following values:

    • Repayment Start Date = May 15, 2022

    • Maintain Delinquency = False

    • Number of Installments = 36

  5. Add Repayment Plan with the following values:

    • Payment Type = EMI

    • Payment Amount = $367.60

    • Term = 35

    The values are updated as follows:

    • Last Accrual Date = March 12, 2022

    • Interest Remaining = $123.64

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

    • Today's Payoff = $10,623.64

  6. Move the Current System Date to March 15, 2022.

    The values are updated as follows:

    • Last Accrual Date = March 12, 2022

    • Interest Remaining = $123.64

    • Interest Accrued = $13.74

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  7. Move the Current System Date to March 22, 2022.

    The values are updated as follows:

    • Last Accrual Date = March 12, 2022

    • Interest Remaining = $123.64

    • Interest Accrued = $45.79

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  8. Reschedule the loan to skip a pay with providing Repayment Start Date = May 15, 2022 and Maintain Delinquency = False.

  9. Add Repayment Plan-1 with the following value:

    • Payment Type = EMI

    • Payment Amount = $200

    • Term = 4

    • Payment Start Date = May 15, 2022

  10. Add Repayment Plan-2 with the following values:

    • Payment Type = EMI

    • Payment Amount = $367.60

    • Term = 31

    • Payment Start Date = September 15, 2022

    The values are updated as follows:

    • Last Accrual Date = March 22, 2022

    • Interest Remaining = $169.43

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  11. Move the Current System Date to April 16, 2022

    The values are updated as follows:

    • Last Accrual Date = March 22, 2022

    • Interest Remaining = $169.43

    • Interest Accrued = $109.9

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  12. Create an LPT with the Transaction Amount of $400 and Transaction Date of April 16, 2022.

    The values are updated as follows:

    • Last Accrual Date = March 22, 2022

    • Interest Remaining = $169.43

    • Interest Accrued = $109.9

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,100

    • Reschedule Status = Pending

  13. Run the Reschedule Transaction job.

    The values are updated as follows:

    • Last Accrual Date = April 16, 2022

    • Interest Remaining = $279.33

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,100

    • Reschedule Status = Success

    • Current Maturity Date = April 15, 2025

    • August 15, 2022, schedule is present with Due Interest = $200 (The schedule was missing before the fix)

12.3.2 On performing Rate Change in the middle of a cycle, the system is calculating Today's Payoff, Payoff Quote, and Interest Remaining incorrectly (Jira ID: ND-7234)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

After a rate change, the system is not updating the Current Interest rate due to which the Interest calculated after the Last Accrual Date is incorrect. Therefore, Today's Payoff, Payoff Quote, and Interest Remaining are also being calculated incorrectly.

Example to Understand the Behavior after the Fix

  1. Create an FAMZ Lending Product with the following values:

    • Time Counting Method = Month and Days

    • Default Interest Rate = 15.7%

    • Excess Threshold % for Reschedule = 0

    • Reschedule Option on Excess Payment = Keep Same Payment Amount

    • Pre-Bill Days = 28

    • Payment Application Order = Date

    • Payment Application Mode = Current Dues

    • Billing Method = Flexible Repayment

    • Interest Rate Change Method = Change Payment Amount

  2. Create a loan contract with the following values, and then approve and disburse the loan:

    • Loan Amount = $10,000

    • Contract Date = January 20, 2017

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Term = 10

    • Payment Frequency = Monthly

    • Payment Start Date = February 20, 2017

    • Add Rate Schedule with Interest Rate = 15.7%, Start Date = January 20, 2017

  3. Move the Current System Date to the next due generation date, that is, January 23, 2017, (Bill is generated on this date).

  4. Go to Loan Actions > Rate Change > on the Rate Schedule add new row with Interest Rate = 8% and Start Date = January 23, 2017.

  5. Move the Current System Date to the Next Due Date February 20, 2017.

    The values are updated as follows:

    • Today's Payoff and Payoff Quote for February 20, 2017 = $10,073.08 (Which was incorrect before the fix)

    • Interest Remaining on February 20, 2017, IPT = $0

    • Principal/Advance Remaining = $10,000

    • Interest Remaining = $73.08

    • Last Accrual Date = February 20, 2017

Resolution

This issue is now fixed. On performing Rate Change in middle of a cycle, the system is calculating Today's Payoff, Payoff Quote, and Interest Remaining correctly.

12.3.3 The system is calculating the Interest Remaining values incorrectly after a payment of amount that is either equal to or greater than the Payoff Tolerance Amount (Jira ID: ND-7448)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

In an FAMZ loan, for a payment transaction of amount equal to or greater than the Payoff Tolerance Amount, the contract moves to Active - Marked for Closure, but the amount is not satisfying the Interest Amount, instead it is considering it as Excess. On running the loan closure job, contracts status is not changing to Closed - Obligations Met. On reversal of the same payment, the Interest Remaining on the contracts is updated to a negative value instead of zero.

Example to Understand the Behavior after the Fix

  1. Create an FAMZ Lending Product with the following values:

    • Time Counting Method = Month and Days

    • Default Interest Rate = 8%

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Reschedule Option on Excess Payment = Keep Same Payment Amount

    • Pre-Bill Days = 28

    • Payment Application Order = Date

    • Payment Application Mode = Current Dues

    • Billing Method = Flexible Repayment

    • Interest Rate Change Method = Keep Same Payment Amount

  2. Set the Current System Date to January 3, 2022, and create a loan contract with the following values, and then approve and disburse the loan:

    • Loan Amount = $1,00,000

    • Term = 60

    • Payment Frequency = Monthly

    • Payment Start Date = February 3, 2022

    • Payoff Tolerance = 5

    • Add Rate Schedule with Interest Rate = 8%, Start Date = January 3, 2022

  3. Move the Current System Date to February 3, 2022.

  4. Make a payment with the Transaction Amount of $2,027.64.

  5. Move the Current System Date to February 7, 2022.

  6. Go to Loan Actions > Reschedule > set the Transaction Date = February 7, 2022, Repayment Start Date = August 3, 2022, and Maintain Delinquency = True. Select Preview and then Save.

  7. Move the Current System Date to August 3, 2022.

  8. Make a payment with the Transaction Amount of $2,094.47.

  9. Make a payment with the Transaction Amount of $1,00,488.

    The values are correctly updated as follows:

    • Loan Status = Active - Marked for Closure

    • Today's Payoff = $2.12

    • Last Accrual Date = August 3, 2022

    • Interest Remaining = $0

    • Interest Accrued = $0

    • Interest Paid = $4,612.23

    • Principal/Advance Remaining = $2.12

    • Last Transaction Type = Payment Transaction

    • Excess = $0

    • Payoff Quote on August 3, 2022 = $2.12

  10. Run the Loan Closure job.

    The values are updated as follows:

    • Loan Status = Closed - Obligations Met

    • Today's Payoff = $0

    • Last Accrual Date = August 3, 2022

    • Interest Remaining = $0 ( Incorrect before the fix)

    • Interest Accrued = $0

    • Interest Paid = $4,612.23

    • Principal/Advance Remaining = $0

    • Last Transaction Type = Payment Transaction

    • Excess = $0

    • Payoff Quote on August 3, 2022 = $0

Resolution

This issue is now fixed. The logic is now updated and is considering the extra interest generated due to skipped payment cycles for a payment amount equal to or greater than the Payoff tolerance.

12.3.4 The system is automatically updating the cumulative Interest Remaining from the closed IPTs to zero if the actual result is a negative value (Jira ID: ND-7208)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

In an FAMZ loan, if the cumulative Interest Remaining from all the closed IPTs computes to a negative value, then, as part of the fix in ND - 7082, the Interest Remaining was getting updated to zero. However, this fix has now been reverted, and now if the cumulative Interest Remaining from all the closed IPTs computes to a negative value, then the system updates this value to a correct value.

Example to Understand the Behavior after the Fix

  1. Create an FAMZ Lending Product with the following values:

    • Time Counting Method = Month and Days

    • Default Interest Rate = 15.7%

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Reschedule Option on Excess Payment = Keep Same Payment Amount

    • Pre-Bill Days = 28

    • Payment Application Order = Date

    • Payment Application Mode = Current Dues

    • Billing Method = Flexible Repayment

    • Interest Rate Change Method = Keep Same Payment Amount

  2. Set the Current System Date to September 15, 2022, and create a loan contract with the following values, and then approve and disburse the loan:

    • Loan Amount = $10,500

    • Term = 36

    • Payment Frequency = Monthly

    • Payment Start Date = October 15, 2022

    • Add Rate Schedule with Interest Rate = 15.7%, Start Date = September 15, 2022

  3. Move the Current System Date to October 15, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $137.38

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

    • Today's payoff = $10,637.38

  4. Create an LPT with a Transaction Amount of $367.60 and Transaction Date of October 15, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  5. Move the Current System Date to October 18, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $13.44

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  6. Reschedule loan with the following values:

    • Repayment Start Date = January 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 36

    • Add repayment plan with Payment Type = EMI

    • Payment Amount = $367.60

    • Term = 35

    • Payment Start date = January 15, 2023

    The values are updated as follows:

    • Last Accrual Date = October 18, 2022

    • Interest Remaining = $13.44

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  7. Move the Current System Date to November 15, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 18, 2022

    • Interest Remaining = $13.44

    • Interest Accrued = $120.92

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  8. Move the Current System Date to November 16, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 18, 2022

    • Interest Remaining = $13.44

    • Interest Accrued = $125.40

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $102,69.78

  9. Reschedule loan with the following values:

    • Repayment Start Date = March 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 36

    • Add repayment plan with Payment Type = EMI

    • Payment Amount = 367.60

    • Term = 35

    • Payment Start Date = March 15, 2023

    The values are updated as follows:

    • Last Accrual Date = November 16, 2022

    • Interest Remaining = $138.84

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  1. Move the Current System Date to March 15, 2023.

    The values are updated as follows:

    • Today's Payoff = $10,941.59

    • Payoff Amount on Payoff page = $10,941.59

    • Last Accrual Date = March 15, 2023

    • Interest Remaining = $367.60

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  2. Move the Current System Date to May 15, 2023.

    The values are updated as follows:

    • Today's Payoff = $11,210.32

    • Payoff Amount on Payoff page = $11,210.32

    • Last Accrual Date = May 15, 2023

    • Interest Remaining = $940.54

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  3. Manually update the March 15, 2023, IPT Interest Remaining to $0.

  4. Reschedule loan with the following values:

    • Repayment Start Date = June 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 36,

    • Add repayment plan with Payment Type = EMI

    • Payment Amount = $367.60

    • Term = 35

    • Payment Start Date = June 15, 2023

    The values are correctly updated as follows:

    • Last Accrual Date = May 15, 2023

    • Today's Payoff = $11,210.32

    • Payoff Amount on Payoff page = $11,210.32

    • Total Payoff Amount on payoff quote for May 15, 2023 = $11,210.32

    • Interest Remaining on June 15,2023 IPT = $940.54

    • Interest Remaining = $940.54

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

Resolution

This issue is now fixed. The system now updates the Interest Remaining on the loan correctly.

12.3.5 After an automatic rescheduling, the Payment Amount defined on a Flexible Repayment Plan is updating incorrectly, when Reschedule Option on Excess Payment is set to Change Payment Amount (Jira ID: ND-7447)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

After an automatic rescheduling the Payment Amount defined on a Flexible Repayment Plan is updating incorrectly, when Reschedule Option on Excess Payment is set to Change Payment Amount.

Example to Understand the Behavior after the Fix

  1. Create an FAMZ Lending Product with the following values:

    • Time Counting Method = Month and Days

    • Default Interest Rate = 15.7%

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Reschedule Option on Excess Payment = Change Payment Amount

    • Pre-Bill Days = 28

    • Payment Application Order = Date

    • Payment Application Mode = Current Dues

    • Billing Method = Flexible Repayment

    • Interest Rate Change Method = Keep Same Payment Amount

  2. Set the Current System Date to September 15, 2022, and create a loan contract with the following values, and then approve and disburse the loan:

    • Loan Amount = $10,500

    • Term = 36

    • Payment Frequency = Monthly

    • Payment Start Date = October 15, 2022

    • Add Rate Schedule with Interest Rate = 15.7%, Start Date = September 15, 2022

  3. Move the Current System Date to October 15, 2022.

  4. Create an LPT with a Transaction Amount of $367.60 and Transaction Date of October 15, 2022.

  5. Reschedule the loan to skip a pay with providing Repayment Start Date = January 15, 2023, Maintain Delinquency = True, and Number of Installments = 36

  6. Add repayment plan 1 with the following values:

    • Payment Type = EMI

    • Payment Amount = $100

    • Term = 5

    • Payment Start Date = January 15, 2023

  7. Add repayment plan 2 with the following values:

    • Payment Type = EMI

    • Payment Amount = $367.60

    • Term = 30

    • Payment Start date = June 15, 2023

  8. Move the Current System Date to January 15, 2023.

  9. Create an LPT with a Transaction Amount of $100 and Transaction Date of January 15, 2023.

  10. Move the Current System Date to February 15, 2023.

  11. Create an LPT with a Transaction Amount = $100 and Transaction date of February 15, 2023.

  12. Move the Current System Date to March 15, 2023.

  13. Create an LPT with a Transaction Amount of $110 and Transaction Date of March 15, 2023.

  14. Run the Reschedule job.

    Payment Amount for the April 15, 2023, and May 15, 2023, schedules = $100, which is correct. The system calculated this amount incorrectly before the fix.

Resolution

This issue is now fixed. During rescheduling, the system is now calculating the number of terms correctly when we skip a few months and is updating the Payment Amount correctly.

12.3.6 After performing an LPT reversal for a written off loan, the system is calculating Today's Payoff, Payoff Quote, and Interest Remaining incorrectly (Jira ID: ND-7254)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

After performing an LPT reversal for a written off loan, the system is calculating Today's Payoff, Payoff Quote, and Interest Remaining incorrectly,

Example to Understand the Behavior after the Fix

  1. Create an FAMZ Lending Product with the following values:

    • Time Counting Method = Month and Days

    • Default Interest Rate = 15.7%

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Reschedule Option on Excess Payment = Keep Same Payment Amount

    • Pre-Bill Days = 28

  2. Set the Current System Date to September 15, 2022, and create a loan contract with the following values, and then approve and disburse the loan:

    • Loan Amount = $10,500

    • Term = 36

    • Payment Frequency = Monthly

    • Payment Start Date = October 15, 2022

    • Add Rate Schedule with Interest Rate = 15.7%, Start Date = September 15, 2022

  3. Move the Current System Date to October 15, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $137.38

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

    • Today's Payoff = $10,637.38

  4. Create an LPT with a Transaction Amount of $367.60 and Transaction Date of October 15, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  5. Move the Current System Date to October 18, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $13.44

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  6. Reschedule the loan with the following values:

    • Repayment Start Date = January 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 36

    • Add Repayment plan with Payment Type = EMI

    • Payment Amount = $367.60

    • Term = 35

    • Payment Start Date = January 15, 2023

    • Select Preview and then Save

    The value are updated as follows:

    • Last Accrual Date = October 18, 2022

    • Interest Remaining = $13.44

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  7. Move the Current System Date to November 15, 2022.

    The value are updated as follows:

    • Last Accrual Date = October 18, 2022

    • Interest Remaining = $13.44

    • Interest Accrued = $120.92

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  8. Move the Current System Date to November 16, 2022.

    The value are updated as follows:

    • Last Accrual Date = October 18, 2022

    • Interest Remaining = $13.44

    • Interest Accrued = $125.40

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  9. Reschedule loan with the following values:

    • Repayment Start Date = March 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 36

    • Add Repayment plan with Payment Type = EMI

    • Payment Amount = $367.60

    • Term = 35

    • Payment Start Date = March 15, 2023

    • Select Preview and then Save

    The value are updated as follows:

    • Last Accrual Date = November 16, 2022

    • Interest Remaining = $138.84

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  10. Move the Current System Date to March 15, 2023.

  11. Go to Servicing Configuration > Loan Write Off > Under Write Off any loan, select the Loan account created above > select Write Off the selected loan account.

  12. Make a payment with Transaction Amount of $10,941.59, Transaction Date of March 15, 2023, and Write off Recovery Checkbox = True.

  13. Reverse the Write off LPT created on March 15, 2023.

    The values are correctly updated as follows:

    • Interest Paid = 137.38

    • Principal/Advance Remaining = $10,269.78

    • Last Transaction Type = Charge Off

    • Interest Remaining = $671.81

    • Today's Payoff = $10,941.59

    • Payoff Quote for March 15, 2023 = $10,941.59

Resolution

This issue is now fixed. After performing an LPT reversal for a written off loan, the system is calculating Today's Payoff, Payoff Quote, and Interest Remaining correctly.

12.3.7 While calculating the extra interest during rescheduling, the system is considering Interest Remaining values from all the closed IPTs instead of considering the Interest Remaining value from the IPT of the current interest only period (Jira ID: ND-7209)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

While rescheduling an FAMZ loan contract, for the calculation of the extra interest generated due to skipped payment cycles of the interest only periods, the system is considering all the Interest Remaining values from all the closed IPTs instead of considering the Interest Remaining from the IPT of the current interest only period.

Resolution

This issue is now fixed. During Interest Remaining computation, the system is now considering the last interest only period instead of cumulative Interest Remaining values from all the closed IPTs.

12.3.8 Sum of Interest Remaining on the IPTs has a difference of $0.01. Therefore, Today's Payoff and Payoff Quote also have a $0.01 difference (Jira ID: ND-7218)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

Sum of Interest Remaining on the closed IPT has a difference of $0.01. Therefore, a similar difference can be seen between the Payoff Quote and Today’s Payoff.

Example to Understand the Behavior after the Fix

  1. Create an FAMZ Lending Product with the following values:

    • Time Counting Method = Month and Days

    • Default Interest Rate = 15.7%

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Billing Method = Flexible Repayment

    • Pre-Bill Days = 3

  2. Set the Current System Date to September 15, 2022, and create a loan contract with the following values, and then approve and disburse the loan:

    • Loan Amount = $10,500

    • Term = 36

    • Payment Frequency = Monthly

    • Payment Start Date = October 15, 2022

    • Add Rate Schedule with Interest Rate = 15.7%, Start Date = September 15, 2022

  3. Move the Current System Date to October 15, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $137.38

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  4. Create an LPT of $367.60 with the following values:

    • Transaction Date = October 15, 2022

    • Installment Flag = True

    The values are updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  5. Move the Current System Date to November 12, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $120.93

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  6. Reschedule the loan with the following values:

    • Repayment Start Date = December 15, 2022

    • Maintain Delinquency = True

    • Number of Installments = 36

    • Add repayment plan with the following values:

      • Payment Type = EMI

      • Payment Amount = 367.60

      • Term = 35

      • Payment Start date = December 15, 2022

      • Select Preview and then Save

    The values are updated as follows:

    • Last Accrual Date = November 12, 2022

    • Interest Remaining = $120.93

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  7. Move the Current System Date to November 18, 2022.

    The values are updated as follows:

    • Last Accrual Date = November 12, 2022

    • Interest Remaining = $120.93

    • Interest Accrued = $26.87

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  8. Create an LPT of $600 with Transaction Date of November 18, 2022.

    The values are updated as follows:

    • Last Accrual Date = November 12, 2022

    • Interest Remaining = $120.93

    • Interest Accrued = $26.87

    • Interest Paid = $137.38

    • Excess = $0

    • Principal/Advance Remaining = $9,669.78

    • Reschedule Status = Pending

  9. Move the Current System Date to December 12, 2022.

    The values are updated as follows:

    • Last Accrual Date = November 18, 2022

    • Interest Remaining = $147.80

    • Interest Accrued = $101.21

    • Interest Paid = $137.38

    • Excess = $0

    • Principal/Advance Remaining = $9,669.78

    • Reschedule Status = Success

  10. Reverse the LPT created on November 18, 2022.

    The values are updated as follows:

    • Last Accrual Date = November 12, 2022

    • Interest Remaining = $120.93

    • Interest Accrued = $134.36

    • Interest Paid = $137.38

    • Excess = $0

    • Principal/Advance Remaining = $10,269.78

  11. Move the Current System Date to December 18, 2022.

    The values are updated as follows:

    • Last Accrual Date = December 15, 2022

    • Interest Remaining = $268.73

    • Interest Accrued = $13.30

    • Interest Paid = $137.38

    • Excess = $0

    • Principal/Advance Remaining = $10,269.78

  12. Reschedule the loan with the following values:

    • Repayment Start Date = January 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 35

    Add repayment plan-1 with the following values:

    • Payment Type = EMI

    • Payment Amount = $200

    • Term = 2

    • Payment Start date =January 15, 2023

    Add repayment plan-2 with the following values:

    • Payment Type = EMI

    • Payment Amount = $367.60

    • Term = 32

    • Payment Start Date = March 15, 2023

    The values are updated as follows:

    • Last Accrual Date = December 18, 2022

    • Interest Remaining = $282.03

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

    • Today's Payoff = $10,551.81

    • Total Payoff amount on Payoff Quote = $10,551.81

    • Due Interest on March 15, 2023 = $271.69

  13. Move the Current System Date to December 19, 2022.

    The values are updated as follows:

    • Last Accrual Date = December 18, 2022

    • Interest Remaining = $282.03

    • Interest Accrued = $4.48

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  14. Move the Current System Date to January 15, 2023.

    The values are updated as follows:

    • Last Accrual Date = January 15, 2023

    • Interest Remaining = $200

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

    • Interest Remaining on January 15, 2023, IPT = $202.96

  15. Move the Current System Date to February 12, 2023.

    The values are updated as follows:

    • Last Accrual Date = January 15, 2023

    • Interest Remaining = $200

    • Interest Accrued = $120.93

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  16. Let us create an LPT of $300 and Transaction Date of February 12, 2023.

