Within the CLM system, there are 3 types of benefits that can potentially be applied to a loan:
Cancellation - a benefit where some percentage (up to 100%) of a loan's principal, interest, late charge, or collection cost balances can be cancelled (forgiven), thereby freeing the borrower from the obligation to repay the cancelled amounts.
Deferment - a benefit where the requirement to make a payment on the loan is suspended for a period of time.
Postponement - a benefit similar to a deferment, except that interest continues to accrue. The borrower has the option to make interest-only payments during the benefit period, but is not required to do so. Any unpaid accrued interest is added to the loan's principal balance.
Before a given benefit can be applied to a loan, the appropriate benefit code MUST appear in the benefit options list for the Note record that is associated with the loan. A user cannot apply a benefit to a loan unless the benefit code has been previously applied to the associated Note Type record benefit options list. Please refer to Note Maintenance for additional information on applying benefit codes to a Note Type record.
To apply a benefit to a loan, select the Benefits function from the drop-down box that appears in Navigation Bar. When the Benefits function is accessed, a pop-up window is displayed that presents a list of all Benefits that are applicable for at least one loan for the selected borrower:
The user selects the desired benefit by clicking on the appropriate Benefit in the picklist. When a benefit is selected, the Benefit Application window will be displayed as shown in this example:
Please note the Benefit Application window will list all loans for the borrower for which the selected Benefit is applicable. In the example above, the Rule UTL loan displays, however, the loan's checkbox is "grayed out". This means that the loan is eligible for the chosen Benefit but not with it's current enrolled (E) status.
The Benefit Application window format and function is dependent on the selected Benefit Type. Click on the following links for additional information about applying each benefit type: