After the loan is funded, it is either sold back to the MPL, sold to an investor (directly), sold to the MPL on behalf of an investor (indirectly), or retained by CRB.
When the loan completes the seasoning period it is Ready to Sell to the MPL or an investor. CRB produces a pre-purchase report, which is an invoice.
Pre-purchase report (invoice)
The pre-purchase reports are sent to the MPL or investors the day before sale. The invoice reports this:
- The list of the loans ready to be purchased
- The loans retained by the bank
- Accrued interest
- The volume fee (if relevant)
- The sum total of funds to be paid to CRB
The purchaser sends the funds to CRB on loan origination day, or in the case of an ACH transfer, the day before.
The sum of the funds equals the total amount of the loans + the accrued interest + any bank fees (if relevant).
Note: The pre-purchase reports are available at 0600 Eastern on the SFTP location provisioned by CRB at the following location: \Prod\MPL\DailyReports\PreLoanSaleReports\PreSale_LoanSales_PlatformName_yyyy-mm-dd.csv (comma delimiter)
Post-purchase report (receipt)
After the MPL or the investor funds CRB for the purchase, a post-purchase report, a receipt, is sent. The report confirms receipt of the funds and that the account has been reconciled.
The post-purchase reports contains this information:
- A list of the loans sold to them
- Fees and Interest paid to the bank.
Note: The post-purchase reports are made available immediately post sell on the SFTP location provisioned by CRB at the following location: \Prod\MPL\DailyReports\PostLoanSaleReports\PostSale_LoanSales_PlatformName_yyyy-mm-dd.csv (comma delimiter)
Accrued interest is the interest that accumulated on the loan since the loan was funded. So, for example, a loan for $12,000 was made at an interest rate of 24.99%. CRB holds the loan for 3 days before it is sold.
This information is required to calculate the accrued interest:
- $12,000 loan
- .2499 interest rate (in decimals)
- 365 (number of days in the year to calculate the amount of interest for each day of the year)
- 3 days (number of days that CRB held the loan)
The accrued interest for this loan is calculated as $12,000 times .2499 divided by 365 times 3.
The interest for each day is $8.22 and then multiplied by 3 (the number of days CRB held the loan). Total accrued interest: $24.65 in interest.
The volume fee, if relevant, is calculated based on the cost charged for loan origination and the volume of loans made over a specified amount of time. The volume fee is negotiated with all partners.
As a standard, CRB collects an origination/volume fee (paid by the MPL) at the time of funding.
Diagram of sales process
- At funding - estimated volume fee is collected
- Purchase = Par + accrued Interest
- Day - Calendar day. Purchases take place on the 1st business day following a 3-day seasoning period.
- If ACH is used for purchases, settlement is T+1. Wires settle the same day.
- Purchase account – A CRB account to be provided, post board approval. The Routing # is 021214891
- For MPLs - File name format: LoanSales_PlatformName_yyyymmdd.xlsx
- For Investors - File name format: LoanSales_InvestorName_yyyymmdd.xlsx
Updated 9 months ago