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Showing posts from 2016

Loan Servicing Software: Get Rid of the Backup Bother Once and for All

Even if you're extremely careful, you never know when a computer crisis might pop up. Moneylender Professional loan servicing software helps you prepare for that emergency so you won't lose any data. You've got two ways to back-up your loan information:
·Backup Portfolio: In the File Menu, just click on this option to save a portfolio to another computer file. Each time you perform this backup you select the location.
·Auto-Backup Portfolio: Enable this through the Backup tab in Moneylender Settings on the File Menu. Once you set up this option, MLP automatically copies your portfolio. Select:
oThe backup schedule: Anywhere from every five minutes to every six hours
oThe location: To be fully protected, choose a different drive, such as a flash drive or external hard drive. NOTE: if you disconnect the designated drive, your auto-backup system is deactivated. To re-start the process, you'll have to set it up again.
With Moneylender Professional loan software, your informat…

Moneylender Professional's Time Machine: Auto-Generate Payment History Tool

With Moneylender Professional 2 loan servicing software, the past isn't static. Maybe you've taken over a loan that's current, but you're missing documentation. Perhaps you have a non-standard loan, or you discover you've made some mistakes entering data. In any case, you can go back as far as necessary to adjust payments. The Auto-Generate Payment History Tool (on the Tools menu) adds as many payment records as you need.
Choose the date you want the modification to begin ("First Day for New Payments"), whether it's at the start of a loan or somewhere along the way. Then you have two choices:
·Identify the last date for the changes. Note that this date is included in the changes.
·Set a total number of payments that advance from the starting date.
Finally, indicate the payment amount. Again, you have choices:
·The regular payment amount already set for the loan
·A different amount you input
Once you have the history, you can still go back into the loan to …

The Real Meaning of "Amount Due"

Whether lenders keep track of loans in a notebook, in Excel, or in dedicated loan software, "Amount Due" is an important number… but maybe not for the reason you think. Amount Due is theoretical compared to the actual payment you receive from a borrower.
Of course, you hope the concept and reality always match. In real life, though, that often doesn't happen. And that's where the difference becomes important.
When asking for a payment, Amount Due is how much the lender wants from the borrower rightnow. From a borrower's point of view, it's the agreed-upon sum to consistently pay.Amount Due is not directly connected to principal and interest. It’s not the actual payment. That does get applied, lowering the total that's owed.
If the Amount Due and installment aren't identical, the lender needs to take whatever actions the loan agreement established. For instance, if the payment is less than Amount Due:
·A late fee could kick at the end of the grace period…

What's New for the 1098 Form

Get ready for a few changes for tax year 2016… at least when it comes to your 1098 (Mortgage Interest Statement) form. For people who manage and service loans, new reporting requirements will be in effect. Luckily, they're straightforward:
·Starting January 1, 2017, all 1098 forms given to payers MUST include the address or description of the mortgaged property.
·Also new to the form in '17:
oReporting the outstanding mortgage principal (as of January 1, 2016)
oIncluding the mortgage origin date
oIndicating paid mortgage insurance premiums of $600 or more
The 1098 format has also changed. In previous years, three forms were on a page. The newest version will have only one per page.
These aren't dramatic changes for lenders, but you should be aware of them. Moneylender Professional loan servicing softwareplans to issue a patch for the new 1098 form in November. Look for it so you'll be ready when tax time rolls around.

Throw Out That Amortization Schedule (Maybe)

When discussing loan topics from A to Z, amortization falls near the very beginning of the alphabet. It's a straightforward concept. An amortized loan schedules identical payments that cover both principal and interest. Typically, each installment's funds pay interest first. Principal is paid down and reduced by whatever's left.
Initially, a large proportion of an amortized loan goes towards interest. But with each standard payment, principal reduces a bit. The proportion of interest paid in each installment decreases over the course of the loan. By the end of the term, most of the installment goes to principal, and very little goes to interest. This means that, throughout the life of the loan, principal and interest have an inverse relationship.
You can see this pattern play out beautifully in an amortization table displaying the payment schedule over the entire course of a loan. For each installment, this generally includes:
·Amount due
oAmount that's interest
oAmount t…

Moneylender Professional 3 Is Coming Soon… Here's a Sneak Peak

Since Friday, October 14, Moneylender Professional 3 has been available for preorder to Moneylender 2 license holders. MLP 3's Alpha version will be downloadable on October 31. People have already started calling, wanting to know more. Check out some user questions and our answers.
Q:Will MLP 3 be online or desktop?
A: It’ll be for Windows desktop.
Q: Does the software provide IRS online filing template for 1098s?
A: Yes, we plan to have IRS FIRE (the electronic file format for 1098 and 1096 forms) implemented by the time MLP 3 is ready for production use.
Q: Can I get a demo of the new upgrade before committing to buy the new version?
A: We're not planning on having a demo version available until the production release. When Moneylender 3 is production-ready (January or February), we’ll have a demo mode you can try out before buying the upgrade.  If you preorder Moneylender 3, you’ll be able to download and play with the Alpha and Beta versions sooner.
Q: Is it possible to run MLP2 …

Deferring a Loan: Who Wins?

