Financial Link® loans frequently asked questions

Q: How do you enter a degree symbol within a real estate legal description?

A: Hold down the ALT key and enter the number “248”.

Q: A new Financial Link® user was set up in Admin. When the new user tries to log in to the run side, an error message appears, indicating the software license has expired.

A: When adding a new user in Admin, do not select the “Add” tab, as this option will leave the database path blank and generate an expired license error message. Instead, highlight a name within the User Name list that will have similar user rights as the new user, and select the “Copy” tab. Enter the new user’s Logon Name and Full Name on the next screen.

Q: When inputting a name or city that has a portion of the name in lower case, the lower case letter changes to upper case when tabbing out of that field (i.e. Prairie du Chien changes to Prairie Du Chien).

A: Currently, the first letter of each word will be capitalized. An enhancement request has been submitted to Financial Link® to correct this issue.

Q: On the HUD -1A I can't get the loan amounts to balance when I am processing a transaction in which the customer is bringing in some funds. There doesn't seem to be a way to get the Loan Amount and the Disbursements to Others column to have different amounts. How do I get the HUD-1A to calculate correctly?

A: The only amount that should be on the HUD-1A is the total amount that you are giving the customer, not any funds that they are bringing in. For example: If the customer is only having the principal amount of the loan renewed and they are bringing in a check for the interest due on the loan to be renewed, then the only amount that should be entered on the HUD-1A is the principal amount of the loan. If the customer is renewing the entire loan amount (principal and interest) then the entire amount should be on the HUD-1A.

Q: I am processing a transaction in which I am taking a mobile home as security. The Manufactured Home Certificate Application is not appearing on the supervisor. Why is that?

A: Review the description screen for the mobile home (within the Collateral screen of Loan Definition). The length of the mobile home should be entered, and if it is entered, it should be greater than 45 feet. If the mobile home length is less than 45 feet, then a Manufactured Home Certificate is not required.

Q: How come I am not getting a combination note?

A: The following limitations are placed on the combination note.

• All fees need to be paid in cash.
• The amount financed has to be less than or equal to $25,000.00
• The interest accrual method has to be either Actual Day/365 or Actual Day/360, unit period 30/360 is not allowed.
• Collateral is limited to a maximum of 2 Motor Vehicles. Boats, Consumer Goods, etc. cannot be used as collateral.

* Note: When trying to get the WBA454LU Consumer Simple Interest Note for unsecured loans, only rules 1 - 3 apply. All of the above-referenced rules apply to the WBA454L and WBA454L-Var. Consumer Simple Interest Note and Security Agreement documents.

Q: I am processing a transaction for a married individual and the spouse is not signing the note. How come I don't see the non-signing spouse box in the Customer Information screen?

A: The non-signing spouse box only applies to married Wisconsin residents. The box is not applicable for non-Wisconsin residents.

Q: I am trying to process a loan and I keep getting a message stating that "Negative Amortization occurred. This loan cannot be processed." How come I am getting this message and how do I get rid of it?

A: Negative amortization is the increase of the principal of a loan by the amount by which periodic payments fall short of the interest due. Said another way, if a periodic payment does not cover all the interest due for that period, and the short fall is added to the loan balance, negative amortization occurs. In essence, the lender then makes an additional loan to the borrower equal to the amount of the short fall. In turn, interest capitalization occurs because interest is being calculated on the amount of the short fall by virtue of the principal balance’s inclusion of the short fall.

Most WBA documents do not accommodate negative amortization and capitalization of interest; therefore, WBA and FIPCO have always indicated that lenders using WBA documents and FIPCO software should not make loans containing these features.

To remove the error message, select one of the following two options:

• Adjust the funding date or the first payment date. Either date would need to change to allow the first payment to collect all of the interest and a portion of principal.
• Change your payment structure to be either "mortgage" or "balloon mortgage". These payment structures calculate prepaid interest and would allow you to process the loan

Q: How do I process an account for an individual who does not live in the U.S.?

A: At this time you are only able to process a loan for an individual living in the U.S., Canada and Mexico. A request has been submitted to Financial Link® to add a "country" field.

Q: I am processing a transaction with a variable rate and I need to change the floor rate. How do I do this?

A: When you are in second Calculation screen, select VR Options at the very top of the screen. Next, select "VR Edit" and click on the Rate Caps tab. Enter the correct floor rate in the "Minimum Rate" field and click on the forward hand. You will return to the Calculations screen.

