Maintaining Adjustable Rate Information
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The Adjustable Rate Information dialog box lets you add or maintain adjustable rate information for ARM loans. You can maintain:
- New rate and payment information
- Rate caps for loan life
- Rate change limit
- Annual rate caps
- Initial ARM disclosure information
To access the Adjustable Rate Information dialog box, under Member Services on the Portico Explorer Bar, click Account Information. The Overview tab appears on top. Click the Loans tab. Locate the member using the search tool on the top menu bar. Select the down arrow to select the search method, then enter the search criteria. Select the green arrow or press ENTER to locate the member.
Click the Select a Loan Account down arrow to select the loan note number and description. Then, click the green arrow. The General tab appears on top. Click the Interest/Charges tab. Click Adjustable Rate Information.
How do I? and Field Help
Complete the following fields to maintain the rate adjustment information for loans with rate option D or payment type 009.
| Field | Description |
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The original interest rate on the mortgage loan. The interest rate can be equal to or greater than zero but less than 36.500. Length: 6 numeric including decimal Keyword: OR |
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The maximum amount the interest rate can change in one year. The value can be defaulted from the Loan Profiles - Rate Information tab for the loan type. The beginning month for the year is defined by the Anniversary Month field. This field applies to any loan type with rate option D or payment type 009. The interest rate must be greater than 0.000 and less 36.500. The interest rate can be equal to 0.00 on the Loan Profiles - Rate Information tab. If the interest rate is 0.00 on the Loan Profiles - Rate Information tab, then a rate will be required as input on the New Loan - Rate Adjustment Information dialog box or the Adjustable Rate Information dialog box. When this field is modified on the Loan Profiles - Rate Information tab, it will be effective for new loans only. All existing loans with this type will not change. The information will need to be updated manually on the Adjustable Rate Information dialog box. When the Initialize check box is selected on the Loan Profiles - Rate Information tab for Variable Rate Index processing, the Annual Cap must be greater than 0.000. A value is required so the Portico can build the Adjustable Rate Information dialog box for any existing loans. Length: 6 numeric including decimal Keyword: AC Reporting Analytics: Annual Rate Cap (Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder) |
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The maximum percentage point(s) a loan's interest rate may be adjusted per rate change. The interest rate must be greater than zero but less than 36.500. This field will default from the % Limit Per Rate Change field on the Loan Profiles - Rate Information tab. 2.000 is the recommended default value. When this field is modified on the Loan Profiles - Rate Information tab, it will be effective for new loans only. All existing loans with this type will not change. The information will need to be updated manually on the Adjustable Rate Information dialog box. Length: 6 numeric including decimal Keyword: LR Reporting Analytics: Rate Chg Limit (Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder) |
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The highest interest rate allowed during the life of the loan. For loan types that are payment type 009 or the rate change option is D, the interest rate must be greater than zero, but less than 36.500. This field will default from the Maximum Rate field on the the Loan Profiles - Rate Information tab. 15.000 is the recommended default value. When this field is modified on the Loan Profiles - Rate Information tab for loan types that are payment type 009 or the rate change option is D, it will be effective for new loans only. All existing loans of this type will not change. The information will need to be updated manually on the Adjustable Rate Information dialog box. When this field is modified on the Loan Profiles - Rate Information tab for loan types with rate change option C, it will become the maximum interest rate limit for all existing loans of this type. When a rate change is performed in the back-office cycle, a loan's interest rate will not be changed to a value larger than the amount in the Maximum field, if the field has a value greater than zero. The maximum limit may be zero but less than 36.500. If the value is zero, a loan's interest rate may change to any value less than 36.500. Length: 6 numeric including decimal Keyword: MX Reporting Analytics: Max Int Rate (Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder) |
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The minimum interest rate allowed during the life of the loan. It must be less than the maximum interest rate allowed during the lifetime of the loan. For loan types that are payment type 009 or the rate change option is D, the interest rate must be greater than zero, but less than 36.500. This field will default from the Minimum Rate field on the Loan Profiles - Rate Information tab. 6.000 is the recommended default value. When this field is modified on the Loan Profiles - Rate Information tab for loan types that are payment type 009 or the rate change option is D, it will be effective for new loans only. All existing loans of this type will not change. The information will need to be updated manually on the Adjustable Rate Information dialog box. When this field is modified on the Loan Profiles - Rate Information tab for loan types with rate change option C, it will become the minimum interest rate limit for all existing loans of this type. When a rate change is performed in the back-office cycle, a loan's interest rate will not be changed to a value less than the amount in the Minimum field, if the field has a value greater than zero. The minimum limit may be zero but less than the maximum limit when the maximum limit is not zero. It also must be less than 36.500. If the value is zero, a loan's interest rate may change to any value less than 36.500. Length: 6 numeric including decimal Keyword: MN Reporting Analytics: Min Int Rate (Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder) |
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The month in which the loan's anniversary rate can be updated by the current rate. The month specified in this field is also the beginning month of the year for the annual cap edit. During month-end processing, Portico checks the Anniversary Month field to verify that the month shown is the next month. If the field displays the next month, Portico changes the rate in the Anniversary Rate field to the rate currently in effect for the loan, and increases the year in the Anniversary Year field by one year. This date is defined by the credit union, but must be in the future. This field applies only to loans with rate option D or loans with payment type 009. Length: 2 numeric Keyword: AM Reporting Analytics: Anniversary Date (Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder) |
