The Insite Government Loan Accounting module assists bank staff with loan servicing responsibilities associated with government programs and helps automate the process.
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The Insite Government Loan Accounting (GLA) module is an add-on module that customers can easily add to the Insite Banking System core package. The GLA module was designed to assist bank staff with loan servicing responsibilities associated with government programs offered by entities such as the Federal National Mortgage Association (FNMA) and the Federal Home Loan
- Automates specific processing requirements associated with government programs
- Expedites the processing of large volumes of program loans
- Automatically calculates and posts appropriate payment allocations for principal and interest
- Segregates servicing income earned by the lender from funds collected for remittance program investors
The GLA Module was developed to provide our customers with a system tool to automate the specific processing requirements associated with FHLB’s Mortgage Partnership Finance® Program and the FNMA’s Affinity Partnership Program. These programs were designed specifically to couple the retail expertise of the community lender with the wholesale funding advantages associated with these programs’ sponsors. Both programs allow community bankers to expand customer relationships and revenue-generating potential. Under these programs, lenders continue to manage all aspects of the mortgage funding relationship instead of selling this servicing relationship to a secondary market service provider.
The GLA Module includes specially designed features to expedite the processing of large volumes of program loans and satisfy the rigorous loan servicing requirements. Both the FNMA and FHLB programs require monthly loan payments to be accounted for on a 30/360 basis with principal and interest allocated appropriately for the entire 30-day payment period. The GLA Module automatically calculates and posts the appropriate 30-day payment allocation for principal and interest regardless of whether the payment was received prior to or following the scheduled payment date. Transactions posted with transaction codes associated with the GLA Module are consistent with program requirements for treatment of curtailment payments, late charge collection, and pre-payments. The GLA Module also segregates servicing income earned by the lender from funds collected for remittance program investors.