Loan Modification - Rate Decrease 

Loan Modification – Rate Decrease

New Loan Application Required – Pull Credit

This job aid is for when we are handling as a loan modification. This will sometimes be handled as a new loan if multiple changes occur. Underwriting will advise.

Loan Officer 

1. Submit New Application in MeridianLink to get approval on lower rate
2. Discuss new Rate/Payment with member
3. Make sure Keystone has the correct email address for all borrowers
4. If member wants to move forward, send Application to Processing Queue with the following comments for Loan Ops:
   • Sub Action Docs:
     • Signing Method –
     • New Rate –
     • New Payment –
     • How Loan Fee & Unpaid Interest will be paid –

• Funding Page:
  • Approved Amount: Bal + Interest Due (if including interest in loan)
  • Include DP if included on current loan
  • Loan Fee: Add if including in loan
  • Due Date: Enter due date on current loan

Loan Ops 

1. Create Subsequent Action Form and email to all borrowers
2. Once Subsequent Action Form is signed, perform loan maintenance in Keystone

• Open to the Relationship Tree and Left Click to Update Loan Record
  • At the bottom of the page click PROJECT
  • Click Project New
    • This will open a tab at the bottom that will allow you to see all of the details of the current loan before modifications
  • Under Main Options
    • Change Method to Maturity Date
    • Change Payment Amount to what calculated in Meridian Link
      • Make sure to calculate with current loan due date
  • Under Loan Subrecords
    • Right Click Interest Rate Change – Add Interest Rate Change
     
    • Interest Rate Change
      • Effective Date: Date we are making the change
      • Interest Rate: New Rate
      • Prior Interest Rate: Previous Rate (Can see in Background)
      • UPDATE
    
    
    
  • Click Project New
    • This will open a second tab showing the changes being made with the modification
    • Make sure that the maturity date is staying the same and the only changes being made are to the payment amount and interest rate
  • Click Modify Loan
    • Verify the Loan Before and After Modification Details 
    • Loan After the Modification will show the Payment change and Interest Rate at the bottom
   
  • Click Post Modification 
  • Payment Change and Interest Rate Change will show in Relationship Tree