Overview
This guide walks you through how to use the Funding Source form to create, modify, and manage Funding Sources with their associated Maturity Dates & Extensions. This functionality helps ensure accuracy and consistency across financial records by auto-calculating Maturity timelines and managing extension details across time.
Creating an Extension
Description
Users are able to model out available Extensions to loan terms when creating a new Debt Funding Source source on a Deal. When the Deal is being underwritten, the user can capture the terms of extending a loan, including the Extension test requirements for Maximum Loan to Value(Max LTV), Minimum Debt Yield (Min DY) and Minimum DSCR (Min DSCR).
Step-by-Step Instructions:
Create a new Funding Source
Navigate to the Dates & Fees section of the Funding Source and the ‘Permitted Extensions’ sub-section.
Add Extensions by hitting the ‘+New Extension’ button
Input extensions in sequential order (1st, 2nd, 3rd, etc.)
Note:
The system will automatically calculate Fully Extended Maturity Date and Current Maturity Date
(Optional) Capture how much the Extension Fee will be as an Amount or Percentage (%). Capture the Extension Tests of Max LTV, Min DY, and Min DSCR.
Save the Funding Source.
Executing an Extension
Description
Users are only able to execute Extension(s) from the Eyeball version of a Funding Source. When users ‘Execute’ an Extension, the system will apply the terms of that extension and automatically update the Current Maturity Date.
Step-by-Step Instructions:
Navigate to Capital Stack of a Deal
Click the eyeball icon on the Funding Source
Press ‘Execute’ in the Permitted Extensions section
Note:
Initial Maturity Date is required to execute the extension. If Initial Maturity Date is blank, you will need to create a Modification and add it. Follow the steps in ‘Modifying Extensions for an Existing Funding Source’ lower in this article.
Confirm the action by pressing ‘Execute Extension’
The Current Maturity Date will be automatically updated!
Modifying Extensions for an Existing Funding Source
Make updates to an existing Funding Source by adding or removing Extensions.
Step-by-Step Instructions:
Navigate to the Sources & Uses of the Deal
Press ‘+New Modification’ in the top right corner
Input a name for the Modification (i.e. ‘Updating Extensions’) and press ‘Confirm’
Press the blue ‘Edit’ icon in the top right corner of the Budget Modification workflow
Press the pencil ‘Edit’ icon in the bottom right corner for the Funding Source you are adding an Extension to
In the Dates & Fees section of the Funding Source, add the new Extension(s) by pressing ‘+ Add Extension’
Save the Funding Source
In the top right corner, Save the Modification
Press ‘Update Status’ and move the Modification to ‘Transferred’
FAQ
What is the purpose of the Funding Source form?
The Funding Source form is used to create, modify, and manage Funding Sources along with their associated Maturity Dates and Extensions, ensuring accuracy and consistency in financial records.
How can I create an Extension for a Debt Funding Source?
To create an Extension, you need to create a new Funding Source, navigate to the Dates & Fees section, and add Extensions by clicking the ‘+New Extension’ button.
Can I execute an Extension from any version of a Funding Source?
No, Extensions can only be executed from the Eyeball version of a Funding Source.
What happens when I execute an Extension?
When you execute an Extension, the system applies the terms of that extension and automatically updates the Current Maturity Date.
How do I modify Extensions for an existing Funding Source?
To modify Extensions, navigate to the Sources & Uses of the Deal, create a new Modification, and add or remove Extensions in the Dates & Fees section of the Funding Source.