Guarantee Fee Training Loans where no Guarantee Fee is Owed Changing the Fee Amount to Match the Fee actually Received

Loans where no Guarantee Fee is Owed When a loan is obligated in GLS, the system tries to determine if a fee is owed on the loan. It checks the information available, such as the Amount Refinanced, Interest Assistance, and the Beginning Farmer/Rancher Code; but in some cases (usually in relation to the down payment program) the system still thinks a fee is required when it shouldn’t be. These cases can be corrected when the Add Loan Closing transaction is processed in GLS. Form 2232, Conditional Commitment, will also need to be corrected because it will still pre-fill with a fee amount.

Initially the Add Loan Closing screen will display that a fee is due.

To correct the account, the Guarantee Fee Purpose Code should be changed from a 3 to a 7 (no fee) and the Fee Amount should be set to $0

The Guarantee Fee amount is prefilled but it can be changed to $0 The Guarantee Fee amount is prefilled but it can be changed to $0.00 before the form is printed or saved.

Loans where Guarantee Fee Received is Different than Fee Amount Owed GLS can accept guarantee fees +/- $10 from the actual amount calculated. However, in order for the fee to automatically match to the loan in GLS the cash received on ADPS has to match the amount on GLS exactly. If you accept a fee different than the amount calculated by GLS please update the amount received when inputting the Loan Closing transaction in GLS.

GLS initially calculated fee as Loan Amount. Guarantee %. 1. 5%

The Fee Amount may be changed to match the amount actually received from the lender as long as it is within $10 of the calculated amount.

After the Loan Closing is processed, the Loan View Screen will display the newly entered Fee Amount. This amount will automatically match with the Fee received and deposited through NRRS.

Other Corrections In addition to correcting the fee amount, when inputting the Loan Closing transaction in GLS there are other fields that can be corrected. Maturity Date – Even though the Repayment Period is entered on the Loan Guarantee Request (LGR), the Maturity Date on the Loan Closing is not restricted by this date. The Maturity Date can be entered as any date as long as it doesn’t exceed the Maximum term for that Loan Type (7 years for OL, 40 years for FO, and 20 years for Conservation). Interest Rate/Interest Rate Type will be prefilled on the Loan closing from the data entered on the LGR, but it may also be changed. Payment Frequency – This field is entered on the LGR but is not recorded on the Loan Closing. It is really not used for any reporting so there is no need to go back and make corrections to this field.

Questions?