User Interface

Front Office

When a rollover is requested by the borrower from his/her personal account, the loan receives a RolloverRequested status. The borrower can withdraw the request before it is processed. If rollover request is withdrawn, the loan’s status is changed back to its previous status (Active or PastDue).

There is a dedicated rollover request window on Front Office.

The borrower specifies the rollover term by either entering the number directly (for example, in days, weeks or months) or selecting the next payment date in the calendar date picker. New payment date is also displayed in the window.

If the specified rollover term is more than the Maximum Permissible Rollover Term or less the Minimum Permissible Rollover Term, the request cannot be submitted.

Back Office

Processing Rollover Requests

On the Servicing workplace, the user can filter the loans table to only display the loans with rollover requests. To do this, the Rollover Requests filter is used.

To process a request, the user clicks the Rollover button in the Loan Details window.

The Rollover window displays:

• Nearest Repayment Date – the date of issuing the rollover request;
• Rollover Term – the rollover term;
• Previous rollovers – the number of previous rollovers.

The user can change the requested rollover term, if necessary. 

The user can whether approve or reject the request.

1. When rollover request is approved:
   1. a confirmation notification is sent to the borrower;
   2. the Rollover procedure takes place (see Workflow);
   3. as a result of the Rollover procedure, the loan status is changed from RolloverRequested to Active or Past Due.
2. When rollover request is rejected:
   1. a rejection notification is sent to the borrower;
   2. the loan status is changed from RolloverRequested to Active or Past Due.

Rollover Initiation

Rollover can be initiated from Back Office, even if no prior rollover request has been issued in Front Office (for instance, the borrower might have requested a rollover by phone).

To initiate a rollover, press the Rollover button and then press OK in the Rollover window. This window is the same as in Processing Rollover Requests except for

• there is a single OK button instead of the Approve and Reject buttons;

• there is no information on rollover request from the borrower.

Rollover Term Selection

User can select rollover term in 2 ways:

• Specify a duration manually in the input box (e.g. 2 days, 3 weeks, 1 month)
• Select a desired date for the nearest payment from the calendar. In this case, in order to maintain consistency of the displayed form, the input box must display the duration in days between the current nearest due date and the selected date. For example, if the nearest due date is Nov-2 and user selected Nov-12 from the calendar, the input box should display the value of 10 days.

Workflow

1. FOI (First Open Installment) Due Date is shifted by the rollover term. As a result, the interval between the previous installment’s Due Date and the FOI Due Date increases.
2. The Due Dates of all the following installments are shifted by the rollover term (the payment intervals remain unchanged).
3. Accrued interest is applied to the FOI based on the loan’s Interest Rate. The interest is calculated for the period between:
   (1) the old FOI Due Date and (2) the new FOI Due Date.
4. A new record is added to the Balance Log with the amount of interest applied. Description: “Rollover Applied”.
5. For all reminders with the reminder period less that period between the current date and the new FOI Due Date 1) reminder date is shifted to the future by the rollover term 2) the record is deleted from the log that the reminder was sent.
   Example. It’s 2 days before the due date. The 5-day due date reminder and the 60-day due date reminder have been sent already. A rollover for 30 days is applied.
   Result. The 5-day reminder is updated; it will be sent again 27 days later (2 + 30 - 5 = 27). The record about the sent 5-day reminder is deleted from the log. The 60 day-reminder date is NOT updated.The record about the sent 60-day reminder is NOT deleted from the log.
6. The statuses of all installments are updated according to the new due dates.
7. The Outstanding Interest for FOI is updated (because of the increase in duration).
8. The loan status is updated (for instance, the loan status can change from PastDue to Active, if the old due date was in the past and the new due date is in the future).