Entry: User, drop-down list
F/M: Yes
Mnemonic: LNHLD1, LNHLD2
Screen: Account Detail and several others
This field is used to enter a hold code. Use the icon to the right to select a hold code to indicate a restriction to the account. Two hold code fields are available, so you can enter one or two hold codes on each loan.
Some hold codes are reported to the credit bureau. Be sure to enter the most critical of the hold codes that are reported in the Hold Code 1 field, because the system stops checking for hold codes when the first hold code is found.
Late charges will be assessed regardless of the hold code.
Note: Institution option (OP05 LTBK) will stop the assessment of late charges on chapter 13 bankruptcy accounts (hold code 5).
The following hold codes are available for use.
CODE AND DESCRIPTION OF HOLD CODES
01*^ | Foreclosure completed (cannot override)—Stops late charge notices. Reported to credit bureau. |
02*^ | Charge-off (unpaid balance reported as loss by credit grantor) (cannot override)—Stops late charge notices. (Note: To stop late charges from assessing, be sure to change the general category code to 80-89.) An institution option, OP03 ACCO, is available which, when set, will allow a principal increase on charged-off loans. Institution option OP02 APCO allows the following transactions to be posted without an override: loan payment (tran code 600/608), waive late charge (tran code 570/578), pay late charge (tran code 550/558), waive miscellaneous fees (tran code 670/678), pay loan fee (tran code 850/858), VSI add (tran code 870/878), VSI cancel (tran code 890/898), assess miscellaneous fees (tran code 660/668), and autopayments. |
04*+ | Bankruptcy (Chapter 7, 11, or 12)—Stops late charge notices, still assesses (cannot override), stops auto payments. Sorts escrow analysis statements to the top. Institution option BKPM allows the following transactions to be posted without an override: payments (tran code 600/608), partial payments (tran code 510/518 to field 33), teller spread payments (tran code 690/698), waive late charge (tran code 570/578), pay late charge (tran code 550/558), waive miscellaneous fees (tran code 670/678), pay loan fee (tran code 850/858), VSI add (tran code 870/878), VSI cancel (tran code 890/898), assess miscellaneous fees (tran code 660/668), and autopayments. |
05*+ | Bankruptcy (Chapter 13)—Stops late charge notices, still assesses (cannot override), stops auto payments. Sorts escrow analysis statements to the top. Institution option BKPM allows the following transactions to be posted without an override: payments (tran code 600/608), partial payments (tran code 510/518 to field 33), teller spread payments (tran code 690/698), waive late charge (tran code 570/578), pay late charge (tran code 550/558), waive miscellaneous fees (tran code 670/678), pay loan fee (tran code 850/858), VSI add (tran code 870/878), VSI cancel (tran code 890/898), assess miscellaneous fees (tran code 660/668), and autopayments. Institution option OP05 LTBK will stop assessment of late charges on Chapter 13 bankruptcy accounts. |
06*^ | Deed in lieu of foreclosure—Shows on GNMA report as a finance charge (cannot override), stops auto payments. Stops late charge notices. Reported to credit bureau. |
07*+ | Legal hold (cannot override); foreclosure (7) FHLMC—1) Affects Freddie Mac inactive loans. This hold code automatically creates an action code 155 and action date on the Account Detail screen. The action date matches the date the hold code is entered. The date in the Action Date field needs to match the FHLMC inactivation date. This affects FHLMC loan level reporting. If there is an action date in the current investor cycle, then the FHLMC Loan Level Report will show one month's net interest. If there is an action date in the prior investor cycle, then the FHLMC Loan Level Report will show no net interest to be remitted. 2) Shows on GNMA, FHLMC Loan Level, and FHLMC Midanet reports as a foreclosure. 3) Allows late charges to assess. 4) Stops late charge notices. Note: Action code 155 and the action date need to be removed manually if foreclosure is canceled. 5) Stops auto payments. 6) For loans with this code, the Bill and Receipt statement (FPSRP294) can be prevented from being generated. (See FPSRP294 in the Loan Reports manual.) |
08 | Reinstatement plan in effect (supervisory override required)—Stops auto payments. |
09*+ | Legal hold (cannot override); foreclosure (9)—Stops late charge notices, still assesses, stops auto payments. Shows on GNMA report as a foreclosure. For loans with this code, the Bill and Receipt statement (FPSRP294) can be prevented from being generated. (See FPSRP294 in the Loan Reports manual.) Sorts escrow analysis statements to the top. |
11 | A message will appear on the screen at the time a transaction is performed. Refer to Collections/REO (cannot override). |
12 | LIP open for this account. |
14 | Escrow deficiency exists on this account (teller override required). |
15 | Escrow deficiency - loan servicing (no override). |
16 | Escrow deficiency - Insurance Department (cannot override). |
17 | Life insurance - stops payment of life insurance. |
18 | Property tax hold, will not allow property taxes to be paid from tax service tapes. (This has no effect on teller transactions.) |
19 | Unsecured student loan. |
20 | Refer late charge to loan department (teller override required). |
21 | Need federal ID or social security number (also see hold code 71). |
22 | Insurance loss claim on loan. |
23# | Prepayment penalty applies - 1 year (SOV required when more than the regular payment attempts to be posted. This hold code does not work with payment method 5, 9, or 10 loans, or LIP payment method 1 or 101.) |
24# | Prepayment penalty applies - 2 years (SOV required when more than the regular payment attempts to be posted. This hold code does not work with payment method 5, 9, or 10 loans, or LIP payment method 1 or 101.) |
