How to Process a Funding with Release in TMO - instructions for Loan Servicing following a holdback release done by Accounting

This guide walks you through how to handle a loan holdback release on TMO. 

Loan Servicing will be notified of the total amount (including the service fee) that was released and the date.

Step 1: Create the Service Fee Charge in TMO

Before applying the release payment, create the charge in TMO:

Go to ASL Home and open the TMO Charge Creator.

Enter the borrower's Loan Number.

Click the Look Up button.

Set the Charge Date to match the day of the release.

Fill out the charge details:

Charge Type: Service Fee

Amount: $150.00

Description: Service Fee for Holdback Release

Click Create Charges.

✅ This will post the $150 fee on the borrower's Charges page in TMO and must be completed before applying the payment in the loan history.

Step 2:  Add Entry for the Release

Go to Loan History

Choose the Action button and “Add Funding”

Set the Reference to “Release.”

Include the full funding amount, including the $150 (e.g., if total is $5,150, input that full value).

For TMO Checking:

Use the pull-down menu and select None.

Leave the Funding Fee field blank.

This will be handled in a later step.

Click Next.

Uncheck the ACH box, and input the total amount.

This is the full amount you want the principal to increase by.

Click Next, then Apply to finalize this part.

Step 2: Add a Separate Entry for the Fee

Go to Loan History again

Open the Action Menu, select Other Cash from Borrower.

At the top:

Method: Select Other.

Reference: Enter Release.

Payment Code: Enter Release.

Date Received: Change this to match the date the release was processed.

Under “From Borrower,” input: $150.00.

Click Pay Charges.

Check the box for the Service Fee (the $150 charge).

Click Apply and Close.

Step 3: Review Loan History

You should now see two entries in the loan history:

Funding: Shows the full amount (e.g., $5,150), which increased the principal.

Release: The $150 is shown under Charges Principal.

This setup reflects that the borrower released funds:

The principal increased by the full amount.

The $150 went to charges, not principal payoff.

🏷️ Keywords:

funding, release, TMO, service fee, borrower cash, principal increase, ACH, loan history