Payment Reversal Practice Lab

Center of Learning Excellence

Scenario Background

Test New 121 A customer requests that a recent principal curtailment be reversed and reapplied toward the current scheduled payment.

What to Consider

Whether a bankruptcy is active.
Whether a REVERS task is already active.
The payment date, amount, and current application of the funds.
Whether the transaction meets reversal eligibility requirements.
The information required to complete the reversal and reapplication request.
Whether the update has been completed and verified before responding.

At each decision point, select one response and review the feedback before continuing. You can review the customer's correspondence at any time using the button above.

DECISION 1 OF 5 0% complete

Case Summary

Case complete

5 of 5 decisions completed.

Decision Recap

Correspondence

To Whom It May Concern: I am writing regarding my mortgage account referenced above. Recently, I submitted an additional payment that was applied as a principal reduction. However, that was not my intention when I made the payment. I intended for the funds to be applied toward my regular monthly mortgage payment to satisfy the current installment due on the account. Therefore, I respectfully request that the recent principal payment be reallocated and applied to my regular mortgage payment instead. Please review the account and make the appropriate adjustment if eligible. If any additional information or documentation is required to process this request, please contact me using the information provided below. Thank you for your prompt attention to this matter. Sincerely, Customer Signature

Review Account Status

Loan1234567890

Bankruptcy StatusNo Active Bankruptcy

Customer RequestReverse principal curtailment and apply funds to the current scheduled payment.

What should be reviewed next?

Review TSK1 for an active REVERS task.

Correct. Since the account is not in active bankruptcy, continue evaluating the request.

Forward the request to Bankruptcy.

Incorrect. Bankruptcy review is not required when no active bankruptcy exists.

Check for Existing Processing

Bankruptcy StatusConfirmed Not Active

Open REVERS TaskNo

What action should be taken next?

Review P309 or SER1/HIST to evaluate the payment transaction.

Correct. The payment transaction must be reviewed before determining whether a reversal can be processed.

Close the request.

Incorrect. Additional research is required before a decision can be made.

Evaluate Reversal Eligibility

Payment Date08/15/2026

Amount$1,000.00

Current ApplicationPrincipal Curtailment

Age of Transaction29 Days

Is the transaction eligible for review and possible reversal?

Yes

Correct. The payment qualifies for reversal because it was made recently enough and is not restricted by prior-year principal payment rules.

Incorrect. The payment does not fall within an exclusion category and can be considered for reversal.

Determine the Reapplication Instructions

Customer RequestReverse $1,000.00 principal curtailment and apply the funds to the current scheduled payment.

What information must be included in the REVERS task?

Payment date, reversal amount, source balance, and destination balance.

Correct. Cashiering requires complete reversal and reapplication instructions to process the request accurately.

Customer name and loan number only.

Incorrect. Required transaction details are missing and the request cannot be completed.

Verify Processing Results

Original Principal CurtailmentReversed

Current Scheduled PaymentFunds Applied Successfully

Task StatusClosed

What should happen next?

Verify any needed fee or credit adjustments, document RESACT, and respond to the customer.

Correct. Successful completion must be verified before documenting the action and issuing a response.

Create another REVERS task.

Incorrect. The request has already been completed successfully and does not require duplicate processing.