When adding a payment, there are several different payment types you can choose from under the 'Payment Info' section at the top of a payment.
There are 5 active payment types, one 1 payment type coming soon:
Regular Payment
Payoff
Other
Special Payment
To Borrower
Funding (coming soon)
Below, we'll explain the use cases for each of these payment types.
Regular Payment
Regular Payment is the payment type you'll want to use for all standard payments made against a loan by your borrower. The system will prompt you to collect regular payments from your borrowers as specified in your amortization schedule within your payments section.
After selecting regular payment, the system will automatically suggest the amount of your borrower's next interest payment, and will automatically suggest remaining interest payments on your schedule as the default distribution location.
You should also use the regular payment option for prepaid interest payments, once you've collected those payments from the borrower and funded a prepaid interest trust in the Baseline system.
Payoff
The payoff payment option is used when your borrower is paying off the balance of the loan and you're liquidating it. Similar to the functionality that exists with regular payments, the system will automatically calculate the payoff amount for you based on the payoff date you enter into 'received' under payment info, and will payoff the entire amount of all charges remaining on the loan. Once you have done this, the loan will be marked as liquidated and will be hidden by default from your Servicing>Loans section.
Other
The 'Other' payment option should be used in a few specific scenarios where you are collecting other monies from the borrower that aren't intended to move the loan and won't change the dates on that loan. Those scenarios include:
Funding a prepaid interest trust with the prepaid interest you collected at closing
Recording payments against the other charges you collect at closing.
Principal paydowns
Selecting the other option means the system will not apply the payment to your amortization schedule.
Special Payment
A special payment is used when you require control over the date to which the loan is 'Paid through', thereby impacting the amortization schedule. I.e. if you require a payment to cover only until April 12th instead of covering the standard full month of April. Some common use cases for this payment type include:
You're entering into a special agreement with the borrower to bring the loan current by paying down principal, interest or charges
Special situations where you need to combine the recording of multiple payments from a borrower
To Borrower
The 'To borrower' payment type is used to send any payment from a Trust account to the borrower without increasing the principal, interest balance or dates on the loan. The source can only be a trust, and the distribution can be set either towards the borrower or a charge.
Funding (Coming Soon)
The 'Funding' payment type will allow you to apply funding to your loan, with exactly the same functionality as the funding tab within the loan, but within the same location as you add your other payments. Once you record a 'funding' payment to your loan after creating your loan, it will then allow the principal to be recorded on your loan and allow you to start recording payments of other types.