    The values are updated as follows:

    • Last Accrual Date = January 15, 2023

    • Interest Remaining = $0

    • Interest Accrued = $120.93

    • Interest Paid = $337.38

    • Excess = $100

    • Principal/Advance Remaining = $10,269.78

  17. Let us create an LPT of $100 and Payment Mode set to Excess.

    The values are updated as follows:

    • Last Accrual Date = January 15, 2023

    • Interest Remaining = $0

    • Interest Accrued = $120.93

    • Interest Paid = $337.38

    • Excess = $0

    • Principal/Advance Remaining = $10,169.78

    • Reschedule Status = Pending

  18. Run Reschedule Transaction job.

    The values are updated as follows:

    • Last Accrual Date = February 12, 2023

    • Interest Remaining = $120.93

    • Interest Accrued = $0

    • Interest Paid = $337.38

    • Excess = $0

    • Principal/Advance Remaining = $10,169.78

    • Reschedule Status = Success

    • Due Interest on March 15, 2023 = $270.25

    • Interest Remaining on February 15, 2023, IPT = $120.93

  19. Move the Current System Date to February 14, 2023.

    The values are updated as follows:

    • Last Accrual Date = February 12, 2023

    • Interest Remaining = $120.93

    • Interest Accrued = $8.87

    • Interest Paid = $337.38

    • Excess = $0

    • Principal/Advance Remaining = $10,169.78

  20. Reverse the Excess LPT created on February 12, 2023.

    The values are updated as follows:

    • Last Accrual Date = January 15, 2023

    • Interest Remaining = $0

    • Interest Accrued = $129.89

    • Interest Paid = $337.38

    • Excess = $100

    • Principal/Advance Remaining = $10,269.78

    • Due Interest on March 15, 2023 = $271.69

    • Interest Remaining on February 15, 2023, IPT = $0

  21. Reverse the Normal LPT created on February 12, 2023.

    The values are updated as follows:

    • Last Accrual Date = January 15, 2023

    • Interest Remaining = $200

    • Interest Accrued = $129.89

    • Interest Paid = $137.38

    • Excess = $0

    • Principal/Advance Remaining = $10,269.78

    • Due Interest on March 15, 2023 = $271.69

    • Interest remaining on February 15, 2023 IPT = 0

  22. Create an LPT of $200 and Transaction Date of February 14, 2023.

    The values are updated as follows:

    • Last Accrual Date = January 15, 2023

    • Interest Remaining = $0

    • Interest Accrued = $129.89

    • Interest Paid = $337.38

    • Excess = $0

    • Principal/Advance Remaining = $10,269.78

  23. Move the Current System Date to February 15, 2023.

    The values are updated as follows:

    • Last Accrual Date = February 15, 2023

    • Interest Remaining = $200

    • Interest Accrued = $0

    • Interest Paid = $337.38

    • Excess = $0

    • Principal/Advance Remaining = $10,269.78

  24. Move the Current System Date to March 15, 2023.

    The values are updated as follows:

    • Last Accrual Date = March 15, 2023

    • Interest Remaining = $471.69

    • Interest Accrued = $0

    • Interest Paid = $337.38

    • Excess = $0

    • Principal/Advance Remaining = $10,269.78

    Today's Payoff and Payoff Quote for March 15, 2023 is calculated correctly as $10,741.47 without any difference.

Resolution

This issue is now fixed. The system is now calculating the Payoff Quote and Today's Payoff correctly without any difference.

12.3.9 After a Payoff Transaction, Today's Payoff field is still displaying the Interest Remaining amount on the IPT value and loan is not getting closed (Jira ID: ND-7255)

Fixed Version

This issue has been fixed in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

If Payoff a transaction is made in the middle of a payment cycle, then the payment is not going towards the extra Interest Remaining. This results in Today's Payoff field still displaying the Interest Remaining amount on the IPT value and the loan not getting closed.

Example to understand the issue

  1. Create an FAMZ Lending Product with the following values:

    • Time Counting Method = Month and Days

    • Default Interest Rate = 15.7%

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Billing Method = Flexible repayment

    • Payment Application Order = Date

    • Reschedule Option on Excess Payment = Keep Same Payment Amount

    • Pre-Bill Days = 28

  2. Set the Current System Date to September 15, 2022, and create a loan contract with the following values, and then approve and disburse the loan:

    • Loan Amount = $10,500

    • Term = 36

    • Payment Frequency = Monthly

    • Interest rate change method = Change Payment Amount

    • Payment Start Date = October 15, 2022

  3. Move the Current System Date to October 15, 2022.

    The values are updated as follows:

    • Last Accrual Date = 10/15/2022

    • Interest Remaining = $137.38

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

    • Today's Payoff = 10,637.38

  4. Create an LPT with the Transaction Amount of $367.60 and Transaction Date of October 15, 2022.

    The values are updated as follows:

    • LAD = October 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  5. Move the Current System Date to October 18, 2022

    The values are updated as follows:

    • LAD = October 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $13.44

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  6. Reschedule loan with the following values:

    • Repayment Start Date = January 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 36

    • Add Repayment Plan with Payment type = EMI

    • Payment Amount = $367.60

    • Term = 35

    • Payment Start Date = January 15, 2023

    • Select Preview and then Save

    The values are updated as follows

    • Last Accrual Date = October 18, 2022

    • Interest Remaining = $13.44

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  7. Move the Current System Date to November 15, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 18, 2022

    • Interest Remaining = $13.44

    • Interest Accrued = $120.92

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  8. Move the Current System Date to November 16, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 18, 2022

    • Interest Remaining = $13.44

    • Interest Accrued = $125.40

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  9. Reschedule loan with the following values:

    • Repayment Start Date = March 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 36

    • Add Repayment plan with Payment Type = EMI

    • Payment Amount = $367.60

    • Term = 35

    • Payment Start Date = March 15, 2023

    • Select Preview and then Save

    The values are updated as follows:

    • Last Accrual Date = November 16, 2022

    • Interest Remaining = $138.84

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  10. Move the Current System Date to March 15, 2023.

  11. Perform payoff with Transaction Amount of $10,941.59.

  12. Go to Payoff.

    Loan is in Active - Good Standing status, Today's Payoff = $304.21, and Payoff Amount on payoff page = $304.21. But Today's payoff must be zero as the loan has been paid off and the loan status must be updated to Closed-Obligations Met.

Resolution

This issue is now fixed. Today's Payoff field is now getting updated as $0 after a Payoff Transaction and the loan status is updating correctly to Closed - Obligations Met.

12.3.10 After rescheduling a loan with a flexible repayment plan, the system is calculating the Due Interest incorrectly (Jira ID: ND-7415)

Fixed Version

This issue has been fixed in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

After rescheduling a loan which has a flexible repayment plan, the system is calculating the Due Interest incorrectly because the system is not considering the extra Interest Remaining generated on the IPT after the loan rescheduling in the Interest calculations.

Example to understand the issue

  1. Create an FAMZ Lending Product with the following values:

    • Time Counting Method = Month and Days

    • Default Interest Rate = 8%

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Billing Method = Flexible repayment

    • Pre-Bill Days = 28

  2. Set the Current System Date to January 1, 2022, and create a loan contract with the following values, and then approve and disburse the loan:

    • Loan Amount = $1,00,000

    • Term = 60

    • Payment Frequency = Monthly

    • Interest Rate Change Method = Change Payment Amount

    • Payment Start Date = February 3, 2022

  3. Move the Current System Date to February 3, 2022.

  4. Make payment with a Transaction Amount of $2,027.64

  5. Move the Current System Date to February 7, 2022.

  6. Go to Loan Actions > Reschedule > set the Transaction Date to February 7, 2022, and Repayment Start Date to August 3, 2022, with the following values:

    • Add Flexible Repayment Plan having Payment Type = EMI

    • Payment Amount = $400

    • Number of Payments =2

    • Select Preview and Save

  7. Move the Current System Date to August 3, 2022.

  8. Make Payment with Transaction Amount = $400.

  9. Move the Current System Date to September 3, 2022.

  10. Make Payment with Transaction Amount = $400.

  11. Go to Loan Actions > Reschedule > set the Transaction Date to September 3, 2022, and Repayment Start Date to October 3, 2022.

    Select Preview then Save

    • For duration between February 3, 2022 to July 3, 2022 Interest and Extra Interest during flexible repayment plan is = $3,803.16. This Interest is split in three schedules, that is, October 3, 2022, November 3, 2022, and December 3, 2022, schedules as August 3, 2022, and September 3, 2022 schedules have a Flexible Repayment Plan ($1,507.64 + $1,507.64 + $787.88 = $3,803.16).

    • Interest on October 3, 2022 schedule has Due Interest (Normal interest + Extra Interest) = $2,165.23 (1507.64 + 657.59)

    • Interest on November 3, 2022 schedule has Due Interest (Normal interest + Extra Interest) = $2,165.23 (1507.64 + 657.59)

    • Interest on December 3, 2022 schedule has Due Interest (Normal interest + Extra Interest) = $1,445.47 (657.59 + 787.88)

Resolution

This issue is now fixed. The internal logic has been updated such that the system now calculates the Due Interest correctly after the loan is rescheduled..

12.3.11 After rescheduling a loan for the second time in the interest only period, the system is calculating the Due Interest incorrectly (Jira ID: ND-7414)

Fixed Version

This issue has been fixed in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

After rescheduling a loan for the second time in the interest only period, the system is calculating the Due Interest incorrectly because the system is not considering the extra Interest Remaining generated on the IPT after the loan rescheduling in the Interest calculations.

Example to understand the behavior after the fix

  1. Create an FAMZ Lending Product with the following values:

    • Time Counting Method = Month and Days

    • Default Interest Rate = 8%

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Billing Method = Flexible repayment

    • Pre-Bill Days = 28

  2. Set the Current System Date to January 1, 2022, and create a loan contract with the following values, and then approve and disburse the loan:

    • Loan Amount = $1,00,000

    • Term = 60

    • Payment Frequency = Monthly

    • Interest rate change method = Change Payment Amount

    • Payment Start Date = February 3, 2022

  3. Move the Current System Date to February 3, 2022.

  4. Make a Payment with Transaction Amount of $2,027.64.

  5. Move the Current System Date to February 7, 2022.

  6. Go to Loan Actions > Reschedule > set the Transaction Date to February 7, 2022, and Repayment Start Date to August 3, 2022

  7. Select Preview and Save.

  8. Move the Current System Date to August 3, 2022.

  9. Make a Payment with Transaction Amount of $2,094.47.

  10. Go to Loan Actions > Reschedule > set the Transaction date to August 3, 2022, and Repayment start dateto September 3, 2022

  11. Select Preview and Save.

    • For duration between February 3, 2022, to July 3, 2022, the extra Interest is $3,287.98. This extra Interest must be split in the three schedules, that is, August 3, 2022, September 3, 2022, and October 3, 2022 ($1,436.88 + $1,436.88 + $414.22 = $3,287.98) and must get added to the future schedules.

    • August 3, 2022, schedule has Due Interest of $2,094.47 (Normal interest + Extra Interest).

    • September 3, 2022, schedule has Due Interest of $2,094.47 (Normal interest + Extra Interest).

    • October 3, 2022, schedule has Due Interest of $1,071.81 (Normal interest + Extra Interest).

Resolution

This issue is now fixed. The logic is now updated by removing the date check from the code hence the system is now calculating the Due interest correctly after rescheduling a loan for the second time in the Interest only period.

12.3.12 After a payoff, the system is not marking the IPT as paid and Principal/Advance Posted is more than the Loan Amount after payoff (Jira ID: ND-7204)

Fixed Version

This issue has been fixed in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

After a payoff, the system is not marking the IPT as paid and Principal/Advance Posted is more than the Loan Amount after payoff.

Example to understand the issue

  1. Create an FAMZ Lending product with the following values:

    • Time Counting Method = Month and Days

    • Default Interest Rate = 15.7%

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Billing Method = Flexible repayment

    • Pre-Bill Days = 28

  2. Set the Current System Date to September 15, 2022, and create a loan contract with the following values, and then approve and disburse the loan:

    • Loan Amount = $10,500

    • Term = 36

    • Payment Frequency = Monthly

    • Interest rate change method = Change Payment Amount

    • Payment Start Date = October 15, 2022

  3. Move the Current System Date to October 15, 2022.

  4. Perform a payoff with the following values:

    • Transaction Amount = $10,637.38

    • Transaction Date = October 15, 2022

    The values are updated as follows:

    • Loan Status = Closed - Obligations Met

    • Today's Payoff = $0

    • Payoff Quote on October 15, 2022 = $0

    • Interest Remaining = $0

    • Interest Accrued = $0

    • Last Accrual Date = October 15, 2022

    • Principal/Advance Remaining = $0

    • October 15, 2022, IPT must be Closed and Paid flag = True

    • November 15, 2022, IPT must be Closed and Paid flag = True

    The system updates the IPT Paid flag for November 15, 2022 incorrectly as False and the Principal/Advance Posted is also updated incorrectly as $10,730.22.

Resolution

This issue is now fixed. After performing a payoff, the system is now updating the IPT Paid flag and the value for Principal/Advance Posted correctly.

12.3.13 On performing an LPT reversal on a loan after the maturity date, the system is updating the Interest Accrued incorrectly (Jira ID: ND-7199)

Fixed Version

This issue has been fixed in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

After maturity date when a payment transaction in an FAMZ loan is reversed, Interest accrued is getting updated

Example to understand the issue

  1. Create an FAMZ Lending product with the following values:

    • Time Counting Method = Actual Days

    • Default Interest Rate = 6%

    • Is Interest Posting = True

    • Interest Posting Frequency = Daily

    • Excess Threshold % for Reschedule = 0

    • Billing Method = Flexible repayment

    • Draw Billing Method = Interest Only

    • Accrual Based Accounting = True

    • Accrual Entry Frequency = Daily

  2. Set the Current System Date to June 18, 2022, and create a loan contract with the following values, and then approve and disburse the loan:

    • Loan Amount = $10,000

    • Term = 3

    • Payment Frequency = Daily

    • Payment Start Date = June 19, 2022

  3. Move the Current System Date to June 19, 2022, run Accrual Entry Job, and make an LPT of $3,334.43.

  4. Move the Current System Date to June 20, 2022, run Accrual Entry Job, and make an LPT of $3,334.43.

  5. Move the Current System Date to June 21, 2022, which is the Maturity Date of this loan run Accrual Entry Job.

    Next Accrual Entry Date should be December 31, 3000.

  6. Move the Current System Date to June 22, 2022. Reverse the LPT made on June 20, 2022.

    The system is incorrectly considering the Interest Accrued from June 21, 2022 to June 22, 2022 and updating the Interest Accrued with $0.55. As the system has crossed the loan's maturity date, it must not update the Interest Accrued on the loan, and the value of Interest Accrued must remain zero.

Resolution

This issue is now fixed. The system is calculating Interest Accrued only until maturity date even after a payment reversal after the maturity date.

12.3.14 Rejected and reversed LPTs are being considered by Loan Payment Filegen job (Jira ID: PDRFF-2753/ND-7408)

Fixed Version

This issue has been fixed in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

While processing the data, the Loan Payment Filegen job is considering the Rejected LPTs and Reversed LPTs. Since the system is considering these LPTs it creates an incorrect output while processing the NACHA file.

Example to understand the behavior after the fix

Let us consider an example where LoanPaymentFilegen Job is not considering the reversed LPTs while processing the data.

  1. Create an FAMZ Lending Product with the following values on March 1, 2013:

  • Loan Amount = $10,000

  • Terms = 10

  • Time Counting Method = Month And Days

  • Payment Frequency = Monthly

  • Interest Posting Transaction = Monthly

  • Rate = 10%

  • Billing Method = Flexible Repayment

  1. Approve and disburse the loan.

  1. Move the Current System Date to April 1, 2013, which is the Next Due Date.

  1. Create an LPT of $1000 with the Payment Mode set to ACH.

  2. Reject this LPT.

  3. Run the LoanPaymentFilegenDynamicJob.

    On Apex Jobs page, the Total Batches is 0 for LoanPaymentFilegenDynamicJob. Since there are no batches processed, this indicates that the job is not considering the reversed and rejected LPTs

Resolution

This issue is now fixed. Rejected and reversed LPTs are now not being considered by Loan Payment Filegen job.

12.3.15 The system is generating a duplicate bill while reversing an LPT created in February month with Pre-Bill Days field set to Defined (Jira ID: ND-7183)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

The system is generating two bills with the same due date as it is not discarding the auto reschedule bill after the reschedule is reversed.

Example to understand the issue

  1. Create an FAMZ Lending Product with the following values:

    • Time Counting Method = Month and Days

    • Default Interest Rate = 15.7%

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Billing Method = Flexible repayment

    • Pre-Bill Days = 28

  2. Set the Current System Date to February 3, 2022, and create a loan contract with the following values, and then approve and disburse the loan:

    • Loan Amount = $10,500

    • Term = 10

    • Payment Frequency = Monthly

    • Payment Start Date = March 3, 2022

  3. Create an LPT with Transaction Amount of $200.

    Reschedule Threshold Crossed flag on the LPT must be set to True.

  4. Move the Current System Date to February 4, 2022.

  5. Reverse the LPT created on February 3, 2022.

Resolution

This issue is now fixed. The system is now marking the previously generated bill as non-primary and only one bill is generated for the due date.

12.3.16 IOA IPTs are getting deleted when a backdated reversal of a payment is made (Jira ID: ND-7200)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

In an FAMZ loan, when a backdated reversal of a payment is made, the Interest on Arrears (IOA) IPTs are getting deleted.

Resolution

This issue is fixed.

12.3.17 Interest Posting AMZ Dynamic job is failing with Apex heap size error (Jira ID: ND-7201)

Fixed Version

This issue has been fixed in the following version:

• Q2 Loan Servicing Phoenix 2.7016.112)

Issue Description

The Interest Posting AMZ Dynamic Job considers all active good standing and bad standing loans. However, when loan contracts reach maturity date, the contracts that are in the Active Bad standing status are also getting processed, and as a result, the job is failing with Apex heap size error.

Resolution

The issue is fixed now. InterestPostingAmzDynamicJob is considering the record and setting the Next Interest Posting Date to max date if loan crosses maturity date, when we rerun the InterestPostingAmzDynamicJob again it is not considering the record which is avoiding the Apex heap size issue for InterestPostingAmzDynamicJob.

12.3.18 When the Stop Accrual flag is set to true while creating a contingency status code, the system is calculating the Interest Remaining incorrectly (Jira ID: ND-7247)

Fixed Version

This issue has been fixed in the following version:

• Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

If Stop Accrual is Enabled, the system is not calculating interest accrued from LAD to the current system date, leading to $0 interest being accrued while calculating Interest Remaining on IPT, resulting in a negative value for the Interest Remaining.

Example to understand the behavior after the fix

  1. Create an FAMZ Lending product with the following values:

    • Time Counting Method = Month and Days

    • Default Interest Rate = 15.7%

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Billing Method = Flexible repayment

    • Pre-Bill Days = 28

  2. Set the Current System Date to September 15, 2022, and create a loan contract with the following values, and then approve and disburse the loan:

    • Loan Amount = $10,500

    • Term = 36

    • Payment Frequency = Monthly

    • Payment Start Date = October 15, 2022

    • Add Rate Schedule with Interest Rate = 15.7%, Start Date = September 15, 2022

  3. Move the Current System Date to October 15, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $137.38

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  4. Move the Current System Date to October 20, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $137.38

    • Interest Accrued = $22.39

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  5. Reschedule the loan with the following values:

    • Repayment Start Date = January 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 36

    • Add repayment plan with the following values:

      • Payment Type = EMI

      • Payment Amount = $367.60

      • Term = 35

      • Payment Start Date = January 15, 2023

      • Select Preview and then Save

    The values are updated as follows:

    • Last Accrual Date = October 20, 2022

    • Interest Remaining = $159.77

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  6. Move the Current System Date to January 15, 2023.

    The values are updated as follows:

    • Last Accrual Date = January 15, 2023

    • Interest Remaining = $367.60

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  7. Move the Current System Date to February 10, 2023.

    The values are updated as follows:

    • Last Accrual Date = January 15, 2023

    • Interest Remaining = $367.60

    • Interest Accrued = $114.48

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  8. In the Contingency Status Codes tab of the CL Contract page, select New Contingency Status Code and set Contingency Status Code Setup to Bankruptcy, Stop Accruals to True, and select Save.

    The values are updated as follows:

    • Last Accrual Date = January 15, 2023

    • Interest Remaining = $367.60

    • Interest Accrued = $114.48

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  9. Move the Current System Date to February 15, 2023.

    The system calculates the Interest Remaining on the February 15, 2023, IPT correctly as $-181.40.

Resolution

This issue is now fixed. The system now calculates the Interest Remaining accurately even when the Stop Accrual flag is set to True.

12.3.19 Interest remaining for a new AMZ is getting calculated incorrectly after an Excess payment that reschedules the loan (Jira ID: PDRFF-2615/ND-7193)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

While the rescheduling of an FAMZ loan, if there is an Interest Remaining on closed IPT, interest from Last Accrual Date to Transaction Date is not being considered while calculating the interest amount.

Example to Understand the Behavior after the Fix

  1. Create an FAMZ Lending product with the following values:

    • Time Counting Method = Month and Days

    • Default Interest Rate = 15.7%

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Billing Method = Flexible repayment

    • Pre-Bill Days = 3

  2. Set the Current System Date to September 15, 2022, and create a loan contract with the following values, and then approve and disburse the loan:

    • Loan Amount = $10,500

    • Term = 36

    • Payment Frequency = Monthly

    • Payment Start Date = October 15, 2022

    • Add Rate Schedule with Interest Rate = 15.7%, Start Date = September 15, 2022

  3. Move the Current System Date to October 15, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $137.38

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  4. Create an LPT of $367.60 with the following values:

    • Transaction Date = October 15, 2022

    • Installment Flag = True

    The values are updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  5. Move the Current System Date to November 12, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $120.93

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  6. Reschedule the loan with the following values:

    • Repayment Start Date = December 15, 2022

    • Maintain Delinquency = True

    • Number of Installments = 36

    • Add repayment plan with the following values:

      • Payment Type = EMI

      • Payment Amount = 367.60

      • Term = 35

      • Payment Start date = December 15, 2022

      • Select Preview and then Save

    The values are updated as follows:

    • Last Accrual Date = November 12, 2022

    • Interest Remaining = $120.93

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  7. Move the Current System Date to November 18, 2022.

