TDR Tracking

Video Library Video Course Library TDR Tracking

This information provides technical guidance for configuring and utilizing the Troubled Debt Restructuring (TDR) Tracking feature within FLEX . TDR Tracking is an integral part of the Loan Modification functionality, designed to monitor delinquent loans for which a credit union has adjusted terms (e.g., reduced payments, lower interest rates, extended payment terms).

1. Overview of TDR Tracking

TDR Tracking enables credit unions to:

  • Track loans that have undergone modifications due to delinquency.
  • Monitor payment performance post-modification.
  • Generate reports on TDR loans, distinguishing between delinquent and non-delinquent statuses.

2. Configuration Requirements

TDR Tracking functionality requires configuration at two distinct levels:

2.1. Loan Type Configuration

This configuration enables the TDR functionality for specific loan types.

Navigation Path:

  • FLEX Main Menu > System Administration > General Configuration > Type Configuration

Steps:

  1. Navigate to Type Configuration.
  2. Select the Loan Types tab.
  3. Highlight the desired loan type from the list.
  4. Click the Edit button.
  5. Within the Edit Loan Type window, click the Loan Modification tab.
  6. Check the Allow Temporary Loan Modifications box.
  7. Click Save to apply the changes.

2.2. Individual Loan Maintenance Configuration

Once TDR Tracking is enabled at the loan type level, it must be activated for individual member loans.

Navigation Path:

  • Loan Maintenance (for a specific loan)

Steps:

  1. Open the relevant loan record in Loan Maintenance.
  2. A new TDR tab will become available (if Allow Temporary Loan Modifications was checked for the loan’s type).
  3. Click the TDR tab to access the Troubled Debt Restructuring section.

3. Managing TDR Records

Within the TDR tab in Loan Maintenance, you can add, edit, or delete TDR records for the individual loan.

3.1. Adding a New TDR Record

  1. From the TDR tab, click the Add button.
  2. The Add Troubled Debt Restructuring window will appear, categorized into three main sections:
    • TDR Dates:
      • Date Identified: Enter the original date the loan was identified for TDR.
      • Requester/Date: Enter the Teller ID and date of the TDR request.
      • Approver/Date: Enter the Teller ID and date of TDR approval.
    • Original Data (Prior TDR): This section auto-populates with information from Loan Maintenance. It’s crucial for historical tracking.
      • Payment: Original loan payment amount.
      • Partial Payment: Record any partial payment received.
      • Rate: Original loan interest rate.
      • Term: Original loan term.
      • Balance: Current loan balance.
      • Due Date: Next due date prior to TDR.
    • Conversion Data (If No History): This section is specifically for new credit unions converting to FLEX that have existing TDR tracking without prior FLEX history.
      • Beginning Due Date:
      • Consecutive Payments:
      • Payment Total:
    • TDR Notes: Enter any additional relevant information regarding the TDR record.
  1. Click Save (or equivalent button) to add the TDR record.

3.2. Editing or Deleting an Existing TDR Record

  1. From the TDR tab in Loan Maintenance, highlight the existing TDR record you wish to modify.
  2. Click Edit to open the Edit Troubled Debt Restructuring window and make necessary changes.
  3. Click Delete to remove the selected TDR record.

4. Post-TDR Modification

Once a TDR record has been added, any subsequent modifications to the loan terms (e.g., payment amount, rate) should be made directly within Loan Maintenance (outside the TDR tab, using the standard loan modification processes).

5. Reports

The FLEX system provides a dedicated report for TDR tracking.

5.1. Troubled Debt Restructuring Report

This report provides a comprehensive overview of TDR loans.

Access:

  • Typically found within the Reports section of the FLEX system.
  • Commonly integrated into end-of-day scripting for automated generation.

Parameters:

Users can fill out specific prompts to filter the report. Leaving parameters blank will result in a report listing ALL loans with a TDR record.

  • Effective Dt (for Delinquency): Enter the report effective date.
  • TDR From Date: Enter the beginning date range for TDR records.
  • TDR To Date: Enter the ending date range for TDR records.
  • Reset Consecutive Pmt Count: Enter Y or N to determine if loans with fewer than six consecutive payments will appear in the “Delinquent Loans” section.
  • Flag Loans within X Days of Maturity: Specify the number of days within maturity to flag loans on the report.

Report Sections:

The TDR report is divided into two primary sections:

  • Delinquent Loans:
    • Lists loan accounts that have not had six consecutive on-time payments since the TDR record was added.
  • Non-Delinquent Loans:
    • Lists loan accounts that have had six or more consecutive on-time payments since the TDR record was added.

5.2. Report Fields Explained

The TDR Report includes the following key data points for each loan:

  • Account: TDR account number.
  • Sfx: TDR loan suffix.
  • TDR Date: Original TDR date when entered into TDR Maintenance.
  • Dig Days: Number of days since the loan was entered into TDR Tracking.
  • Beginning Due Date: First due date after the loan was entered into TDR Tracking.
  • Con Pmt: Number of consecutive payments after the loan was entered into TDR Tracking.
  • Balance (Current): Current loan balance.
  • Rate (Current): Current loan rate.
  • Payment (Current): Current loan payment amount.
  • TDR Due Date: Due date if the loan had not been entered into TDR Tracking, plus payments applied since entering TDR Tracking.
  • Dlq Days: Current number of days delinquent if the loan were not in TDR Tracking.
  • Balance (Original): Balance at the time the loan was entered into TDR Tracking.
  • Rate (Original): Original loan interest rate.
  • Payment (Original): Original loan payment amount.
  • Due Date (Original): Loan due date at the time the loan was entered into TDR Maintenance.