Payment Distribution Waterfall
Accuracy and transparency. That’s what Pactola was seeking when their team went shopping for new loan management software.
Pactola, a Credit Union Service Organization that is dedicated to commercial and agricultural lending, is proud of its values of professionalism, integrity, innovation, and collaboration. It was important for their technology systems to deliver on those same promises.
“We were keeping records on separate excel sheets to check the core processing system we had because we did not trust in the system. We had to rely on support and other staff to help with accruals and payments of interest when we found a discrepancy. Sometimes it seemed like the blind leading the blind,” said Amanda Baldwin, credit analyst, Pactola. Their previous system couldn’t split a payment amongst participants accurately. Now, with the Nortridge Loan System, they can see the daily accruals as they add up, and payments are applied correctly across investors (participants).
In addition to inaccurate accounting for participations, their former system had a long list of other issues that made loan management difficult for the Pactola team. Loan onboarding was a lengthy process, taking up to 11 hours per loan when accounting for issues and support calls. Overall, the system was very cumbersome to use. Screens would appear after entering specific data points, and the user would have to go back to those screens to populate that data after they appeared. Also, the GL system was tough to navigate, loan modifications were nearly impossible to make, and reports were in a different system. On the support side, the company didn’t use ticket numbers, so there was no way to track the many issues Pactola reported.
“We needed something accurate first and foremost -- a system that was efficient and a system that was flexible with loans after closing,” said Amanda. Nortridge is the gold standard when it comes to accuracy and audit trail. Along with a participations module that allows for the correct distribution of payments in real-time, it’s easy to see why Pactola chose Nortridge.
We were keeping records on separate excel sheets to check the core processing system we had because we did not trust in the system. We had to rely on support and other staff to help with accruals and payments of interest when we found a discrepancy. Sometimes it seemed like the blind leading the blind.
Amanda BaldwinCredit Analyst, Pactola
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