Define the Fee Order

The fee order defines the sequence in which fees of the fee set attached to a lending product must be satisfied when the borrower makes a payment.

For example, if the fee order is Late Fee, Protect Fee, and Maintenance Fee, then, the late fee gets paid up first, then the protect fee, and lastly, the maintenance fee is paid up from the borrower payment amount. If Fees are the first component of the payment spread, then all the fees set up for the contract are satisfied first before the subsequent components of principal and interest get satisfied. If any fee is not included in the fee order, then the smallest such fee is paid first.

Pre-paid fees are not included in the fee order.

Prerequisites

The following is the prerequisite to defining the fee order:

• A fee set with at least one active fee is attached to the lending product.

Steps

Perform the following steps to define the fee order:

1. Log in to your Salesforce account.

2. Go to  Servicing Configuration, View/Edit New Lending Products.

3. Click the required Loan Product. 

4. Scroll down to Fee Order.

5. Click New Fee Order.

6. Search for and select the Fee. For example, Late Fee. The fee must be included in the fee set attached to the lending product, else an error is displayed.

7. Specify the Sort Order of the fee. For example, for the late fee to get paid up first, specify sort order as 1.

8. Click Save to create the fee order, or Save & New to add more fees and build the fee order.

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