Purchase Advice Form

1. Open a loan file, click the Tools tab, and then click Purchase Advice Form.

2. The Investor field and the Investor Loan Number will be populated from the Secondary Lock Tool.

3. In the First / Next Payment To field, select or type the name of the entity who will receive the first or next loan payment.

4. In the Next Payment Date field, type or select the date that the payment is due to the entity selected in the First/Next Payment To Field.

   • When a loan is locked, the entries for Sell Price, Sell Amount, SRP, and SRP Amount in the Expected column are populated based on the data entered in the Secondary Lock tool. Changing the Principal amount does not cause these fields to recalculate.

5. The Actual Principal amount populates into the Interim Servicing Worksheet.

   This amount does not have to be "zeroed out" on the Interim Servicing Worksheet.

6. In the Reconciliation Details section, click the Edit icon on the Interest row, and select the method for calculating interest based on the method used by the investor.

   • If a value is entered in the Interest or Sell Amount field, and the lock icon is selected, the fields are not overwritten by the system-calculated values when the Update Balances button is clicked.

   The interest will not be calculated until you click the Update Balances button (refer to Step 3 in the Enter actual amounts reconcile differences, and complete the form procedure below).

7. Use the 12 blank fields to enter payout details. For each payout, type a description. Then enter the expected value for the amounts paid by the investor.

   • You can select a predefined description from the dropdown list. These descriptions are created using the Purchase Advice Form setting.

   • To populate multiple payouts with a description and expected payout value, click Select Template, select a template, and then click Select.

   Note: On the Select Template window, select the checkbox to apply only fields from the template that contain a value. For example, if you manually enter values in all 12 payout lines, and then apply a template that has only 3 payout lines with values, the first 3 lines will be overwritten from the template and the last 9 lines will retain the information you manually entered. If you do not select the checkbox, the last 9 lines will be replaced by the blank values from the template.

After an investor purchases the loan, enter the amounts paid by the investor in the Actual column (in the summary and Reconciliation Details sections).

1. In the summary section at the top of the form, type or select the Purchase Advice Date provided by the investor.

2. If you need to edit the Investor field or the Investor Loan Number, type new content. You can also click the Address Book icon to select an investor from your business contacts.

3. In the First Payment to Investor field, type the date when the first payment is due to the investor.

4. Click the Update Balances button to update the Expected Principal, Expected Interest, and Expected Impounds.

   Note: These amounts will be updated even if interim servicing has not been started. If you click Update Balances after you start servicing a loan payment from the borrower, calculations on the Purchase Advice form will be updated using information from the Interim Servicing Worksheet and from the summary section at the top of this form. Any current escrow balance will also be updated on the Impounds line.

5. In the Actual Principal field, enter the principal balance due to the investor when the loan was purchased.

6. Enter the actual Sell Amount and SRP Amount in dollars, or select the Enter Pts checkbox and then enter the actual Sell Price and SRP in points.

   • When the checkbox is cleared, the Sell Price (field 3422) and the SRP (field 3426) cannot be edited. These fields are calculated when the user enters the Sell Amount (field 3424) and SRP Amount (field 3428) in the Actual column. 

   • When the checkbox is selected, the Sell Amount (field 3424) and SRP Amount (field 3428) fields in the Actual column cannot be edited. These fields are calculated when the user enters the Sell Price (field 3422) and the SRP (field 3426) in the Actual column.

7. In the Actual column in the Reconciliation section enter the values from the Purchase Advice from the investor.

   • Below the Total Amount line in the Reconciliation Details section, the Amount Due to, Amount Paid to, and Reconciled Difference fields should be blank. If not, the Amount Due to field indicates the amount due and whether it is due to the investor or lender.

   If the Amount Paid To and the Amount Due values are not equal, an alert is generated and the difference displays in the Reconciled Difference field. When the two values are balanced, the alert and the Reconciled Difference field are cleared.

8. If an amount is due, a payment must be made to the investor or lender. After the payment is received, enter the amount in the Amount Paid to field.

9. Enter notes in the Reconciliation Comments field.

10. The fields in the Difference column are calculated based on the entries in the Expected and Actual columns.

    • If you have serviced loan payments from the borrower prior to selling the loan, the Difference columns in the summary section will display the difference between the original payments expected from the investor (prior to servicing loan payments from the borrower) and the actual payments from the investor (after adjusting for servicing the loan payments from the borrower).

11. In the Confirmed By field, type the name of the person who completed the Purchase Advice form.

12. In the Date field, type or select the date when the form was completed.