FASB 91 Loan fee amortization software  

Financial Data Support Systems, Inc. 
Amortization Software for
Prepaid Expenses, Deferred Charges    
Deferred Income, Unearned Revenue
MBS, GNMA, LSBO Premiums, Discounts
   FASB 91 Loan Fees Income, Expense 
Merchant Cash Advances
Indirect Lending Dealer Fees
FASB 91 Products Page
Bond  Purchasers,  Level Yield Method
Bond Purchasers,  Straight Line Method
Bond Issuers, Level Yield or Straight Line
Excel Worksheet Amortization
Allocation to Cost and Profit Centers
Fixed Assets, FF&E Depreciation   
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FASB, GAAP compliance for
hundreds, thousands of loans
at the same time.





Operates on a PC or shared network




Custom services available




1-800-245-8444
     FASB 91 software.
     File calculation services.
     Custom coding.
 

FASB 91 amortization software for additional fees your servicing system can't manage



Operates on a PC or network sharing device.
     Import and amortize fees for dozens, hundreds, thousands of loans at the same time.
     Effective interest rate calculations for up to 4 income and expense fees per loan with "net" total for each loan.
              General ledger account numbers, subsidiary ledger and postings for each account.
     Monthly income and expense deferral recognition, P&L, balance sheet totals.
     Lifetime month-by-month audit amortization schedules for each fee.


Fixed rate, variable rate loans
     P&I loans
     Interest only
     Balloons with payment covering balloon term or longer period, such as 360 month P&I and 10 year balloon
     Constant principal amount payment such as $25,000 every quarter
     CPR - Conditional Prepayment Rate using declining balance %
     Straight line for non-FASB applicable loans
     Other user defined fee recognition methods

Hard to
find
accounting
solutions


























Audit and Exam schedules on demand











"Thank you so much for your help.
It’s so refreshing to talk to someone who understands!"

          California




"Our outside accountants just completed their audit.
This is the first year we've been using your software AND the first year we received a clean audit report."

          New York








Our clients needed a FASB 91 solution for ....


Additional fees per loan:
     Client's servicing system could only amortize one deferred fee per loan.
     Our FASB 91 software can calculate individual effective interest rates and recognize up to four (4) unique fees per loan.
     The software also provides individual lifetime month-by-month amortization and recognition audit schedules for each fee.
     Client utilizes our software to amortize the additional fees and account for general ledger P&L and Balance Sheet reporting plus journal entry support documents and postings.


New type of loan offering:
     Client was introducing a new loan product with repayment activity for which their loan servicing system was unable to comply with FASB 91 recognition in a timely manner.
     We modified our software to accommodate their operational and reporting requirements well before the first loan was put on the books.



Manually serviced loans:
     Client had a small portfolio of high balance, high rate, short term loans which were not on an automated servicing system.
     Loans had various conditions including interest calculations of both 360/360 and 365/360.  Many loans were short term balloons with P&I calculations over a longer term.
     Our software provided an solution to their FASB 91 reporting requirements which also met the approval of their outside auditors.



Due diligence, M&A:
     Client was a CPA firm verifying whether a commercial bank under acquisition had properly recorded loan fee recognition.
               As it turned out, the bank had been immediately recognizing income and expense for most loans.  No deferrals.
     Our software was able to recalculate deferred loan fees under FASB 91 and provide fee recognition, P&L and Balance Sheet totals for a specified look-back period.
     Services:
     Inasmuch as a short time frame was involved for completing this project, they sent loan files to us for processing and we returned desired reports in Excel including
     lifetime fee amortization and recognition schedules for selected loans.



Conversion to FASB 91:
     Client had been calculating loan fee income and expense recognition using the straight line method.
     Our software allowed the client to switch to FASB 91 recognition "as of" the end of their most recent fiscal year using remaining loan and deferral balances as of that point.
     The software also provided client the first year difference between FASB 91 vs. Straight Line by amortizing loans both ways for a 12 month period.



Cash payments vs. Accrued
     Client's loan servicing system recognized deferred fees with each cash payment.  Fee recognition did not sync with their monthly loan interest income which was cash plus accrued.
     Our FASB 91 software is an accrual based system which recognizes fee income and expense each month regardless of payment activity.



Capital management:
     Client loans had semi-annual and annual P&I payments.  Also had custom notes with fixed principal payments due at various times during the year.
     Our software was able to meet their their FASB 91 amortization and reporting requirements.



Independent comparison:
     Client was uncertain their service bureau was properly handling FASB 91 correctly for all of their loan types, some of which actually required a straight line method.
     They used our software to obtain parallel results, including straight line for applicable loans.



