WARNING

Customers are wholly responsible for the format and wording of event letters. FPS GOLD does not guarantee that sample letters comply with regulatory agencies. See Setup Procedures for detailed instructions on how to create the letter in Microsoft Word and use the Mail Merge function to merge GOLD EventLetters-generated data with the letter.

NOTE

Unless you have manually requested the letter on the Letters & Actions tab, the letter number assigned by the system will always be 0 (default).

FQUICK TIP

If your institution has multiple versions of letters for certain events, you may want to save that information to the user-defined help. For example, your institution may have many different versions of the closed loan letter (Event 22), and you may want to create a different letter than the default letter (0). However, you can't remember which letter number should be used in which circumstance. You could save that information using user-defined help.

Complete the following steps to add user-defined help.

User-defined help is informational only.

1

no

up

no

yes

no

2

no

down

no

yes

no

3

no

up

yes

yes

no

4

no

down

yes

yes

no

6

no

down

no

no

no

7

no

down

yes

no

no

10

no

up

no

no

no

11

no

up

yes

no

no

17

no

up

yes

yes

yes

18

no

down

yes

yes

yes

19

no

up

yes

no

yes

20

no

down

yes

no

yes

34

no

down

yes

no

no

37

no

up/down

no

yes

yes (min/max)

38

no

up/down

no

no

yes (min/max)

40

no

up/down

yes

yes/no

yes/no

53

no

up/down

yes/no

yes/no

yes/no

Rate Sensitive Event

5

This event automatically produces an event letter when the loan rate changes on a payment method 5 or a payment method 6 (non-ARM loan).

Tax Payment Letter

13

This event record is generated when the system encounters tran codes 440 (escrow disbursement), 448 (escrow disbursement correction), 640 (reserve disbursement), and 648 (reserve disbursement correction) for a single, family-owned (collateral code 1-4), owner-occupied loan (LNOWNR is checked) for escrow/reserve disbursement codes.

Loan Payoff Event

14

This event record is not generated automatically. It must be requested. This letter can also be requested by using the Letter Date and Letter Number fields on the Loans > Account Information > Payoff screen. Only event letter number 14 can be requested from that screen.

LIP Billing Event

15

This event record is automatically generated when the Prior Unpaid Charges field on the Loans > Construction > Account Construction Detail screen is changed.

LIP Reminder Event

16

This event record is not generated automatically. It must be requested.

New Loan Event

21

This event record is generated when the system encounters tran code 680 (new loan). The origination officer's name and number are available for this letter.

Closed Loan Event

22

This event record is generated when the system encounters tran code 580 (close loan).

Delinquency Event

23

This event record is not generated automatically. It must be requested. The loan must be delinquent when this event is ordered or the letters will not generate. (The due date must be in the past.) Date and time of appointment can be set up in Action Code 210 and 211 on the Letters & Actions tab.

Specialty Request Letter

24

This is reserved for letters that are a special request of the institution.  This is the same as event 23, except the loan does not have to be delinquent.

Prenotification of Loan Maturity Letter

25

This letter can be generated any number of days before the maturity date. You must inform FPS GOLD of the number of days prior to maturity the letters should be generated. The system defaults to 120 days.

FPS GOLD Only: Set OPT7-MDYS to the desired number of days.

Loan Maturity Event Letter

26

This letter will be generated on the maturity date.

Loan Balloon Payment Letter

27

This letter will print when there is and action code 1 (Balloon Payment Due) on the loan. Action code 1 stops all activity on the loan. This letter can be generated from 1 to 99 days before the balloon date. You must inform FPS GOLD of the number of days (01–99) prior to the balloon date the letters should be generated.

FPS GOLD Only: The first two positions of the Miscellaneous Parameters field should contain the number of days (01-30) prior to the balloon date that event 27 should be generated. If left blank, then the letter will generate on the balloon date. The parameters are set up on the FPS GOLD > Report Setups > Loan Reports screen for the GOLD EventLetters Report (FPSRP175).

Beneficiary Statement

28

This letter is generated upon request from this screen; however, if no payoff record exists it will not be created. If you attempt to set up this letter, the system will first check to see if a payoff record exists. If it doesn't, you will receive the message "MUST CREATE PAYOFF RECORD FIRST." If it does, the letter will be created. You must lock in payoff, then unlock it (that creates the payoff record), then order event letter 28 on the Letters & Actions tab. Use the same date you used in the Letter Date field on the Loans > Account Information > Payoff screen.

