We have recently switched to a new loan software. In our previous software, on a commerical line of credit, the flood certification fee was a financed fee but not a finance charge that affected the APR (if i understand this correctly). This new software forces the flood cert fee into prepaid finance charges the same as our life of loan fee, which would affect the APR (I think). However, on the commercial real estate loan the software allows us to put the flood cert. as a fee and the LOL fee as a prepaid.

Shouldn't we be able to do this on a commercial LOC? Or is it not necessary?

Please help!

Why would you care on a commercial line of credit. There is no APR on commercial loans.

Well I really don't know anything about commercial loans. So are you saying that there is no need to break down fees as finance charges or prepaids or otherwise. We just throw them all together. Our disbursement sheet prints an apr. so it doesn't matter if it's wrong? Or is there no such animal as an incorrect apr calculation on a commercial loan?

You system should not be calculating an APR or producing any such forms on a commercial purpose loan.