FiServ

(Loan tracking)
BND IF3 File

Trust IF3 File

Setup the loan

Posts full payments

on lead banks account

(Lead bank credited

for PACE buy downs)

Setup Trust
General ledger

Setup DDA

Retail

Request Money Market

DDA Account setup

WebSphere
(file conversion)

PACE Setup & Operation Flow - Current

Setup

Operational

External

Lead Bank

Notifies BND of a PACE payment

Loan Operations

ACH file generated

and sent

Lending

LotusNotes
(PACE buy down
tracking)

Recreate schedule

Email Trust a list of payments made

Admin buy down

based on information
provided by loan ops
And run job to
Generate output

Setup buy down accounts

Import schedule

Lotus
1-2-3

Send MS Excel spreadsheet of

the amortization schedule

Trust
(Owner)

- The operational side is triggered when the lead bank makes a payment
- The payment is received by Loan Operations, who then posts the full payment to the loan tracking system
- Loan operations tracks which payments they need to notify Trust about so that the buy down can be processed later that day by Trust
- That afternoon, Loan Operations notifies Trust of any relevant payments to any of the PACE buy down accounts.
- Trust processes the provided list of payments within their tracking system and authorizes the buy downs based on the schedule
- Trust then triggers the PACE buy down tracking system job to produce ACH file output for the loan tracking system to consume
- The output of the existing system isnt in the correct format, therefore we have a conversion step to convert the files into IF3 format
- The IF3 files are ultimately sent to the loan tracking system so that the buy down accounts can be debited and the lead bank can be c redited
- The lead banks expects to be credited within the same day as the payment is posted unless an issue is found by Trust
- Note that the loan processing step happens immediately, but Trusts buy down processing is a separate independent process
- If Trust is unable to process the buy down for some reason, the lead bank will be debited the full amount until the buy down is processed
- Note that data flows from Trusts buy down tracking system to the loan tracking system but it is controlled by the Trust appr oval process

Operations Process

- Lending begins the process by setting up the new PACE loan in the loan tracking system
- Next they build an amortization schedule via MS Excel spreadsheet and send this information to the Trust department
- Trust, who is responsible for overseeing the buy down portion of the PACE account sets up the buy down tracking within their system
- As part of this setup, Trust must import the amortization schedule that was provided by lending
- The current solution cant import Excel files, therefore Trust must first convert the schedule to a Lotus-123 spreadsheet before importing
- As part of the account setup, Trust sets up a new general ledger for this account on BNDs loan tracking system
- Finally, Trust requests the Retail department to set up the appropriate Money Market DDA accounts for the buy down.
- The Retail department then sets up the appropriate DDA account in the loan tracking system
- Once all steps are complete the PACE tracking is setup in two systems.
- The loan tracking system, which tracks the actual loan and is managed by the Loan Operations department.
- The PACE buy down tracking system which is managed by the Trust department

Setup Process