Manual Skip-a-Pay Processing

Payments can be skipped manually in CU*BASE for other types of loans that may not be appropriate for the credit union’s automated skip payment programs (such as mortgage loans or other 360-day loan products) that do not normally allow for shifts in the amortization schedule. 

These procedures are intended to be used ONLY after following your credit union’s procedures for member eligibility and other appropriate due diligence. This provides a way to shift payments to the end of the original loan term but remember that you will be forgoing the income for those missed months. 

• As an alternative, consider a true loan modification (Tool # 507: Member Refinances/Extensions) capitalizing the months of interest not being paid and any escrow not being received during the waived period.

The credit union must have an internal document for the member to sign requesting payment relief for manual Skip Pays. 

• The document should include how the member wants to deal with the escrow portion of the payment if applicable

Steps to Manually Skip-a-Pay

You will process manual Skip Pays using Tool # 20: Account Information Update. 

• This tool requires Tier 2 Maintenance authority under the Special Security settings for each employee.  

1. Launch Tool # 20

2. Enter the members account number

3. Click the forward arrow

4. Select the desired loan account 

5. Click Select

6. On the Account Information Update screen, update the following fields: 

7. Click the forward arrow to save and exit

Escrow Payments

If the loan payment includes deposits to an escrow account, the credit union should discuss with the member how to handle the missing escrow portion of the loan payment.

If no deposits are made to the escrow account an immediate shortage will be created for escrow portion of the payment. This shortage will be above the normal increase of bills already anticipated.

Options for handling the missing escrow deposits

1. Require the escrow amount outside of the skipped principal and interest portion of the payment
2. Allow member to make partial payments up until the next annual Escrow Analysis
3. Allow for the shortage and the member can decide how to handle the shortage with the next annual Escrow Analysis