Welcome TurnKey Lender v.7.10- The New Escrow Mechanism

The new escrow mechanism and the accounting add-on are the most consequential new business features in this release.

Let’s discuss the new features and what benefits a business can reap from its launch. Let’s have a recap from the video below and thereafter, its add-ons.

Quick and easy out-of-the-box solutions for lending accounting

• The inability to smoothly and efficiently integrate lending data with an accounting solution is a problem faced by all lenders. Accounting and finance teams can save countless hours of manual data entry thanks to the TurnKey Lender platform’s new add-on, which enables creditors to set up a fully automatic flow of structured accounting data from your loan management system into your Xero or QuickBooks.
• Creditors that use the TurnKey Lender platform now have a new option to cut down on operational costs and human mistakes while also benefiting from a vastly improved credit accounting experience thanks to the TurnKey Lender Accounting addon.
• The new solution syncs the data in the loan management system with accounting books, creating a sleek connection between the lending team and the accounting team. Since the add-on syncs data daily, it also makes it possible to maintain accurate accounting records at all times.
• Create a corresponding chart of accounts in the plugin, and benefit from daily updates to your accounting software. The following are all things the add-on facilitates out of the box.
• Determine what information is necessary from the books, then arrange the journals accordingly.
• Generate individualized Excel reports for usage outside of TurnKey Lender; Sync Accounts with Xero & QuickBooks (One-click synchronization; Ability to hide/unhide excessive Accounts); Every day, the records are transferred to your accounting software. Easily scalable to meet your growing needs.
• Simple accounting for income earned and money received.

Read: Unveiling The Indispensability: 5 Crucial Financial Reports For Your Company’s Success

Updated Reporting in Excel

• Use intelligent markers to get specific information in individualized reports.
• Professionals that use TurnKey Lender have grown fond of our Reports Builder because of how easily it allows them to tailor reports to the specific needs of their stakeholders, investors, and management.
• In this revision, they have made it simpler and faster than ever to mine valuable information from your infrastructure.
• While creating a custom report, you may now access all available smart markers in your system to selectively incorporate only the information you require.
• The ‘Create report template’ button in TurnKey Lender allows you to quickly and easily make new report templates. Template formatting is required for a presentable report, but users will appreciate how easy it is to acquire all the necessary markers with just a few mouse clicks.
• Put all of your paperwork in one convenient location.
• When a lengthy, sophisticated report that an officer or executive has been working on gets stuck during generation, everyone feels a little pressure.
• TurnKey Lender automates the report-generation process, saving the final products in a dedicated report repository for each user. In order to keep your repository from becoming too cluttered, they keep your reports there for 30 days.

Private lending collection

• Using the updated fee library function, you can avoid having your accounting software cluttered with ill-considered fee names.
• As an administrator, you will develop a set of fees that can be utilized across your company. All typical fee types are pre-implemented; all you need to do is adjust the finer point.
• You and your coworkers can pick and choose which fees to implement from a predetermined list. Fee management issues, which tend to increase as businesses expand, can be avoided and the smooth flow of payment and fee data into your accounting software is ensured.

Advances in the calculation of credit

• Customers adore TurnKey Lender because of the speed and adaptability of its Credit Product Builder. We’ve proceeded to strengthen it in v.7.10 by adding a number of widely used parameters and choices that will save our clients time during manual configuration.
• Credit products in various industries, including leasing, mortgage, healthcare, and many others, use ad hoc fees throughout the duration of the loan. This change makes it easy for lenders to charge a fee on an existing loan whenever it’s necessary.
• The charge can be included in the following payment, paid in full at once, added to the principal, or accounted for in another way. This function greatly reduces the potential for mistakes and streamlines the process of billing for unscheduled expenses like fines, parking fees, legal representation, additional services for leased equipment, etc.

