For our clients who use Relationship Awareness, we will be updating the functionality of Scheduled Repays payment type to reflect the data provided.
Previously, we calculated an equal Payment Schedule for the Scheduled Repays payment type when the loan was processed in Relationship Awareness. Using the loans remaining Balance and remaining Maturity, the assumption PrecisionLender made was the loan would be paid off with a series of monthly and equal payments until the loan reached maturity.
Example of previously calculated schedule:
With this upcoming change, the repay schedule will be built from the provided Payment, Payment Frequency, and then calculated on the remaining Balance. Besides having a more accurate Payment Schedule, this will also help to communicate when there’s an early pay-off or a balloon payment associated with an account.
Example of new functionality:
If the payment amount is omitted, we will still assume an equal payment plan. You can see an example of that below:
Please note that this will not affect the behavior of the Scheduled Draws and Repays payment type.
If you have any questions about this upcoming change, please reach out to us at firstname.lastname@example.org.