    The values are updated as follows:

    • Last Accrual Date = November 12, 2022

    • Interest Remaining = $120.93

    • Interest Accrued = $26.87

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  8. Create an LPT of $600 with Transaction Date of November 18, 2022.

    The values are updated as follows:

    • Last Accrual Date = November 12, 2022

    • Interest Remaining = $120.93

    • Interest Accrued = $26.87

    • Interest Paid = $137.38

    • Excess = $0

    • Principal/Advance Remaining = $9,669.78

    • Reschedule Status = Pending

  9. Move the Current System Date to December 12, 2022.

    The values are updated as follows:

    • Last Accrual Date = November 18, 2022

    • Interest Remaining = $147.80

    • Interest Accrued = $101.21

    • Interest Paid = $137.38

    • Excess = $0

    • Principal/Advance Remaining = $9,669.78

    • Reschedule Status = Success

  10. Reverse the LPT created on November 18, 2022.

    The values are updated as follows:

    • Last Accrual Date = November 12, 2022

    • Interest Remaining = $120.93

    • Interest Accrued = $134.36

    • Interest Paid = $137.38

    • Excess = $0

    • Principal/Advance Remaining = $10,269.78

  11. Move the Current System Date to December 18, 2022.

    The values are updated as follows:

    • Last Accrual Date = December 15, 2022

    • Interest Remaining = $268.73

    • Interest Accrued = $13.30

    • Interest Paid = $137.38

    • Excess = $0

    • Principal/Advance Remaining = $10,269.78

  12. Reschedule the loan with the following values:

    • Repayment Start Date = January 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 35

    Add repayment plan-1 with the following values:

    • Payment Type = EMI

    • Payment Amount = $200

    • Term = 2

    • Payment Start date =January 15, 2023

    Add repayment plan-2 with the following values:

    • Payment Type = EMI

    • Payment Amount = $367.60

    • Term = 32

    • Payment Start Date = March 15, 2023

    The values are updated as follows:

    • Last Accrual Date = December 18, 2022

    • Interest Remaining = $282.03

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

    • Today's Payoff = $10,551.81

    • Total Payoff amount on Payoff Quote = $10,551.81

    • Due Interest on March 15, 2023 = $271.69

  13. Move the Current System Date to December 19, 2022.

    The values are updated as follows:

    • Last Accrual Date = December 18, 2022

    • Interest Remaining = $282.03

    • Interest Accrued = $4.48

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  14. Move the Current System Date to January 15, 2023.

    The values are updated as follows:

    • Last Accrual Date = January 15, 2023

    • Interest Remaining = $200

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

    • Interest Remaining on January 15, 2023, IPT = $202.96

  15. Move the Current System Date to February 12, 2023.

    The values are updated as follows:

    • Last Accrual Date = January 15, 2023

    • Interest Remaining = $200

    • Interest Accrued = $120.93

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  16. Let us create an LPT of $300 and Transaction Date of February 12, 2023.

    The values are updated as follows:

    • Last Accrual Date = January 15, 2023

    • Interest Remaining = $0

    • Interest Accrued = $120.93

    • Interest Paid = $337.38

    • Excess = $100

    • Principal/Advance Remaining = $10,269.78

  17. Let us create an LPT of $100 and Payment Mode set to Excess.

    The values are updated as follows:

    • Last Accrual Date = January 15, 2023

    • Interest Remaining = $0

    • Interest Accrued = $120.93

    • Interest Paid = $337.38

    • Excess = $0

    • Principal/Advance Remaining = $10,169.78

    • Reschedule Status = Pending

  18. Run Reschedule Transaction job.

    The values are updated as follows:

    • Last Accrual Date = February 12, 2023

    • Interest Remaining = $120.93

    • Interest Accrued = $0

    • Interest Paid = $337.38

    • Excess = $0

    • Principal/Advance Remaining = $10,169.78

    • Reschedule Status = Success

    • Due Interest on March 15, 2023 = $270.25

    • Interest Remaining on February 15, 2023, IPT = $120.93

  19. Move the Current System Date to February 14, 2023.

    The values are updated as follows:

    • Last Accrual Date = February 12, 2023

    • Interest Remaining = $120.93

    • Interest Accrued = $8.87

    • Interest Paid = $337.38

    • Excess = $0

    • Principal/Advance Remaining = $10,169.78

  20. Reverse the Excess LPT created on February 12, 2023.

    The values are updated as follows:

    • Last Accrual Date = January 15, 2023

    • Interest Remaining = $0

    • Interest Accrued = $129.89

    • Interest Paid = $337.38

    • Excess = $100

    • Principal/Advance Remaining = $10,269.78

    • Due Interest on March 15, 2023 = $271.69

    • Interest Remaining on February 15, 2023, IPT = $0

  21. Reverse the Normal LPT created on February 12, 2023.

    The values are updated as follows:

    • Last Accrual Date = January 15, 2023

    • Interest Remaining = $200

    • Interest Accrued = $129.89

    • Interest Paid = $137.38

    • Excess = $0

    • Principal/Advance Remaining = $10,269.78

    • Due Interest on March 15, 2023 = $271.69

    • Interest remaining on February 15, 2023 IPT = 0

  22. Create an LPT of $200 and Transaction Date of February 14, 2023.

    The values are updated as follows:

    • Last Accrual Date = January 15, 2023

    • Interest Remaining = $0

    • Interest Accrued = $129.89

    • Interest Paid = $337.38

    • Excess = $0

    • Principal/Advance Remaining = $10,269.78

  23. Move the Current System Date to February 15, 2023.

    The values are updated as follows:

    • Last Accrual Date = February 15, 2023

    • Interest Remaining = $200

    • Interest Accrued = $0

    • Interest Paid = $337.38

    • Excess = $0

    • Principal/Advance Remaining = $10,269.78

  24. Move the Current System Date to March 15, 2023.

    The values are updated as follows:

    • Last Accrual Date = March 15, 2023

    • Interest Remaining = $471.69

    • Interest Accrued = $0

    • Interest Paid = $337.38

    • Excess = $0

    • Principal/Advance Remaining = $10,269.78

Resolution

This issue is now fixed. Now during automatic rescheduling the system calculates the interest correctly including the balance interest.

12.3.20 The system is not allowing to reverse a normal LPT after reversing the excess LPT (Jira ID: PDRFF-2429/ND-7196)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

For an FAMZ loan, the system is not allowing to reverse a normal LPT after reversing the excess LPT and is displaying the following error:

Note:

1. Currently to reverse a normal LPT the Last Transaction Type has to be updated manually from Reschedule to Payment Transaction.

Example to Understand the Issues

To understand this issue let us create an FAMZ loan contract.

Scenario - 1 (03694776)

  1. Set the Current System Date to September 15, 2022, and create an FAMZ Lending product with the following values:

    • Time Counting Method = Month and Days

    • Default Interest Rate = 15.7%

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Billing Method = Flexible Repayment

    • Loan Amount = $10,500

    • Term = 36

    • Payment Frequency = Monthly

    • Payment Start Date = October 15, 2022

    • Add Rate Schedule with Interest Rate = 15.7%, Start Date = September 15, 2022

    Approve and disburse the loan.

  2. Move the Current System Date to September 16, 2022.

    The values are updated as following:

    • Last Accrual Date = September 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $4.58

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  3. Create an LPT of $200 with the Transaction Date as September 16, 2022.

    The values are updated as following:

    • Last Accrual Date = September 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $4.58

    • Interest Paid = $0

    • Reschedule Status = Pending

    • Principal/Advance Remaining = $10,300

    • Last Transaction Type = Payment Transaction

  4. Move the Current System Date to September 17, 2022.

    The values are updated as following:

    • Last Accrual Date = September 16, 2022

    • Interest Remaining = $4.58

    • Interest Accrued = $4.49

    • Interest Paid = $0

    • Reschedule Status = Success

    • Principal/Advance Remaining = $10,300

    • Last Transaction Type = Reschedule

  5. Create an LPT of $500 with Transaction Date of September 17, 2022.

    The values are updated as following:

    • Last Accrual Date = September 16, 2022

    • Interest Remaining = $4.58

    • Interest Accrued = $4.49

    • Interest Paid = $0

    • Excess = $500

    • Last Transaction Type = Payment Transaction

    • Principal/Advance Remaining = $10,300

  6. Create an LPT with Payment Mode set to Excess.

    When payment Mode is set to Excess the system automatically displays the Transaction Amount of $500.

    The values are updated as following:

    • Last Accrual Date = September 16, 2022

    • Interest Remaining = $4.58

    • Interest Accrued = $4.49

    • Interest Paid = $0

    • Excess = $0

    • Principal/Advance Remaining = $9,800

    • Reschedule Status = Pending

    • Last Transaction Type = Payment Transaction

  7. Move the Current System Date to September 19, 2022.

    The values are updated as following:

    • Last Accrual Date = September 17, 2022

    • Interest Remaining = $9.07

    • Interest Accrued = $8.55

    • Interest Paid = $0

    • Principal/Advance Remaining = $9,800

    • Reschedule Status = Success

    • Last Transaction Type = Reschedule

  8. Reverse the Excess LPT created on September 17, 2022.

    The system is not changing the Last Transaction Type to Payment Transaction and is still displaying it as Reschedule. Hence, the LPT created on September 17, 2022, cannot be reversed.

Scenario - 2 (03807232)

Example to verify the Last Transaction Type after Write - Off reversal.

  1. Set the Current System Date to September 15, 2022, and create an FAMZ loan contract with the following values:

    • Time Counting Method = Month and Days

    • Default Interest Rate = 15.7%

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Billing Method = Flexible Repayment

    • Loan Amount = $10,500

    • Term = 36

    • Payment Frequency = Monthly

    • Payment Start Date = October 15, 2022

    • Add Rate Schedule with Interest Rate = 15.7%, Start Date = September 15, 2022

    • Approve and disburse the loan.

  1. Move the Current System Date to October 15, 2022.

    The values are updated as following:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $137.38

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

    • Today's Payoff = $10,637.38

  2. Create an LPT of $367.60 and Transaction Date of October 15, 2022.

    The values are updated as following:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  3. Move the Current System Date to October 18, 2022.

    The values are updated as following:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $13.44

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  4. Reschedule the loan with the following values:

    • Repayment Start Date = January 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 36

    • Add repayment plan with the following values:

      • Payment Type = EMI

      • Payment Amount = $367.60

      • Term = 35

      • Payment Start Date = January 15, 2023

    • Select Preview then Save.

    The values are updated as following:

    • Last Accrual Date = October 18, 2022

    • Interest Remaining = $13.44

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  5. Move the Current System Date to November 15, 2022.

    The values are updated as following:

    • Last Accrual Date = October 18, 2022

    • Interest Remaining = $13.44

    • Interest Accrued = $120.92

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  6. Move the Current System Date to November 16, 2022.

    • Last Accrual Date = October 18, 2022

    • Interest Remaining = $13.44

    • Interest Accrued = $125.40

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  7. Reschedule the loan with the following values:

    • Repayment Start Date = March 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 36

    • Add repayment plan with the following values:

      • Payment Type = EMI

      • Payment Amount = $367.60

      • Term = 35

      • Payment Start Date = March 15, 2023

    • Select Preview and then Save.

    The values are updated as following:

    • Last Accrual Date = November 16, 2022

    • Interest Remaining = $138.84

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  8. Move the Current System Date to February 15, 2023.

    The values are updated as following:

    • Last Accrual Date = November 16, 2022

    • Interest Remaining = $138.84

    • Interest Accrued = $398.61

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  9. Write off the loan contract.

    The values are updated as following:

    • Interest Remaining = $537.45

    • Charged Off Interest = $537.45

    • Last Accrual Date = February 15, 2023

    • Interest Accrued = $0

    • IPT generated for March 15, 2023, has LAD = February 15, 2023

  10. Go to the Charge Off OLT and select Reverse Write Off Transaction.

    The system incorrectly displays the Last Transaction Type as Write off instead of Reschedule.

Scenario - 3 (3705337)

Example to verify the Last Transaction Type after Excess payment reversal.

  1. Set the Current System Date to September 15, 2022, and create an FAMZ loan contract with the following values:

    • Time Counting Method = Month and Days

    • Default Interest Rate = 15.7%

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Billing Method = Flexible repayment

    • Loan Amount = $10,500

    • Term = 36

    • Payment Frequency = Monthly

    • Payment Start Date = October 15, 2022

    • Add Rate Schedule with Interest Rate = 15.7%, Start Date = September 15, 2022

    • Approve and disburse the loan.

  2. Move the Current System Date to October 15, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $137.38

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal Remaining = $10,500

  3. Let us create an LPT of $367.60 with following values:

    • Transaction Date = October 15, 2022

    • Installment Flag = True

    • Select Save

    The values are updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal Remaining = $10,269.78

  4. Move the Current System Date to October 18, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $13.44

    • Interest Paid = $137.38

    • Principal Remaining = $10,269.78

  5. Reschedule the loan with the following values:

    • Repayment Start Date = December 15, 2022

    • Maintain Delinquency = False

    • Number of Installments = 36

    • Add repayment plan with the following values:

      • Payment Type = EMI

      • Payment Amount = $367.60

      • Term = 35

      • Payment Start Date = December 15, 2022

    • Select Preview and then Save

    The values are updated as follows:

    • Last Accrual Date = October 18, 2022

    • Interest Remaining = $13.44

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal Remaining = $10,269.78

  6. Move the Current System Date to December 12, 2022

    The values are updated as follows:

    • Last Accrual Date = October 18, 2022

    • Interest Remaining = $13.44

    • Interest Accrued = $241.85

    • Interest Paid = $137.38

    • Principal Remaining = $10,269.78

  7. Create an LPT of $500 with Transaction Date of December 12, 2022.

    The values are updated as follows:

    • Last Accrual Date = October 18, 2022

    • Interest Remaining = $13.44

    • Interest Accrued = $241.85

    • Interest Paid = $137.38

    • Principal Remaining = $10,269.78

    • Excess = $500

  8. Let us create an LPT of $500 with Payment mode set to Excess and Installment Payment set to true.

    If you the Payment Mode is set to Excess, the system automatically displays the Transaction Amount of $500.

    The values are updated as follows:

    • Last Accrual Date = December 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $0

    • Interest Paid = $406.11

    • Excess = $0

    • Principal Remaining = $10,038.51

    • Reschedule Status = Pending

  9. Run the Reschedule Transaction Job.

    The values are updated as follows:

    • Last Accrual Date = December 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $0

    • Interest Paid = $406.11

    • Excess = $0

    • Principal Remaining = $10,038.51

    • Reschedule Status = Failure

  10. Move the Current System Date to December 15, 2022.

    The values are updated as follows:

    • Last Accrual Date = December 15, 2022

    • Interest remaining = $0

    • Interest accrued = $0

    • Interest paid = $406.11

    • Excess = $0

    • Principal Remaining = $10,038.51

    • Reschedule Status = Success

  11. Move the Current System Date to December 16, 2022.

    The values are updated as follows:

    • Last Accrual Date = December 15, 2022

    • Interest remaining = $0

    • Interest accrued = $4.38

    • Interest paid = $406.11

    • Excess = $0

    • Principal Remaining = $10,038.51

  12. Let us reverse the Excess Installment LPT created on December 12, 2022.

    The system is not changing the Last Transaction Type to Payment Transaction and is still displaying it as Reschedule. Hence, the normal LPT created on December 12, 2022, cannot be reversed.

Resolution

This issue is now fixed, when an Excess LPT is reversed, the Last Transaction Type is now changing to Payment Transaction. Normal LPT can now be reversed after Excess LPT reversal without any manual intervention.

Note:

This fix does not restrict the ability to manually update the Last Transaction Type in specific use cases or workarounds.

12.3.21 Interest Remaining is getting updated incorrectly after reschedule during Pre-Bill Days (Jira ID: ND-7163)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.112)

Issue Description

While rescheduling an FAMZ loan, there is a difference of $0.01 between the Interest Remaining of the IPT and the Interest Remaining on the loan.

Example to Understand the Issues

To understand this issue let us create an FAMZ loan contract and then verify the interest remaining when the loan is rescheduled.

  1. Set the Current System Date to September 15, 2022, and create an FAMZ  loan contract with the following values:

    • Time Counting Method = Month and Days

    • Default Interest Rate = 15.7%

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Billing Method = Flexible Repayment

    • Pre-Bill Days = 28

    • Loan Amount = $10,500

    • Term = 36

    • Payment Frequency = Monthly

    • Payment Start Date = October 15, 2022

    • Add Rate Schedule with Interest Rate = 15.7%, Start Date = September 15, 2022

    Approve and disburse the loan.

  2. Move the Current System Date to September 18, 2022.

    The values are updated as following:

    • Today's Payoff = $10,513.74

    • Interest Remaining = $0

    • Interest Accrued = $13.74

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  3. Reschedule the loan to skip a payment cycle with the following values:

    • Repayment Start Date = November 15, 2022

    • Maintain Delinquency = False

    Add repayment plan with the following values:

    • Payment Type = EMI

    • Term = 35

    • Payment Amount = $367.60

    The values are updated as following:

    • Today's Payoff = $10,513.74

    • Last Accrual Date = September 18, 2022

    • Interest Remaining = $13.74

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  4. Move the Current System Date to October 18, 2022.

    The values are updated as follows:

    • Today's Payoff = $10,651.11

    • Last Accrual Date = September 18, 2022

    • Interest Remaining = $13.74

    • Interest Accrued = $137.37

    • Principal/Advance Remaining = $10,500

    • Interest Paid = $0

  5. Let us create an LPT of $500 on October 18, 2022.

    The values are updated as follows:

    • Today's Payoff = $10,151.11

    • Last Accrual Date = September 18, 2022

    • Interest Remaining = $13.74

    • Interest Accrued = $137.37

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

    • Excess = $500

  6. Create an LPT on October 18, 2022 with Payment Mode set to Excess.

    The values are updated as follows:

    • Today's Payoff = $10,151.11

    • Last Accrual Date = September 18, 2022

    • Interest Remaining = $13.74

    • Interest Accrued = $137.37

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,000

    • Reschedule Status = Pending

  7. Run the Reschedule Transaction Job.

    The values are updated as follows:

    • Interest Remaining on the loan = $151.12 (Incorrect)

    • Interest Remaining on the IPT = $151.11 (Correct)

Resolution

This issue is fixed, now when a loan is rescheduled the Interest Remaining of the IPT and the Interest Remaining on the loan are calculated correctly and there is no rounding error.

12.4 Issues fixed in Q2 Loan Servicing 2.7016.99

12.4.1 If the Payment Amount is less than the Total Payoff Amount and is insufficient to satisfy the Principal Remaining, the entire amount is getting applied to Excess instead of Principal Remaining (Jira ID: PDRFF-2340/ND-6818)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.99)

Issue Description

When a loan is paid with an amount that is less than the Total Payoff Amount and is insufficient to satisfy the Principal Remaining, the paid amount is getting applied to the Excess instead of satisfying the Principal Remaining.

Example to Understand the Expected Behavior

Let us look at an example of the expected behavior of a loan in this case as follows:

  1. Let us consider an FAMZ Lending Product with the following values:

  • Principal Remaining = $10,269.78

  • Tolerance = $5

  • Payoff Amount = $10,278.74

  • Interest Remaining = $0

  • Interest Accrued = $8.96

  1. Let us make an LPT of $10,270.

    • The entire Principal Remaining amount of $10,269.78 is satisfied and Principal Remaining must be $0. Reschedule Status is not updated to Pending as all the principal is paid off and there is no Principal Balance to reschedule.

    • The balance $0.22 goes towards excess as there is no bill to be paid and no Principal Remaining to be paid.

  1. The respective IPT of that billing period is open with the following values:

    • Interest Remaining = $8.96

    • Interest Accrued = $0

    • Last Accrued Date = Current System Date

    • Interest Posted = $8.96

    • Principal/Advance Paid = $10,269.78

    • Interest Paid = $0

    • Total Amount Paid = $10,269.78

    • Excess = $0.22

  2. To close the loan, a minimum of $3.74 must to be paid through an LPT or by a Waiver Action. This must satisfy the Interest Remaining and the contract status must be updated to Active Marked for Closure.

    The values are updated as follows:

    • Tolerance = $5

    • Excess = $0.22

    • Payoff Amount = $8.74

    • Minimum Amount for Payoff = 8.96 – 5 – 0.22 = $3.74

  1. Loan Closure job applies the excess amount on contract of $5 to the Interest Remaining and marks the contract as Closed Obligations Met.

Scenario 1: A payment is made before the Pre Bill-Period for a contract with Interest Remaining equal to zero

Example

Consider an FAMZ Lending Product with the following values:

  • Principal Remaining = $5,000

  • Tolerance = $10

  • Interest Remaining = $0

  • Interest Accrued = $30

  1. If we make an LPT of $5,000

    • The entire amount of $5,000 goes towards Principal Remaining. Principal Remaining is updated as $0. Reschedule Status is not updated to Pending as all the principal is paid off and there is no Principal Remaining to reschedule.

    • The respective IPT of that billing period is open with the following values:

      • Interest Remaining = $30

      • Interest Accrued = $0

      • LAD = Current System Date

    • To close the loan, a payment of minimum $20 must to be paid through an LPT or by a Waiver action such that the Interest component is satisfied.

  1. If we make an LPT of $5,010.

    • Entire Principal Remaining amount of $5,000 is satisfied and Principal Remaining becomes $0. Reschedule Status is not updated to Pending as all the principal is paid off and there is no Principal Remaining to reschedule.

    • The balance $10 goes towards Excess as there is no Interest Posted or Bill to be paid and no Principal Remaining to be paid.

    • The respective IPT of that billing period is open and balance interest is posted with the following values:

      • Interest Remaining = $30

      • Interest Accrued = $0

      • LAD = Current System Date

    • To close the loan, a minimum of $10 must to be paid through an LPT or by a Waiver action. This satisfies the Interest Remaining and the contract status moves to Active Marked for Closure.

