Withdrawing or Reducing a Mortgage Loan 

Use

This function lets you discontinue processing of an application or contract offer before it is transferred into an offer or a contract. The loan is then removed from the normal loan process. Once you have withdrawn or reduced the application or contract offer, no changes can be made to it. If necessary, you can reactivate the application/contract offer.

You can use the Withdraw or Reduce function to withdraw the contract or contract offer from processing completely or reduce the amount to be processed.

If you withdraw the contract, the entire loan is removed from the normal loan process. Once you have withdrawn the contract offer or contract, no changes can be made to it. If necessary, you can reactivate the contract offer or contract.

If you carry out a reduction, only part of the disbursement amount can still be processed. If, of course, the loan was fully disbursed from the start (=100%), you can no longer carry out a reduction.

For more information, see Mortgage Loan: Processing .

Procedure

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       1.      Choose New Business ® Mortgage Loan ® Application/Contract Offer/Contract ® Withdraw or Reduce.

       2.      The Withdraw or Reduce Application/Contract Offer/Contract: Initial Screen appears.

       3.      Enter the Company Code and Loan Number. If you do not know the loan number, use the F4 help to search for the application/contract offer/contract using matchcode.

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                            a.      In the case of a contract offer or contract, you can choose between a Withdrawal and a Reduction.

If you choose Withdrawal, the Contract Offer/Contract Withdrawal or Reduction: Basic Data screen appears.

If you choose Reduction, the Contract Offer/Contract Withdrawal or Reduction: Basic Data Reduction screen appears.

                            b.      In the case of an application, the Delete Application: Basic Data screen appears when you enter the application to be withdrawn.

       4.      If you withdraw an application, contract offer, or contract, the basic data screen is divided as follows:

                            a.      At the top of the screen you see the general data relating to the loan. This data cannot be changed.

                            b.      Under General, you can enter the Non-Acceptance reason, the Date of the Rejection/Withdrawal or Reduction and the Deletion Indicator.

                            c.      In the area below, the system displays data such as the remaining Disbursement Obligation, the Commitment Capital for the contract and the Value-Dated Capital. This data cannot be changed.

                            d.      The change in status resulting from the withdrawal or reduction is displayed in the Status section. You cannot change the status setting.

       5.      If you choose Reduction for a contract offer or contract, you can enter the reduction amount and the date from which the change affects interest calculations on the Reduction Basic Data screen. This reduction appears automatically in the contract as a Capital Reduction condition item and also appears in the cash flow.

       6.      Choose Save. The application, contract offer or contract has the status Application / Contract Offer/ Contract Completed.