Q: How do I process a Trust account?

A: Trust accounts cannot be processed at this time in Financial Link® Loans. It is on the list of enhancements for future development.

Q: I am processing a HUD Settlement Statement in blank forms. I entered some data and exited blank forms. When I go back into the form everything, that I had entered is no longer on the screen. Why is that?

A: Make sure that you are clicking on the Save Data icon (or select "File" and then "Save Data") before exiting. If you are still running into a problem, try freezing the field(s) once the information has been entered. To freeze a field, double click on the field and answer "yes" to the question "Are you sure you want to freeze this field". The field will then appear in a golden yellow color. You will not be able to change the data in this field unless you double click on it again and unfreeze the field.

Q: I am processing a transaction for a married individual and the spouse will not be signing note. However, both the borrower and spouse own the collateral which is being pledged as security on this loan. I have added the spouse as a real owner, and only the spouse's name prints on the collateral documents; the borrower's name is missing. How can I get both names to print?

A: In Customer Information, enter one debtor and two real owners. The borrower will be the debtor; the borrower and the spouse will need to be entered as the real owners. Then, in the Collateral screen, within the appropriate collateral's description tab, check the box that states, "Debtor does not own this collateral" and define both the borrower and spouse as the real owners.

Q: I am trying to setup our Home Equity and Consumer Credit Agreements and need some help with it.

A: Feel free to fax a copy of an existing Home Equity and/or Consumer Credit Agreement (fax #608-661-9382). That way we can see exactly how your document should be disclosed.

Q: I am trying to process a mortgage note with a balloon payment structure. I keep getting an error that states that the balloon payment cannot be less than 60 months. What does that mean and how do I get rid of it?

A: According to HOEPA regulations, a loan with a term of less than five years must fully amortize unless:

1) The loan is a bridge loan connected to acquisition of construction of a dwelling intended to become the consumer's dwelling
and
2. Loan has a maturity of less than one year.

The only way to remove the message would be to:

• Make the loan not subject to HOEPA, or
• Change the term to be five years or more, or
• Change the payment structure to be fully amortized.

Q: For a document with multiple records I only want one of the records to print. How can I do that?

When you are in print preview make sure that the record you would like to print is the one that is on the screen. Then click on File at the top of the screen and click on Print Current Record.

Q: For the Wisconsin Motor Vehicle Title Application document, I only want to print the DMV copy. How can I do that?

A: When you are in print preview make sure that the page you would like to print is the one that is on the screen. Then click on File at the top of the screen and click on Print. Within the Page Range box, select "Pages" and enter the page number(s) you wish to print (in print preview, the page number appears in the lower left corner).

Q: How come I am not getting my guaranty form?

A: If the guarantor is a married Wisconsin resident, make sure that either the Spouse or Non-Signing Spouse box is completed in the Guarantor screen. If the guarantor's spouse will also be a guarantor, the number of guarantors should be set to "2" and both Guarantor screens should be completed accordingly.

Q: How do I remove a signer's name for a company?

A: Within the Debtor information screen, click on the Signers tab. Double click in the box of the signer which you wish to delete. Then answer "yes" to the question "Do You Wish to Delete Signer?".

Q: For loans with a single payment loan structure, why does the Annual Percentage Rate (APR) differ in Financial Link® than the APR that LoanCalc calculates?

A: In LoanCalc the APR was derived by using an Actual Days method, whereas Financial Link® uses a Whole Months method. In either case, the APR will pass the OCC verification program. Keep in mind that if using the OCC verification program when verifying Financial Link®'s APR, you must select "Whole Number of Months" for Payment Frequency. This selection is not asking how you are accruing interest on the loan you are checking, but instead is asking which one of the two allowable methods you are using under Reg. Z to calculate the APR. On a single pay loan, less than one year, with its term described in whole months (Equal Months is the term used in the OCC APR verification). Appendix J of Reg. Z provides two ways to calculate the APR, either by Unit Period (Whole Months) or Actual Days.