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The year in which the loan's anniversary rate can be updated by the current rate. The month specified in the Anniversary Month field is also the beginning month of the year for the annual cap edit. During month-end processing, Portico checks the Anniversary Month field to verify that the month shown is the next month. If the field displays the next month, Portico changes the rate in the Anniversary Rate field to the rate currently in effect for the loan, and increases the year in the Anniversary Year field by one year. Length: 4 numeric Keyword: AY Reporting Analytics: Anniversary Date (Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder) |
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The interest rate that is in effect on the first day of the month entered in the Anniversary Month field. The interest rate can be equal to or greater than zero but less than 36.500. Length: 6 numeric including decimal Keyword: AR Reporting Analytics: Anniversary Rte (Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder) |
The following fields can only be maintained if the loan type is set up for Variable Rate Index Processing.
| Field | Description |
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The credit union-defined index rate code associated with the loan or loan type. This value is defaulted from the Loan Profiles - Rate Information tab for the loan type. No value (blank) in this field indicates that the loan type is not set up for Variable Rate Index Processing (System default). This is the index rate that will be used with the margin to determine if a member's interest rate should be changed. Length: 3 alphanumeric Keyword: RC Reporting Analytics: Index Rate Code (Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder) |
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The margin associated with the loan and/or loan type. This margin is used with the index rate to determine if a member’s interest rate will be changed as a result of Variable Rate Index Processing. This value is defaulted from the Loan Profiles - Rate Information tab for the loan type. The valid values are: 0.000 The rate used during the rate change process will be the index rate. System default. xx.xxx The rate used during the rate change process will be the index rate plus the margin xx.xxx- The rate used during the rate change process will be the index rate minus the margin. (Minus sign appears after the value.) Length: 7 numeric including decimal Keyword: RM Reporting Analytics: Index Rate Margin (Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder) |
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The frequency in months associated with the loan and/or loan type. This is the frequency that will be used to determine if a member’s rate is to be evaluated and changed as a result of Variable Rate Index Processing. This value is defaulted from the Loan Profiles - Rate Information tab for the loan type. The valid values are: 000 The loan type is not set up for Variable Rate Index Processing. System default. 001 – 999 The number of months used to determine the next date a loan is eligible for a rate change due to Variable Rate Index Processing. Length: 3 numeric Keyword: RQ Reporting Analytics: Index Rate Freq (Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder) |
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The number of days prior to the first of the month or the date in the Next Rate Change Eligibility Date field that will be used with Variable Rate Index Processing. This value indicates the number of days prior to the first of the month that a member’s loan will be evaluated to determine eligibility for a rate change that will be effective for the 1st of the month. This value is defaulted from the Loan Profiles - Rate Information tab for the loan type. The valid values are: 000 The loan type is not set up for Variable Rate Index Processing. System default. 001 – 120 The number of days prior to the first of the month or the date in the Next Rate Change Eligibility Date field that a loan will be evaluated. These values are for loans that do provide ARM Disclosure notices when the loan supports 365-day interest. Used by Variable Rate Index Processing. 001 – 90 The number of days prior to the date in the Next Rate Change Eligibility Date field that a loan will be evaluated. These values are for loans that do provide ARM Disclosure notices when the loan supports 360-day interest. Used by Variable Rate Index Processing. 001 – 031 The number of days prior to the date in the Next Rate Change Eligibility Date field that a loan will be evaluated. These values are for loans that support both 360 and 365-day interest and do not provide ARM Disclosure notices. Used by Variable Rate Index Processing. Note: When determining the value to enter in the Days field, keep in mind when you will be changing the index rate. If the index is changed on the same day the loan is evaluated as a result of the Days field value, then you may need to perform the index change on a weekend. We recommend that you change the index rate 4-5 days before loans are to be evaluated for a rate change (based on the Days field). This will help you avoid performing index rate changes on the weekend. If a loan is evaluated before the index rate is changed, you can perform maintenance to the Next field to cause the loan to be evaluated again. If the number of days is greater than the number of days in the month, then the rate will be evaluated on the 1st of the month. For example, in April, any loans with the Days field value of 31 or 30 will be evaluated on the 1st of April. Loans with the Days field value of 29 will be evaluated on the 2nd of April. Length: 3 numeric Keyword: RY Reporting Analytics: Index Rate Days (Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder) |
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The next date the loan is eligible for variable rate index processing. This date is always the 1st of the month. Click the down arrow to select the next eligible rate change date for the loan from the pop-up calendar or enter the date in MM/DD/YYYY format. The date must be entered in the Next field by the credit union or can be defaulted by Portico if the Original Next Date field is greater than 000 on the Loan Profiles - Rate Information tab for the loan type. The date must be greater than the system date. After the loan has been evaluated for a rate change, as determined by the value in the Days field, this date will automatically update based on the Frequency field even if no rate change occurred. If a loan needs to be re-evaluated for a rate change after the date has updated, you must manually change the date back.
