California per Diem interest law provides that “interest may accrue on the business day immediately preceding the day of disbursement if the borrower affirmatively requests, and the lender agrees, that the disbursement will occur on Monday, or a day immediately following a bank holiday.” As a result, we are we are modifying our California Per Diem Interest Disclosure (Cx878) to enhance the functionality for the amount of interest paid in the section “I elect disbursement of my loan proceeds to occur on a Monday, or a business day immediately following a Bank Holiday and agree to pay additional interest in the amount of $___________ per day to close my loan on this day.”
We have created a new field 121988 “Imported Additional Per Diem Days of Interest Total Amount”, which will allow clients to populate the total dollar amount in the phrase “additional interest in the amount of $_____ to close my loan on this day.” If clients choose not to send a value for field 121988, they can send the number of days in field 55435 “Number of Additional Per Diem Days of Interest” (where ‘1’ is equal to 1 day, or interest per day *1, where ‘2’ is equal to 2 days, or interest per day * 2, and where ‘3’ is equal to 3 days, or interest per day *3), which will calculate the additional total interest. If client does not send either of these fields, then the existing logic of field 1004 “Interest Per Day Amount” will populate “the amount of $___________ per day to close my loan on this day.”
These changes will be in effect on June 21, 2018. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.