Automated Ledger for Loan Servicing | Loan Management

Introduction

Loan servicing is one of the most operationally complex functions in financial services. Every loan requires precise tracking of principal, interest, fees, and payments across its entire lifecycle, often spanning years. NAYA's programmable ledger automates the accounting logic that powers loan servicing, ensuring accuracy at scale while reducing operational overhead.

Whether you operate a consumer lending platform, a B2B financing company, or a lending-as-a-service infrastructure provider, NAYA provides the financial backbone that keeps your books accurate and your operations audit-ready.

The Problem

Legacy loan servicing platforms and manual processes create significant challenges for modern lenders:

Batch Processing Delays: Traditional systems process payments and adjustments in nightly batches. This means borrowers see outdated balances, and your customer service team cannot provide real-time information.

Interest Calculation Errors: Calculating accrued interest correctly, especially with variable rates, grace periods, and payment timing variations, is notoriously error-prone. Small miscalculations compound over the life of a loan and lead to regulatory issues.

Reconciliation Nightmares: Matching incoming payments from ACH, card networks, and wire transfers to specific loan accounts requires manual intervention. At scale, this becomes a full-time job for multiple team members.

Fee Management Complexity: Late fees, origination fees, prepayment penalties, and service charges each require distinct logic. Implementing and maintaining this logic in application code leads to bugs and inconsistencies.

Compliance Risk: Regulators require accurate and timely loan balance reporting. Errors in interest calculations or payment application can result in fines, borrower lawsuits, and reputational damage.

Portfolio Visibility Gaps: Aggregating data across thousands of loans to understand portfolio health, delinquency rates, and cash flow projections often requires manual spreadsheet work.

The NAYA Solution

NAYA addresses these challenges by providing a purpose-built ledger that understands the financial semantics of lending. Rather than storing loan data in application tables and calculating derived values on demand, NAYA maintains an authoritative, real-time ledger of every financial event.

Real-Time Balance Updates

When a payment arrives, NAYA instantly applies it to the correct loan account according to your configured waterfall logic (interest first, then principal, then fees). Borrowers and your team see accurate balances immediately, not the next business day.

Programmable Interest Accrual

Define your interest calculation rules once in NAYA's configuration. The system automatically accrues interest daily, handling complexities like day-count conventions (Actual/360, Actual/365, 30/360), compounding rules, and rate changes. No more custom cron jobs or batch processes.

Automated Fee Logic

Configure late fees, grace periods, and fee caps in NAYA's controls framework. When a payment misses its due date, NAYA automatically assesses the appropriate fee and creates the corresponding ledger entries.

Unified Payment Processing

NAYA's Data Hub ingests payment data from multiple sources, including ACH processors, card networks, and manual adjustments. The reconciliation engine automatically matches incoming funds to the correct loans, flagging exceptions for human review.

How It Works

1. Model Your Loan Products: Define account structures, interest rules, fee schedules, and payment waterfalls for each loan product. NAYA's configuration-driven approach means changes do not require code deployments.

2. Originate Loans: When a loan is originated in your LOS, NAYA creates the corresponding ledger accounts and books the disbursement. The amortization schedule is automatically generated based on your product configuration.

3. Process Payments Automatically: As payments arrive from your payment processor, NAYA applies them according to your business rules. Interest is recalculated, principal is reduced, and any fees are assessed or waived as configured.

4. Monitor and Report: Use NAYA's APIs to power borrower-facing balance displays, generate investor reports, and produce regulatory filings. All reports pull from the same authoritative ledger, ensuring consistency.

Key Benefits

• Eliminate Batch Delays: Borrowers see real-time balances, improving customer experience and reducing support inquiries.
• Reduce Interest Calculation Errors: Automated, tested interest logic eliminates manual calculation mistakes.
• Scale Without Adding Headcount: Automate payment application and fee assessment that would otherwise require manual processing.
• Accelerate Audit Preparation: Immutable ledger entries with full history make audit evidence readily available.
• Support Multiple Loan Types: Configure different products (installment loans, lines of credit, revenue-based financing) within the same platform.
• Improve Portfolio Analytics: Query the ledger to understand delinquency trends, prepayment rates, and cash flow projections in real-time.

Compliance & Reporting

Lenders face extensive regulatory requirements around accurate disclosure and fair lending practices. NAYA supports compliance through:

• TILA/Reg Z Compliance: Generate accurate APR disclosures based on actual ledger calculations.
• Loan Tape Generation: Export standardized loan tapes for warehouse lenders and securitization partners.
• Audit Trails: Every ledger entry is immutable and timestamped, providing complete history for regulators and auditors.
• State Reporting: Produce reports required by state regulators, including transaction histories and fee summaries.

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