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#239546 - 09/01/04 02:47 PM FIFO and LIFO late charges...
Anonymous
Unregistered

Our system calculates its late charges (for loan payments) on what it calls:
FIFO P&I
FIFO P&I & Escrow
LIFO P&I, etc. etc.

I have only heard of FIFO and LIFO used when speaking of inventory methods. Does anyone know or as has anyone heard of these types of calculations for late charges on loans??? Thanks.

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#239547 - 09/01/04 02:52 PM Re: FIFO and LIFO late charges...
Andy_Z Offline
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Andy_Z
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Late fee routines would be based on state laws. In some cases you may charge a late fee after "X" days of being past due. If all the payments are 29 days late and you may accrue the fee at 10, each is assessed a late fee. Some states though, require you to apply the payment to the last month that is still owed, not the first. This may mean that you get only one late fee. That would be my guess.
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#2281514 - 02/24/23 02:49 PM Re: FIFO and LIFO late charges... Anonymous
KarenK Offline
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Joined: May 2011
Posts: 22
PA
Do late charges LIFO - FIFO go off of where the property is located or where the bank/branch is located?

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#2281515 - 02/24/23 03:05 PM Re: FIFO and LIFO late charges... Anonymous
Dan Persfull Online
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Dan Persfull
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Posts: 47,517
Bloomington, IN
How late charges are accrued would be based on the state law that governs your legal contract.

In IN:

Late charge can be assessed when the payment is 10 days past due.

Payment due 3/1/23 - 3/11/23 no payment received - late charge assessed
Payment due 4/1/23 - no payment received in march - 1 payment paid on 4/8/23 - for late charge purpose that payment is considered for the 4/1/23 payment therefore it is not 10 days past due and you cannot assess a late charge. The 3/1/23 payment is still past due but you have already assessed the late charge for that payment.
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#2281633 - 02/27/23 08:56 PM Re: FIFO and LIFO late charges... Anonymous
John Burnett Offline
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John Burnett
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Posts: 40,086
Cape Cod
If there is a real estate mortgage as collateral, the limits are generally those of the state where the property is located.
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