Loan Origination Module
The loan origination module is at the core of the CarletonCalcs suite of modules and provides the most accurate computations for all types of consumer loans in the industry, with or without credit insurance. This module supports equal installment, balloon, single payment, interest only, constant principal reduction, irregular payments (skips and kicker), combination payment frequency, and many other options.
The leasing module computes the capitalized cost, residual value, monthly lease payments, including the state required sales tax and other items needed for Reg. M disclosures. The rent charge can be computed using a money factor, simple interest rate, or special method offered by the captive auto lenders.
The compliance module provides loan compliance verification and validation for direct and indirect lending loan portfolios to assure all calculated federal and state compliance requirements as well as established institutional guidelines are met. Compliance can be performed on all loan types supported in the loan origination module. Tolerances can be defined at the federal, state, and institutional level.
The mortgage module supports all mortgage loan types including fixed rate, adjustable rate, graduated payment adjustable rate, buy-downs, equal principal reduction, construction, and construction with Permanent Financing using monthly payments as well as other payment frequency payments. PMI and FHA insurance is also supported as part of the computations.
HOEPA/State Predatory Lending/HPML/Qualified Mortgage Module
The HOEPA module validates whether a closed-end real estate transaction has exceeded the points/fees and the APR thresholds, as outlined in Section 32 of Regulation Z. The module is flexible and can be set-up to validate both State and Federal Predatory lending restrictions. This module was recently update for the law changes effective January 10, 2014 specific to the HOEPA requirements where treasury rates are replaced by the Average Prime Offer Rates and the limits are now Total Amount of Loan.
Functions have also been added to determine if a loan is a High Priced Mortgage Loan (HPML) or if the loan is a Qualified Mortgage Loan.
Student Lending Module
The student lending module computes the federal student lending disclosures. Support includes computing interim (in-school and grace) payments or deferral, graduated repayment, and origination fee calculations. The module will also compute the "single yield rate" deductible charge as required by the IRS for the 1098-E disclosure.
Dealer Reserve Module
The dealer reserve module supports all methods commonly used including Interest at buy rate, direct ratio, Ohio regulated, interest comparative, present value, spread, and percentage of finance charge methods. This module can also compute the dealer and institution portions of the reserve based on several different configuration options.
APR Validation Module
The APR validation module will verify Truth-in-Lending APR values by the actuarial and/or U.S. rule methods as outlined in Regulation Z. The APR validation module can validate all transactions supported in the loan origination and Mortgage modules.
The amortization module can be used to compute an amortization schedule using the contract output data generated from the loan origination module. This module can also be used to compute a payoff balance on a pre-compute or interest-bearing basis.
Loan Servicing Modules
The payment-processing module will allocate a payment between interest, principal, late fees, deferment fees, and others as defined by the institution. The module calculates the remaining account balance and supports a number of widely used time-counting calendars and intermediate interest rounding methods.
The refund module will determine the refund of unearned interest, credit life premium , credit A&H premium, credit property, and/or credit IUI premium. The module supports all common refund methods such as Sum of the Digits (R78’s), Actuarial, Rule of Anticipation, Mean Between and Pro-rata.
The late charge module will compute late charges according to the rules defined by the institution. The module will support all the statutory requirements nationwide for late charges such as “the greater of 5 percent of the unpaid installment or $15” for all states.
The NSF (Non-Sufficient Funds) charge module will compute the NSF charge according to criteria defined by the institution.
The yield module will compute an effective rate of return based on user-defined criteria.
The deferral module will compute deferral charges by methods outlined by the institution and/or defined by state statutes nationwide. The data structure supports the different statutory requirements for deferral charges for all states.
The recasting module using the outstanding principal balance computes a new payment based on several properties passed to the module.This module is commonly used for loans subject to the Soldiers and Sailors Act where the loan payment is recalculated at a different interest rate. It can also be used for loss mitigation where after a loan is in default, the loan is recast at a different interest rate. This module can be customized to fit the needs of the individual institution.