Special promotion:
     Client wanted to "test the waters" with an unusual product.
     Rather than incurring all the expense involved in changing FASB 91 recognition using their in-house system, they turned to us for an affordable, immediate resolution.



NDA confidentiality
In situations involving the exchange of confidential information, we will comply with
industry standard Non-Disclosure agreements and also provide a typical NDA which can be viewed here.












About the software


FASB 91 loan fee recognition and reporting for hundreds, thousands of loans
     •  Effective Interest Rate Calculation for all loans at the same time
     •  Up to 4 unique income/expense items per loan
     •  Amortize Income and Expense for any month
     •  Amortize using:
               Original principal balances, rates, fee amounts and dates or
               Current principal balances, rates and fee balances
     •  Deferred fee income and expense general ledger Balances
     •  Accumulated and Book Values
     •  Monthly Recognition and Totals
     •  Yearly recap (calendar or fiscal) Recognition and Totals including prior year(s) restatements
     •  Changes during term:
               Effective interest rate recalculation due to rate changes
               Accelerated (additional) recognition of deferral for paydowns, curtailments, payoffs
               Full recognition of deferral balance for early payoff
     •  Audit and exams:
               Month-by-month lifetime loan fee detail recognition schedules
    •  Reports:
               View on screen
               Send to local or network printer
               Send to Adobe pdf
               Send to Excel
 


Supports all of these fee recognition methods at the loan level:
  •  FASB 91 income, expense amortization over
          Actual loan terms
          Balloon terms - Interest only, P&I based on longer term, fixed principal reductions
          Average portfolio life
          Fee amortization periods reduced for other reasons
  •  Straight line for non-FASB applicable
  •  CPR - conditional prepayment rate, declining balance percentage
  •  Other user defined methods
 

Amortize deferred fee income and expense for
     •  Mortgage loans
     •  Consumer loans
     •  Commercial and other loans
     •  Secured, unsecured
     •  Purchased discounts/premiums at the individual loan level   at the package level
     •  Monthly, quarterly, semi-annual and annual payments
     •  P&I amortizing
     •  Interest only:
               As interest only and
               Interest with periodic principal payments of a constant amount (e.g., $25,000 every three months)
     •  Balloons:
               Interest only with a balloon
               P&I over balloon period
               P&I over longer term such as 5 year balloon with 30 year P&I
               P&I over average portfolio life
     •  Constant $Amount payment, such as lease payments
     •  % reduction of remaining principal balance, such as 8.3% of this month's balance, then 8.3% of next month's balance
               Typically for loan packages using a CPR (conditional prepayment rate)
     •  Fixed rate
     •  Zero rate
     •  Variable rate
     •  360, 365, 366, 365/360
     •  FASB, GAAP compliant
     •  Customization available  


Import and amortize loan fees from
     •  Core system, service bureau
               Download your loan file with current balances to the software each month
     •  Aires - credit union report
     •  Manually serviced loans
     •  Excel
               A preformatted worksheet comes with the software.
               Enter or copy loan data to the worksheet once and the system takes care of everything else
               or
               import the worksheet each month with current loan balances, rates, paid off loans, new loans ....
     •  Other files and sources
  


Accrual basis accounting
     •  Fee Recognition is NOT based on payment transactions
     •  Fee Recognition occurs every month regardless of whether a payment was made because
          interest income is accrued every month.
  













General ledger subsidiary account listing












Debit and credit recap











Available in 3 versions for PC and shared networks ....



Version 1 -  For loans with additional income and expense fees which can not be handled by a loan servicing system:
(typically for loan servicing systems that can only amortize a single fee or have no capability for dealing with FASB 91 fees)

Fees file:
     Place loan numbers, up to 4 fees per loan plus related general ledger account numbers into an Excel template that comes with the software.
     Use copy/paste.  Fill down.  Fill across.  Whatever is easiest for you.
     More than 4 fees?  The software supports multiple templates.
Download an extract file from your loan servicing system containing basic loan information.
The software will:
     Automatically import loans using file browse, open.
     Automatically import the Excel file with loan numbers and fees on its own.
     Match the Excel fees to imported loans.
     Calculate an effective interest rate for each fee for each loan.
     Amortize fee income and expense for a given month.
     Prepare a complete set of accounting and general ledger posting reports.

Mix and match:  Extract file can contain some fees and the Fees file more fees.

The software will automatically adjust for changes from a prior month to the current month.  Changes such as:
     •  Different interest rate. The system will calculate a new effective interest rate and, for amortizing loans
        a new P&I payment using current balance, current rate and remaining term.
     •  Reduced principal balance other than through normal P&I amortization, such as paydown curtailments.
        The system will accelerate deferral recognition by a proportionate amount.
     •  New loans during the current month. An effective interest rate will be calculated.
     •  Paid off loans, including those with principal that went to 0.00. The system will recognize deferral balance in full.
     •  Loans which may have just "gone away". Many times, paid off loans are purged from the servicing file only at year end.