    • Loan Closure job applies the excess amount of $10 to the balance Interest Remaining and marks the contract as Closed Obligations Met.

  1. If we make an LPT of $5,020.

    • As this amount is equal to Payoff Amount – Tolerance Amount, this payment is considered as a Payoff Transaction where entire Interest Amount is paid for $30 first.

    • The balance amount of $4,090 is paid toward the Principal Remaining and Principal Remaining is updated as $10 and contract status is updated as Active Marked for Closure.

    • The Loan Closure job updates the contract status to Closed Obligations Met.

  1. If we make an LPT of $4,090.

    • The entire payment amount of $4,090 is paid against the Principal Remaining, where the Principal Remaining is updated as $10, and Reschedule Status is updated as Pending, and the contract is rescheduled during the EOD process.

Scenario 2: A payment is made before the Pre Bill-Period for a contract with Interest Remaining greater than zero

Consider an FAMZ Lending product with the following values:

  • Principal Remaining = $5,000

  • Tolerance = $10

  • Interest Remaining = $100

  • Interest Accrued = $30

  1. If we make an LPT of $5,000.

    • $100 must be paid toward the Interest Remaining.

    • The remaining payment balance of $4,900 is paid to the Principal Remaining. Since more principal is paid than billed principal, Reschedule Status is updated as Pending, and the contract is rescheduled during the EOD process.

  1. If we make an LPT of $5,100.

    • $100 must be paid toward the Interest Remaining.

    • Remaining Payment Amount $ 5,000 mut go toward Principal Remaining. Principal Remaining becomes $0. Reschedule Status is not updated to Pending as all the principal is paid off and there is no Principal Remaining to reschedule.

    • The respective IPT of that billing period is open with the following values:

      • Interest Remaining = $30

      • Interest Accrued = $0

      • LAD = Current System Date

    • To close the loan, a payment of minimum $20 must be paid through an LPT or by a Waiver action such that the Interest Remaining is satisfied.

  1. If we make an LPT of $5,110.

    • $100 must be paid toward the Interest Remaining.

    • From the remaining payment balance, $5,000 is paid to the Principal Remaining and Principal Remaining will become 0. Reschedule Status is not updated to Pending as all the principal is paid off.

    • The balance $10 goes towards Excess as there is no bill to be paid and no Principal Remaining to be paid.

    • The respective IPT of that billing period is open with the following values:

      • Interest Remaining = $30

      • Interest Accrued = $0

      • LAD = Current System Date

    • To close the loan, a minimum of $10 must be paid through an LPT or by an Waiver action. This satisfies the Interest Remaining and the contract status moves to Active Marked for Closure.

    • Loan Closure job applies the excess amount of $10 to the Interest Remaining and marks the contract as Closed Obligations Met.

  1. If we make an LPT of $5,120.

    • As this amount is equal to Payoff Amount – Tolerance Amount, this payment is considered as a Payoff Transaction where entire interest amount is paid for $130 first.

    • The balance amount of $4,090 is paid against the Principal Remaining and the Principal Remaining on the contract is updated to $10 and contract status is updated as Active Marked for Closure.

    • The Loan Closure job updates the contract status to Closed Obligations Met.

Scenario 3: A payment is made in the Pre Bill-Period with Installment Payment flag set to false

Consider an FAMZ Lending Product with the following values:

  • Principal Remaining = $5,000

  • Tolerance = $10

  • Interest Remaining = $0

  • Interest Accrued = $30

  1. If we make an LPT of $5,000.

    • Entire amount of $5,000 goes towards Excess.

    • If Excess Payment mode is used for the next payment

      • The entire amount satisfies the principal. Principal Remaining becomes $0. Reschedule Status is not updated to Pending as all the principal is paid off and there is no Principal Remaining to reschedule.

      • The respective IPT of that billing period is open with the following values:

        • Interest Remaining = $30

        • Interest Accrued = $0

        • LAD = Current System Date

      • The Bill generated for the future due date is modified and updated with $30 outstanding Interest Due.

      • To close the loan, a payment of minimum $20 must be paid through normal LPT or by a Waiver action such that the Interest Remaining is satisfied).

      • Even if the Excess payment mode LPT is not created, the contract can be closed by making the $20 payment.

        • The contract moves directly to Active Marked for Closure Status.

        • $20 goes towards the Interest Remaining.

        • The IPT is still open and Interest Remaining gets updated to $10.

        • Loan Closure job updates the contract status to Closed Obligations Met.

        • As part of the job the excess amount of $5,000 is applied towards the Interest Remaining for $10 and Principal Remaining for $4,090.

        • Closure Tolerance LPT is created for the balance of $10 left on the contract.

  1. If we make an LPT of $5,010.

    • Entire amount of $5,010 goes towards Excess.

    • If one more payment is made with Payment mode as Excess

      • Principal Remaining amount of $5,000 is satisfied and Principal Remaining becomes $0. Reschedule Status is not updated to Pending as all the principal is paid off and there is no Principal Remaining to reschedule.

      • The balance $10 goes towards Excess as the Interest is not posted and no Principal Balance to be paid.

      • The respective IPT of that billing period is open with the following values:

        1. Interest Remaining = $30

        2. Interest Accrued = $0

        3. LAD = Current System Date

      • The Bill generated for the future due date is modified and updated with $30 outstanding Interest Due.

      • To close the loan, a minimum of $10 must be paid through an LPT or bya Waiver action such that it satisfies the Interest Remaining and the contract status is updated to Active Marked for Closure.

      • Loan Closure job applies the excess amount of $10 to the balance Interest Remaining and marks the contract as Closed Obligations Met.

    • Even if the Excess payment mode LPT is not created, the contract can be closed by making the $10 payment.

      • The contract moves directly to Active Marked for Closure Status.

      • $10 goes towards the Interest Remaining.

      • IPT is still open and Interest Remaining gets updated to $20.

      • Loan Closure job updates the contract status to Closed Obligations Met.

      • As part of the job the excess amount of $5,010 is applied towards the Interest Remaining for $20 and Principal Remaining for $4,090.

      • Closure Tolerance LPT is created for the balance of $10 left on the contract.

  1. If we make an LPT of $5,020.

    • As this amount is equal to Payoff Amount – Tolerance Amount, this payment must be considered as a Payoff Transaction where entire Interest Remaining is paid for $30 first.

    • The balance amount of $4,090 is paid toward the Principal Remaining and the Principal Remaining on the contract is updated to $10 and contract status is updates as Active Marked for Closure.

    • The Loan Closure job updates the contract status to Closed Obligations Met.

As seen in the preceding scenarios, the payment amount must satisfy the Principal Remaining instead of the entire payment getting applied to the Excess.

Note:

• In case payment is made before the pre bill period, and if the contract is left without any payment or waiver after all the principal is paid off, next Bill is generated with the Interest Remaining amount of $30 and further bills are generated with $0 value until maturity date.

• In case payment is made in pre bill period, and if the contract is left without any payment or waiver after all the principal is paid off, the generated bill is updated or modified with the amount equal to the Interest Remaining on the contract.

Resolution

This issue is fixed. Now if the Payment Amount is less than the Total Payoff Amount it satisfies the Principal Remaining correctly and the rest goes toward Excess as per the various preceding scenarios.

12.4.2 Interest Remaining is not getting updated correctly when the reschedule threshold crosses payment reversed (Jira ID: PDRFF-2425/ND-7140)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.99)

Issue Description

When a loan reschedules automatically and a payment is reversed the Interest Remaining field is not getting updated accurately, resulting in discrepancies between the interest billed and the Interest Remaining. The issue was caused by a failure to include a rounding error in the calculation of interest remaining after the LPT reversal, resulting in the need for rescheduling.

Example to Understand the Issues

  1. Create an FAMZ Lending product with the following values:

    • Time Counting Method = Month and Day

    • Default Interest Rate = 15.7

    • Is Interest Posting = True

    • Interest Posting Frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Billing Method = Flexible repayment

  1. Let us go to September 15, 2022 and create contract with the following values:

    • Loan Amount = $10,500

    • Term = 36

    • Payment Frequency = Monthly

    • Payment Start Date = October 15, 2022

    • Add Rate Schedule with Interest Rate = 15.7%

    • Payment Start Date = September 15, 2022

  1. Approve and disburse the loan.

  1. Let us go to September 18, 2022.

    The values are updated as follows:

    • Today's Payoff = $10,513.74

    • Last Accrual Date = September 15, 2022

    • Interest Remaining = 0

    • Interest Accrued = $13.74

    • Interest Paid = 0

    • Principal/Advance Remaining = $10,500

  1. Reschedule the loan to skip a pay with the following values:

    • Repayment Start Date = November 15, 2022

    • Maintain Delinquency = False

      Let us add repayment plan with the following values:

    • Payment Type = Equal Monthly Installments

    • Payment Amount = 367.60

    • Term = 35

    • Payment Start Date = November 15, 2022

      Select Preview and then Save.

      The values are updated as follows:

    • Today's Payoff = $10,513.74

    • Last Accrual Date = September 18, 2022

    • Interest Remaining = $13.74

    • Interest Accrued = 0

    • Interest Paid = 0

    • Principal/Advance Remaining = $10,500

  1. Let us go to October 18, 2022.

    The values are updated as follows:

    • Today's payoff = $10,651.11

    • Last Accrual Date = September 18, 2022

    • Interest Remaining = $13.74

    • Interest Accrued = $137.37

    • Interest Paid = 0

    • Principal/Advance Remaining = $10,500

  1. On October 18, 2022, let us create an LPT for $500. As the bill of November 15, 2022, is not yet due the amount goes to Excess.

    • Today's Payoff = $10651.11

    • Last Accrual Date = September 18, 2022

    • Excess = 500

    • Principal/Advance Remaining = $10,500

    • Interest Paid = 0

    • Interest Accrued = $137.37

    • Interest Remaining = $13.74

  1. On October 18, 2022, let us create an LPT with Payment mode set to Excess so that payment goes from Excess to Principal.

    • Principal/Advance Remaining = $10,000

    • Reschedule Status = Pending

    • Excess = 0

  1. Now, let us run the Reschedule Transaction Job.

    The values are updated as follows:

    • Today's Payoff = $10,151.11

    • Last Accrual Date = October 18, 2022

    • Interest Remaining = $151.12

    • Interest Accrued = 0

    • Interest Paid = 0

    • Principal/Advance Remaining = $10,000

    • Reschedule Status = Success

    • Maturity Date on Reschedule OLT = September 15, 2025

  1. Let us go to October 20, 2022.

  1. Let us reverse the LPT created on October 18, 2022.

    Although the system calculates the Interest Accrued correctly as $146.53 it calculates the Interest Remaining incorrectly as $13.75 instead of $13.74. This means that an interest rounding error of -0.01 was not added t calculate the correct Interest Remaining value of $13.74.

    The value of Interest Remaining field must be the value before reversal when the payment was made on October 18, 2022. LAD is updated correctly as September 18, 2022.

  1. Let us go to October 21, 2022.

    Now, the system calculates the Interest Accrued correctly as $151.11 but it calculates the Interest Remaining incorrectly as $13.75. LAD is updated correctly as September 18, 2022.

  1. On October 21, 2022 let us create an LPT of $600 with the Installment Payment flag set to True. This must satisfy the November 15, 2022, bill and the additional amount must go toward principal.

    The system calculates the Interest Accrued correctly as $0.00 but it calculates the Interest Remaining incorrectly as $0.01. LAD is updated correctly as November 15, 2022.

    The Interest Remaining field is incorrectly holding a balance of $0.01 even after a bill satisfying payment is made.

  1. Let us go to October 23, 2022.

  1. Reverse the LPT created on October 21, 2022.

    The system calculates the Interest Accrued correctly $160.27 but it calculates the Interest Remaining incorrectly as $13.75. LAD is updated correctly as September 18, 2022.

  1. Let us move to November 15, 2022.

    The system calculates the Interest Accrued correctly as $0.00 but it calculates the Interest Remaining incorrectly as $274.76. Interest billed is $274.75. The Interest Remaining must hold the same value as interest billed.

Resolution

This issue is fixed, the system is now accounting for the interest rounding error before the payment reversal and subtracting its value from the interest remaining during the reschedule reversal process. (After the payment reversal the automatic reschedule also gets reverted.)

12.4.3 The system is displaying an entire stack of errors upon trying to generate Payoff Quote before the Last Accrual Date (Jira ID: PDRFF-2544/ND-7119)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.99)

Issue Description

On trying to generate a backdated payoff quote that is before the LAD, the system is throwing an error message that is not very easy to understand. The error message that the system is throwing consists of an entire stack of errors.

Instead, the system must throw an error message that is more user friendly.

Example to Understand the Issues

  1. Let us create FAMZ Lending product with the following values:

    • Time counting method = Month and Days

    • Default Interest Rate = 15.7%

    • Is Interest posting = True

    • Interest posting frequency = Monthly

    • Excess Threshold % for Reschedule = 0

    • Reschedule Option on Excess Payment = Keep Same Payment Amount

    • Pre-Bill Days = 28

    • Billing Method = Flexible Repayment

  1. Let us go to September 15, 2022.

  2. Now, create a contract with the following values:

    • Loan Amount = $10,500

    • Term = 36

    • Payment Start Date = October 15, 2022

    • Contract Date = September 15, 2022

    • Add Rate Schedule with Interest Rate = 15.7%

  3. Approve and disburse the loan.

  4. Let us go to October 15, 2022

    The values are updated as follows:

    • Today's Payoff = $10,637.38

    • Interest Remaining = $137.38

    • LAD = October 15, 2022

    • Interest Accrued = 0

    • Interest Paid = 0

    • Principal/Advance Remaining = $10,500

  5. Let us create a backdated payoff quote for September 25, 2022.

    The validation rule is working but the error message displayed contains the entire stack of issues.

Resolution

This issue is now fixed. The system is now throwing a user-friendly error message. The message is as follows:

Given Payoff Date should not be less than Last Accrual Date 10/15/2022.

12.5 Issues fixed in Q2 Loan Servicing 2.7016.95

12.5.1 The interest values and the Last Accrual Date are getting updated incorrectly when LPTs are reversed (Jira ID: PDRFF-2326/ND-6814)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.95)

Issue Description

When FAMZ Loan Payment Transactions are reversed, the interest values such as the Interest Accrued and Interest Remaining and the LAD are getting calculated incorrectly.

This is because, on payment reversal, if there are any reversed IPTs and bills as part of the reversal, they are not getting regenerated by the system because the IPT and the billing job were not running as part of the LPT reversal.

Example to Understand the Issues

Scenario 1 - When a payoff transaction is reversed in a different billing cycle

  1. Let us create an FAMZ contract with the following details and disburse it:

    • Loan Amount = $10,500

    • Contract Date = September 15, 2022

    • Payment Frequency = Monthly

    • Pre Bill Days = 28

    • Term = 36

    • Interest Rate Change Method = Change Payment Amount

  2. Let us go to October 15, 2022, and create an LPT of amount $367.60.

    The values must be updated as follows:

    • Interest Remaining = $0

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/ Advance Remaining = $10,269.78

    • Last Accrual Date = October 15, 2022

  3. Let us go to November 15, 2022, and create an LPT of amount $367.60.

    The values must be updated as follows:

    • Interest Remaining = $0

    • Interest Accrued = $0

    • Interest Paid = $271.74

    • Principal/ Advance Remaining = $10,036.54

    • Last Accrual Date = November 15, 2022

  4. Let us go to December 25, 2022, and create a loan payoff transaction of $10,210.59 and clear it.

    The values must be updated as follows:

    • The loan status must be updated to Closed - Obligations Met.

    • Interest Remaining = $0

    • Interest Accrued = $0

    • Interest Paid = $445.79

    • Principal/ Advance Paid = $10,500

    • Last Accrual Date = December 25, 2022

  5. Let us go to January 18, 2023, and reverse the loan payoff transaction.

    The values must be updated as follows:

    • The loan status must get updated to Active- Bad standing.

    • The bill of December 15 must get unpaid.

    • Interest Remaining = $259.53

    • Interest Accrued = $12.51

    • Interest Paid = $271.74

    • Principal/ Advance Remaining = $10,036.54

    • Today's Payoff = $10,308.58

    • Last Accrual Date = January 15, 2022

    However, the values are getting updated incorrectly as follows:

    • Interest Remaining = $133.33

    • Interest Accrued = $141.04

    • Last Accrual Date = December 15, 2023

Scenario 2 - When a Loan Payment Transaction is reversed in a different billing cycle

  1. Let us create an FAMZ contract with the following details and disburse it:

    • Loan Amount = $10,500

    • Contract Date = September 15, 2022

    • Payment Frequency = Monthly

    • Term = 36

    • Interest Rate Change Method = Change Payment Amount

  2. Let us go to October 15, 2022.

    Bill-1 is generated.

  3. Let us go to November 15, 2022.

    Bill-2 is generated.

  4. Let us go to November 16, 2022, and create an LPT of amount $1,000.

    The values must be updated as follows:

    • Interest Remaining = $0

    • Interest Accrued = $4.38

    • Interest Paid = $271.74

    • Excess = $0

    • Reschedule Status = Pending

    • Reschedule threshold crossed on the LPT = true

    • Principal/ Advance Remaining = $9,771.74

    • Last Accrual Date = November 15, 2022

  5. Let us go to December 15, 2022.

    The values must be updated as follows:

    • Interest Remaining = $127.96

    • Interest Accrued = $0

    • Interest Paid = $271.74

    • Today's Payoff = $9,899.70

    • Principal/ Advance Remaining = $9,771.74

    • Last Accrual Date = December 15, 2022

  6. Let us go to December 17, 2022, and reverse the LPT created on November 16, 2022.

    The values must get updated as follows:

    • Interest Remaining = $403.05

    • Interest Accrued = $8.55

    • Interest Paid = $0

    • Today's Payoff = $10,911.60

    • Last Accrual Date = December 15, 2022

    However, the values of Interest Remaining and Interest Accrued and LAD are getting updated incorrectly.

Scenario 3 - When an Installment Payment is reversed

  1. Let us create an FAMZ contract with the following details and disburse it:

    • Loan Amount = $10,500

    • Contract Date = September 15, 2022

    • Payment Frequency = Monthly

    • Term = 36

    • Is Interest Posting = True

    • Interest Rate Change Method = Change Payment Amount

    • Payment Start Date = October 15, 2022

  2. Let us go to September 18, 2022, and create an LPT of amount $367.60 and set the Installment Payment flag to true.

    The values must be updated as follows:

    • Interest Remaining = $0

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/ Advance Remaining = $1,0269.78

    • Last Accrual Date = October 15, 2022

    • October bill gets satisfied.

    • October 15, 2022 IPT must have the following values:

      • Interest Posted value as $137.38.

      • IPT Paid flag must be set to true.

      • IPT status must be updated to closed.

  3. Let us go to September 19, 2022, and reverse the LPT created on September 18, 2022.

    The values must be updated as follows:

    • Interest Remaining = $0

    • Interest Accrued = $18.32

    • Interest Paid = $0

    • Today's Payoff = $10,518.32

    • Principal/ Advance Remaining = $10,500

    • Last Accrual Date = September 15, 2022

    • October 15, 2022 IPT must have the following values:

      • Interest Posted value as $0.

      • IPT status must be updated to open.

    • October 15 bill must not get satisfied.

    • Today's Payoff = $10,518.32

    However, the Interest Accrued is getting updated incorrectly as $17.92.

  4. Generate a Payoff Quote as of September 19.

    It is seen that Today's Payoff is calculated incorrectly as $10,517.92, and Payoff Quote is calculated incorrectly too.

  5. Manually reschedule the loan by clicking Reschedule on Details tab.

  6. Go to Loan Actions > Reschedule and provide the following values:

    • Repayment Start Date = November 15, 2022

    • Maintain Delinquency = false

    • Number of Installments = 36

  7. Add a repayment plan with the following values:

    • Payment Type = Equal Monthly Installments

    • Payment Amount = $367.60

    • Term = 35

    • Payment Start Date = November 15, 2022

    The Total Interest Till Transaction date must be calculated as $18.32. However, it is getting updated to $17.92 incorrectly.

    November 15, 2022, schedule must have interest = $274.75 and December 15, 2022, schedule should must have interest = $136.16. However, the interest billed in the November 15 and subsequent schedules is calculated incorrectly.

  8. Let us go to September 20, 2022.

    It is observed that while the Interest Accrued and Interest Remaining are updated correctly, interest is still updated incorrectly in the Payoff Quote and in the future schedules if the loan is rescheduled again.

  9. Generate a Payoff Quote as of September 20, 2022.

    It is observed that Today's Payoff is updated incorrectly as $10,522.39. Payoff Quote is incorrect as well with Interest Remaining as $22.39. Interest in the Payoff Quote does not match with the sum of Interest Accrued and Interest Remaining.

    Today's Payoff must be $10,522.90, Total Payoff Amount on Payoff Quote must be $10,522.90.

  10. Reschedule the loan to skip October 15 schedule by going to Loan Quick Menu > Loan Actions > Reschedule and then provide the following values:

    • Repayment Start Date = November 15, 2022

    • Maintain Delinquency = false

    • Number of Installments = 36

  11. Add repayment plan with the following values:

    • Payment Type = Equal Monthly Installments

    • Payment Amount = $367.60

    • Term = 35

    • Payment Start Date = November 15, 2022

    It is observed that the Total Interest Till Transaction Date is calculated incorrectly as $22.39, interest billed is also calculated incorrectly in November 15 and subsequent schedules. Interest on the Reschedule page does not match with the sum of Interest Accrued and Interest Remaining.