Loan Sold Letter

29

This letter is generated when a loan is sold to allow you to inform all associated with the loan that it was sold. All information found on the Loans > Payee > Payee Information screen can be used to build this event letter. This event can be created with information regarding the company that disbursements are sent to. This event creates multiple letters; e.g., if you have three insurance companies set up, you will receive three separate letters. Institution option T EV29 will stop letters from being created for disbursement types 10 through 19 (taxes). If you would like this option, submit a work order. This event must be requested through a work order and set up manually.

Buydown Payment Change Letter

30

This letter is generated one month prior to the new subsidy effective date pulled from the Loans > Account Information > Escrow/Reserve > Escrow & Reserve Detail screen. Tracking subsidies is not currently available in CIM GOLD. Contact your FPS GOLD customer service representative for more information.

Buydown Expiration Letter

31

This letter is generated one month prior to the subsidy expiration date.

Insurance Letter (before expiration date)

32

This event will generate a letter to inform the customer that a disbursement item is about to expire. The letter will generate a specific number of days before the expiration date. Refer to events 39, 51, and 52.

Over Credit Limit Notification for Line-of-Credit Loans

33

This letter is generated when the credit limit for line-of-credit loans has been exceeded. This is for line-of-credit loans (payment method 5) only. Commercial line-of-credit loans (payment methods 9 and 10) will not generate this event. The letter will automatically be created when the date of the last transaction is today and the principal balance exceeds the credit limit.

Note: A letter will be created each time the date of the last transaction changes; this may result in more than one letter being created within several days. (The date of the last transaction is for monetary activity only.) The letter can also be ordered manually.

P/I Payment Changes Only Letter

34

All P/I change fields are checked for a change, and any change is reported on the letter. No rate changes are included in this letter.

FHA Loan Payoff Letter (Mortgages Insured on or after August 2, 1985, and Closed Before January 21, 2015)

35

This letter is sent once a year as required by the National Affordable Housing Act, section 329 and follows the format defined by HUD. In the afterhours on the date requested by the institution, the system automatically selects letter 35 or 36 using the Date Opened field on the Loans > Account Information > Account Detail screen, Origination tab. The letter prints the payoff amount, the fees pertaining to the payoff either as part of the total payoff amount or as a separate amount, and any requirements the borrower must fulfill to prevent accrual of interest on the mortgage loan after the pre-payment date.

To request this letter, submit a work order to FPS GOLD indicating the telephone number of your Loan Service Department for the borrower to call, the name and title of the employee who signs the letter, and how the payoff fees are disclosed. To manually generate this letter, set up the event on the Letters & Actions tab. The payoff is calculated to the end of the month following the date that the event letter is requested.

FHA Loan Payoff Letter (Mortgages Closed on or After January 21, 2015)

36

This letter is generated and calculated the same as event 35 with the following exceptions:

1.  This letter is for FHA loans closed on or after January 21, 2015.

2.  One of the following sentences can be printed on the letter specified by your institution:

Option 1: Otherwise, your prepayment will be refused until the next installment due date and interest will be charged to that date.

Option 2: Otherwise, you may be required to pay interest on the amount prepaid through the end of the month.

FPS GOLD ONLY:

Insurance Letter (on expiration date)

39

Event 39 is the same as event 32 with the exception that the letter generates the day the disbursement item expires.

This letter is automatically generated, and the following options must be set up:

Institution options RDEX and RDE2 store the disbursement types for which the bank would like letters to be automatically generated.

This event must be requested through a work order. Refer to events 32, 51, and 52.

P/I Payment Change Different than Rate Changes Letter (CNE040)

40

All P/I change fields are checked for a change, and any change is reported on the letter. The letter includes a summary of interest rate changes that have occurred since the last P/I change. This letter can only be generated if the Use Event Letter 40 field on the Loans > Account Information > ARM Information screen, Rate Caps & Negative Amortization tab displays a checkmark, the rate change frequency is not the same as the P/I payment change frequency, and you have requested the event letter by work order.

For example, if the next P/I change is on April 1, the last P/I change was April 1, and the interest rate does not change on April 1, the event letter will generate showing the next P/I change date and amount and all the rate changes since April 1.

