BHPH Loan Modification: How to Adjust and Recontract a Loan

IN THIS ARTICLE

• Starting a Loan Modification
• Completing Loan Modification Details
• Loan Modification with Side Notes
• Exploring the Loan Modification Tab
• Canceling a Loan Modification
• Viewing Loan Modification Reports

Starting a Loan Modification

To start a loan modification:

1. Open the customer's account.
2. Click on the Additional Actions menu at the top of the page.
3. Select the Loan Mod/Recontract option.
   
   
   
   

Completing Loan Modification Details

To complete the loan modification details:

1. Review the current loan details on the left side of the window, including Principal Balance, Total Balance, and Current APR.
2. On the right side, update the new loan details, including:
   • New Principal Balance, if applicable
   • New Fees or Add-On amounts
   • New APR, such as adjusting to 5% for military deployment
   • New Term, e.g., extending from 35 to 40 months
   • New Payment Frequency, if needed
3. Set the Modification Date, select the Reason for modification, and enter the First Payment Date. The system will adjust subsequent due dates accordingly.
4. Use the Notes field to provide context for the changes, such as "APR adjusted to 5% due to military deployment."
5. Carefully review all changes to ensure accuracy.
6. Once verified, click Modify to apply the updates.
   
   
   
   
7. Click Print Documents to generate and print the updated loan documents for record-keeping and customer review.
   
   

Loan Modification with Side Notes

If you have any active side notes on this loan, you will be notified that these will be canceled, as side notes cannot be included in a loan modification. If this is the case, you can cancel the existing side note and add it back to the account after modifying the loan terms.

Exploring the Loan Modification Tab

The Loan Modification tab provides a comprehensive summary of all changes made to the loan. This includes:

• Details of the previous and updated loan terms, such as APR, payment amounts, and term length.
• Timestamps indicating when modifications were applied.
• Reasons for the changes, as documented during the modification process.

Canceling a Loan Modification

If needed, you can cancel an active loan modification. To do this:

1. Navigate to the Loan Modification tab within the customer's account.
2. Select the Click to Cancel option.
3. Once canceled, the loan terms will revert to their original state, restoring previous values such as APR, principal balance, and payment schedule.

Viewing Loan Modification Reports

To view loan modification reports:

1. Navigate to Reports from the side menu.
   
   
   
   
2. Search for Amended Contracts to access a detailed report.
3. The report includes information such as previous and updated APR, terms, payment amounts, modification dates, and reasons for the changes.