Read: Understanding Financial Wellness: Top 15 Software Picks For 2023

Capabilities for Escrow

• The Escrow feature has been added to the TurnKey Lender Platform for usage by Lenders.
• An escrow agency can then hold onto the money until the terms of the transaction are met, at which point the money can be released to the primary party. In most cases, a mortgage lender will set up an escrow account to hold money for payments like property taxes and homeowner’s insurance.
• The functionality’s primary goal is to furnish a practical tool for making sure there are sufficient monies in the escrow account without placing undue financial strain on the borrower.
• There is no additional cost for the escrow service.
• The Lender is permitted to charge an escrow fee. For the first year, the fee is set in stone and subsequent years’ payments are determined by the escrow analysis. What matters is that the charge is built into the regular payments.
• The Borrower avoids any additional bother and helps keep the procedure running as smoothly as possible by including the required escrow fees in regular installments.
• It is simple to keep track of the money in your escrow account and use it to pay for things like insurance, property taxes, and home improvements.
• The Lender can monitor payments for the last period and schedule payments for the following period; the Borrower and the Lender can both track payments, see the state of the escrow account and view operation history.
• The monthly escrow payment is calculated based on the estimated amount and due date of future costs (such as annual tax and insurance premiums).
• A forecast of next year’s escrow balance can then be calculated. TurnKey Lender uses the projection to establish the required payment along the schedule such that there are sufficient funds in the escrow account to cover the costs of the payments at any given time. Money is being returned.
• In addition, the Borrower can have their money returned to them automatically if they have made an overpayment (see Settings Application process Escrow Min overpayment to return value).

Read: Understanding The Role Of Decentralized KYC Solutions For Today’s Businesses

Funds Returned After Cushion Calculation

• The system recalculates the amount of the funds required for the next year after performing a balanced analysis and creating a schedule, taking into account a “cushion” — the minimum amount that shall be available on the escrow account balance during the year, as determined by the client’s settings and a dedicated AI algorithm.
• If there is a shortfall, it is distributed among the monthly escrow payments (as stated in the part above), and if there is a surplus, it can be returned to the client if it is greater than a specified minimum value (Settings Application process Escrow Min overpayment to return value).

Enhanced Decision-Making Systems

• Environment of Choice
• A major shift in how decisions are made is the expanded explanation of the credit decision our Decision engine has reached for each individual application. You can examine the raw data that precipitated a particular alert.
• For a finer-grained comprehension of the borrower’s creditworthiness, new decision rules for Experian US, Flinks, and loan applications have been included.

Improvements to Bank Verification

• Lenders now have easier and safer access to the data they require thanks to enhancements made on the back end of the bank verification process.
• Loan applications that are submitted repeatedly; a scoring method; a valid time frame; and accounts to be analyzed.
• The ‘Verify Bank Account’ workflow phase is skipped automatically if a bank statement report is found to be accurate.

Rule 78

• TurnKey Lender customers can now access “pre-computed loans,” the pre-calculated credit products required by Rule 78.
• In order to maximize the return on investment for the lender, a bigger share of the interest is typically charged in the initial payments of a loan under Rule 78.
• Set the payment date to be either the first or last day of the installment in the Credit Product Builder’s Advanced options. Using the first day of the installment as the payment due date is a prevalent business strategy known as Annuity Due, which is widespread in several sectors.
• Rent, insurance premiums, car leasing payments, and annuity payments are all prominent types of recurring expenses. Regardless of the number of days in a given month, the installment date can be set to the final day of the month using the end-of-month due dates set.

Integrations

• The new accounting module is compatible with Quickbooks and Xero.
• It can now process payments in Canada more efficiently thanks to our new local integrations with Repay (Canada) and Zum Rails (Canada).

Read: How Can Banks Stay Competitive With A Secured IT Security Infrastructure?

Collection Agency

• Lenders will save money because to improvements made to automatic inquiries to the Credit Bureau. Soft and hard pulls on Transunion (Canada) have been simplified thanks to enhanced integration.
• You now have even more immediate information thanks to an expansion of the list of Flinks (bank statements) attributes this system interprets and employs in client risk analysis.
• An improved Experian (US) integration now alerts the lender if required reports are late. Since late reporting can result in penalties for the lender, this is of utmost importance.
• Finally, some more modifications have been implemented to further enhance our system’s already high quality.
• When it comes to verifying a user’s identity online, two-factor authentication is one of the most trusted and frequently adopted methods currently available. Because passwords alone aren’t enough protection in today’s world, borrowers and workers must also get a code via SMS or email in order to log in.
• The login and welcome pages can now each have their own unique image, allowing you to further personalize the theme.
• Alterations to the User Interface and User Experience
• There is a great need for numerous UI and UX enhancements to be developed in order to streamline loan administration, document production, and the setting of the platform’s architecture.

[To share your insights with us, please write to sghosh@martechseries.com]