Introduction to US Lending

The US Lending (USLEND) module tracks the financial system and the depositors' transactions. Some key features are given as follows:

It helps to identify the repayment amount of loan using Coupon Books.
It supports a cumulative report to perform batch processing during Close of Business (COB).
It allows the customer to pay a bank-set amount or percentage less than the billed amount.
It handles payoff difference.
It allows US banks’ customers to capture due dates on the payments made.
It establishes the initial USMB loan products of consumer loans and consumer lines of credit.

US Lending Model Products - SaaS

Temenos Transact has created a cloud-based SaaS (Software as a Service) version of its core banking platform. The previous, on-premises lending configurations/functions are being ported to the cloud more or less intact with no additional features at this time. The unsecured loan and line of credit products are the first to be introduced with their core functions unchanged from on-premises to cloud-based configurations. Additional features are added as needed.

Unsecured Consumer Loans Product

Characteristic	Attribute
Eligibility	Local residents above the age of majority are eligible for this product
Joint Accounts	No Restriction defined in the product
Available Currencies	USD
Term and Amount
Minimum Amount	Minimum amount of $100 is defined in the product
Maximum Amount	There is a maximum amount restriction, defined as $100000 in the product
Minimum Term	Minimum term of 3M is defined in the product
Maximum Term	Maximum term of 84M is defined in the product
Repayments
Repayment type	Payment type is defined as CONSTANT (Principal and Interest)
Repayment date and frequency	Repayment date is defined as every month nth day in the product
Repayment Settlement	Repayment settlement is set as current account of the customer in the bank
Overdue	10 – 29 Days > Loan Status is Current > Overdue fees applied. 30 – 59 Days > Loan status is 30 Days overdue 60 – 89 Days > Loan status is 60 Days overdue 90 – 119 Days > Loan status is 90 Days overdue and loan marked as non-accrual 120 days and more Loan status is 120 Days overdue and loan remains non-accrual
Overpayments	Overpayments are allowed for this product. Overpaid amount reduces the principal to that extent.
Interest
Principal Interest
Rate	Interest rate is set as fixed rate Minimum – No minimum p.a Maximum – 21% p.a with single tier without a margin
Day basis	Day basis – C 366 / 366
Accrual	Accrue rule is set as FIRST and exclude closure day
Fees & Charges
Late Payment Charge	Penalty for missed repayment is defined as 5% p.a. subject to a maximum of $25
Closure restrictions
Early Redemption	Early redemption is allowed with charge as defined in the product
Settlement
Payin and Payout Account	Define an account for the repayment to happen automatically or ACH
Alerts
Payment due bills in advance	Alerts sent 15 days before due date
Missed Payments	Alerts will be sent N days after a missed repayment
Closure	Lending account can be closed after eight days of zero balance
Payment Holiday	Payment Holiday allowed
Applicable Regulations	Truth in Lending Act TILA (Reg Z)
	Regulation AA / UCCC
	Periodic Statements
	Electronic Funds Transfer EFT (Reg E)
	Fair Credit Reporting Act FCRA (Reg V) - via Credit Bureau
	Equal Credit Opportunity Act ECOA - via Credit Bureau
	Loans to Insiders (Reg O)
	Servicemembers Civil Relief Act (SCRA)
	BSA / OFAC / USA Patriot Act
	Bankruptcy / Troubled Debt Restructure (TDR)

Unsecured Consumer LoC (Line of Credit) Product

Characteristic	Attribute
Eligibility	Local residents above the age of majority are eligible for this product
Joint Accounts	No Restriction defined in the product
Available Currencies	USD
Term and Amount
Minimum Amount	Minimum amount of $5000 is defined in the product
Maximum Amount	There is a maximum amount restriction, defined as $100000 in the product
Minimum Term	Minimum term of 12M is defined in the product
Maximum Term	Maximum term of 36M is defined in the product
Repayments
Repayment type	Payment type is defined as PRINCIPAL and INTEREST.ONLY respectively (3% of Principal payable and Interest)
Repayment date and frequency	Repayment date is defined as every month nth day in the product
Repayment Settlement	Repayment settlement is set as current account of the customer in the bank
Overdue	10 – 29 Days > Loan Status is Current > Overdue fees applied 30 – 59 Days > Loan status is 30 Days overdue 60 – 89 Days > Loan status is 60 Days overdue 90 – 119 Days > Loan status is 90 Days overdue and loan marked as non-accrual 120 days and more > Loan status is 120 Days overdue and loan remains non-accrual
Overpayments	Overpayments allowed for this product Overpaid amount will reduce the principal to that extent
Interest
Principal Interest
Rate	National prime rate such as WSJ prime rate
Day basis	Day basis – C 366 / 366
Accrual	Accrue rule is set as FIRST and exclude closure day
Fees & Charges
Annual Fee	Defined as a flat fee of $50 in the product
Late Payment Charge	Defined as a flat fee of $20 in the product
Non Usage Fee	Defined as 0.5% of unused amount
Closure restrictions
Early Redemption	Early redemption is allowed with charge as defined in the product
Settlement
Payin and Payout Account	Define an account for the repayment to happen automatically or ACH
Alerts
Payment due bills in advance	Bills produced 21 days after statement
Missed Payments	Alerts will be sent N days after a missed repayment
Closure	Lending account can be closed after eight days of zero balance
Applicable Regulations	Truth in Lending Act TILA (Reg Z)
	Regulation AA / UCCC
	Periodic Statements
	Electronic Funds Transfer EFT (Reg E)
	Fair Credit Reporting Act FCRA (Reg V) - via Credit Bureau
	Equal Credit Opportunity Act ECOA - via Credit Bureau
	Loans to Insiders (Reg O)
	Service members Civil Relief Act (SCRA)
	BSA / OFAC / USA Patriot Act
	Bankruptcy / Troubled Debt Restructure (TDR)

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