    The values must be updated as follows:

    • Total Interest Till Transaction date = $22.90

    • November 15, 2022, schedule must have an interest calculated as $274.75 and the December 15, 2022, schedule must have an interest calculated as $136.16

Scenario 4 - When loan is rescheduled skipping a pay while maintaining delinquency and an LPT is reversed on the IPT date

  1. Let us create an FAMZ contract with the following details and disburse it:

    • Loan Amount = $10,500

    • Contract Date = September 15, 2022

    • Payment Frequency = Monthly

    • Term = 36

    • Is Interest Posting = True

    • Maintain Delinquency = True

    • Interest Rate Change Method = Change Payment Amount

  2. Let us go to September 16, 2022, and create an LPT of amount $367.60.

    The values must be updated as follows:

    • Interest Remaining = $0

    • Interest Accrued = $4.58

    • Interest Paid = $0

    • Reschedule status = Pending

  3. Let us go to September 18, 2022, and reverse the LPT created on September 16, 2022.

    The values must be updated as follows:

    • LAD = September 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $13.74

    • Interest Paid = $0

    • Principal/ Advance Remaining = $10,500

  4. Let us go to September 20, 2022, and reschedule the loan with the following details:

    • Repayment Start Date = November 15, 2022

    • Maintain Delinquency = False

    • Number of Installments = 36

    • Add a repayment plan in the Flexible Repayment Plan with the following values:

      • Payment Type = Equal Monthly Installments

      • Payment Amount = $367.60

      • Term = 35

      • Payment Start Date = November 15, 2022

  5. Let us go to November 15, 2022.

    The bill is generated.

  6. Let us go to November 18, 2022, and create an LPT of amount $500.

    The values must be updated as follows:

    • Interest Remaining = $0

    • Interest Accrued = $13.61

    • Interest Paid = $274.75

    • Excess = $132.40

    • Principal/ Advance Remaining = $10,407.15

    • Last Accrual Date = November 15, 2022

  7. Let us create another LPT of amount $132.40 and payment mode as Excess.

    Note: When you select Payment Mode as Excess, the system automatically displays the required amount in the Transaction Amount field.

    The values must be updated as follows:

    • Interest Remaining = $0

    • Interest Accrued = $13.61

    • Interest Paid = $274.75

    • Excess = $0

    • Principal/ Advance Remaining = $1,0274.75

    • Last Accrual Date = November 15, 2022

    • Reschedule Status = Pending

  8. Let us go to December 15, 2022, and reverse both the LPTs created on November 18, 2022.

    The values must be updated as follows after reversing the Excess LPT:

    • Interest Remaining = $136.16

    • Interest Accrued = $0

    • Interest Paid = $274.75

    • Excess = $132.40

    • Principal/Advance Remaining = $10,407.15

    • Today's Payoff = $10,410.91

    • Last Accrual Date = December 15, 2022

    The values must be updated as follows after reversing the normal LPT:

    • Interest Remaining = $410.91

    • Interest Accrued = $0

    • Interest Paid = $0

    • Excess = $0

    • Principal/Advance Remaining = $10,500

    • Today's payoff = $10,910.91

    • Last Accrual Date = December 15, 2022

However, the Interest Accrued, Interest Remaining, and LAD are getting updated incorrectly.

Scenario 5 - When an Installment Payment is reversed after the due date

  1. Let us create an FAMZ contract with the following details and disburse it:

    • Loan Amount = $10,500

    • Contract Date = September 15, 2022

    • Payment Frequency = Monthly

    • Term = 36

    • Is Interest Posting = True

    • Maintain Delinquency = True

    • Interest Rate Change Method = Change Payment Amount

  2. Let us go to October 18, 2022, and create an LPT of amount $367.60 while setting Installment Payment flag to true.

    The values must be updated as follows:

    • LAD = November 15, 2022

    • Interest Remaining = $134.36

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

    • October 15 IPT must have the following values:

      • Interest Posted = $137.38

      • Paid = true

      • Status = Closed

    • November 15 IPT must have the following values:

      • Interest Posted = $134.36

      • Status = Closed

  3. Let us go to October 20, 2022, and reverse the LPT created on October 18, 2022.

    The values must be updated as follows:

    • Last Accrual Date = October 15, 2022

    • Interest Remaining = $137.38

    • Interest Accrued = $22.39

    • Interest Paid = $0

    • Today's Payoff = $10,659.77

    • Principal/Advance Remaining = $10,500

    • October 15 IPT must have the following values:

      • Interest Posted = $137.38

      • Paid = false

      • Status = Closed

    • November 15 IPT must have Interest Posted = 0 and Status = Open.

However, the Interest Accrued, Interest Remaining, and LAD values are getting updated incorrectly.

Scenario 6 - When loan is rescheduled by changing the payment amount to 200 on Flexible repayment plan followed by LPT reversal

  1. Let us create an FAMZ contract with the following details and disburse it:

    • Loan Amount = $10,500

    • Interest Rate = $15.7

    • Payment Start Date = March 15, 2022

    • Payment Frequency = Monthly

    • Term = 36

    • Is Interest Posting = True

    • Maintain Delinquency = True

    • Interest Rate Change Method = Change Payment Amount

  2. Let us go to March 12, 2022, and reschedule the loan to skip the March 15, 2022, and April 15, 2022, bills by providing Repayment Start Date as May 15, 2022, Maintain Delinquency = false, and Number of Installments = 36

    Add repayment plan with Payment Type = Equal Monthly Installments, Payment Amount = $367.60, Term = 35

    The values must be updated as follows:

    • LAD = March 12, 2022

    • Interest Remaining = $123.64

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

    • Today's Payoff = $10,623.64

  3. Let us go to March 22, 2022, and reschedule the loan to modify the loan by updating the Payment Amount to 200 for the May 15, 2022, to August 15, 2022, bills. For this, provide the following values:

    • Repayment Start Date = May 15, 2022

    • Maintain Delinquency = false

    • Add a repayment plan with Payment Type = Equal Monthly Installments, Payment Amount = $200, Term = 4, Payment Start Date = May 15, 2022.

    • Add another repayment plan with Payment Type = Equal Monthly Installments, Payment Amount = $367.60, Term = 31, Payment Start Date = September 15, 2022.

    The values must be updated as follows:

    • Last Accrual Date = March 22, 2022

    • Interest Remaining = $169.43

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

  4. Let us go to April 16, 2022, and create an LPT with Transaction Amount as $400.

    This amount must entirely satisfy the principal.

    The values must get updated as follows:

    • Last Accrual Date = March 22, 2022

    • Interest Remaining = $169.43

    • Interest Accrued = $109.9

    • Interest Paid = 0

    • Principal/Advance Remaining = $10,100

    • Reschedule Status = Pending

  5. Let us go to May 15, 2022.

    The values must get updated as follows:

    • Last Accrual Date = May 15, 2022

    • Interest Remaining = $200

    • Interest Accrued = $0

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,100

    • Reschedule Status = Success

    • Today's Payoff = $10,507.07

  6. Create LPT with Transaction Amount = $200, Transaction Date = May 15, 2022

    The values must get updated as follows:

    • Last Accrual Date = May 15, 2022

    • Interest Remaining = $0

    • Interest Accrued = $0

    • Interest Paid = $200

    • Principal/Advance Remaining = $10,100

    • Today's Payoff = $10,307.07

  7. Let us go to May 18, 2022.

    The values must get updated as follows:

    • Last Accrual Date = May 15, 2022

    • Interest Remaining = 0

    • Interest Accrued = $13.21

    • Interest Paid = $200

    • Principal/Advance Remaining = $10,100

    • Today's payoff = $10,320.28

  8. Reverse the LPT created on May 15, 2022

    After reversing May 15, 2022 LPT, the values must get updated as follows:

    • Last Accrual Date = May 15, 2022

    • Interest Remaining = $200

    • Interest Accrued = $13.21

    • Interest Paid = 0

    • Principal/Advance Remaining = $10,100

    • Today's Payoff = $10,520.28

  9. Reverse the ad hoc payment made on April 16, 2022

    It is observed that the values are incorrectly updated as follows:

    • Interest Accrued = $256.44

    • Interest Remaining = $169.43

    • Last Accrual Date = March 22, 2022

    • Today's Payoff = $10,920.81 (This does not match with the Payoff Quote too.)

    Instead, the values must be updated as follows:

    • Last Accrual Date = May 15, 2022

    • Interest Remaining = $200

    • Interest Accrued = $13.74

    • Interest Paid = $0

    • Principal/Advance Remaining = $10,500

    • Today's Payoff = $10,925.87

  10. Repost May 15, 2022, payment of $200 to satisfy May 15, 2022, bill by creating an LPT with Transaction Amount = $200, Transaction Date = May 15, 2022.

  11. Let us go to May 20, 2022, and reschedule the loan to skip a pay by providing Repayment Start Date as June 15, 2022, Maintain Delinquency as false.

    Add repayment plan with Payment type = Equal Monthly Installments, Payment Amount = $300, Term = 34, Payment Start Date = June 15, 2022.

  12. Let us go to October 13, 2022, and go to Servicing Configuration > Loan Write Off.

  13. In Write off any loan, select the preceding loan account created, and click Write off selected loan account.

    When loan is written off on October 13, 2022, Today's Payoff and Charged Off interest are incorrectly updated as $879.31, whereas the (Interest Accrued + Interest Remaining) = $879.33.

    The values must be correctly updated as follows:

    • Charged Off Interest = $879.33,

    • Last Accrual Date = October 13, 2022

    • Interest Remaining = $879.33

    • Today's Payoff = $11,379.33

    • Payoff Quote on October 13, 2022, = $11,379.33.

Resolution

This issue is fixed as the IPT and the billing jobs are now run as part of the payment reversal. This helps to regenerate the reversed IPTs and bills that were reversed as part of the payment reversal. Thus, the interest values such as the Interest Remaining and Interest Accrued and LAD are now getting updated correctly when a payment transaction is reversed.

12.5.2 The Interest Remaining on a loan contract is getting updated with a negative value after the loan is rescheduled (Jira ID: ND-7082)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.95)

Issue Description

In an FAMZ loan contract, when Interest Remaining on an IPT has a negative value, and the loan is rescheduled, the Interest Remaining on the contract is also getting updated with a negative value. The system must stop updating the contract's Interest Remaining with negative value when there is no positive Interest Remaining on the IPT.

Example to Understand the Issue

  1. Let us create an FAMZ contract with the following details and disburse it:

    • Loan Amount = $10,500

    • Contract Date = September 15, 2022

    • Payment Frequency = Monthly

    • Term = 36

    • Interest Rate Change Method = Change Payment Amount

  2. Let us go to October 15, 2022, and create an LPT of amount $367.60.

  3. Let us go to October 18, 2022, and reschedule the loan with the following details:

    • Repayment Start Date = January 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 36

    Add Repayment plan with the following values:

    • Payment Type = Equal Monthly Installments

    • Payment Amount = $367.60

    • Term = 35

  4. Let us go to November 15, 2022.

    The system generates a bill.

  5. Let us go to November 16, 2022, and reschedule the loan with the following details:

    • Repayment Start Date = March 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 36

    Add repayment plan with the following values:

    • Payment Type = Equal Monthly Installments

    • Payment Amount = $367.60

    • Term = 35

  6. Reschedule loan with the following values:

    • Repayment Start Date = March 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 36

    Add repayment plan with following values:

    • Payment Type = Equal Monthly Installments

    • Payment Amount = $367.60

    • Term = 35

    • Payment Start Date = March 15, 2023

    The values are updated as follows:

    • Last Accrual Date = November 16, 2022

    • Interest Remaining = $138.85

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  7. Let us go to March 15, 2023.

    The values are updated as follows:

    • Today's Payoff = $10,941.60

    • Payoff amount on Payoff Page = $10,941.60

    • Last Accrual Date = March 15, 2023

    • Interest Remaining = $367.60

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  8. Let us go to May 15, 2023.

    The values are updated as follows:

    • Today's Payoff = $11,210.32

    • Payoff amount on Payoff Page = $11,210.32

    • Last Accrual Date = May 15, 2023

    • Interest Remaining = $940.54

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

  9. Let us manually update the March 15, 2023, IPT's Interest Remaining as $0.

  10. Reschedule loan with the following values:

    • Repayment Start Date = June 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 36

    • Add repayment plan with Payment type = EMI

    • Payment amount = $367.60

    • Term = 35

    • Payment Start Date = June 15, 2023

The system is updating loan's Interest Remaining with a negative value.

Resolution

This issue is fixed, now the system is not updating Interest Remaining on a loan contract with a negative value.

12.5.3 Amortization schedule is calculated incorrectly when a loan is rescheduled to skip or modify a past due bill (Jira ID: PDRFF-2416/ND-6945/ND-6980)

Fixed Versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.95)

Issue Description

Amortization schedule is calculated incorrectly when a loan is rescheduled to skip or modify a past due bill. Interest remaining is calculated incorrectly after second reschedule is reversed before first payment is made.

Example to Understand the Issue

Let us create a loan contract and verify interest accrued after LPT reversal followed by a reschedule to skip a pay with maintain delinquency set to false.

  1. Let us create a FAMZ lending product with the following values:

  • Time Counting Method = Month and Days

  • Default Interest Rate = 15.7%

  • Is Interest Posting = True

  • Interest Posting Frequency = Monthly

  • Pre Bill Days = 28

  1. Let us go to September 15, 2022, and create a contract with the following values and disburse it:

  • Loan Amount = $10,500

  • Term = 36

  • Interest Rate Change Method = Change Payment Amount

  • Payment Frequency = Monthly

  • Payment Start Date = October 15, 2022

  1. Let us go to September 16, 2022.

The values must be updated as follows:

  • LAD = September 15, 2022

  • Interest Remaining = $0

  • Interest Accrued = $4.58

  • Interest Paid = $0

  1. Let us create a LPT with transaction amount of $200 and transaction date of September 16, 2022.

The values must be updated as follows:

  • Last Accrual Date = September 15, 2022

  • Interest Remaining =$ 0

  • Interest Accrued = $4.58

  • Interest Paid = $0

  • Reschedule Status = Pending

  1. Let us go to September 17, 2022

The values must be updated as follows:

  • Last Accrual Date = September 16, 2022

  • Interest Remaining = $4.58

  • Interest Accrued = $4.49

  • Interest Paid = $0

  • Reschedule Status = Success

  • Principal/Advance Remaining = $10,300

  1. Let us create a LPT with transaction amount of $500 and transaction date of September 17, 2022.

The values must be updated as follows:

  • LAD = September 16, 2022

  • Interest Remaining = $4.58

  • Interest Accrued = $4.49

  • Interest Paid = $0

  • Excess = $500

  1. Let us create a LPT with Payment mode set to Excess and transaction amount of $500.

The values must be updated as follows:

  • LAD = September 16, 2022

  • Interest Remaining = $4.58

  • Interest Accrued = $4.49

  • Interest Paid = $0

  • Excess = $0

  • Principal/Advance Remaining = $9,800

  • Reschedule Status = Pending

  1. Let us go to September 19, 2022

The values must be updated as follows:

  • LAD = September 17, 2022

  • Interest Remaining = $9.07

  • Interest Accrued = $8.55

  • Interest Paid = $0

  • Principal/Advance Remaining = $9,800

  • Reschedule Status = Success

  1. Let us reverse both the LPTs created on September 17, 2022.

  1. Let us go to October 18, 2022.

  1. Reschedule the loan to skip October 15, 2022, and November 15, 2022, bills, monthly payment amount must stay the same, term must be extended by 2 months, also Maintain Delinquency must be set to false

    The values must be updated as follows:Added section

    • Reschedule the Loan with Repayment Start Date = December 15, 2022

    • Maintain Delinquency = False

    • Number of Installment = 36

    • Add repayment plan with Payment type = EMI

    • Payment amount = $367.60

    • Term = 35

    The system calculates an incorrect interest remaining as $148.33.

  1. Generate a Payoff Quote as of October 18, 2022, validate principal and interest remaining they must match with expected interest accrued + expected interest remaining + actual principal remaining on the loan.

    The system calculates an incorrect Payoff Quote as $10,448.33.

  2. Similarly, let us go to November 15, 2022, December 15, 2022, January 15, 2022, and to February 15,2022.

    • Expected interest billed on January 15, 2022, must be $134.76 + $36.76 = $171.52

    • Interest left to be billed = $0

    But the system calculates incorrectly the interest billed on January 15, 2022, as $171.22.

    Today's payoff is calculating incorrectly as $10,448.02.

    Resolution

    The issue is resolved and now the system calculates the following values correctly:

    • Interest Remaining = $148.02 on October 18, 2023 (10500*1*15.7/360*100 + 10300*29*15.7/360*100 + 10067.25*3*15.7/360*100)

    • Interest billed on January 15, 2023: 134.76+36.46 = $171.22

    • Interest left to be billed = $0

    • Interest billed on January 15, 2023 = $171.22

    • Today's payoff = $10,448.02

    • Payoff quote on October 18, 2022 = $10,448.02

12.5.4 Interest accrued is getting updated incorrectly when backdated LPT is cleared and contract is rescheduled (PDRFF-2404/ND-6914)

Fixed Version

This issue is fixed in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.95)

Issue Description

On backdated rescheduling, the Interest Accrued values are not getting updated as the IPT job is not run. Also, on payment reversal, bills generated after rescheduling date are getting discarded, but next due date is not getting updated to the previous date.

Example to Understand the Issue

Let us consider a scenario where an LPT is created before the due date and manually cleared on the due date.

  1. Let us create a FAMZ Lending product with the following values:

  • Time Counting Method = Month and Days

  • Default Interest Rate = 15.7

  • Is Interest Posting = True

  • Interest Posting Frequency = Monthly

  • Excess Threshold % for Reschedule = 0

  • Pre Bill Days = 28

  • Term = 36

  • Payment Frequency = Monthly

  • Payment Start Date = October 15, 2022

  1. Let us go to September 15, 2022, and create a loan contract with loan amount of $10,500 and disburse it.

  1. Let us go to September 16, 2022.

The values are updated as follows:

  • Last Accrual Date = September 15, 2022

  • Interest Remaining = 0

  • Interest Accrued = $4.58

  • Interest Paid = 0

  • Principal/Advance Remaining = $10,500

  • Today's Payoff = $10,504.58

  1. Now let us go to Custom Settings > Transaction Approval Config > and ensure that the Loan Payment is set to True.

  1. Let us create a LPT with transaction amount of $500 and transaction date of September 16, 2022.

The values are updated as follows:

  • LAD = September 15, 2022

  • Interest Remaining = 0

  • Interest Accrued = $4.58

  • Interest Paid = 0

  • Principal/Advance Remaining = $10,500

  • Today's Payoff = $10,504.58

  • Uncleared Payment Amount = $500

  1. Let us go to September 17, 2022.

The values are updated as following:

  • LAD = September 15, 2022

  • Interest Remaining =$ 0

  • Interest Accrued = $9. 16

  • Interest Paid = $0

  • Principal/Advance Remaining = $10,500

  • Today's Payoff = $10,509.16

  • Uncleared Payment Amount =$ 500

  1. Now clear the September 16, 2022, LPT manually.

  1. Run the LoanRescheduleJob, loan must get rescheduled as of September 16, 2022.

The system incorrectly calculates the Interest Accrued as $0 instead of $4.36.

  1. Now let us generate a Payoff Quote as of September 17, 2022.

Today's payoff is incorrectly calculated as $10,009.16 instead of $10,008.94.

  1. Now let us reschedule the loan to skip the October 15, 2022, bill.

  1. Let us go to September 18, 2022.

  1. Let us reverse the last payment.

The October 15, 2022, bill is not regenerated or marked primary but there is an active schedule for it.

Resolution:

This issue is fixed. On backdated rescheduling, the Interest Accrued values were not getting updated immediately as the IPT job needed to be run. Now, as a fix, the IPT processing is added as part of backdated rescheduling. Also, the logic has been added to update the next due date correctly on payment reversal. Thus, the October 15, 2022, bill is now regenerated correctly as per the amortization schedule.

12.5.5 A bill is not recreated automatically after a manual reschedule with maintain delinquency set to false (PDRFF-2402/ND-6908)

Fixed version

This issue is fixed in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.95)

Issue description

A bill is not recreated automatically after a manual reschedule with maintain delinquency set to false.

Example to understand the issue

Let us create a loan contract and perform a reschedule with the maintain delinquency is set to false and let us also verify that the non primary bill is getting regenerated.

  1. Create a FAMZ lending product with the following values:

  • Time Counting Method = Month and Days

  • Default Interest Rate = 15.7%

  • Is Interest Posting = True

  • Interest Posting Frequency = Monthly

  • Excess Threshold % for Reschedule = 0

  • Pre Bill Days = 28

  • Term = 36

  • Interest Rate Change Method = Change Payment Amount

  • Payment Frequency = Monthly

  • Payment Start Date = October 15, 2022

  1. Let us go to September 15, 2022 and create contract with loan amount of $10,500 and disburse it.

  2. Let us go to October 15, 2022.

The values are updated as follows:

  • LAD = October 15, 2022

  • Interest Accrued = $0

  • Interest Remaining = $137.38

  • Interest Paid = $0

  • Principal/Advance Remaining = $10,500

  1. Let us create a LPT with transaction amount of $367.60 and transaction date of October 15, 2022.

The values are updated as follows:

  • LAD = October 15, 2022

  • Interest Accrued = $0

  • Interest Remaining = $0

  • Principal/Advance Remaining = $10,269.78

  • Interest Paid = $137.38

  1. Let us go to November 15, 2022.

The values are updated as follows:

  • LAD = November 15, 2022

  • Interest Accrued = $0

  • Interest Remaining = $134.36

  • Interest Paid = $137.38

  • Principal/Advance Remaining = $10,269.78

  1. Let us create a LPT with transaction amount of $367.60 and transaction date of November 15, 2022.

The values are updated as follows:

  • LAD = November 15, 2022

  • Interest Accrued = $0

  • Interest Remaining = $0

  • Principal/Advance Remaining = $10,036.54

  • Interest Paid = $271.74

  1. Let us go to December 25, 2022

The values are updated as follows:

  • LAD = December 15, 2022

  • Interest Accrued = $42.74,

  • Interest Remaining = $131.31

  • Interest Paid = $271.74

  • Principal/Advance Remaining = $10,036.54

  1. Let us perform a payoff with transaction amount of $10,210.59 and transaction date of December 25, 2022.

The values are updated as follows:

  • Loan Status = Closed - Obligations Met

  • Interest Accrued = $0

  • Principal/Advance Paid = $10,500

  • Interest Remaining = $0

  • Interest Paid = $445.79

  • LAD = December 25, 2022

  • Principal/Advance Remaining = $0

  1. Let us go to December 28, 2022.

The values are updated as follows:

  • Loan Status = Closed - Obligations met

  • Interest Remaining = $0

  • Interest Accrued = $0

  • Principal/Advance Paid = $10,500

  • Interest Paid = $445.79

  • LAD = December 25, 2022

  • Principal/Advance Remaining = $0

  1. Let us perform payoff reversal.

The values are updated as follows:

  • Loan Status = Active - Bad standing

  • LAD = December 15, 2022

  • Today's Payoff = $10,223.41

  • Interest Accrued = $55.56

  • Interest Remaining = $131.31

  • Principal/Advance Remaining = $10,036.54,

  • Interest Paid = $271.74

  • Interest Remaining on Payoff Quote = $186.87

  • Total Payoff Amount on Payoff Quote = $10,223.41

  1. Let us go to Loan Actions and select Reschedule (Total Interest Till Transaction date must be $186.87).

  2. Let us reschedule the loan to skip a pay by providing Repayment Start Date of January 15, 2023, set maintain delinquency to false, and add repayment plan with the following values:

  • Payment Type = EMI

  • Term = 32

  • Payment Amount = $367.60

  • Payment Start Date = January 15, 2023

The system is not automatically generating a bill for January 15, 2023.

