IBM E20-0043 Mortgage Loan Accounting free download

File name E20-0043_Mortgage_Loan_Accounting.pdf

MORTGAGE LOAN ACCOUNTING Progressive commercial banks, savings banks, savings and loan associations, mortgage servicing companies and insurance companies long have recognized the advantages of utilizing IBM Data Processing Systems for Mortgage Loan Accounting. The flexibility of the IBM Method permits the design of procedures to meet individual needs. For instance: A number of customers are using the IBM 557 Interpreter with Selective Line Printing to automatically print their Ledger Cards. Other customers use the IBM Balance Cards as their Ledger Records and periodically use them to list an Historical Record of transactions and balances by mortgagor. A copy of this listing, showing prinCipal, interest, escrow payments and escrow disburse- ments, mailed to the mortgagor at year end, eliminates inquiries for data to support income tax returns. The customer whose procedure is described in this book prepares his Ledger Cards on the IBM 954 Facsimile Posting Machine. On mortgage billing, the IBM Method is sufficiently flexible to be efficient whether a bill, a passbook, a coupon book or a receipt plan is utilized. The IBM prepared bill, on paper or an IBM card, is an extra dividend achieved through use of the IBM Data Processing Machines. In addition to the regular accounting functions, the use of IBM machines makes possible the preparation of special analyses for audit and management purposes. These analyses may take the follOwing suggested forms: mortgage property analysis by type of property, by location and type of mortgage, and by type of mortgage and amortization status. Installations of IBM Data Processing Systems are currently serving customers- whose portfolios vary from less than 2000 to over 100, 000 mortgages. 1 PROCEDURE The following is a brief description of the way in which one customer has met and solved his accounting requirements. NEW LOANS 1. Name and Address Cards. They are used in the printing of the mortgagor's name and address and the location of the property on the mortgage bills. These cards are filed in account number sequence for each day, period, and kind of mortgage, and are used repetitively in each billing period during the term of mortgage. C BlN NUMBER K RATE 013520811 451 P DAY II 10 III NAME .R .~ESS 846 MONTCLAIR