Loan Fees Recon by Borrower & Reimbursements

[Heather Boots]

We have recently started a project to determine the best, most efficient way to reconcile fees disclosed and charged to a borrower with those that are then paid to a third party by the company (specifically related to HELOCs). For example, flood determination fees, tax service fees, etc. The reconciliation must occur on the borrower level, as opposed to the general ledger level, as fees disclosed/charged to the borrower that are higher than those actually paid by the company to the third party vendor must be reimbursed to the borrower. The reconciliation is being done currently through a manual process using Microsoft Access, or the like, which is a very tedious process. Our group was wondering if the reconciliation could be done using JHA SilverLake Xperience instead.

We currently make entries to the HELOC when the loan is booked showing that the fee was collected from the borrower and then paid by the borrower. For instance, a tran code 204 might be the Flood Fee Collected and then a tran code 205 would be Flood Fee Paid. It would be great if there was a way to enter a specific fee on the loan level when we (GBCI) actually pay the invoice to the third party vendor. That way a report could be run showing the fee collected/paid by the borrower and then the fee paid to the vendor. Any funds collected from the borrower over the amount paid to the vendor would then show up on the report to be reimbursed to the borrower.

Are there any banks that have figured out a better way to do this?

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