Resolution:

This issue is now resolved. Bill is now recreated automatically for January 15, 2023 after a manual reschedule with maintain delinquency false.

12.5.6 The system is updating both today's payoff and interest remaining incorrectly when a pay off transaction is reversed(ND-6888)

Fixed versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.95)

Issue description

Let us create a LPT to perform payoff reversal on the future due date and verify the Interest remaining, Interest accrued and LAD on the loan.

  1. Let us create a FAMZ loan contract with the following values:

  • Time counting method = Month and Days

  • Default Interest Rate = 15.7%

  • Is Interest Posting = True

  • Interest Posting Frequency = Monthly

  • Pre Bill Days = 28

  • Term = 36

  • Interest Rate Change Method = Change Payment Amount

  • Payment Frequency = Monthly

  • Payment Start Date = October 15, 2022

  1. Let us go to September 15, 2022, and create a loan contract having loan amount $10500 and disburse it:

  1. Let us go to October 15, 2022.

The values are updated as following:

  • LAD = October 15, 2022

  • Interest Remaining = $137.38

  • Interest Accurate = $0

  • Interest Paid = $0

  • Principal/Advance Remaining = $10,500

  1. Let us create a payment, with transaction amount of $367.60 and clear it.

The values are updated as following:

  • Interest Remaining = $0

  • Interest Accrued = $0

  • Interest Paid = $137.38

  • Principal/Advance Remaining = $10,269.78

  1. Let us go to November 15, 2022.

The values are updated as following:

  • LAD = November 15, 2022

  • Interest Remaining = $134.36

  • Interest Accrued = 0

  • Interest Paid = $137.38

  • Principal/Advance Remaining = $10,269.78

  1. Let us create a LPT with transaction amount of $ 367.60 and transaction date of November 15, 2022.

The values are updated as following:

  • Interest Remaining = $0

  • Interest Accrued = $0

  • Interest Paid = $271.74

  • Principal/Advance Remaining = $10,036.54

  1. Let us go to December 25, 2022

The values are updated as following:

  • LAD = December 15/2022

  • Interest Remaining = $131.31

  • Interest Accrued = $42.74

  • Interest Paid = $271.74

  • Principal/Advance Remaining = $10,036.54

  1. Now let us create a new loan payoff payment (not a normal payment), system must auto populate transaction amount as $10,210.59. Validate that it satisfies the entire principal remaining.

  • Transaction Date = December 25, 2022

  • Loan Status = Closed - Obligations Met

  • Interest Accrued = $0

  • Interest Remaining = $0

  • Principal/Advance Paid = $10,500

  • LAD = December 25, 2022

  • Interest Paid = $445.79

  1. Let us go to January 18, 2023.

The values are updated as following:

  • Loan Status = Closed - Obligations Met

  • Interest Accrued = $0

  • Interest Remaining = $0

  • Principal/Advance Paid = $10,500

  • LAD = December 25, 2022

  • Interest Paid = $445.79

  • Principal/Advance Remaining = 0

  1. Let us reverse the payoff payment posted on December 25, 2022. Validate that December 25, 2022, bill is now unpaid.

The values are updated as following:

  • Loan Status = Active - Bad Standing

Interest accrued and interest remaining Interest fields are not updated correctly.

Resolution:

Issues is now resolved. IPT will now get re-posted with correct interest amount and the system opens IPT for next due date.

12.5.7 The system is updating both today's payoff and interest remaining incorrectly when a pay off transaction is reversed (Jira ID: ND-6968)

Fixed versions

The fix of this issue is available in the following version:

  • Q2 Loan Servicing Phoenix (2.7016.95)

Issue description

When a pay off is reversed for a FAMZ loan, today's payoff is getting calculated incorrectly. Extra Interest Remaining captured on the IPT is also getting updated on Interest Remaining of contract during Payoff reversal.

Example to understand the issues

Let us create a FAMZ loan reverse the loan payoff, and then validate today’s payoff.

  1. Let us create a FAMZ loan contract with the following values:

  • Time Counting Method = Month and Days

  • Default Interest Rate = 15.7%

  • Interest Posting = True

  • Interest Posting Frequency = Monthly

  • Excess Threshold % for Reschedule = 0

  • Pre Bill Days = 28

  • Interest Rate Change Method = Change Payment Amount

  • Term = 36

  • Payment Frequency = Monthly

  • Payment Start Date = October 15, 2022

  1. Let us go to September 15, 2022, and create a loan for amount $10,500 and disburse it:

  1. Let us go to October 15, 2022.

    The values are updated as following:

  • LAD = October 15, 2022

  • Interest Remaining = $137.38

  • Interest Accrued = $0

  • Interest Paid = $0

  • Principal/Advance Remaining = $10,500

  1. Let us create a loan payment transaction with transaction amount of $367.60 and the transaction date of October 15, 2022.

  2. Move to October 18, 2022.

    The values are updated as following:

  • Interest Remaining = $0

  • Interest Accrued = $13.44

  • Interest Paid = $137.38

  • Principal/Advance Remaining = $10,269.78

  1. Let us reschedule loan with the following values:

  • Repayment Start Date = January 15, 2023

    • Maintain Delinquency = False

      • Add Repayment Plan with the following values:

      • Payment Type = EMI

      • Payment Start date = January 15, 2023

      • Payment Amount = $367.60

    • Number of Installments = 36

    • Term = 35

    The values after rescheduling are updated as follows:

    • LAD = October 18, 2022

    • Interest Accrued = $0

    • Interest Remaining = $13.44

    • Principal/Advance Remaining = $10,269.78

    • Interest Paid = $137.38

    1. Let us go to November 15, 2022.

    The values are updated as follows:

    • LAD = October 18, 2022

    • Interest Accrued = $120.92

    • Interest Remaining = $13.44

    • Principal/Advance Remaining = $10,269.78

    • Interest Paid = $137.38

    1. Let us go to November 16, 2022.

    The values are updated as follows:

    • LAD = October 18, 2022

    • Interest Accrued = $125.40

    • Interest Remaining = $13.44

    • Principal/Advance Remaining = $10,269.78

    • Interest Paid = $137.38

    1. Reschedule the loan with the following values:

    • Repayment Start Date = March 15, 2023

    • Maintain Delinquency = False

    • Number of Installments = 36

      Add repayment Plan with the following values:

      Payment Type = EMI

    • Payment Amount = $367.60

    • Term = 35

    • Payment Start Date = March 15, 2023

    The values are updated as follows:

    • LAD = November 16, 2022

    • Interest Remaining = $138.85

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

    1. Let us go to March 15, 2023 and generate payoff quote with Payoff Date as March 15, 2023

    The values are updated as

    • Today's payoff = $10,941.60

    • Total Payoff Amount on Payoff Quote = $10,941.60

    • Payoff amount on Payoff Page = $10,941.60

    • LAD = March 15, 2023

    • Interest Remaining = $367.60

    • Interest Accrued = $0

    • Interest Paid = $137.38

    • Principal/Advance Remaining = $10,269.78

    1. Let us perform payoff with Transaction amount of $10961.40 on March 15, 2023.

    1. Let us reverse the payoff.

    1. The system calculate today's payoff and interest remaining incorrectly.

    Although the Interest Remaining should be calculated as $367.60 it is calculated as 671.82.

    and Today's payoff is calculated as $10,941.60 instead of $11,245.82.

    Resolution

    Extra Interest Remaining captured on IPTs was also getting updated on Interest Remaining of contract during Payoff reversal. Now the logic has been updated to subtract the same amount during payoff reversal and the system now calculates today's payoff correctly.

    12.5.8 There is an inconsistency between amortization schedule and bills when a bill satisfying payment is posted on a loan with two reschedulings (Jira ID: PDRFF-2365/ND-6874)

    Fixed versions

    The fix of this issue is available in the following version:

    • Q2 Loan Servicing Phoenix (2.7016.95)

    Issue description

    The issue revolves around inconsistency between the amortization schedule and bills when a bill satisfying payment is posted on a loan with two reschedules.

    Example to understand the issue

    1. Let us create a loan and disburse it with the following parameters:

    • Origination Date = February 15, 2022

    • Loan Amount = $10,500

    • Interest Rate = 15.7%

    • Pre-bill Days = 28

    • Term = 36

    1. Let us reschedule the loan payment on March 15, 2022.

    Reschedule the loan to skip the bills generated on March 15, 2022, April 15, 2022, May 15, 2022, and June 15, 2022.

    • Term = 36

    • Payment = Monthly

    • Maintain Delinquency = False

    1. Let us make a payment on July 15, 2022.

    Create a payment of $367.60 to satisfy the July 15, 2022, bill.

    1. Let us make a payment on August 15, 2022.

    Create a payment of $367.60 to satisfy the August 15, 2022, bill.

    1. Let us make a payment September 15, 2022.

    Create a payment of $367.60 to satisfy the September 15,2022 bill.

    1. Let us reschedule the loan payment with short-term loan modification on October 18, 2022.

    • Maintain Delinquency = True

    The rescheduling with Maintain Delinquency = True failing because the system is not allowing rescheduling on October 18, 2022, as the November 15, 2022, bill is not due yet.

    Resolution:

    The system now allows the rescheduling of loan with maintain delinquency set to true during the Pre Bill Days where the bill amount is different then the existing bill. After rescheduling existing bill amount will be updated by the new bill amount.

    12.5.9 Interest accrued field is updated incorrectly when a recovery payment is reversed in a written off loan (Jira ID: PDRFF-2356/ND-6890).

    Fixed versions

    The fix of this issue is available in the following version:

    • Q2 Loan Servicing Phoenix (2.7016.95)

    Issue description

    In a FAMZ loan contract, interest accrued is calculated even when a recovery payment is reversed. For example, when a recovery payment is reversed the interested accrued is calculated incorrectly as $8.34 in place of being calculated as $0, however the Interest Remaining is computed correctly as $643.85.

    Example to understand the issue

    Let us create an LPT for writing off a loan and reversing this LPT after few days and then verify the interest accrued on the loan contract by performing the following steps:

    1. Ensure that the Pre Bill Days is set to 28.

    1. Let us create an FAMZ loan contract with the following details and disburse it:

      • Loan Amount = $10,500

    • Payment Frequency = Monthly

    • Payment Start Date = October 15, 2022

    • Term = 36

    • Interest Rate = 15.7%

    1. Let us move to October 15, 2022.

      This results in the following values:

      • Last Accrual Date = October 15, 2022

      • Interest Remaining = $137.38

      • Interest Accrued = $0

    1. Let us move to November 15, 2022.

      This results in the following values:

      • Last Accrual Date = November 15, 2022

      • Interest Remaining = $271.74

      • Interest Accrued = $0

    1. Let us move to December 15, 2022

      This results in the following values:

      • Last Accrual Date = 12/15/2022

      • Interest Remaining = $403.05

      • Interest Accrued = $0

    1. Let us move to January 15, 2023.

      This results in the following values:

      • Last Accrual Date = January 15, 2023

      • Interest Remaining = $531.27

      • Interest Accrued = $0

    1. Let us move to February 12, 2023.

      This results in the following values:

      • Last Accrual Date = January 15, 2023

      • Interest Remaining = $ 531.27

      • Interest Accrued = $112.58

    1. Now write off the loan.

      This results in the following values:

      • Charged off Principal = $10,500

      • Charged off Interest = $643.85

      • Charged off Date = February 12, 2023

      • Interest Remaining = $643.85

      • Last Accrual Date = February 12, 2023

      • Interest Accrued = $0

      • Interest Paid = $0

    1. Let us create a recovery payment on February 14, 2023, with the following settings:

      • Write off Recovery = True

      • Transaction Amount = $500

      • Spread Manually = False

      Payment must be applied toward the remaining principal.

      The values must remain as follows:

      • Interest Accrued = $0

      • Interest Remaining = $643.85

      • Last Accrual Date = February 12, 2023

    1. Let us reverse this recovery payment on February 14, 2023 now the values must be as follows:

      • Interest Accrued = $0

      • Interest remaining = $643.85

      • Last Accrual Date = February 12, 2023

    However the interest accrued was incorrectly updating as $8.64.

    Resolution

    This issue is fixed. The system now correctly handles scenarios where a contract has been written off, ensuring that interest is no longer accrued after the recovery payment is reversed.

    12.5.10 Restructuring with Principal Remaining is not considering the recent principal payments made in the system (Jira ID: ND-6907)

    Fixed Versions

    The fix of this issue is available in the following version:

    • Q2 Loan Servicing Phoenix (2.7016.95)

    Issue description

    In an FAMZ loan contract, restructuring using Principal Remaining as the Reschedule Balance is not considering the recent principal payments made in the system, resulting in different amortization schedules as compared to restructuring using the Loan Balance.

    Example to understand the issue

    1. Let us create an FAMZ contract with the following details and disburse it:

      • Loan Amount = $10,500

      • Term = 3

      • Payment Start Date = October 15, 2022

      • Time Counting Method = Month and Days

      • Default Interest Rate = 15.7

      • Interest Posting Frequency = Monthly

      • Excess Threshold % for Reschedule = 0

      • Reschedule Option on Excess Payment = Keep same payment amount

      • Pre Bill Days = 28

      • Interest Posting = True

    2. Let us go to October 15, 2022.

      • Interest Remaining = $137.38

      • Interest Paid = $0

      • Interest Accrued = $0

      • Principal/Advance Remaining = $10,500

      • Payoff amount as on today = $10,637.38

      • LAD = October 15,2022

    3. Let us create a LPT with Transaction Amount of $200 and the following details:

      • Transaction Date = October 15, 2022

      • Loan Payment Spread = Principal Only

    4. To accommodate one of the customer scenario manually update the Principal/Advance Remaining to $10,000.

    5. Go to Loan Quick Menu > Loan Actions > Reschedule > Reschedule Balance = Principal Remaining.

      The system must update the November 15, 2022, schedule Due Interest to $10,000.

    Resolution

    If the principal remaining on loan is lesser than the ending balance from the previous amortization period then the system must take the Principal Remaining for calculation of new schedules during reschedule with maintain delinquency set to true.

    12.5.11 The system is updating the Current Maturity Date incorrectly when the reschedule threshold crosses payment (Jira ID: PDRFF-2431/ND-6981)

    Fixed Versions

    The fix of this issue is available in the following version:

    • Q2 Loan Servicing Phoenix (2.7016.95)

    Issue description

    In a FAMZ loan contract, the system is updating the Current Maturity Date incorrectly when the reschedule threshold crosses payment during rescheduling on last schedule.

    Example to understand the issue

    1. Let us create an FAMZ contract with the following details and disburse it:

      • Loan Amount = $10,500

      • Term = 3

      • Payment Start Date = October 15, 2022

      • Time Counting Method = Month and Days

      • Default Interest Rate = 15.7

      • Interest Posting Frequency = Monthly

      • Excess Threshold % for Reschedule = 0

      • Reschedule Option on Excess Payment = Keep same payment amount

      • Pre Bill Days = 28

      • Interest Posting = True

    2. Let us go to October 15, 2022.

      • Interest Remaining = $137.38

      • Interest Paid = $0

      • Interest Accrued = $0

      • Principal/Advance Remaining = $10,500

      • Payoff amount as on today = $10,637.38

    1. Let us create a LPT with Transaction Amount of $3,591.98 and the following details:

      • Transaction date = October 15, 2022

      • Interest remaining = $0

      • Interest paid = $137.38

      • Interest accrued = $0

      • Principal/Advance Remaining = $7,045.40

      • Payoff amount as on today = $7,045.40

    2. Let us go to November 18, 2022.

      • Interest Remaining = $92.18

      • Interest Accrued = $4.64

      • Interest Paid = $137.38

      • Principal/Advance Remaining = $7,045.40

      • Today's payoff = $7,142.22

      The system generates the bills for November 15, 2022 and also for December 15, 2022 and updates the following values:

      • Next Due Date = December 31, 3000

      • Next Due Generation Date = December 31, 3000

      • Current Maturity date = December 15, 2022

    3. Let us create a LPT with a Transaction Amount of $4,000 and Transaction Date as November 18, 2022 and clear it.

    4. The system must satisfy the November 15, 2022 bill and move the additional amount to excess.

    5. Let us create a LPT with excess payment mode.

      The system is displaying incorrect Current Maturity date after automatic rescheduling during the last schedule of the contract.

    Resolution

    The logic is modified to update the Current Maturity Date correctly when the reschedule threshold crosses payment.

    12.6 Issues fixed in Q2 Loan Servicing 2.7016.72

    12.6.1 The The Total Payoff Amount in the payoff quote is getting calculated incorrectly when an IPT is discarded on a due date (Jira ID: ND-6768)

    Fixed Versions

    The fix of this issue is available in the following version:

    • Q2 Loan Servicing Phoenix (2.7016.72)

    Issue Description

    In an FAMZ loan contract, when an IPT is discarded on a due date, the Total Payoff Amount in the payoff quote is not including the Interest Accrued and is getting calculated incorrectly.

    Example to Understand the Issue

    1. Let us create an FAMZ contract with the following details and disburse it:

      • Loan Amount = $10,500

      • Contract Date = September 15, 2022

      • Payment Frequency = Monthly

      • Term = 36

      • Interest Rate Change Method = Change Payment Amount

    2. Let us go to October 15, 2022, and create an LPT of amount $367.60.

    3. Let us go to October 18, 2022, and reschedule the loan with the following details:

      • Repayment Start Date = January 15, 2023

      • Maintain Delinquency = False

      • Number of Installments = 36

      • Add Repayment plan with Payment Type = Equal Monthly Installments

      • Payment Amount = $367.60

      • Term = 35

    4. Let us go to November 15, 2022.

      The system generates a bill.

    5. Let us go to November 16, 2022, and reschedule the loan with the following details:

      • Repayment Start Date = March 15, 2023

      • Maintain Delinquency = False

      • Number of Installments = 36

      • Add repayment plan with Payment Type = Equal Monthly Installments

      • Payment Amount = $367.60

      • Term = 35

    6. Let us go to March 15, 2023.

      The values in the payoff quote must be updated as follows:

      • Interest Remaining = $367.60

      • Interest Accrued = $0

      • Interest Paid = $137.38

      • Today's Payoff = $10,941.60

      • Last Accrual Date = March 15, 2023

    7. Now let us reschedule the loan with the following details:

      • Repayment Start Date = April 15, 2023

      • Maintain Delinquency = False

      • Number of Installments = 36

      • Add repayment plan with Payment Type = Equal Monthly Installments

      • Payment Amount = $367.60

      • Term = 35

    8. Let us generate a payoff quote with payoff date as March 15, 2023.

      The Total Payoff Amount in the payoff quote must be updated as follows:

      • Today's Payoff = $10,941.60

      However, the Total Payoff Amount in the payoff quote is updated as follows:

      • Today's Payoff = $10,637.38

      This issue is occurring because, after skipping few months with maintain delinquency false, upon rescheduling the loan second time, the system is discarding all the IPTs and hence the extra Interest Accrued is not getting considered in the calculation.

    Resolution

    This issue is fixed, and the Total Payoff Amount is getting calculated correctly in the payoff quote as the system is now correctly adding the extra Interest Accrued after the rescheduling with Maintain Delinquency flag set to false.

    12.6.2 The Total Payoff Amount in the payoff quote is getting calculated incorrectly when a loan is paid off (Jira ID: ND-6770)

    Fixed Versions

    The fix of this issue is available in the following version:

    • Q2 Loan Servicing Phoenix (2.7016.72)

    Issue Description

    In an FAMZ loan contract, when a loan is paid off, the Total Payoff Amount in the payoff quote is getting calculated incorrectly. The Total Payoff Amount must be updated to zero .

    Example to Understand the Issue

    1. Let us create an FAMZ contract with the following details and disburse it:

      • Loan Amount = $10,500

      • Contract Date = September 15, 2022

      • Payment Frequency = Monthly

      • Term = 36

      • Rate = 15.7%

      • Reschedule Option on Excess Payment = Keep Same Payment Amount

    2. Let us go to October 15, 2022, and create an LPT of amount $367.60.

    3. Let us go to October 18, 2022, and reschedule the loan with the following details:

      • Repayment Start Date = January 15, 2023

      • Maintain Delinquency = False

      • Number of Installments = 36

      • Add repayment plan with Payment Type = Equal Monthly Installments

      • Payment Amount = $367.60

      • Term = 35

    4. Let us go to November 15, 2022.

      The system generates a bill.

