Auto calculation of source funds | Help Centre

[Saysa]

Available: Monday 08th November 2021
Jurisdictions: ALL
Applicable roles: Incoming Mortgagee

Overview

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Note: This feature will be available as part of PEXA Exchange Release 15.0.0, scheduled for release on Monday 08th November, 2021.

Financial Institutions in the role of the Incoming Mortgagee can now set up either their Purchasers Equity or Loan Proceeds source line items to automatically adjust to balance the Financial Settlement Schedule. This means Loan Proceeds or Purchasers Equity can be entered much earlier in the transaction as the Incoming Mortgagee can enter a maximum amount, sign the FSS and sit back while PEXA adjusts the amount to balance the schedule. 

Steps

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Enable auto balancing of source funds

1. Navigate to Administrator Tools > Maintain Auto Calculations.
2.  In the Auto-balancing of source funds section, make the following selections:
   • For Enable auto-balancing of source funds, select Yes.
   • For Categories applicable for auto-balancing of source funds, select your preferred option.
3. Save the changes.
   
   

Create auto balanced source line items

1. In the role of Incoming Mortgagee, go to your Workspace and navigate to the Settlement screen.
2. Create the source line item; choose one method:
   • On the Settlement Summary > Transfer Indicators panel, select Create Auto-balancing source, or
   • Select Sources > Add Source.

   The Add Source Financial Line Item screen displays.

3. Enter details for the source financial line item:
   1. For Category, select Loan Proceeds or Purchaser’s Equity.
      Note: You will notice that when you create a Loan Proceeds or Purchasers Equity line item, there is a new check box that indicates that this line item will auto-balance, and an indicator of the Funds required to balance.
   2. Enter a Maximum amount.
      Set a maximum amount that is higher than the Funds required to balance amount shown on this screen. The Workspace will auto balance unless this maximum amount is reached.
   3. Ensure the auto-balance check box is selected.
   4. Save the changes.

Auto balanced source line items are highlighted in green on the Sources tab. You’ll also notice that the amount is automatically adjusted to balance the FSS. This auto-balancing line item will remain green and auto balancing even as other Workspace participants enter their line items, as long as the funds required to settle does not exceed the maximum amount set.

Increase the auto balance maximum amount

If the maximum amount has been reached, the line item is highlighted in red to indicate it can no longer auto balance because additional source funds are required.

This can happen if the Incoming Proprietor completes their line items and either clicked on the Ready for Shortfall button or signed the FSS and additional source funds are required from the Incoming Mortgagee.

When this happens, you’ll be prompted to update the maximum amount. If you have previously signed the FSS it will be unsigned.

1. To update the line item, click Proceed.
2. Increase the maximum amount. Once additional source funds are added, then the line item will turn green again. 

Related articles

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• Financial Settlement Help Centre Articles