By default, the Basis source field on the Fee object allows for fees to be calculated as a percentage of which related Loan field?

The Basis source field on the Fee object is critical for determining how fees are calculated in relation to a loan. By default, this field is set to calculate fees as a percentage of the Original Amount field of the related Loan object. The Original Amount represents the total amount borrowed or the value of the loan at the time it was issued, which is a logical basis for calculating upfront fees.

Fees that are tied to the Original Amount ensure that the calculation remains consistent over the life of the loan, reflecting the initial loan value rather than variations that may occur over time, such as changes in the Current Balance or modifications in the Monthly Payment. Understanding this default configuration helps in accurately setting up fee structures in the commercial banking environment within nCino, ensuring that both financial institutions and their clients have clarity on fee calculations from the outset of loan agreements.