Showing posts from June, 2008

Tracking Discount Earned on Purchased Loans

Q : How can I keep track of the discount earned along with the interest and principal on a loan with your loan servicing software ? A : By way of an example... Start by clicking " Loan from Template" in the toolbar. Click Mortgage . Enter " Discount Earned " for the account number. Set the dates as you see fit, enter $100,000 for the principal, and 10% for the interest rate. Click the Regular payment. Pick a borrower and a lender and hit finish. Select the new " Discount Earned " and then click Loan > Lender > Multiple Lenders . Click new and pick a lender . Adjust the percent interest in loan to 100% (complete ownership). Set the price paid to $60,000 and click Save. (So the lender bought a $100,000 balance for $60,000.) Click Done in the Multiple Lenders dialog. Double-click the loan and click "Save" to record a payment on the loan . Do this a couple more times to add a few payments to the lo