Adding Loan Expense Assumptions

Use Setup > Assumptions > Loan Applications > Expenses to set up and save sets of expense assumptions that the application uses to allocate expenses based on the type of loan and loan amount.

  1. Navigate to Setup > Assumptions > Loan Applications > Expenses.
  2. Select Add..
  3. Enter one of the institution's loan types as the Name for the expense that you are creating.

    When the expense is saved, you can select it from the list.

    The next part of the setup process involves creating a series of origination and servicing expenses, grouped by Up to Value. The program automatically displays a row for the and greater grouping when you initially select Add..

  4. Select Add Row to add the necessary number of rows for additional scenarios.
  5. Complete the following steps for each new row:
    1. Enter an Up to Value for each new row.
    2. For Simple Origination, enter the origination cost for simple loans.
    3. For Simple Service, enter the monthly servicing cost for simple loans.
    4. For Average Origination, enter the origination cost for loans of average complexity.
    5. For Average Service, enter the monthly servicing cost for loans of average complexity.
    6. For Complex Origination, enter the origination cost for complex loans.
    7. For Complex Service, enter the monthly servicing cost for complex loans.

    The values entered in these fields are used to calculate the expenses allocated to specific types of loans based on the loan balances and the complexity of the instruments. A user-defined value is not required for every field.

  6. Select Save.
The rows are automatically sorted in Up to Value order from the lowest to highest with the and greater row at the bottom of the page.
When additional work must be done on an existing expense set, you can select it from the list and make changes as needed.
Parent topic: Loan Applications Setup