Version 2 -  For all fees and loans on a loan servicing system:
(typically for loan fees that are in the servicing system but are not being amortized under FASB 91)

Download an extract file from your loan servicing system.
The software will:
     Automatically import loans and fees using file browse, open.
     Calculate an effective interest rate for each fee for each loan.
     Amortize fee income and expense for a given month.
     Prepare a complete set of accounting and general ledger posting reports.

The software will automatically adjust for changes from a prior month to the current month.  Changes such as:
     •  Different interest rate. The system will calculate a new effective interest rate and, for amortizing loans
        a new P&I payment using current balance, current rate and remaining term.
     •  Reduced principal balance other than through normal P&I amortization, such as paydown curtailments.
        The system will accelerate deferral recognition by a proportionate amount.
     •  New loans during the current month. An effective interest rate will be calculated.
     •  Paid off loans, including those with principal that went to 0.00. The system will recognize deferral balance in full.
     •  Loans which may have just "gone away". Many times, paid off loans are purged from the servicing file only at year end.




Version 3 -  For fees and even loans which are not not on a loan servicing system:
(typically for servicing systems that don't amortize fees or loans which are not on a servicing system)

A very simple way to resolve FASB 91 issues.
Place basic loan and fee information into an Excel template that comes with the software.
     Dozens of loans
     Hundreds, thousands of loans

The software will:
     Automatically import loans and fees using file browse, open.
     Calculate an effective interest rate for each fee for each loan.
     Amortize fee income and expense for a given month.
     Prepare a complete set of accounting and general ledger posting reports.

Amortize 1 to 4 income, expense fees per loan.
Easily adjust loans in the Excel file due to:
     Rate changes
     Paydown curtailments
     Early payoffs













Available for
     FASB 91 Prospective only or
     FASB 91 Prospective, Retrospective under ASC-310-20






1)  Prospective recognition
     Rate changes and balance paydown curtailments DO NOT re-amortize deferrals from begin date.
     If interest rate changes, calculate a new payment and effective interest rate for balance of term.
     If paydown curtailment, immediately recognize a percentage of the deferral calculated as curtailment/principal balance.
     Ex:  Principal balance = $80,000.00.  Paydown curtailment = $15,000.00.  Percentage = 15,000/80,000 = 18.75%.
            Deferral balance = $900.00.  Software will immediately recognize 18.75% of the $900.00 and take an additional $168.75 to income or expense in that month.


2)  Prospective and Retrospective recognition
     We also offer FASB 91 Prospective, Retrospective software where rate changes and paydown curtailments DO re-amortize deferrals from begin date.
     If interest rate changes, calculate new payment.  Calculate new effective interest rate from begin date for entire term using new cash flow due to P&I change for balance of term.
               Also calculate a Blended Rate and monthly interest at the Blended Rate for determining the new effective interest rate.
     If paydown curtailment or other principal anomalies, calculate a new effective interest rate rate from begin date for entire term using new cash flow.
     Re-amortize a deferral from the begin date through remainder of term utilizing newly calculated effective interest rate.
     Calculate an adjustment and include (+/-) in current month posting amount.









Original loan data or current balances
Calculate income and expense from
     •  Original payment dates forward
Or ....
     •  Preserve and amortize current balances
     •  Software will calculate remaining term and effective rate based on principal, note rate and payment
     •  No adjusting journal entries
     •  Start using FASB 91 today









About the software
  •  Written in Microsoft's .NET Framework
  •  Operates on any MS product line
  •  Install to PC or network sharing device










About our company
  •  In business since 1982
  •  Market niche is Amortization Software
  •  Added FASB 91 software in 1987
  •  On the Internet since 1995
  •  First page rankings on Google and Bing










FASB 91 amortization services
Need answers NOW?
Audit?  Due diligence?  What if question?
Income, expense projections?
Do what others have done:
  Send us a loan file   View our NDA
  Get fee recognition reports for
       Any month
       Range of months
       Any 12 month period
  More info  Support@fdssi.com  











                      CUSTOM SOFTWARE and FILE CALCULATION SERVICES


Unique situation?  Unusual records?  New type of fees?
Different file layout?  File source?
Special internal or regulatory report?

Different configurations of the software or other products we offer may already meet your needs.
If not, we can write custom code and embed your private module within the existing nuts and bolts portion of the software.
 











  Prices


Click to open and view Price page

Or contact us with any questions.
1-800-245-8444
Support@fdssi.com



 
FASB 91 Loan Fee Amortization Software for Windows® PC, laptop, workstation and network sharing by
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