When a borrower gets too far behind, the credit score is affected. Sometimes a lender helps out by offering to defer a payment, moving it to the end of the loan. That extends the loan a little, but it could be just the breathing space the borrower needs. By the following month, the loan is back on track.
If the borrower agrees to defer the loan (usually in writing), the lender can convert the unpaid interest to principal. The lender may also choose to adjust the payment amount due for the remainder of the loan.A common mistake is to think the entire amount due can be added to the principal balance in exchange for deferring one or more payments. This isn't correct.Only the outstanding interest should be converted to principal.
Moneylender Professional loan servicing software makes it simple to defer payments using the Loan Menu.The borrower gets to stay current on a loan when finances are too tight to continue making payments, and the lender gets to capitalize some interest.If done …

Blindsided: How to Add Principal to a Loan

Best-case scenario: your lenders pay on time, and funds process smoothly. Everyone's happy. Unfortunately, it doesn't always work that way. I recently talked with a Moneylender Professional loan servicing software customer who had a stressful experience. A borrower didn't pay property taxes. By the time the lender discovered this, a tax sale was imminent.
That would have put the lender in a bad situation: holding an outstanding loan on a house that the borrower no longer had access to. The lender jumped in to pay the taxes, saving the day. But that raised two more issues. How would the lender recoup the expense? And could he keep this problem from happening again? The answer to both, happily, was "Yes." Moneylender Professional was able to help.
Actually, there are several ways Moneylender can handle this situation, depending on the borrower and lender's agreement.
·The repayment could be accomplished with one lump sum.
·The amount could be tacked onto the princ…

Moneylender Professional 3: What’s New?

Moneylender Professional 3 loan servicing software is making its debut in 2017. The software’s creator, Josh Whitman, answers some questions to give you background and insight into the latest version. 
Why release Moneylender Professional 3 now?
Since its release in 2004, Moneylender’s user base has grown and grown. The lenders using our software deserve to have access to the latest innovations of modern technology. Some borrowers even demand it. 
Moneylender was created as a hobby project, but it’s become a major component of our business model. We’re serious about the role the application plays in the daily operations of hundreds of professional lenders. Many of our customers are casual lenders, and that’s great. But an ever-growing population of large businesses are using Moneylender to power their financing activities.
What are some of the changes between versions 2 and 3?
We've made a major change in storing loan data in order to:  Reduce inefficiencies in the original. Work mo…

Moneylender Professional Modification Requests

Moneylender Professional simplifies managing and servicing loans. But what if your lending situation requires something a bit different? We might be able to help.

Contact us and request a program modification. Josh Whitman, developer of Moneylender Professional, answered questions about handling these changes.

How do you decide if it’s preferable, practical or even possible to make a change the Moneylender's program?

If it’s a feature that’ll work for most Moneylender users, I’m usually on board. But if it’s only helpful for a small percentage of lenders — and would also make the program less effective or understandable for the rest of the users— I try to steer people away.

How can a customer request a modification?

Just call or email us.

What’s the turnaround time for a request?

It really depends upon the change. Some modifications take thirty minutes and are available as an update to the program in less than a day. Others take weeks or months to develop. We test a special Beta vers…

Scrutinizing Software: Choosing a Product for Your Loan Business

Recording loans. Collecting payments. Tracking data. Creating statements. Businesses that handle 10 loans or 10,000 loans require many of the same functions from loan servicing software… but each lender has individual needs. When you're looking for a loan program — whether it's a new venture, or the old software isn't cutting it anymore — take time to investigate what's on the market. As you examine each product, find answers to the following questions. They'll help you choose software that's efficient and effective for you.      1. Is the software sufficient…both now and later? This is the most important yardstick. Make sure the software covers all aspects of your loans, especially if you go beyond basic lending. Essentials include: Loan types: Is the product appropriate for all your lending options? (For example, personal, business, auto, home, student, title, or payday loans) Documentation:                  -What are the format choices for income and status repor…