Replacing LIBOR – Are you Thinking About This $200 Trillion Dollar Problem With Your Contracts?

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Darren Gold, VP at UnitedLex Corp., wrote an interesting article about the London Interbank Offer Rate (LIBOR) which is used all over the world as the reference for a great number of loan contracts.  The UK’s Financial Conduct Authority recently declared that it would no longer require banks to submit the data that enabled LIBOR to be calculated after the beginning of 2021.

Although there will be alternatives such as Secured Overnight Financing Rate (SOFR) in the USA and Sterling Overnight Index Average (SONIA) in the UK, this change does come with significant uncertainty and we must wonder what this will mean for current contracts and how they will be dealt with in the future.

Replacing LIBOR – Are you Thinking About This $200 Trillion Dollar Problem With Your Contracts?

Margill Webinar

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The Margill Team is proud to formally announce the release of Margill Loan Manager 4.4. It is a really impressive version with a host of new features.

Here are the six most important improvements:

  1. Blocking historical transactions
  2. Alerts: Use templates with merged data to send automatic emails and Mail to SMS to borrowers (example: upcoming payment alert and bounced payment alert)
  3. Great enhancement of the Document Merge tool to create contract templates, invoices and statements
  4. New Line Statuses: Interest Charged and Interest Paid
  5. Compulsory fields
  6. Pre-Authorized Payments (Perceptech-Acceo): Direct Management of Rejected Payments and Addition of Automatic Fees

A Webinar will be held Wednesday, December 19 at 11:00 AM Eastern time (North America).  You can join by following this link :  Margill Webinar

If you cannot attend or have missed it, you can still follow the same link and watch it.

See you there!

Margill Solutions – Top 10 Retail Banking Solution Providers of 2018 in Banking CIO Outlook

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The Margill team is proud to be one of the Top 10 Retail Banking Solution Providers of 2018 in Banking CIO Outlook magazine.

To help CIOs, CFOs, and CEOs find the right solutions for their retail banking initiatives, a distinguished panel comprising CEOs, CFOs, analysts, and Banking CIO Outlook’s editorial board has selected the top players of this select group.

Click here to access web site

You will also find, on page 28, an article about the company and its software.

Click here to access article

Source: Banking CIO Outlook, November 21, 2018 issue.

Predatory Lending Practices: How “Confession of judgment” documents turned New York’s court system into a debt-collection machine…

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How an obscure legal document called a “Confession of judgment” turned New York’s court system into a debt-collection machine that’s chewing up small businesses across America.

Source: Bloomberg, November 20, 2018
Story by Zachary R. Mider and Zeke Faux

Although not allowed in most states, a “confession of judgment” signed by the borrower allows a creditor, without proof, to accuse a borrower of not paying the expected monthly payment for example and then to legally seize their assets.

Read the full article at : www.bloomberg.com/graphics/2018-confessions-of-judgment

Margill wins the MercadOr Export Award

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Every year since 1999, the MercadOr award is presented to exporting companies in every region of the province of Quebec.  Six companies were awarded a MercadOr for the region of the Laurentians last October 11th (See article in French here). Among them, our company Jurismedia / Margill software was one of the finalists.  Marc Gélinas, president, accepted the award that highlights Margill’s international influence through digital strategies and also for its contribution to the economic development of the Laurentians.

On November 7th, 2018, the first provincial gala, named “Gala MercadOr Québec“, will be held.  Jurismedia / Margill is nominated for the award in the same category but at the provincial level.

We would like to take this opportunity to than Laurentides International for this recognition and also our loyal customers and collaborators, without whom, this would not have been possible.  This award is a result of the collective work of the whole Jurismedia / Margill team and we are very proud of it!

Jurismedia / Margill team

Early payoff – How to do this in Margill Loan Manager

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Q: How to do an early payoff in Margill Loan Manager

A: For example, the loan term was originally for 5 years or 60 months (so end date was in June 2020). The borrower calls you, the creditor, and wishes to payoff his/her loan early, on October 12, 2018.

Original payment schedule:

 

I first recommend to take a snapshot of the full 60 month payment schedule – this was we have an easy to consult original payment schedule. Click on “Attach”. A PDF will be attached to the Record.

Next change the date to October 12, change the payment to 0.00 so the payoff balance is now shown (64,297.75 in this case). Notice I also changed the 2018-11-01 payment date to 2018-10-13 to see my daily interest on the balance (4.92 per day).

Change the Payment to 64,297.75 (for Oct 12).

You can then delete the next lines that are no longer required (right mouse click).

You could also decide to add extra fees for an early payoff if the contract included this (use Column fees or Line status fees). This will increase the balance of course.

Also, you could create a special payment-type Line status to identify all your early payoffs. Could be interesting for your reports.

If the final payment is late, nothing stops you from changing this final date to enter the true payment date. Extra interest will accrue.

Welcome to our new clients!

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The Margill Team is proud to announce the addition of 2 new customers, one in the US and one in UK.  Please take a minute to visit their websites.

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The Sun Shines for Lenders – Solar Power in the Court of Appeal

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Summary: Canada Interest Act. This decision from the Ontario Court of Appeal shows the importance for lenders to state in their loan and promissory note documents, interest rates and even penalties on a annual basis, as opposed to daily or other equivalent interest rate.

Find out more here