    5. Let us go to November 16, 2022, and reschedule the loan with the following details:

      • Repayment Start Date = March 15, 2023

      • Maintain Delinquency = False

      • Number of Installments = 36

      • Add repayment plan with Payment Type = Equal Monthly Installments

      • Payment Amount = $367.60

      • Term = 35

    6. Let us go to March 15, 2023, and generate a payoff quote.

    7. Now let us create a payoff transaction of amount $10,941.60 and payoff the loan.

      The Total Payoff Amount in the payoff quote must be updated to $0.

      However, the Total Payoff Amount in the payoff quote is getting updated to $304.22 because the system is considering the Interest Remaining of amount $304.22 of the IPTs that are not getting cleared even after the loan is closed.

    Resolution

    This issue is fixed, and the Total Payoff Amount is getting updated to zero in the payoff quote after a loan is paid off.

    12.6.3 The system is displaying an error message when an installment payment is reversed (Jira ID: ND-6766)

    Fixed Versions

    The fix of this issue is available in the following version:

    • Q2 Loan Servicing Phoenix (2.7016.72)

    Issue Description

    When a Loan Payment Transaction in an FAMZ loan with Installment Payment flag set to true is reversed , the system is displaying the following error message:

    "Errors:

    • Rolling back the batch. Message - Attempt to de-reference a null object - Cause null-956

    • CL010100: Unexcepted DL Exception Insert failed. First exception on row 0; first error: FIELD_CUSTOM_VALIDATION_EXCEPTION, Rolling back the batch. Message - Attempt to de-reference a null object - Cause null-956: [] at line 20"

    Example to Understand the Issue

    1. Let us create an FAMZ contract with the following details and disburse it:

      • Loan Amount = $10,500

      • Contract Date = September 15, 2022

      • Payment Frequency = Monthly

      • Installment Payment = True

      • Term = 36

      • Rate = 15.7%

      • Reschedule Option on Excess Payment = Keep Same Payment Amount

    2. Let us go to October 15, 2022.

      The system generates a bill.

    3. Let us go to October 18, 2022, and create an installment payment of amount $130.

      LPT-1 is created.

    4. Let us go to October 18, 2022, and create an installment payment of amount $237.60.

      LPT-2 is created.

    5. Now let us reverse the LPT-2 of $237.60 .

      The Loan Payment Transaction must be reversed .

      However, the Loan Payment Transaction is not getting reversed and the system is displaying an error message.

    Resolution

    This issue is now fixed, and the Loan Payment Transaction is getting reversed successfully.

    12.6.4 The Interest Accrued is getting calculated incorrectly when payments are skipped and loan is rescheduled (Jira ID: ND-6746)

    Note:

    This fix has been reverted. Please refer to the latest patch notes of Jira ID, PDRFF-2416, from the October 30 patch release notes section.

    Fixed Versions

    The fix of this issue is available in the following version:

    • Q2 Loan Servicing Phoenix (2.7016.72)

    Issue Description

    In an FAMZ contract with the Maintain Delinquency flag set to false, when payments are skipped and the loan is rescheduled, the interest amounts in the schedule are getting calculated incorrectly and hence the Interest Accrued is getting incorrectly updated too.

    Example to Understand the Issue

    1. Let us create an FAMZ contract with the following details and disburse it:

      • Loan Amount = $10,500

      • Contract Date = September 15, 2022

      • Payment Frequency = Monthly

      • Maintain Delinquency = False

      • Term = 36

      • Rate = 15.7%

      • Reschedule Option on Excess Payment = Keep Same Payment Amount

    2. Let us go to September 16, 2022, and create a principal only payment of amount $200.

      The values must be updated as follows:

      • LAD = September 15, 2022

      • Interest Remaining = $0

      • Interest Accrued = $4.58

      • Interest Paid = $0

      • Reschedule Status = Pending

      • Principal/ Advance Remaining = $10,300

    3. Let us go to September 17, 2022, and create a principal only payment of amount $500.

      The values must be updated as follows:

      • LAD = September 16, 2022

      • Interest Remaining = $4.58

      • Interest Accrued = $4.49

      • Interest Paid = $0

      • Excess = $500

      • Reschedule Status = Success

    4. Let us create an LPT of amount $500 with payment mode as Excess.

      The values must be updated as follows:

      • LAD = September 16, 2022

      • Interest Remaining = $4.58

      • Interest Accrued = $4.49

      • Interest Paid = $0

      • Excess = $0

      • Principal/ Advance Remaining = $9,800

      • Reschedule Status = Pending

    5. Now let us go to September 19, 2022, and reverse both the LPTs created on September 17, 2022.

    6. Let us go to October 18, 2022, and reschedule the loan with the following details:

      • Repayment Start Date = December 15, 2022

      • Maintain Delinquency = True

      • Term = 36

      The value must be updated as follows:

      • Interest Accrued = $148.32

      However, the value is updated as follows:

      • Interest Accrued = $148.02

    This issue is occurring because when loan is rescheduled by skipping payments and not maintaining delinquency with some dues of old schedules still pending, the Interest Remaining on the contract is getting calculated on the schedule closing balance of skipped schedule, instead of active schedule.

    Resolution

    This issue is fixed, and the Interest Accrued is getting calculated correctly. Now the system correctly calculates interest till the reschedule date on the last active schedule closing balance.

    12.6.5 The amortization schedule is getting updated incorrectly when a loan is automatically rescheduled (Jira ID: ND-6752)

    Fixed Versions

    The fix of this issue is available in the following version:

    • Q2 Loan Servicing Phoenix (2.7016.72)

    Issue Description

    When an FAMZ contract with a Flexible Repayment Plan is rescheduled automatically, the amortization schedule is getting updated incorrectly.

    Example to Understand the Issue

    1. Let us create an FAMZ contract with the following details and disburse it:

      • Loan Amount = $10,500

      • Contract Date = February 15, 2022

      • Payment Frequency = Monthly

      • Term = 36

      • Rate = 15.7%

      • Reschedule Option on Excess Payment = Keep same Payment Amount

    2. Let us go to March 12, 2022, and reschedule the loan with the following details:

      • Repayment Start Date = May 15, 2022

      • Maintain Delinquency = False

        Let us add a repayment plan with the following details:

      • Payment Amount = $367.60

      • Payment Type = Equal Monthly Installments

      • Payment Start Date = May 15, 2022

      • Term = 34

    3. Let us go to March 15, 2022.

      The values must be updated as follows:

      • LAD = March 12, 2022

      • Interest Remaining = $123.64

      • Interest Accrued = $13.74

      • Interest Paid = $0

      • Principal/ Advance Remaining = $10,500

    4. Let us go to March 18, 2022, and reschedule the loan with the following details:

      • Maintain Delinquency = False

      • Repayment Start Date = May 15, 2022

        Let us add a repayment plan with the following details:

      • Payment Start Date = May 15, 2022

      • Payment Amount = $200

      • Payment Type = Equal Monthly Installments

      • Term = 4

        Let us add another repayment plan with the following details:

      • Payment Start Date = September 15, 2022

      • Payment Amount = $367.60

      • Payment Type = Equal Monthly Installments

      • Term = 31

    5. Now let us go to April 16, 2022, and create an LPT of amount $400.

    6. Let us go to April 17, 2022.

      The jobs must run and the values must be updated as follows:

      • The amortization schedule must be updated correctly.

      However, six new schedules consisting of Payment Amount as $200 are getting added incorrectly to the amortization schedule.

    This issue is occurring because the system is considering $200 as the current payment amount after it has considered all the repayment plans.

    Resolution

    This issue is fixed, and the amortization schedule is getting updated correctly with Payment Amount as $367.60.

    12.7 Issues fixed in Q2 Loan Servicing 2.7016.46

    12.7.1 The Interest Remaining field value is getting incorrectly reflected after the first rescheduled transaction (JIRA ID: PDRFF-1605/ ND-6233)

    Issue Description

    In an FAMZ loan, when an excess threshold Loan Payment Transaction is reversed, the system is calculating the Interest Remaining field value incorrectly.

    Example to understand the issue

    1. Let us create an FAMZ contract with the following details and disburse it:

      • Loan Amount = $60,000

      • Contract Start Date = August 27, 2020

      • Payment Frequency = Monthly

      • Term = 12 months

      • Interest Rate = 16%.

    2. Let us go to September 3, 2020, and reschedule the contract.

      The Interest Remaining and Last Accrual Date field values are updated.

    3. Let us go to September 10, 2020, and create an LPT of $5,000 with the Transaction Date as September 10, 2020, and clear it.

      The Rescheduled Threshold Crossed flag is set to true in LPT, hence the complete payment goes towards the principal and the Reschedule Status is updated to Pending.

    4. Now let us go to September 11, 2020.

      The SOD Jobs run, and the contract is rescheduled.

    5. Reverse the LPT of $5,000 created in step 3.

    6. Now let us go to October 27, 2020.

      Since the billing frequency is monthly the second Interest Posting Transaction is created.

      The Interest values should be calculated as follows:

      • Interest Posted = $1,600

      • Interest Remaining = $1,600

    7. However, the system is calculating the values as follows:

      • Interest Posted = $1,600

      • Interest Remaining = $1,760

    12.8 Issues fixed in Q2 Loan Servicing 2.7016.45

    12.8.1 The Interest Remaining is incorrectly calculated when payments are skipped (Jira ID: PDRFF-1586 /ND-6097)

    Issue Description

    In an FAMZ contract, when payments are skipped, the Interest Remaining field is not getting updated correctly.

    Example

    Let us try to understand this issue with the help of an example.

    1. Create a loan with the following details and then approve and disburse it:

      • Amount = $100,000

      • Contract Date: January 3, 2020

      • Payment Frequency: Monthly

      • First Payment Date: May 13, 2020

      • Term: 60 Months

      • Interest Rate: 8%.

      The AMZ schedule amount will be $2,027.64 (Principal $1,360.97 + Interest $1,666.67).

    2. Let us go to February 3, 2020.

      It is observed that the system generates a bill as per the schedule.

    3. Let us create a Loan Payment Transaction on February 3, 2020, and clear the bill for that period.

    4. Now let us go to February 7, 2020, and create a rescheduling transaction on February 7, 2020, with Repayment Start Date as August 3, 2020.

      This should update the values as follows:

      • The system calculates the Interest on the scheduled balance from February 3, 2020, to August 3, 2020. The amount will be more than the payment amount, which is $2,027.64.

      • Since the Interest Remaining is more than the payment amount, the system distributes the calculated Interest Remaining value in subsequent schedules.

        Note:

        August and September will be Interest only Payments.

      • As per the new Amortization Schedule dated August 3,2020, the new Interest is $2,094.47, but the actual Interest is $3,600.

      • The difference in interest $1,600 will be adjusted in the next schedule.

      • Now let us go to August 3, 2020.

        It is observed that the system creates a bill as per the schedule and the Interest Remaining is calculated as per the schedule, but the actual Interest Remaining value is $1,600.

        Note:

        The actual Interest is not getting added anywhere because this amount is collected in the next schedule.

    5. Let us create a payment transaction on August 3, 2020, and clear the bill for that period.

      The Interest Remaining will be zero.

    6. Let us reschedule the contract on August 3, 2020.

      The system should calculate a correct Principal amount and the Interest Remaining value as $1,600.

      But the system only calculates a correct Principal and updates the Interest Remaining field as zero and ignores the remaining $1,600.

    Resolution

    The issue is fixed now and the system is updating the Interest Remaining field correctly.

    12.9 Issues fixed in Q2 Loan Servicing 2.7016.42

    12.9.1 Interest Remaining is getting updated incorrectly when an ad hoc payment is reversed (Jira ID: PDRFF-1495/ND- 6064)

    Issue Description

    In an FAMZ contract, when an ad hoc payment is reversed resulting in the contract getting rescheduled, the Interest Remaining is getting updated incorrectly.

    Example of the Issue

    Let us perform the following steps to understand this issue:

    1. Let us create an FAMZ Lending Product with the following details:

      • Excess Threshold % for Reschedule = 1%.

      • Payment Application Mode = Future Dues

        Note:

        The Reschedule Status field is used to mark the loans that are to be rescheduled when an LPT amount is higher than the threshold defined in Excess Threshold % for Reschedule. All such loans will be rescheduled in EOD processing.

    2. Let us create a contract on August 3, 2012, with the following details, and disburse it:

    • Loan Amount = $10,000.

    • Interest Rate = 10%.

    • Payment Frequency = Monthly.

    This sets the First Payment Date to September 3, 2012, and the Amortization Schedule gets generated for the following dates: September 3, 2012, October 3, 2012, November 3, 2012, till August 3, 2013, and the Due Amount for each schedule is $879.19.

    3. Now let us go to August 13, 2012.

    It is observed that the system accrues the interest from August 3, 2012, to August 13, 2012, and the value is as follows:

    • Interest Accrued = $27.40. = 10,000 * 10/365 * 10/100.

    4. Now let us create an ad hoc payment of $1,000 with the Transaction Date as August 13, 2012, and clear it.

    The system updates the contract's Reschedule Status to Pending because of this payment.

    5. Let us go to August 14, 2022.

    It is seen that the system reschedules the contract successfully and updates the Interest Remaining field value. The system updates the contract fields as follows:

    • Principal Remaining = $9,000.

    • Principal Paid = $1,000.

    • Last Accrual Date = August 13, 2012.

    • Interest Remaining = $27.40

    • Interest Accrued = $2.46. (This is interest accrued for 1 day.)

    • Reschedule Status = Success

    • The Amortization Schedule also gets generated for the following dates: September 3, 2012, October 3, 2012, November 3, 2012, till August 3, 2013, and the Due Amount for each is $791.51.

    6. Let us go to August 26, 2012.

    It is seen that the system accrues the interest from August 14, 2012, to August 26, 2012, as per the new schedule, and the values are as follows:

    • Interest Remaining: $27.40.

    • Interest Accrued: $32.05.

    7. Now on August 26, 2012, let us reverse the ad hoc payment that was created in step 4.

    This should update the values as follows:

    • The Amortization Schedule should revert to the original one with the same following dates: September 3, 2012, October 3, 2012, November 3, 2012, till August 3, 2013, and the Due Amount for each schedule should be as the original one, which is $879.19.

    • Interest Remaining: $0.

    • Interest Accrued: $63.01.

    • The interest is to be calculated on the original principal amount which is $10,000.

    • Principal Remaining: $10,000.

    • Principal Paid: $0.

    8. Let us go to the next payment date, which is September 3, 2012.

    The Interest Remaining should be updated to $84.93, but this is not the case. It is seen that the Interest Remaining field is getting updated with an incorrect value.

    Resolution

    The issue is fixed, and now when an ad hoc payment is reversed, the Interest Remaining field is getting updated correctly.

    12.10 Issues fixed in Q2 Loan Servicing 2.7016.40

    12.10.1 The Interest Remaining field value is updated incorrectly when Installment Payment is created on a delinquent contract (Jira ID: PDRFF-1379/ND-5996)

    Issue Description

    When Installment Payment is created on a delinquent FAMZ loan contract, the Interest Remaining is getting doubled and thus the value is incorrect.

    Note:

    Installment payment is the regularly scheduled payment that includes repayment of a portion of the principal amount borrowed, and also the payment of interest on the debt.

    With the Hydrogen release, borrowers can repay the future schedules in advance at any point in time in Flexible-AMZ type loans irrespective of the due date. This feature allows the lenders to collect payment for future installments including principal and interest. This is achieved by closing the interest posting transaction by calculating the extra interest expected to be posted from the current date to the installment date. Until the installment date, the loan account is locked and no other loan actions, such as rate change and term extension can be performed.

    For this option to be available, the Installment Payment flag must be enabled.

    Example to understand the issue

    Let us look at an example to understand this issue.

    1. Let us say today is January 18, 2022, and we have an FAMZ loan contract with the following details:

    Pre Bill days 28
    Interest Rate 10
    Time Counting Method Actual Days
    Loan Amount $10,000
    Interest Posting Enabled True
    Interest Posting Frequency Monthly
    Payment Frequency Monthly
    Payment Start Date February 18, 2022

    Term

    10

    2. Now, as we move on to February 21, 2022, two bills will get created: The February 18, 2022 bill and the March 18, 2022 bill due to the Pre Bill Days defined as 28 (Bills will get generated 28 days before the due date.)

    3. Then, on the same day (February 21, 2022), let us create a payment with the following details of the LPT:

    Installment Payment True
    Transaction Amount

    $84.93

    Note:

    This is the interest part of the previous cycle from January to February calculated as follows: $10,000 * 31 * 10/36500 = 84.93.
    Transaction Date February 21, 2022 (today)

    4. Let us move on to March 18, 2022.

    As Interest is posted on March 18, the LAD is March 18, and thus the interest accrued till now will be moved to Interest Remaining. The correct Interest Remaining must be calculated as follows: 9,038.78 * 28 * 10/36500 = $69.34.

    Note:

    The interest is getting calculated on the Schedule Balance, which is: $10,000 - $961.22 = $9,038.78, where $961.22 is the principal due of the previous cycle, $84.93 is the interest due.

    But we see that the Interest Remaining is getting incorrectly calculated as: 2 * (9,038.78 * 28 * 10/36500) = 2 * 69.34 = $138.68.

    This issue was occurring the IPT that was closed was getting posted again and hence due to the IPT amount being twice the actual value, the Interest Remaining was also getting calculated as twice the actual amount.

    Resolution

    This issue is fixed as the logic has been updated to restrict the posting of the IPT that is already closed. Thus, the Interest Remaining is getting updated correctly after the installment payment.

    12.11 Issues fixed in Q2 Loan Servicing 2.7016.39

    12.11.1 Updating API versions to 51 due to Salesforce retiring API versions from 7.0 to 20.0 and 21.0 to 30.0 (Jira ID: PDRFF-1037/ND-5524/ND-5498)

    Issue Description

    As of the Salesforce Summer’21 release, Salesforce has deprecated the Salesforce Platform API versions from 7.0 to 20.0 and these versions are no longer supported by Salesforce. You can continue to access these legacy API versions until Salesforce Summer '22 is released in your org, which is when these legacy versions will become retired and unavailable.

    With the Salesforce Summer ’22 release, Salesforce will be deprecating the Salesforce Platform API versions from 21.0 to 30.0 and these versions will no longer be supported by Salesforce. You can continue to access these legacy API versions until Salesforce Summer '23 is released, which is when these legacy versions will become retired and unavailable.

    Due to this, all the JavaScript files using Ajax toolkit, such as the apex.js and connection.js, would need to use the latest versions. If the latest versions are not used, then after the retirement of the versions 7.0 to 20.0 and from versions 21.0 to 30.0, the applications consuming these versions of the API will experience disruption as calls will fail and result in an error indicating that the requested endpoint is not found and unable to be processed by the platform.

    For example, the Loan Quick Menu was not displaying in the Classic view of the Salesforce application as the JavaScript files such as apex.js and connection.js were of the versions 10.0 and 13.0 respectively.

    Thus, the API versions such as those of the apex.js and connection.js have now been updated to 51.0.

    Note:

    • For more information on Salesforce Platform API Versions 7.0 through 20.0 Retirement, see https://help.salesforce.com/s/articleView?id=000351312&type=1

    • For more information on Salesforce Platform API Versions 21.0 through 30.0 Retirement, see https://help.salesforce.com/s/articleView?id=000354473&type=1

    12.12 Issues fixed in CL Common 2.7015.11

    12.12.1 SOD batch job is failing with Apex CPU time limit exceeded exception (Jira ID: PDRFF-938/ND-5487)

    Issue Description

    After configuring DAG to run the CL Loan batch jobs, the system is throwing the following error while running the Dynamic Wrapper (StartOfDayDynamicJob) (querying the eligible records and processing on multiple threads of 5):

    Apex CPU time limit exceeded exception.

    This is due to there being a high volume of data of around 180,000 contracts, and to increase the efficiency, a few jobs are being run on multiple threads.

    The loan contract random generator is populating thread numbers at the time of contract creation, and hence the loan contracts are not getting segregated to the threads properly and the system is picking up the contracts randomly.

    This issue is occurring for the batch jobs that are running on 5 threads, and with batch size 200.

    Resolution

    This issue is fixed. The internal logic has now been updated to enable the mapping of the job name with the thread API name so that the jobs are correctly distributed to the thread numbers resulting in an increase in efficiency. With this fix, the system is not throwing the exception while running the Dynamic Wrapper (StartOfDayDynamicJob).

    Upgrade Script to modify the thread number

    After upgrading to this patch, if the thread assignment is not proper, or, in other words, if loan contracts are not getting evenly distributed to the threads due to the random generator, you must perform the following steps to run the upgrade script:

    1. Create AssignThreadNumToLoanContracts class in the ORG. Deploy the following class from the UnmanagedCustomerScripts folder of v_2.7016_Pheonix_Patch_New_Branch in neon-1 repository:

      • AssignThreadNumToLoanContracts.cls (https://github.com/cloudlending/neon-1/blob/v_2.7016_Pheonix_Patch_New_Branch/UnmanagedCustomerScripts/AssignThreadNumToLoanContracts.cls)

    2. Run the following script in the Developer Console: Database.executeBatch (new AssignThreadNumToLoanContracts(), 200);

    To understand when to run the upgrade script, let us say, we have thousands of contracts. Now, say, out of them, 200 contracts are assigned to thread 1, 200 to thread 2, and so on, but only 10 contracts are assigned to thread 5, then this is not an equal assignment and so, you must run the upgrade script.

    If there is equal assignment, then you do not need to run the upgrade script. However, if there is unequal assignment then you must run the upgrade script.

    For example, if contracts are not getting created in bulk, but every day, say, one contract is getting created, then the customer may not face this problem of improper assignment of contracts.

    However, to check the thread assignment, you can run the following queries:

    • SELECT count(Id) FROM loan__Loan_Account__c where loan__Thread_number__c=1

    • SELECT count(Id) FROM loan__Loan_Account__c where loan__Thread_number__c=2

    • SELECT count(Id) FROM loan__Loan_Account__c where loan__Thread_number__c=3

    • SELECT count(Id) FROM loan__Loan_Account__c where loan__Thread_number__c=4

    • SELECT count(Id) FROM loan__Loan_Account__c where loan__Thread_number__c=5

    After running the preceding queries, if the number of records in all the cases are almost same, then you do not need to run the script. However, if the difference in the number of records between any of the cases is huge, then you need to run the script.

