Effective Date: 07/01/00
Procedure Statement 10: Receivables Adjustments
Receivables Adjustments should be processed to update the Master File only when the adjustment cannot be handled appropriately by any other transaction. The specific receivables that may be adjusted are past interest, past principal, current interest, current principal, and late charges.
- In order for an adjustment to be made, the following should be considered.
- To eliminate the borrower from receiving a past due message because the borrower sent in a payment less than the minimum amount. For example, the payment was a penny short.
An adjustment is not to be made in this scenario. The system will recognize these as short payments and they will appear on the "Aged Receivables" as odd amounts past due. Communication to the borrower of his/her negligence is necessary if the short payment continues.
- Adjustments are made to correct a system error in calculating interest for retroactive deferments.
- Legal fees must be added to the loan balance.
- Adjustments to change minimum payments for a forbearance or a pro-rated account.