Keyword: RN Reporting Analytics: Next Elig Rate Chg Date (Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder) |
The Disclosure Indicator field indicates if an initial disclosure was provided at loan booking or if the loan is exempt from all ARM disclosure notices (Reporting Analytics: Init Discl Ind - Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder). The Disclosure Date field indicates the date the initial disclosure was provided (Reporting Analytics: Init Discl Date - Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder). The valid values for the Disclosure Indicator field are:
- N - No disclosure provided. Leave the Disclosure Date field blank.
- A - Initial Disclosure provided with actual values. The Disclosure Date field should be the loan booking date.
- E - Disclosure provided with estimated values. The Disclosure Datefield should be the loan booking date.
- I – Initial disclosure not produced. The Disclosure Date field displays the back-office cycle date the initial disclosure was bypassed due to the production of a recurring rate change disclosure. Loan is reported on the corresponding 460 or 470 Report.
- U – Initial disclosure not required/conversion. This value is input by the credit union when the loan has already had a rate change. The Disclosure Date field may be entered, but is not required.
- B – Back office generated disclosure. The Disclosure Date field displays the back-office cycle date the initial disclosure was produced. Loan is reported on the corresponding 460 or 470 Report.
- X - Loan exempt from ARM disclosures. You can enter a date in the Disclosure Datefield, but it is not required.
If another initial disclosure should be produced for a loan, the Disclosure Indicator field should be changed to N and the Disclosure Date field cleared. Another initial disclosure will be produced if the loan meets the requirements. If an initial disclosure is required for a loan where the Disclosure Indicator field is U - Initial disclosure not required/conversion, change the field to N - No disclosure provided prior to the date in the Next Evaluation Eligibility field. Then, if a rate change should occur within the next 210 days, Portico will generate an Initial ARM Disclosure notice (467 Report) with estimated values, change the Disclosure Indicator field to B - Back office generated, and update the Disclosure Date field with the back-office cycle date. The loan will be reported in the Initial ARM Disclosures section on the Loan Payment Recalculation Report 460 (for payment type 007 loans with type 007 calculation option 6) or Adjustable Rate Mortgage Report 470 (for payment type 007 loans with type 007 calculation option 9). The Recurring ARM Disclosure notice (468 Report) will be provided the night the loan is actually evaluated for the rate change.
The fields in the Initial Disclosure Information group box can only be maintained if the Disclosure Indicator field is A. The value A indicates you have determined the actual values of the loans initial rate change and input the values for Portico to use during the rate change process.
| Field | Description |
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The pending rate change effective date provided on the disclosure given to the member at loan booking. This field only appears if the Disclosure Indicator field is A - Initial Disclosure provided with actual values, and the disclosure was provided by the credit union. |
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The recalculated payment amount that will be effective on the payment due date provided on the disclosure given to the member at loan booking. This field only appears if the Disclosure Indicator field is A - Initial Disclosure provided with actual values, and the disclosure was provided by the credit union. |
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The number of payments remaining after recalculation provided on the disclosure given to the member at loan booking. This field only appears if the Disclosure Indicator field is A - Initial Disclosure provided with actual values, and the disclosure was provided by the credit union. |
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The new rate that will be effective on the rate change effective date provided on the disclosure given to the member at loan booking. This field only appears if the Disclosure Indicator field is A - Initial Disclosure provided with actual values, and the disclosure was provided by the credit union. |
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The date that the new payment amount becomes effective, as provided on the disclosure given to the member at loan booking. This field only appears if the Disclosure Indicator field is A - Initial Disclosure provided with actual values, and the disclosure was provided by the credit union. |
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The balance used to determine the new payment and provided on the disclosure given to the member at loan booking. This field only appears if the Disclosure Indicator field is A - Initial Disclosure provided with actual values, and the disclosure was provided by the credit union. |
The Rate Change Eligibility Last field indicates the last date the loan was eligible to go through evaluation for variable rate index processing (Keyword: RL/Reporting Analytics: Last Elig Rate Chg Date - Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder). To determine when the loan is eligible for a rate change and when the loan will go through evaluation, Portico will use the Frequency and Days fields in the Variable Rate Index Parameters group box. The Frequency field is specified in number of months. The Days field indicates the number of days prior to the date in the Next Rate Change Eligibility field that a member's loan will be evaluated to determine if it is eligible for a rate change effective for the first of the next month. Portico counts backwards from the next rate change eligibility date, using the value in the Days field, to calculate the next evaluation eligibility date.