    12.13 Issues fixed in Q2 Loan Servicing 2.7016.37

    12.13.1 Interest Accrued field not getting updated if Installment Payment flag is enabled when payment is made either during the pre-bill days or after the due date (Jira ID: ND-4756)

    Issue Description

    In an FAMZ loan, if Installment Payment is enabled and if a payment is made either in the pre-bill days before the due date or after, then the system is not updating the Interest Accrued field to the correct value.

    Resolution

    This issue is fixed.

    12.14 Issues fixed in Q2 Loan Servicing 2.7016.36

    12.14.1 System is generating duplicate bills after an automatic rescheduling of an FAMZ loan (Jira ID: ND-4883)

    Issue Description

    On automatic rescheduling of an FAMZ loan contract due to an excess payment made between the Pre-Bill Days and the Next Due Date, the system is creating duplicate bills on the Next Due Date.

    Resolution

    This issue is fixed.

    12.15 Issues fixed in Q2 Loan Servicing 2.7016.35

    12.15.1 System is calculating an inaccurate Interest Posted value when a payment is made before the Due Date (Jira ID: ND-4788)

    Issue Description

    When a payment is made before the due date for a contract in which the Excess Threshold % for Reschedule is configured, the contract is getting rescheduled, but the system is updating an inaccurate value in the Interest Remaining field resulting in an incorrect Interest Posted value on the Due Date.

    Resolution

    This issue is fixed.

    12.16 Issues fixed in Q2 Loan Servicing 2.7016.31

    12.16.1 System is not updating loan Interest Remaining field after rescheduling of a loan (Jira ID: ND-4757)

    Issue Description

    When a loan is manually rescheduled and the Maintain Delinquency flag is set to false, the system is not updating the Interest Remaining field value and that is generating an incorrect payoff quote amount.

    Resolution

    This issue is fixed.

    12.16.2 System is calculating an incorrect payoff amount on generating new payoff quote after a payoff transaction is reversed (Jira ID: ND-4746)

    Issue Description

    If a payoff transaction is reversed in an FAMZ loan that has some accrued interest and Interest Posting enabled, then the system is incorrectly updating the Interest Remaining and thus the payoff amount is calculated incorrectly on generating a new payoff quote.

    Resolution

    This issue is fixed.

    12.17 Issues fixed in Q2 Loan Servicing 2.7016.29

    12.17.1 Rescheduling and Installment Payment is failing as the LAD is updated to a future date (Jira ID: ND-4708)

    Issue Description

    In an F-AMZ loan, when an Installment Payment is made with the Transaction Amount greater than the Threshold amount that is set on the contract, the contract is getting rescheduled with Reschedule Status updating to Pending and the LAD updating to the next due date. Due to the LAD date being a future date, the system is not allowing the user to reschedule the contract and make another Installment Payment.

    Resolution

    This issue is fixed, and now the system is allowing the user to make another Installment Payment even if the Reschedule Status is Pending or Failure.

    12.17.2 Interest Remaining is incorrectly calculated in the Payoff Quote (Jira ID: ND-4707)

    Issue Description

    In an F-AMZ loan where Pre Bill Days is defined, when an Installment Payment is made on the due generation date, a pending IPT is created with the Interest Posted amount as the Interest Remaining on the contract. Then if the Payoff Quote is generated on this same due generation date, then the LAD gets updated to the pending IPT Transaction Due Date. Now when the payoff quote is generated for this LAD date, the Interest Remaining in this second Payoff Quote is incorrectly getting calculated as double the amount of the Interest Remaining in the first Payoff Quote.

    Resolution

    This issue is fixed.

    12.18 Issues fixed in Q2 Loan Servicing 2.7016.27

    12.18.1 Oldest Unpaid Due Date not getting updated on rescheduling a loan (Jira ID: ND-4633)

    Issue Description

    If a contract is rescheduled to change the Repayment Start Date keeping the Maintain Delinquency flag checked, and if the last bill is paid, then the Oldest Unpaid Due Date is not getting updated.

    Resolution

    This issue is fixed as now the Oldest Unpaid Due Date is getting updated when the Repayment Start Date is changed.

    12.18.2 IPT due dates are not getting updated correctly and system is generating duplicate bills after rescheduling (Jira ID: ND-4324, ND-4639)

    Issue Description

    On rescheduling a loan contract by updating the value in the New Due Day field, the due dates of the IPTs are not getting updated correctly resulting in system generating duplicate bills.

    Resolution

    This issue is fixed.

    12.19 Issues fixed in CL Common 2.7015.7

    12.19.1 Dynamicjobwrapper failing with an error (Jira ID: ND-4635)

    Issue Description

    When the DynamicJobWrapper job is run, the records queried by the system are also including those records that are not required causing too many records to be queried resulting in the job failing with one of the following errors:

    • First error: Apex heap size too large

    • First error: Apex CPU time limit exceeded

    Resolution

    This issue is fixed.

    12.20 Issues fixed in Q2 Loan Servicing 2.7015.25

    12.20.1 Excess payment transaction incorrectly marks the Payoff flag true (Jira ID: ND-4443)

    Issue Description

    In a Flexible AMZ-based loan, when an excess payment transaction of an amount that is less than the sum of Principal Remaining, Interest Remaining, and Fees Remaining is being made, the system is incorrectly marking the Payoff flag as true.

    Resolution

    This issue is fixed as the Payoff flag is now not marked as true when the contract has a balance amount left that is not within the payment tolerance amount.

    12.21 Issues fixed in CL Common 2.7015.6

    12.21.1 Duplicate payments being created after enabling concurrency (Jira ID: ND-4270)

    Issue Description

    Upon enabling concurrency, the system created duplicate Excess payments.

    Resolution

    The issue is fixed now.

    12.22 Issues fixed in Q2 Loan Servicing 2.7016.24

    12.22.1 Reversing the threshold-crossed payment transactions does not generate new bills (Jira ID: ND-4341)

    Issue Description

    Upon making a payment for a flexible AMZ loan, if the reschedule threshold is crossed causing a rescheduling of the loan, then upon reversing this payment, the system does not regenerate the bills and the IPTs.

    Resolution

    Upon reversing the threshold-crossed payment transaction, the bills and IPTs are now regenerated, and the Interest Remaining field is updated such that it no more holds the value of the Interest Posted amount corresponding to the discarded IPTs.

    12.23 Issues fixed in Q2 Loan Servicing 2.7016.23

    12.23.1 Duplicate bills generated due to system archiving AMZ schedule but not marking the bill nonprimary (Jira ID: ND-4377)

    Issue Description

    During the prebill days, when a loan with bills generated is rescheduled, the system archives the AMZ schedule, but does not discard the bill.

    Resolution

    This issue is resolved by ensuring that when a loan is rescheduled during the prebill days, if the repayment start date is an immediate due date, the newly created repayment schedules are marked billed as the primary bill exists on its due date.

    12.24 Issues fixed in Q2 Loan Servicing 2.7016.22

    12.24.1 Partially paid bill is marked non-primary after rescheduling with Maintain Delinquency set to False (Jira ID: ND-4237)

    Issue Description

    When a loan is rescheduled without maintaining delinquency, the bill that is partially paid is incorrectly marked non-primary.

    Resolution

    The issue is fixed now.

    12.25 Issues fixed in Q2 Loan Servicing 2.7016.19

    12.25.1 Negative principal adjustment causing errors (Jira ID: ND-4225)

    Issue Description

    During a negative principal adjustment, an error is displayed due to the total investor share incorrectly exceeding 100 percent.

    Resolution

    This issue is fixed by bypassing the incorrect recalculation of the share amount for the investors during a negative principal adjustment.

    Fixed Version

    Phoenix 2.7016.19

    12.26 Issues fixed in Q2 Loan Servicing 2.7016.17

    12.26.1 System does not check for interest accrued due for marking loans as Active - Marked for Closure (JIRA ID: ND-3752)

    Issue description

    While generating the payoff amount for a flexible AMZ loan, the system does not consider the due interest accrued amount. Because of this, an incorrect payoff amount is generated, and the loan does not get closed but remains in the Active – Marked for Closure status.

    Resolution

    The system now considers the interest accrued due while changing the status to Active - Marked for Closure

    12.27 Issues fixed in Q2 Loan Servicing 2.7016.16

    12.27.1 Unnecessary excess type transactions (JIRA ID: ND-3595)

    Issue description

    The ExcessForAmzBasedLoansJob Start Of Day (SOD) job creates unnecessary excess Loan Payment Transactions (LPT) even when bills are non-primary. Hence, there is an excess LPT created every day.

    Resolution

    This job is modified to consider only primary bills. It checks if the contract has primary unpaid bills.

    Fixed Version

    Phoenix 2.7016.16

    12.28 Issues fixed in Q2 Loan Servicing 2.7016.15

    12.28.1 In case of excess payments the Loan Balance field on contracts and LPTs were updating incorrectly (ND-3496)

    Issue description

    when excess payments were made the loan balance amount on the contracts and LPTs were getting updated incorrectly.

    Resolution

    Now the excess amount paid is reduced from the remaining principal to reflect the correct loan balance amount.

    12.29 Issues fixed in Q2 Loan Servicing 2.7016.13

    12.29.1 Rebate amount stamped on protect loans, even after write-off (ND-3221)

    Issue description

    When a protect-based loan was being written-off it was being stamped with the borrower rebate amount; however, the borrower was not getting the rebate and it was not being considered to calculate the charged-off principal.

    Resolution

    Now a written-off loan is not stamped with the borrower’s rebate amount.

    12.30 Issues fixed in Q2 Loan Servicing 2.7016.11

    12.30.1 Unable to view CL Contracts after upgrade to Phoenix (Jira ID: ND-3125)

    Issue description

    After upgrade to Phoenix CL Contracts were not displaying.

    Resolution

    The query is now optimized so the CL Contracts now appear after the upgrade.

    12.31 Issues fixed in Q2 Loan Servicing 2.7016.10

    12.31.1 Null pointer exception thrown for LOC bills of zero disbursement amount (ND-2983)

    Issue description

    Null pointer exception was thrown when generating bills using the “Sliding Billing” billing method, for the LOC loans with zero disbursement amount.

    Resolution

    Now an LOC loan can be activated without disbursing any funds and the first disbursal can also be of zero amount. In such cases, bills are generated for zero amount.

    12.31.2 Issue in updating Oldest Unpaid Due Date field upon changing the Due Day from Loan Quick Menu (ND-2987)

    Issue description

    When Due Day was changed from the Loan Quick Menu, the Oldest Unpaid Due Date value was not updating.

    Resolution

    Now the loan is updated with the new due date in case the Oldest Unpaid Due Date value changes.

    12.31.3 Incorrect Repayment Start Date on the OLT for Change Due Day action (ND-3010)

    Issue description

    Repayment Start Date was displaying incorrectly on the Other Loan Transactions tab when Due Day Change action was done.

    Resolution

    Now the date on the OLT tab matches the date on the Repayment Start Date on the amortization schedule, which is the current date.

    12.31.4 Issue in moving system date using the Move to Date button (ND-3012)

    Issue description

    When moving the system date using the Move to Date button, apex CPU time limit error was being thrown.

    Resolution

    In our final round of testing, we have been able to successfully test against 100,000 users.

    12.31.5 Incorrect update of Cleared flag for already-cleared transactions (ND-3092)

    Issue Description

    Cleared flag was getting incorrectly marked as false for the cleared transactions.

    Resolution

    Now for marking an LPT as cleared, the loan snapshot is referred to, if that is empty, and if the spread is manual, then the clearing date is checked so the Cleared flag is marked correctly.

    12.31.6 Incorrect update of Last Due Date upon LPT reversal (ND-3082)

    Issue description

    Upon reversal of a loan payment transaction, the Last Due Date was also reverting from the loan snapshot due to which the update on contract was incorrect

    Resolution

    Now the Last Due Date does not get updated when LPT reversal was done.

    12.31.7 Issues with the update of Loan__Amount_Due_Till_Current__c field post upgrade to Phoenix (ND-3109)

    Issue description

    Loan_Amount_Due_Till_Current_c field was showing null after upgrade to Phoenix. For the loans in Active-Good Standing status, it was getting updated upon the completion of next day SOD, but for the loans in Active- Bad Standing status, it was getting updated only when delinquent amount was changed on the next bill cycle.

    Resolution

    Now, in the LoanAccountTrigger, if the Amount_Due_Till_Current__c is null, then Amount_Due_Till_Current__c is updated with Amount_to_Current__c.

    12.32 Issues fixed in Q2 Loan Servicing 2.7016.8

    12.32.1 Next Due Generation Date is falling on a holiday even when Holiday Treatment is applied to the Pre-Bill Date (Jira ID: ND-2794)

    Issue Description

    When Holiday Treatment Setup is applied for Pre-Bill Date, and then after rescheduling an LOC loan, the Next Due Generation Date is getting set to a holiday. The system must consider the Business Hours and must not set the Next Due Generation Date to a holiday.

    This is because the rescheduling is not considering the Business Hours and the Holiday Treatment Setup.

    Resolution

    This issue is fixed as now the system is considering the Business Hours and Holiday Treatment when setting the Next Due Generation Date while rescheduling an LOC loan.

    12.32.2 The system is computing an incorrect borrower rebate amount when a loan is rescheduled (Jira ID: ND-2678)

    Issue Description

    When a pay off is made for a Protect-enabled loan, the rebate calculations are not being computed correctly if the loan is rescheduled.

    This is because the calculation of the number of terms remaining is based on the Current Maturity Date instead of the initial contract's Maturity Date. However, the Protect-enabled loan contract is signed based on the initial contractual maturity date, and not the Current Maturity Date.

    Resolution

    This issue is fixed and when a pay off is made for a Protect-enabled loan, the rebate calculations are now being computed correctly if the loan is rescheduled because the number of terms remaining is now correctly referring to the Maturity Date field on the loan contract.

    12.33 Issues fixed in Q2 Loan Servicing 2.7016.7

    12.33.1 The Cleared flag is getting incorrectly set to false for a cleared transactions (Jira Issue: ND-3092)

    Issue Description

    When a payment transaction (LPT) is created in such a way that it is cleared, and then if a change, such as setting the Paid to Investor flag to true, is made, then the Cleared flag is getting set to false incorrectly.

    For example, let us say that a payment transaction (LPT with manual spread) is created in such a way that the transaction is cleared, but the clearing date is not updated. Then, if this transaction is edited to set the Paid to Investor flag to true, then the system is incorrectly setting the Cleared flag of that transaction to false. The Cleared flag must not be changed to false in such a scenario and there must not be any change in the LPT.

    Resolution

    This issue is fixed and the Cleared flag of an LPT is not getting set to false for a cleared transaction.

    12.34 Issues fixed in Q2 Loan Servicing 2.7016.6

    12.34.1 Even after a payoff is made, the rebate amount still remains as a positive non-zero value (Jira ID: ND-3102)

    Issue Description

    After a loan matures, and then if a payoff transaction is created to pay off the loan, the rebate amount is still a positive non-zero value. The rebate amount must be zero after a loan is paid off after its maturity date.

    Resolution

    This issue is fixed as now the rebate amount is set to zero when a loan is paid off after its maturity.

    12.34.2 The system is throwing a Null Pointer Exception when the Investor Payout Job is run (Jira ID: ND-3094)

    Issue Description

    On an Investment Order, if the value of the field Interest Rounding Error is null, the system is throwing the following Null Pointer Exception while running the Investor Payout Job:

    Investor Payout Job failed due to unknown exception.

    Message: Argument cannot be null.

    Cause: null

    Stack: Class.loan.InvestmentOrdersUtil.getInvestorInterestAccrued: line 491, column 1

    Class.loan.InvestorPayoutHandler.process: line 767, column 1

    Class.loan.InvestorPayoutJob.doExecute: line 110, column 1

    Class.loan.MFiFlexBatchJobDelegate.delegateExecute: line 76, column 1

    Class.loan.InvestorPayoutJob.execute: line 94, column 1

    Line number: 491

    Type name: System.NullPointerException.

    Resolution

    This issue is fixed as the system sets the value of field Interest Rounding Error to zero if its value is null. Now the system is running the Investor Payout Job successfully without any exception.

    12.34.3 The system is computing an incorrect borrower rebate amount when a loan is rescheduled (Jira ID: ND-2678)

    Issue Description

    When a pay off is made for a Protect-enabled loan, the rebate calculations are not being computed correctly if the loan is rescheduled.

    This is because the calculation of the number of terms remaining is based on the Current Maturity Date instead of the initial contract's Maturity Date. However, the Protect-enabled loan contract is signed based on the initial contractual maturity date, and not the Current Maturity Date.

    Resolution

    This issue is fixed and when a pay off is made for a Protect-enabled loan, the rebate calculations are now being computed correctly if the loan is rescheduled because the number of terms remaining is now correctly referring to the Maturity Date field on the loan contract.

    12.35 Issues fixed in Q2 Marketplace 2.7004.3

    12.35.1 Uploading a dishonored file is failing if the Minimum Days for Recurrent Charge is configured in a loan (Jira ID: MD-414)

    Issue Description

    If the Minimum Days for Recurrent Charge is set in a loan, then, when a dishonored file is uploaded, it is failing with the following error message logged in the system:

    DML error in processing. Message: Insert failed. First exception on row 0; first error: FIELD_CUSTOM_VALIDATION_EXCEPTION, CL017418: Cannot apply charge. Loan account LAI-00125388 has unwaived charge of type Dishonour Fee applied on 17/03/2019. The same charge can be applied before/after gap of 30 days.: []Cause : null.

    Note:

    A charge for the dishonored file gets created once the dishonored file is uploaded.

    Minimum Days for Recurrent Charge

    This indicates the number of days before which a charge of the same type can be applied again. This helps the borrowers from being charged for the same fee again within the specified period. The default value of this is 30 days, but this value is configurable.
    For example, let's say if a lender has selected the option, Minimum Days for Recurrent Charge, as 30 days, and the borrower is in a weekly payment cycle. The payment occurs on June 3 and then on every subsequent Friday, of June 10, 17 and 24. The borrower misses the first payment on June 3, and a late fee is charged on June 4. The next payment due is on June 10. However, no late fee is charged for this missed payment as a late fee has already been charged within the last 30 days. The borrower again misses the payment due on June 17. However, no late fee is charged as one late fee is already charged within the past 30 days.
    Note:

    Minimum Days for Recurring Charge can be set up for any type of fee. If you add this for an existing fee, it affects the future charges.

    This issue is occurring because the system is creating the charge for the dishonored file without checking the Minimum Days for Recurrent Charge.

    Resolution

    This issue is fixed as the system now checks whether or not the charge creation falls within the Minimum Days for Recurrent Charge when a dishonored file is uploaded, and if it does, then the charge is not created and the dishonored file is successfully uploaded without any error messages getting logged within the system.

    13.   Change Record

    Change Date Description of Change
    September 27, 2019 Published the release notes for: CL Marketplace 2.7004.3
    April 15, 2019 Published the release notes for: Q2 Loan Servicing 2.7016.6
    April 17, 2019 Published the release notes for: Q2 Loan Servicing 2.7016.7
    May 6, 2019 Published the release notes for: Q2 Loan Servicing 2.7016.8
    May 27, 2019 Published the release notes for: Q2 Loan Servicing 2.7016.10
    June 25, 2019 Published the release notes for: Q2 Loan Servicing 2.7016.11
    September 27, 2019 Published the release notes for: Q2 Loan Servicing 2.7016.13
    October 25, 2019 Published the release notes for: Q2 Loan Servicing 2.7016.15
    February 18, 2020 Published the release notes for: Q2 Loan Servicing 2.7016.16
    April 2, 2020 Published the release notes for: Q2 Loan Servicing 2.7016.17
    October 30, 2020 Published the release notes for: Q2 Loan Servicing 2.7016.19
    November 18, 2020 Published the release notes for: Q2 Loan Servicing 2.7016.22
    November 30, 2020 Published the release notes for: Q2 Loan Servicing 2.7016.23
    December 14, 2020 Published the release notes for: Q2 Loan Servicing 2.7016.24
    December 2, 2020 Published the release notes for: CL Common 2.7015.6
    January 25, 2021 Published the release notes for: Q2 Loan Servicing 2.7015.25
    March 19, 2021 Published the release notes for: CL Common 2.7015.7
    March 30, 2021 Published the release notes for: Q2 Loan Servicing 2.7016.27
    April 23, 2021 Published the release notes for: Q2 Loan Servicing 2.7016.29
    June 4, 2021 Published the release notes for: Q2 Loan Servicing 2.7016.31
    June 30, 2021 Published the release notes for: Q2 Loan Servicing 2.7016.35
    July 19, 2021 Published the release notes for: Q2 Loan Servicing 2.7016.36
    August 16, 2021 Published the release notes for: Q2 Loan Servicing 2.7016.37
    May 31, 2022 Published the release notes for: CL Common 2.7015.11
    June 2, 2022 Published the release notes for: Q2 Loan Servicing 2.7016.39
    December 23, 2022 Published the release notes for: Q2 Loan Servicing 2.7016.40
    January 9, 2023 Published the release notes for: Q2 Loan Servicing 2.7016.42
    January 30, 2023 Published the release notes for: Q2 Loan Servicing 2.7016.45
    February 20, 2023 Published the release notes for: Q2 Loan Servicing` 2.7016.46
    August 21, 2023 Published the release notes for: Q2 Loan Servicing` 2.7016.72
    October 30, 2023 Published the release notes for: Q2 Loan Servicing 2.7016.95
    November 22, 2023 Published the release notes for: Q2 Loan Servicing 2.7016.99
    January 29, 2024 Published the release notes for: Q2 Loan Servicing 2.7016.112
    April 22, 2024 Published the release notes for: Q2 Loan Servicing 2.7016.114
    May 13, 2024 Published the release notes for: Q2 Loan Servicing 2.7016.116

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