Construction Rate and P/I Change Letter

41

Event 41 calculates the new P/I while the loan is still in the construction process. If the LIP method code is 1 or 101 and the loan fields on the Loans > Account Information > ARM Information screen call for a P/I change, the system will calculate the new loan accrual rate and P/I payment.

LIP Rate Change

42

Event 42 will generate an LIP rate change letter if the LIP (construction) rate changes are either based on a rate change date or for rate sensitive loans. This letter will only create if the LIP method code is 1 or 101.

Charge Interest on Negative Escrow/Reserves Billing

43

Event 43 will generate a billing letter for charging interest on negative escrow/reserves.

First Late Notice

44

Event 44 generates a letter for the first late notice. In order to generate late notices through the event letter system, the event number (44, 45, or 46) must be entered in the Notice 1 Type, Notice 2 Type, and Notice 3 Type fields on Loans > Account Information > Fees & Late Charges & Penalties screen, as well as the desired number of days.

Second Late Notice

45

Event 45 generates a letter for the second late notice. Also see the Past Due Notices help.

Third Late Notice

46

Event 46 generates a letter for the third late notice. Also see the Past Due Notices help.

Consumer Insurance Event

47

Event 47 will generate a letter anytime an insurance policy expires or a Force Place Insurance transaction (tran code 2870) is run.

Fee Assessment Notice

48

This event generates if a Miscellaneous Fee transaction or corresponding correction is processed on an account.

Valid transaction codes are:

 
Assess Misc. Fee—tran code 660/668
Waive Misc. Fee—tran code 670/678
Pay Misc. Fee—tran code 850/858

Fee Reminder Notice

49

This letter must be requested manually.

PMI Notice

50

This letter must be requested manually.

Insurance Letter (before expiration date)

51

This event will automatically generate letters for disbursement types 20-28 and 40-49 that will expire within 75 days. A separate letter is created for each disbursement item. Note: This event can also be manually requested within 75 days prior to the expiration date or any time after the expiration date.

Refer to events 32, 39, and 52.

Insurance Letter (after expiration date)

52

This event will automatically generate letters after the expiration date for disbursement types 20-28 and 40-49. A separate letter is created for each disbursement item. Note: This event can also be manually requested within 75 days prior to the expiration date or any time after the expiration date.  

Refer to events 32, 39, and 51.

ARM Loans Using the Base Index Rate

53

ARM event letter 53 will automatically generate for loans that have the Use this Base Index Rate option (LNBSIN) checked and that have an event that would trigger any of the following ARM event letters: 1, 2, 3, 4, 6, 7, 10, 11, 17, 18, 19, 20, 37, and 38. Instead of the normal event letter generating, it is switched to event 53. The triggering events need to be set up to be used in the institution’s options. Only letter 0 is available for use.

Change of Address

2040

It is important to note that the change of address event letter for loan accounts is generated in the Deposit Events system. All 2040 address change event letters, regardless of whether they are for deposits or loans, will be generated in the Deposit Events system. If a loan event letter is ordered, it will show on the history for the loan.

This event will generate a letter any time any part of the address mailing lines change for an open or closed deposit or loan account. If multiple accounts are tied to the same address, an event record will generate for the IRS owner tied to each account with that mailing address. One letter per IRS owner will be created. Letters should be sent to the "old" address (remember this when creating your mail merge document in Microsoft Word). The merge fields are as follows:

OLD_MAILING_LINE_1
OLD_MAILING_LINE_2
OLD_MAILING_LINE_3

The "new" address should be indicated in the body of the letter using the new mailing line merge fields. The merge fields are as follows:

NEW_MAILING_LINE_1
NEW_MAILING_LINE_2
NEW_MAILING_LINE_3

Only one account number for each IRS owner per address change will be available for the event, and all mailing address changes tied to deposit and loan accounts will be included.

For CIS clients, a letter will be created for the regular account address or the alternate address, whichever one is in effect at the time of the change.

In order for this event to generate for a loan account, you must checkmark the Address Change checkbox field on the Deposits > Definitions > Event Setup screen.

If you are already using the address change event letter, but want to add loan accounts, please send in a work order and the minimum one-time fee will be assessed. If you want to begin using the address event letter for the first time, send in a work order and a $450.00 one-time fee will be assessed for the use of this event. Be sure to indicate if you want loan accounts included.