Monthly Audit of Amendments (Rate Changes & Fees)

Monthly Audit of built-in amendments on adjustable rate loans scheduled for the current month.

Department and Access

• Primary Department Supported: Product Support Audit
• Super Powers Needed: No
• Dev Support Needed: No

Context / Purpose

Use this process to confirm that built-in amendments on adjustable rate loans, whether scheduled for implementation or already implemented, have the correct Interest Rate History entries and correct fee calculations or applied fees.

Instructions:

1.  Create HubSpot Ticket for external communications and tracking

1. Ticket Name should be Monthly Audit of Amendments (Rate Changes & Fees) - [previous month name] 

2.  Export all the Amendments scheduled for the month 

From LMS Menu

1. Select Servicing

2. Select Amendments

3. Filter by Loan Phase "Servicing"

4. Filter by Amendment Date for the current month: Is After or Equal to "First Day of current the month" AND Is Before First Day of the next month

5. Filter by Amendment type - "Built - In" 

6. Filter by Is Rate Changing "YES" 

7. Filter by amendment status - Does not contain "declined" 

8. Export to Excel
   
   

3.  Review the interest rate history table on the Servicing Tab to determine if the new margin/rate has been added as expected

1. From the excel, copy the loan numbers into LMS

If it's been added:

1. Verify that the servicing tab's main page is also updated properly. 

If it's missing: 

1. Is there an active PAQ for that loan number? If yes, skip for now and note it in the log.

2. Notate in the spreadsheet which amendments are missing an Interest Rate History record.

3. After all loans are reviewed, send the list to the Account Manager on each loan or Servicing Account Managers for guidance. (Jennie or Sam Drake) - Servicing will review and provide notes as a whole and return. 

4. Once Servicing or provides their notes/ instructions, make any requested corrections and add the records to the Interest Rate History table to prepare each amendment for implementation.

   1. Update Margin & Interest Rate on Servicing Tab

4.  Review the ‘fee percent’ column to determine if fees should be charged 

1. For Amendments in Executed status: 
   1. The fee will be auto-charged on the date of the amendment, so there will not yet be an associated fee in the loan history. Click into the Amendment & verify the fee amount (calculated correctly) based on the chosen options & loan amount.  
2. For Amendments in Implemented status: 
   1. Verify the fee amount based on the options chosen in the amendment & the loan amount in the amendment: 
   2. Verify the fee was added to the loan history and matches the info in the amendment

5.  Notate Results of Audit:

1. Notate the Results of the audit in the log provided in this document – Include any relevant notes comments and links to tickets 
2. Post a verbal the confirmation of audit’s completion in the Teams Chat 
3. Resolve HubSpot Ticket - Include all relevant notes screenshots and resolution summaries

AUDIT LOG – Notate the results of the audit here; include links to any ticket or tasks created