25# | Prepayment penalty applies - 3 years (SOV required when more than the regular payment attempts to be posted. This hold code does not work with payment method 5, 9, or 10 loans, or LIP payment method 1 or 101.) |
26 | Do not report 1098 to IRS but do create a year-end statement. |
27+ | Loan in default (cannot override)—Stops auto payments. Stops auto payments and late charge notices, late charge notices, and escrow surplus checks. |
28 | Refer to loan service department (supervisory override required)—Auto payment etc. will not be stopped. Allows late charges to assess regardless of hold codes. |
29 | Refer to Comm/Cons loan department (supervisory override required)—Auto payment, etc. will not be stopped. Allows late charges to assess regardless of hold codes. |
33 | Payment deferred by law. |
37 | Loan with illegal assumption status (cannot override). |
39 | No annual statement or reporting to IRS—Will not create statements or report to IRS. |
40 | Graduated payment loan. |
43 | Do not print loan statement at year-end, but do report 1098 interest to IRS. |
44 | Report 1098 interest to IRS regardless of general category or collateral code. (Does not report if less than $600 unless Option R SKCK is set or the Report Interest Under $600 field is checked on the Loans > Account Information > Statistics & Year-to-Date screen.) |
47 | "SPECIAL PROCESSING REQUIRED." Teller override required to process payment or extra principal payment. |
48 | Loan to collect cash payment only (teller override required) (supervisory override required to process payment or extra principal payment). Stops auto payments. |
49 | Send no advertising or direct mail solicitations. |
50 | Pending modification request—You are responsible for the removal of the hold code after modification request processed or when it no longer applies. This code will not display at the teller station or require any overrides. |
51 | Modification request—Permanent code on loans that have been modified as to original terms (i.e., principal balance, loan maturity date, interest rate, payment method, etc.). This code will not display at the teller station or require any overrides. |
52 | Pending in-house refinance—You are responsible for the removal of the hold code after refinance completed or when it no longer applies. This code will not display at the teller station or require any overrides. |
60 | Account frozen (no override)—Stops all monetary transactions. In case of ACH transactions, the account will be displayed on the Afterhours Processing Exceptions Listing (FPSRP013). Does not stop assessment of late charges or notices. Does not affect investor reporting or credit bureau reporting. You are responsible for the removal of the hold code when it no longer applies. Message appears at teller station. |
61 | Lost Draft - verify check number (no override). |
69 | Officer/director loan. (On the CIS > Entity Maintenance screen, double-click on the person entity, then check the Bank Officer/Director field on the Person tab. ) |
70 | Employee loan. (On the CIS > Entity Maintenance screen, double-click on the person entity, then check the Bank Employee field on the Person tab. ) |
71 | Social security number verified—Needs to be verified, won't report to credit bureau (also see hold code 21). |
72 | Stops following transactions on LIP loans: 430, 431, and 500 (LIP method code must be greater than 0)—No TOV or SOC allowed. |
80 | GOLDPhone lockout—This stops a customer from accessing the loan account from GOLDPhone. Refer to Loans > Account Information > Billing & Coupons screen, Billing & Coupons tab, for more GOLDPhone fields. |
86 | Loan sold servicing released—Stops ARM rolls (cannot override). |
87 | Send prenote on loan auto-payment for ACH. |
88 | Issue check to cover loan auto-payment - never ACH. |
89 | Assumption in progress - (cannot override). |
90 | Judgment awarded. (Also see action code 99.) |
91* | Collection account (assigned to collection agency, lawyer, etc.)—Reported to credit bureau. |
92*^ | Voluntary surrender—Reported to credit bureau. Stops late charge notices. |
93*^ | Repossession by grantor—Reported to credit bureau. Stops late charge notices. |
94* | Paid account; a foreclosure was started—Reported to credit bureau. |
95* | Paid account; was a charge-off—Reported to credit bureau. |
96* | Paid account; was a collection—Reported to credit bureau. |
97* | Paid account; was a voluntary surrender—Reported to credit bureau. |
98* | Paid account; was a repossession—Reported to credit bureau. |
99* | Settled; account legally paid in full for less than full balance—Reported to credit bureau. |
* | In addition, you must enter action code 94 and a date on the Account Detail screen, Letters & Actions tab. |
+ | The system allows file maintenance for the Interest Rate field (LNRATE) on the Account Detail screen, Interest Detail tab, and the Current Rate field (LNAMRT) on Loans > Account Information > ARM Information screen, ARM Rates & P/I Tables tab, both online and in the afterhours. This is for payment method 7 loans and payment method 4 and 6 loans using the ARM fields (Use ARM Fields is checkmarked). |
# | There is an institution update option (65) that will automatically delete the applicable hold code at the end of the 1st, 2nd, or 3rd year. It runs daily. The system compares the Date Opened field to the processing date to determine if the hold code needs to be dropped. If you want this option, please send in a work order with your request. |
*^ | If you attempt to enter a general category of 80-89, the system will require that a charge-off date (Charged Off) be entered on the Account Detail screen, Valuation & Credit Risk tab, before allowing file maintenance. The charge-off date is used by both credit reporting and some regulatory reports. If a charge-off date has not been entered, those reports cannot determine when the charge-off occurred and when to report the charge-off. |
Note: To clear data from this field, double-click the blank line at the top of the dialog.