If you're a bank or panel firm, you can now set your vendor surplus amount to be automatically calculated and adjusted. Turn this on and remove the rework on settlement day. No more final adjustments to vendor surplus amounts and re-signings. It will be done automatically for you.
Members can benefit from the following:
Enhanced experience through reduced re-work and re-signing.
Improved on-time settlements for Workspaces.
Reduced in-platform conversations between the Mortgagee on Title and Proprietor on Title.
Automatic calculation of the vendor surplus amount (driven by the Proprietor on Title).
After auto calculation is enabled, a Balance due to Vendor and Loan Payout amount must be entered into the Workspace to activate auto calculation.
Once the above two items have been entered, the auto calculation status changes from Pending to Active status. An Active state means auto calculation is activated and the Vendor’s Funds amount will be pre-populated on the Destinations tab and automatically adjusted as line items are added or updated.
You can identify the status of auto calculation based on the colour of the shading.
Auto calculation statuses
Auto calculation is enabled but Balance due to Vendor and Loan Payout amounts have not been entered.
Both the Balance Due to Vendor and Loan Payout amounts have been entered.
A Vendor Funds line item is created and pre-populated with the auto calculated vendor surplus amount.
What this means if you represent the Proprietor on Title
When the Mortgagee on title has enabled the auto calculation functionality within your Workspace but they have not yet entered their loan payout then the auto calculation is set in 'pending' status. A 'pending' status is indicated by yellow shading on the Financial Settlement Summary and destination line item.
When the Mortgagee on Title has entered a loan payout, auto calculation becomes 'active', you see the following areas of the Financial Settlement Summary and destination line item are shaded green. See example below
Ensuring the vendor surplus amount is correct
As Proprietor on Title, you’re responsible for ensuring that the vendor surplus amount is correct. You may create or update vendor line items as necessary; any vendor-related destination line item changes that impact the Vendor’s Funds amount is automatically adjusted based on the total funds available for disbursement for the Vendor.
One benefit of auto calculation is if changes are made to the Vendor's Funds amount after the Settlement Schedule has been signed off, it won’t unsign the Mortgagee on Title’s Settlement Schedule. This essentially removes the need for the bank to return to the Workspace to do additional re-work.