Generating a payoff quote

Overview

A payoff quote is created whenever a borrower considers paying off a loan early. 

If a borrower wants to pay off an ongoing loan, the lender can generate a Payoff Quote to indicate the total liabilities of the borrower. Lenders can generate multiple payoff quotes with different payoff dates. These payoff dates can fall before or after the loan maturity date.

The Payoff Quote lists the principal, interest, prepayment fee, and any other charge or late fee applicable to the loan based on the payoff date requested by the borrower. The Interest Remaining on the payoff quote indicates the total interest that would be due on the payoff date. This includes the current outstanding interest and the interest that will be accrued till the payoff date. The following example illustrates this further:

If a borrower plans to pay the entire loan balance, then the borrower has to contact the lender to know the payoff amount. This is the fastest and most accurate way to find out exactly how much it will cost to close the loan.

For example, when borrower makes payments on a loan for a long time, the balance on the loan may come down to a point where the borrower can seriously consider paying off the entire remaining balance listed on the current statement. 

When a payoff quote is generated, the remaining loan balance also consists the following:

• Remaining Loan Balance

• Interest Paid till Date

• Interest Remaining

• Unpaid Charges

• Unpaid Late Charges

• Interest per Diem (or day)

• Total Payoff Amount

• Payoff Date

• Maturity Date

• Next Payment Due Date

• Interest Rate

The Payoff Quote document can be generated in common formats, for example, PDF, to view the loan payoff details. You may need to configure document generation using third party software like Draw Loop for generating the document.

With the Oxygen release, the CL Loan system has the ability to generate backdated and future dated pay off quotes too.

UI Enhancements

This section lists the user interface enhancements made in various releases.

Generate a Payoff Quote

You can generate a payoff quote for the current date, a date before the current date, and a date in the future.

Prerequisites

• None.

Steps

To generate a new payoff quote, perform the following steps:

1. Log in to your Salesforce account.
   

2. Click the (App Launcher).
   

3. Search for CL Loan, and then click it.
   

4. Click Contracts, and select the required CL Contract ID.
   

5. Go to Loan > Quick Menu.
   

   Note:

   Alternately, you can scroll down the loan details page and go to Payoff Quote, and click New Payoff Quote.
   

6. Go to Account Statement.
   

   Note:

   Account statement is a periodic summary of your account activity with details such as the Lending account, Loan amount, Loan product, Interest rate, Term and the Balance amount. It also contains the different transaction dates, the transaction amount, the Interest, the Principal and the charges applied. 
   

7. Click New Payoff Quote.
   

   A Generate New Payoff Quote window is displayed.
   

   

   Note:

   A payoff quote is created whenever a borrower considers paying off a loan early. It contains the remaining loan balance, interest paid till date, interest remaining, unpaid charges, unpaid late charges, interest per diem (or day), total payoff amount, payoff date, maturity date, next payment due date, and the interest rate. 
   

8. Specify the following, and then click Preview Quote or Generate Quote.
   

   Note:

   You can click Preview Quote to calculate the payoff quote and see it so that you can change the payoff date if you want to before creating the final payoff quote record. Clicking Generate Quote creates a payoff quote record in the system that can be then viewed.
   

   Field Name	Action and Information
   Payoff Quote Name	Specify a unique name for the payoff quote that you want to generate.
   Payoff Date	Specify the date for which a payoff quote is to be generated. You can generate a backdated or a future dated payoff quote too.
   Pay Future Dues Timely	If enabled, indicates that the dues between the current date and the payoff date are assumed to be paid on time within the due dates. Note: This checkbox is not visible for loans that are in the Active - Bad Standing status indicating that future payments cannot be considered to be paid timely.
   Transaction Date	Indicates the current system date on which this payoff quote generation transaction is made.
   Loan	Indicates the loan for which the payoff quote is to be generated.
   Total Payoff Amount	Indicates the total payoff amount calculated for the specified payoff date.

   Note:

   More than one Payoff Quote can be generated for a borrower.

View a Generated Payoff Quote

You can view a list of payoff quotes that are generated and saved in the CL Loan system. You can also view the details of each of the payoff quote.

Prerequisites

Before viewing the payoff quotes, ensure that the following prerequisite is met:

• A payoff quote is generated.

Steps

To view a list of payoff quotes generated in the system and their details, perform the following steps:

1. Log in to your Salesforce account.
   

2. Click the  (App Launcher).
   

3. Search for CL Loan, and then click it.
   

4. Click Contracts, and select the requiredCL Contract ID.
   

5. Scroll down the Details page, and click on the Payoff Quotes tab.
   

   This displays a list of payoff quotes generated for this loan.
   

6. Click the Payoff Quote Name to view the details of the generated payoff quote.