How to Manually Update Loans from Interest-Only Calculation to Principal & Interest (P&I) Calculation

To update a loan that is currently set to Interest-Only calculation method to the Principal & Interest (P&I) calculation method, you will follow these steps:

1. Launch Tool # 20: Update Account Information
2. Enter the account base
3. Click the forward arrow
4. Select the desired loan account from the list
5. Click ‘Select’
6. On the Account Information Update screen, update the following fields:
   1. Amort/maturity date (located in the first column)
   2. Scheduled payment (located in the first column)
   3. Interest payment code (located in the second column) – remove the ‘I’ and leave the field blank (blank = quoted payment includes both principal and interest)
7. Click the Credit Reporting Information tab (located in the top right corner) and update the following fields:
   1. Credit bureau comments field - Lending staff will need to make the determination as to the correct credit bureau comment code, but it is most likely to be ‘CJ’
      • Click here for a list of Credit Bureau Comment Codes
   2. Status field – select the appropriate status code
      • Click here for a list of Credit Bureau Status Codes
   3. Click ‘Add/Update’ to save and return to the Account Information Update screen
   4. On the Account Information Update screen, click the forward arrow to save and return to the Existing Account Maintenance screen

Additionally, you can use Tool # 81: Loan Quoter to calculate the new P & I payment amount, using the current rate, current balance, date of last payment as disbursement date, and number of payments remaining for the repayment period.

Example of loan before changes: 

Example of loan after changes: