Payment adjustments are used when a loan payment needs to be corrected but the original payment should not be edited directly. This usually happens after later loan activity has already depended on the original payment.

When To Use A Payment Adjustment

Use a payment adjustment when:

• The payment is locked because interest has already been applied after it.
• The payment came from legacy imported history and should not be overwritten.
• The payment posted through online payments and needs a refund, return, or correction trail.
• The payment affects a reporting period, payoff, escrow balance, or payment distribution that needs an audit trail.
• Finance staff need to preserve the original payment row and document the correction separately.

Do not create a second ordinary payment just to fix the first payment. That can double-count money and distort due amounts, balances, escrow, and reporting.

Direct Edit Versus Adjustment

Use direct edit only when CDM still allows the payment to be edited.

Use an adjustment when CDM blocks direct editing or when the correction needs a clear audit trail.

If you are not sure which path to use, review the Payment History row and confirm whether later interest, final payoff activity, online payment activity, or imported history is involved.

Before You Start

Confirm:

• The loan number and client are correct.
• The payment date and original payment amount you are correcting.
• Whether the correction affects principal, interest, fees, escrow, or more than one category.
• Whether the payment was an online payment, imported payment, backdated payment, or final payment.
• Whether finance has approved the correction if agency policy requires approval.