NetLoan - Update Investor Ownership on Multiple Loans

Overview

When an investor sells their position or the ownership split is renegotiated across a group of servicer loans, updating each loan one at a time is impractical. The Bulk Investor Ownership Change page lets you apply a new ownership breakout to many servicer loans in a single submission, with one effective date, and review the results loan by loan afterward.

The page works in two modes. In the standard mode you enter one ownership breakout and it is applied identically to every loan you selected. In Single Owner Transfer mode you move each selected loan to one new owner at 100%, and each loan keeps its own interest rate. This is useful when transferring a group of loans that carry different rates.

Step-by-Step

Select the Loans to Update

1. Enter an Effective Date. This is required. Until you enter it, no loans load and the page displays "Enter an effective date above to load eligible loans." Only loans eligible for a change on that date appear. Loans are excluded if they were originated after the date, if they already have an ownership record starting on or after it, or if they have a distribution bill dated on or after it.
2. Narrow the list with any of the optional filters:
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   1. Borrower: the loan's borrower.
   2. Current Owner (Customer), Current Owner (Subsidiary), Current Owner (Vendor): loans currently owned by that entity. If you set more than one of these, a loan only matches when a single ownership record satisfies all of them.
   3. From Origination Date / To Origination Date: the loan's origination date range.
   4. Loan: a single specific loan.
   5. Loan Subsidiary: the loan's subsidiary.
3. Click Filter Results. Applying a filter clears any loans you had already selected, so apply your filters before selecting loans. If your account has auto-filtering enabled, this button is hidden and the list refreshes and clears your selections as soon as you change a filter value.
4. Check Select on each loan you want to update. The list shows 50 loans per page and your selections carry across pages. Use Mark All and Unmark All to select or clear everything on the current page.
5. As you select loans, review the Current Owner(s) column, which lists each active owner and their principal percentage, and the Ownership Change column, which shows when that loan's ownership was last transferred.
6. Click Next.

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Enter the New Ownership Breakout

The breakout you enter here replaces the existing ownership on every loan you selected. Prior ownership is not displayed and is not carried forward, so enter the complete new breakout from scratch.

1. Review the Selected Loans section at the top of the page. It confirms the effective date and lists each loan with its interest rate, so you can confirm the right loans are included before submitting.
2. In the New Ownership (Applied to All Selected Loans) sublist, add one line per owner.
3. Set Ownership Type first. Until you do, the owner fields, Principal %, and Interest Rateare all disabled. The type you choose determines which owner fields become available:
   1. Third Party enables Owner (Vendor) and Owner (Customer). Both are required.
   2. Servicer enables all three owner fields. Enter whichever fields identify the owner.
   3. Subsidiary enables Owner (Subsidiary) only, and it is required.
4. Enter the owner. Filling in one owner field auto-populates the related ones where they exist: entering a vendor fills in the related customer and vice versa, and entering a subsidiary fills in its representing customer and vendor.
5. Enter Principal %, this owner's share of principal.
6. Enter Interest Rate, the rate this owner earns. If every selected loan shares the same APR, this defaults to that rate when you pick the ownership type. If your selection mixes rates, the field is left blank for you to enter.
7. Check Total Principal % above the sublist. It recalculates each time you commit a line, and must reach exactly 100%.
8. Click Apply Ownership to Selected Loans.

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Transfer Loans to a Single New Owner

Use this mode when you are moving a group of loans to one new owner and the loans carry different interest rates. Each loan's new owner is created at 100% principal with that loan's own rate, so the spread is calculated correctly per loan.

1. On the loan selection page, click Switch to Single Owner Transfer.
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2. Enter the effective date, filter, and select loans as normal, then click Next.
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3. Enter a single ownership line. Only one line is allowed. Adding a second is blocked with "Single Owner Transfer applies one new owner to each selected loan. Only one ownership row is allowed."
4. Set the Ownership Type and the new owner. The Principal % column is disabled and set to 100, and there is no Interest Rate column since each loan's own rate is used.
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5. Click Apply Ownership to Selected Loans.

To go back to the standard mode, click Exit Single Owner Transfer. Selections are preserved when you toggle between modes.

Review the Results

Submitting schedules a background job and takes you to the results page.

1. Check the Status field. It reads PENDING while the job is queued, PROCESSING while it runs, and COMPLETE when finished. While the job is pending, the page confirms "The job has been scheduled. Please refresh periodically to see updated status."
2. Click Refresh to update the status. The button disappears once the job completes.
3. Review the Changelog Records sublist. There is one record per loan, showing which ownership records were ended and which were created. If any loan failed, the page displays "One or more ownership updates encountered errors. Review the changelog records below for details." Open the change log for that loan to see the specific error.

📷 Screenshot recommended: the results page at COMPLETE status showing the Changelog Records sublist with a mix of successful and errored loans.

Reverse an Ownership Change

If a submission was made in error, you can undo the entire run, including every loan in it, from the results page.

1. Return to the results page for that submission. The Reverse Ownership Changes button appears once the status is COMPLETE.
2. Click Reverse Ownership Changes.
3. Review the outcome message. On success the page confirms "Ownership changes have been reversed successfully." and the status changes to REVERSED.

Reversal deletes the ownership records that were created and reinstates the prior owners. A loan is skipped if a distribution bill or invoice already references its new ownership records, since billing has already been applied to that ownership. When that happens the page warns that some records could not be reversed, and directs you to the change log records to see which loans were reversed and which were not.

📷 Screenshot recommended: the results page with the Reverse Ownership Changes button visible at COMPLETE status.

Considerations

The same ownership breakout applies to every loan in the submission. Prior ownership is not shown, and whatever exists on each loan is replaced by what you enter, so loans that need different splits should be submitted in separate batches. Existing ownership records are never edited. Prior owners' records are end-dated the day before the effective date, and new records are created starting on it. The effective date must be on or after each loan's origination date and after the loan's most recent ownership start date and distribution bill date, since ownership cannot be backdated behind billing that has already been processed.

If any owner's interest rate differs from the loan's rate, the difference is the servicer's spread, and the Owner Interest Clearing, Servicing Revenue, and Servicing Expense accounts must be configured on the loan type before the change can be submitted. Ownership also drives downstream activity. Distribution billing prorates interest by the days each owner held the loan when ownership changes mid-period, and funding contribution expectations recalculate immediately after the change.

Related Articles

• NetLoan - Servicer Entity Type Loan Overview
• NetLoan - Set Up Ownership on a Servicer Loan
• NetLoan - Configure Global Settings and Loan Type for Servicer Loans
• NetLoan - Create a Servicer Loan
• NetLoan - Record Funding on a Servicer Loan
• NetLoan - Configure Servicing Spread Accounts on a Loan Type

Record Structure

NetLoan Investor Ownership

One record per owner per loan per date range. Created by this page; not edited directly.