If a borrower lacks the required insurance and, as the lender, you need to obtain forced-placed insurance, you can use the steps below to add it as a fee. Note that increasing the loan balance may be restricted by the loan terms or prohibited in certain states. Ventures is working on future enhancements to offer more options. In the meantime, the following steps will help you manage this process effectively.

 

Step One

Create a Payment Fee Type for “Forced Placed Insurance”. You need an administrator account for this step.

 

• Click on the cog/gear wheel icon to access the administration section of Ventures.
• Click on Reference in the menu on the left of the administration section. A submenu will appear.
• In the submenu, click Payments, another submenu will appear.
• Click on Other Fee Types in the Payment submenu.
• Click Add. A pop up will appear.
• In the pop up fill in the name field with "Forced Placed Insurance".
• Fill in the description you can use "Forced Placed Insurance" again or choose a descriptor that will inform you that this option is used for Forced Placed Insurance.
• Ensure the Active checkbox is checked. 
• Click Save.

 

 

Step Two

The new fee created above will be grouped with other fees and allocated during the payment process. You need to set the order the fee will be allocated and processed during payment processing. This is done per loan type. Repeat the process below for every loan type you want to use the Forced Placed Insurance Type you created.  An administrator account is needed to carry out the following steps.

 

• Click on the cog/gear wheel icon to access the administration section of Ventures.
• Click on Reference in the menu on the left of the administration section. A submenu will appear.
• In the submenu, click Loan, another submenu will appear.
• Click on Loan Types in the Loan submenu.
• The Loan Types page will load. You will see a list of all Loan Types in your system. Click the Loan Type you would like to configure Forced Placed Insurance for. A pop up will appear.
• In the pop up click the Payment Settings Tab.
• On the Payment Settings tab. Select "NSF and Other Fees" in the field corresponding to the order you want the payment type to be processed. For example if you want it to be processed third, use the Apply 3rd field and select "NSF and Other Fees". The fee you created, Forced Placed Insurance is grouped under "Other fees".
• Ensure the order from first through fifth match your internal processes for how payments should be processed.
• Review the changes you have made then click Save.
• Repeat the steps above for each Loan Type you will use the Forced Placed Insurance cost type.

 

 

 

Step Three

 

Once you have set up the Cost Type and set the order the payments will be processed, you can add the Forced Plan Insurance Amount to a loan. The loan must be boarded in payments. You will do this by adding a transaction to capture the Forced Placed Insurance Amount. Once the transaction has been saved it will create the line item and show an increased total Amount Due but retaining the balance.  

 

In a loan boarded in Payments:

 

• Click on Payments in the Overview menu on the left.
• Click on Transactions.
• Click Add. A pop up will appear.
• In the Transaction Type field select Other Fee.
• Enter the Effective Date and the Amount in their Respective fields. 
• In the Type field, used the dropdown menu to select "Forced Placed Insurance"
• Enter a Reference or Comment if you wish.
• Review what you have entered and click Save

 

 

Once the transaction has been saved, it will create the line item and show an increased total Amount Due but retain the balance.

Note: The Fee Other Amount column as seen in the image below is not part of the default view for the table. To add the column:

• Click the gear wheel icon
• Select the "Fee Other Amount" option from the menu that appears. This will add the column to your table.

 

 

Step 4

 

It may be preferable to manage payments on these loans manually to allow for overriding payment allocations as needed. If the insurance amount should be repaid in a single payment, you can override the "Other Fees" field to reflect the full amount, with the other allocation fields adjusting accordingly. Similarly, if you do not want the payment applied to the insurance, you can remove any portion of the allocation assigned by the automated system. You must have added the fee to the loan as seen in Step 3 above.

 

In a loan boarded in Payments that has the fee added:

 

• Click on Payments in the Overview menu on the left.
• Click on Transactions.
• Click Add. A pop up will appear.
• In the Transaction Type field select Payment.
• Enter the Effective Date and the Amount Received in their Respective fields.
• In the Payment Allocation Section, enter the amount you want allocated to the insurance in the Other field. You will see a lock icon appear, this indicates that the default entry in that field was overridden. Remove any entries in the Other field if you do not want the payment applied to the insurance.
• Review what you have entered and click Save