Backdated Rate Changes – Incorrect Interest Accrual

[Becky Koster]

The interest accruals on our variable rate loans that have had a master index rate change are not calculating correctly when backdating or making adjustments over the index rate changes. For example, our master indices have changed effective 4/1, 7/1, 8/1, and 10/1 and when we backdate over those dates and make a rate change to a loan the accruals are incorrect. The show work option in LNIN 8 does not tie back to the correct accrual calculation. We are having to calculate manually all adjustments after the first rate is backdated. We have submitted a case to JHA and our CR (Connie Messer) suggested I check the Forum and see if any other users have experienced the same issue.

[Farmers and Merchants Bank Central California]

Hi Becky – Are you open to providing your contact information so someone on our side can speak with you? We want to ensure we are looking for this properly.

Let me know, thanks!

-Christian

[Author]

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