In addition to the release notes for this feature, this article will show you how each box of the Funding & Revenue tab relates to how users will reconcile their Purchase Advices and Warehouse Bank Settlement statements when finalizing their loans.
Net Funding Calculations
Non-Del users will work directly with their warehouse bank to initiate funding for their loans based on the final CD that they may have generated within Arive (using DocMagic integration). Often times this information is entered into their warehouse lending system (WLS) to calculate the wire amounts from both the warehouse bank and the Non-Del (Non-del's portion is called the haircut). In Arive the user can enter the warehouse bank information to accurately calculate these funding wires.
In Arive the Net Funding Calculations are brought in from the "Review Fees" screen. If the box is checked for "WC" on the right side of the fees screen then the fee will be included in the Net Funding Calculation box in the Funding/Revenue screen. Any fee adjustments would need to be made in "Review Fees".
Purchase Advice
Once the funded date has been entered in Arive, the user will be able to click the checkbox for "Purchase Advice Received". This box will allow the user to reconcile the purchase advice received from the purchasing investor to the Funding/Revenue tab in Arive. Below matches each field in Arive to the corresponding items listed on the purchase advice. While each investor has their own purchase advice format, the information listed on these will generally be the same across the board.
Warehouse Bank Settlement Statement
Once the investor's wire is sent, the warehouse bank will receive a portion of that to payoff their advance and interest from the loan closing. Below is an example of this warehouse bank's settlement report and the warehouse bank settlement statement box in Arive. The "Advance Interest" is the warehouse bank's interest for the the number of days the loan was on the non-del company's warehouse line (credit line). This is different from the prepaid interest from the loan closing.
Loan Revenue Calculation
Once the above items have been completed most of the Loan Revenue Calculation items should fill in automatically. The "Reimbursements" are pulled in from the "Review Fees" screen (pass through fees). These are items paid up front by the non-del user and are also being charged to the borrower at closing to reimburse the non-del for these expenses. The user will check the "R" box on the "Review Fees" screen for these items and that will trigger the Loan Revenue Calculation to include them in the net revenue.
Unreimbursed Expenses would be any items that the Non-Del paid, but did not pass along the cost to the borrower.
