Monthly Audit of Posted Interest Reserve Payments

Primary Department Supported: Product Support

Description: Monthly audit of Interest Reserve Payments to verify all loans in servicing have the correct and most recent Interest Reserve Payments posted

Super Powers Needed? – NO

Developer Support Needed? - NO

Important Considerations & Best Practices: 

• If you find a payment that didn't post - Review the Conditions for IR Hold; This Condition Type prevents IR from being utilized. It's okay that the payment didn't post, and no action is needed; but for further clarity you could:

  • Reach out to the PM or TC on each loan to confirm if this Hold has been completed and if it should be un-marked

• For Loans with funds in their Current Interest Reserve and no payment has posted: 

  • Reach out to the PM or TC on each loan and loop in accounting through the HubSpot ticket created, Lisa K. and confirm that they want a payment posted with whatever is remaining.

• If it is determined that the Interest Reserve Payment needs to be manually posted -

  • Submit a task to the developers to "Post Interest Reserve Payment and Link to Charge"

Instructions: 

1. Start a HubSpot Ticket for Audit Tracking - Name this ticket with the previous month and the title of the Audit (ex. June Monthly Audit Posted IR Payments)

2. Pull the PMR Report: 

1. Reports 
2.  LMS Reports 
3. Filter Locate the “Name” for Portfolio Management
4. Select  EXCEL  

 
On the following screen select:

1. Report As on Date - "First Day of the Month"

2. Select "Merge Mini Loans into Master",  and "Run in Background" 

3. click Excel

 
 
The next screen will have the generated Excel PMR Report.

NOTE: It will be blank until the file is generated, and an email will also be sent your email inbox with the report as well. Monitor/Refresh this table LMS and the document link will populate (can sometimes take 5+ minutes if it’s a big report).  

Before:

After:
  

3.  Open and Filter the Excel PMR Report:

Goal is to have a list of Interest Reserve Payments from previous months so those loans can be audited. 
 

1. Filter by  
2. “Loan Phase” IS Servicing (do not select Transferred Servicing)
3. Date of Last Interest Payment (previous month) 
4. Type of last interest payment - Interest Payment - Interest Reserve 
5. Filter out loans that have current IR set to 0.00 
6. Reference the following columns:  
   
   • Use Interest Reserve:  Filter to YES
   • Interest Reserve Current: Should be greater than $10
   • Look for and Pay attention to  any loans that have a current IR balance, but a payment was NOT posted EOM

4. 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 Asana Tasks and tickets 
2. Post a confirmation of audit’s completion in the Teams Chat
3. Resolve the HS Ticket for the audit - include any and all relevant notes and screenshots 

Validation and Troubleshooting:

• Check the Conditions tab for Open Interest Reserve Conditions
  • There are some conditions that can be added that will Freeze IR payments. If the loan has this condition, it’s okay that it didn’t post and no action is needed
• If Use Interest Reserve is marked "NO" in the spreadsheet - confirm with Servicing if it should be enabled. 

• Reach out to the PM or TC on each loan and include accounting through the HubSpot ticket created, Lisa K. and confirm that they want a payment posted with whatever is remaining.

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