For a Single Payment Loan with term described in whole months, where the payment starts on defined day and end on that same day of a future date:

Example:
Loan Funded on 1/15/2003 and ending on 12/15/2003 is a term described in whole months. OCC verification software Payment Frequency option 5 would be selected. A Loan Funded on 1/15/2003 and ending on 12/16/2003 is not a term described in whole months. OCC verification software Payment Frequency option 6 would be selected. OCC Verification software Payment Frequency option 6 would be selected. OCC verificationsoftware Payment Frequency option for Single Payment Loan. SINGLE ADV - SINGLE PAYMENT

5 - whole number of days
6 - actual days

I am processing a transaction with a variable rate and I need to identify the minimum interest rate on the note/credit agreement. Where do I go to enter the minimum interest rate?

When you are in the second Calculation screen, select VR Options at the very top of the screen. Next, select "VR Edit" and click on the Rate Caps tab. Enter the minimum interest rate in the "Minimum Rate" field and click on the forward hand. You will return to the Calculations screen.

Q: Where can I input an individual's alias or "also known as" name?

A: This information could be added within the Last Name field within the Customer Information screen. Data with a maximum of 80 characters can be entered in the Last Name field.

Q: I am processing a commercial loan with 2 debtors as entities, but when I preview the forms, only the first debtor carries forward to the borrower area as well as the signers for that debtor in the signature block area. Also, I am only getting one resolution on the forms listing, again for the first debtor.

A: Currently, the WBA documents are not programmed at this time to carry forward two entities in the signature block area and borrower area. However, the signature block area as well as the borrower area of the commercial and agricultural forms is left open (blue) to permit adjustment as needed with additional entities and additional signers. In order to obtain a resolution for the second borrower, the user will need to use the Miscellaneous Forms button and complete the fields through preview. FIPCO is working on further development to add programming for the multiple entities and multiple resolutions to carry forward on to WBA forms automatically.

Q: I am processing a consumer loan which is secured by a first lien real estate mortgage and a motor vehicle. On the Forms Selection screen, the WBA 410B Chattel Security Agreement appears as a required document. Why does this form appear, rather than the WBA 410C Consumer Chattel Security Agreement?

A: The WBA 410C Consumer Chattel Security Agreement is drafted with verbiage pertaining to Wisconsin Consumer Act (WCA) regulations. Consumer loans secured by a first lien real estate mortgage or equivalent security interest are not governed by WCA. As a result, the WBA 410B Chattel Security Agreement is the document that should be used for these types of transactions.

Q: I am processing a consumer loan in a non-Wisconsin module (i.e. Minnesota module) in which the borrower and guarantor are both married Wisconsin residents.  Various Wisconsin forms (i.e. Tattletale Notice, Notice of Right to Cure) are not appearing on the Forms Selection screen.

A: For these types of loan transactions, determine whether the loan will be governed by a non-Wisconsin state's law or Wisconsin law (including the Wisconsin Consumer Act and the Wisconsin marital property statutes). FIPCO does not make that decision for the financial institution because it is a fact-specific question that involves interpretation of the law in each state (including the jurisdictional provisions of the Wisconsin Consumer Act).

If the lender believes that the Wisconsin Consumer Act does apply, then the lender should use the Wisconsin module, which contains loan documents compliant with the Wisconsin Consumer Act.  If the lender believes that the non-Wisconsin state's  law applies, then it should use that state's module. 

For borrowers and guarantors that are married Wisconsin residents, the WBA155 Marital Purpose Statement and WBA154 Spousal Consent are in the non-Wisconsin modules as an optional document out of an abundance of caution.  However, it is important for financial institutions to remember that the non-Wisconsin modules are not meant to comply with the Wisconsin Consumer Act; only the Wisconsin module complies with all applicable Wisconsin laws.

Q: I am completing a document in blank forms. I entered some data and exited blank forms. When I go back into the form, everything that I had entered is no longer on the screen. Why is that?

A: This issue depends on how the blank forms icon is being accessed:

If blank forms is accessed while completing a transaction - make sure that you are clicking on the Save Data icon (or select "File" and then "Save Data") before exiting. If you are still running into a problem, try freezing the field(s) once the information has been entered. To freeze a field, double click on the field and answer "yes" to the question "Are you sure you want to freeze this field". The field will then appear in a golden yellow color. You will not be able to change the data in this field unless you double click on it again and unfreeze the field.

If a transaction was not completed and blank forms is accessed from the main screen - any data entered in print preview will not be saved, even if the Save Data icon is clicked (or "File" and then "Save Data" is selected) before exiting. Print the form prior to exiting by selecting "File" and then "Print" to generate a form with the data entered.