Resource Management Associates

LCR FUNCTIONS

  1. Track Loan Exceptions.
  2. Edit and Maintain Your Own Custom Exception List.
  3. Create Custom Exception Categories.
  4. Generate Notices for Customers
  5. Create Exception Reports by Officer, Loan, Exception Category or Exception Type
  6. Track Non-Performing Assets
  7. Maintain Non-Performing Categories such as Non-Accrual Loans, Other Real Estate, Other Assets and Bankruptcies
  8. Track Appraised Values
  9. Track Transactions on Non-Performing Assets
  10. Keep Management Notes
  11. Charge Off Accounting including:
  12. Record initial Charge Offs
  13. Track Expenses
  14. Accrue Interest
  15. Record Principal and Interest Payments

BEFORE YOU START –Loan Control and Review

  1. In the System Menu, make sure the proper printer (chose printer setup, option #3) has been selected. For email version of reports select your pdf printer. For hard copy reports select your desired network printer.
  2. In the System Menu, make sure the proper method of interest accrual is selected. The 2 options to calculate interest on charged-off loans is 360 or 365. The determines the interest accrued on charged off loans.
  3. Establish your schedule of Loan Officers and Lenders. Under the Officers Menu, add and/or edit officer names and numbers as necessary.

EXCEPTION TRACKING

  1. Establish Your Exception Categories (if you chose to create categories). Common categories include:
  2. Appraisals
  3. Insurance
  4. Financial Statements
  5. Tax Returns
  6. Closing Documents
  7. Critical
  8. Non-Critical

This is done under the Exception Menu, #4. Click edit description to maintain list of Exception Categories.

  1. Establish Your Exception Types

This is done under the Exception Menu, #3. Click edit description to maintain list of Exception Types.

  1. Add Loans with their related exceptions.

This is done under the Exception Menu, #1. Click add Loan for the initial time the loan is on the exception list. At the top portion of the screen add all the details related to the loan such as loan number, borrower, officer, amount, loan date, collateral, etc.

Once the loan is added, add your exception transactions to the bottom part of the screen by selecting add exception transaction. Enter the appropriate exception type and date. Once the exception is cleared, that exception description may be deleted by highlighting on that transaction and clicking delete transaction on the right-hand side of the screen.

  1. Printing Exception Reports

This is done through the Exception Menu, #2. Then chose #1, exception reports. Exception Reports can be printed by Officer, Exception, Account Listing and Exception Category.

All reports require a starting and ending date. Reports may be sorted by date, type exception or loan number.

  1. Create Exception Notices – Exception Notices are notices sent to customers with requests for missing information (i.e. expired insurance, updated Financial Statements, etc.)

Go to the Exception Menu and Select #5, Edit Exception Notices. Select add Notice. Select an exception number and fill in the notice per your specifications. This is a generic notice which the customer will receive. It will have the Bank’s name and address as well as the customer’s name and address, provided it has been properly entered when a loan is added along with its related exception. (See item 3 on the previous page)

  1. Printing Exception Notices

Go to #2 on the Exception Menu. Chose #2, exception notices. Select an exception notice, an exception date range and print your exception notices.

MANAGE NON-PERFORMING ASSETS

  1. Set up your Non-Performing Asset Types. Typically, those are Real Estate Owned, Other Assets, Non-Accrual Loans and Bankruptcies. Go to the Non-Performing Menu, select #3, edit Non-Performing Asset types, and edit descriptions accordingly.
  1. Set up your Non-Performing Asset Transaction Codes. Go to the Non-Performing Menu, select #4, edit Non-Performing Asset trans codes, and edit descriptions accordingly.
  1. Add Non-Performing Assets

This is done under the Non-Performing Menu, #1. Click add Asset. At the top portion of the screen add all the details related to the asset such as loan number, borrower, officer, amount, loan date, collateral, etc.

Once the asset is added, add your any transactions to the bottom part of the screen by selecting add transaction. Enter the appropriate transaction type, date and amount. A running balance is maintained at the bottom of the transaction screen.

  1. Printing Non-Performing Reports

This is done through the Non-Performing Menu, #2. Non-Performing Reports can be printed by Asset Type, Officer or Transaction Code.

MANAGE CHARGE-OFFS

  1. Set up your Charge-Off Types. Typically, those are Consumer, Commercial, DDA, Real Estate and Accrued Interest. Go to the Charge-Off Menu, select #4, edit Charge-Off types, and edit descriptions accordingly.
  1. Set up your Charge-Off Transaction Codes. Go to the Charge-Off Menu, select #5, edit Charge-Off trans codes, and edit descriptions accordingly.
  1. Add Charge-Offs

This is done under the Charge-Off Menu, #1. Click add Asset. At the top portion of the screen add all of the details related to the Charge-Off such as loan number, borrower, officer, charge-off amount, Charge-Off date, interest rate, receive notice, payment plan amount, etc.

Once the Charge-Off is added, add your any transactions to the bottom part of the screen by selecting add transaction. Enter the appropriate transaction type, date and amount. A running balance is maintained at the bottom of the transaction screen.

  1. Printing Charge-Off Reports

This is done through the Charge-Off Menu, #3. Select Charge-Off Reports #1, and they can be printed by Type of Charge-Off, Officer, Transaction Code, Alpha Listing or by Balance.

  1. Accruing Interest

This is done through the Charge-Off Menu, #2. Select the Charge-Off(s) you wish to accrue interest on, and the date range. Accrued interest reports can be printed through the Charge-Off Menu, #3. Charge-Off Reports, #2. The interest rate is defined in set-up screen (see #3 above.)

  1. Charge-Off Payment Notices

Charge-Off payment plan notices can be printed through the Charge-Off Menu, #3. Charge-Off Reports, #3. The payment is defined in set-up screen (see #3 above.)