Prepared by MAGNA Computer Corp.

FUNDING INFORMATION FLOW

August 20, 2001

 

Definitions:

 

Fund: verb.                                To receive monetary compensation secured by a Promissory Note and/or Mortgage. This also may include selling of such notes for the value of the note or less.

 

Funding: noun.                           A set of Notes or Mortgages that will be funded. Each funding is typically given a sequential number.

 

Funder: noun                             entity that will give or lend money for Fundings. Also, called lender. ( The code for the existing funder of a deal is in the mortgage header file as mgh_type). This is also known as Portfolio, Ownership or Lender code.

 

Funding Code: noun.                  The code of the prospective "funder" for a "funding". The actual Ownership of the mortgage is still listed with someone else this code represents the one you would like to fund with. This is also known as Transmittal Code. ( (This field is in the closing header file cls_fndcode.)

 

Funding date:                            the date the lender has accepted a funding. The funding code is moved to the Ownership field and the funding date is filled. After this the deal will not appear in the pending funding report.

 

Note: noun                                a contractually binding promise to pay money for goods or services received. Usually specifying the amount, interest rate, monthly payment, first payment date and number of payments to be made. In addition it should specify the maturity date, the date the total loan amount should be paid in full.

 

Mortgage:                                  a contractually binding document that ties  indebtedness to a security ie. A piece of real property. Mortgages are typically assigned to the lender after a funding.

 

Process of a funding

 

1. Contract is written:

            1.This is the source of fundable items. (Notes and Mortgages)

            2.No funding functions are done at this stage.

2. Recordable list prepared:

            1.closing software will prepare a list of deals to record OR

            2.The closing agent will notify the resort of closable deals

1. Prospective Funder selection:

            3.                                 each recordable or recorded deal will be initialized in mortgages

                        1.Every item in a funding must have: a contract, mortgage initialized and a closing header record.

            4.possible lender (funding code) will be assigned and funding number at initialization OR

            5.Funding entry screen will be used to modify Funding code (possible lender) and Funding number. Notes may be entered on the contract and comments altered. Mortgage ownership field will not typically be altered at this point.

3. Transmittal to Lender:

            1.The transmittal will be based on funding code and funding number a prepared list of deals will be generated and submitted to the lender.

4. Acceptance of Transmittal:

            1.upon acceptance of funding number the funding date will be filled in using the Funding entry screen OR a process that will accept fundings for a DATE by FUNDING_CODE and FUNDING NUMBER

5. Monthly Reporting if servicing the notes:

            1.Monthly Account Listing will be used to generate the reports required for monthly reports

            2.Additional support reports may be useful for Borrowing Base Reports

 

Menu Functions for funding:

 

The menus for the Funding software follow the procedures for funding. The first step is to initialize the account for receivables as well as closings. Fundings is the bridge between these other two modules. This is a receivables funding, that means that it looks for contracts that have a balanced financed and then attaches a lender to that balance. The first step is to set the account up so that a default lender or no lender can be assigned.

 

Funding Main Menu:

 

You must have initialization ability given by your system administrator inorder to initialize an account. Initialization will happen if you select an account that is not initialized. If the account has been initialized already you will be able to edit the account if you have that permission.

 

The following codes will greatly affect how the system works:

 

Allocation Code:                        This code will determine which funder the contract will be setup with. If the funding date is blank then this code tell the system where you intend to send the contract for funding. The "Pending Funding Report" will subgroup contracts by this code.

 

Transmittal Num:                       The Transmittal number will further sub group contracts on the "Pending Funding Report" into individual fundings. The funding number is a free format fields. It is recommended that a zero left padded number is used eg.) 00015  for funding 15 so that it may be sorted properly. This is setup this way so that alpha numeric funding numbers may also be used. If this field is left blank it means that it is still unknown what funding this contract will be put on.

 

Credit Scores:                           Not yet implemented.

 

Closing Comments:                    This is the comment that is entered from the Closing/Recording module. It may be edited here and this will affect that comment in the Closing module.

 

Ownership Code:                       This is the code the entity that actually owns the note for the contract in current time. This field must be filled, even if it is just with the resort's default code. This is also know as the portfolio code so the contract could be put into one of the resorts other portfolios such as WH or IH to indicate a wharehouse or inhouse deal meaning that it is unfundable.

 

 

Mortgage Comment:                   This comment comes from the mortgate section and it can be edited here as well. If you edit this field here it will change it in mortgages.

 

Contact History(F6):                   For contact history or other on-going information about this contract press the "F6" key and view or add notes.

 

Read only fields:

 

Close Date:                               This is the date that the contract was recorded (or sent to recording) and is editable in the Closing/Recording module.

 

Rec. Status:                              This is the mortgage (Receivable) status code. "A" is active and all other codes indicate that the contract is not in an active state. (S=Sold  P=PaidOff  T=Transferred C=ChargedOff)

 

Reg Pymnt Amt:                        Regular monthly payment amount as contracted currently. This may vary from the payment amount from the time of contract.

 

Cur Rate:                                  Current interest rate. This may vary from the time of contract.

 

Payment Method:                      This is the method of payment used for monthly payments. The most common codes are BD for Bank Draft (ACH, PAC), CC for credit card and CP for coupon book, meaning that the payment is received by check.