In the Evaluation group box, the Next field indicates the next date the loan will go through evaluation (Reporting Analytics: Next Eval Date - Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder). The date in the Next Evaluation field is determined by counting backwards from the date in the Next Rate Change Eligibility field using the number of days in the Days field. During the evaluation, Portico will determine if the loan rate and payment will change making it eligible for the Recurring ARM Disclosure notice (468 Report). The Last field indicates the date that the system last performed an evaluation on the loan to determine if a rate change should occur (Reporting Analytics: Last Eval Date - Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder).
The Last Actual Rate Change field indicates the last date when an actual rate change occurred on the loan due to Variable Rate Index Processing. The system default is 000000 when the Adjustable Rate Information dialog box is initially set up. The field will be automatically updated for the first time after the effective date of the rate change on the Adjustable Rate Information dialog box has passed. The Last Actual Rate Change Date field on the Adjustable Rate Information dialog box is not updated until the rate change actually occurs. In some cases, the Last Actual Rate Change Date will be blank if the loan was not eligible for a rate change, or was eligible for a rate change, but the rate did not change due to limits, etc. (Reporting Analytics: Last Rate Chg Date - Variable Rate folder in Loan Base subject in Loan folder and Variable Rate folder in ME Loan Base subject in Month-end Information\ Loan Month-end folder)
Example:
A new loan is booked using the following values on the New Loan – Rate Adjustment Information tab:
- In the Variable Rate Index Parameters group box, the Frequency field is quarterly (3) and the Days field is 30.
- The Last Rate Change Eligible Date field will default to blank.
- The Last Evaluation Date field will default to blank.
- The Next Rate Change Eligibility Date field is 1/01/17 (always on the 1st of month).
Portico will count backward 30 days to determine the Next Evaluation Eligibility Date field: 12/02/16.
Each night, the variable index rate process will review the Next Evaluation Eligibility Date field to determine if it is equal to or less than the back-office cycle date. If the Next Evaluation Eligibility Date field is equal to the back-office cycle date, Portico locates the index code and uses the index rate from the Index Rate Information window, and the margin, maximum rate, minimum rate, annual cap, and % limit per rate change from the Adjustable Rate Information dialog box to determine if a new rate will be applied to the loan.
After evaluation, the following dates are changed on the Adjustable Rate Information dialog box:
- The Next Rate Change Eligibility Date field becomes 4/01/17
- The Last Rate Change Eligible Date field becomes 1/01/17.
- The Next Evaluation Datefield becomes 1/31/17.
- The Last Evaluation Date field becomes 12/02/16.
Once a loan is booked, you can view the pending rate changes in the Pending Rate Changes grid. If the loan is tied to an index rate, you may also provide ARM Disclosure notices (467 and 468 Reports). If ARM Disclosure notices are provided, up to 6 pending rate changes may be listed in the grid. If ARM Disclosure notices are not provided, only one pending rate is allowed in the grid. Portico can project pending rate changes up to 120 days in advance for loan types that provide ARM Disclosure notices. The Disclosure Indicator field will display U - Initial disclosure not required/conversion and the Date field will be blank for loan types that support variable rate index processing. Loans that do not provide ARM Disclosure notices only allow pending rate changes the month prior to the change.
| Column Heading | Description |
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| Rate Change Effective |
The pending rate change effective date. Reporting Analytics: Rate Chg Eff Date (Rate Change Info subject in Loan folder and ME Rate Change Info subject in Month-end Information\ Loan Month-end folder) |
| New Rate |
The new interest rate for the loan which will replace the interest rate currently on the loan. This change will occur on the first day of the month specified in the New Effective Date field. The interest rate can be equal to or greater than zero but less than 36.500. A zero or blank indicates no adjustments to the current rate. Length: 6 numeric including decimal Keyword: NR Reporting Analytics: New Int Rate (Rate Change Info subject in Loan folder and ME Rate Change Info subject in Month-end Information\ Loan Month-end folder) |
| New Payment Amount |
The new payment amount for the loan which will replace the scheduled payment amount currently on the loan. This change will occur on the first day of the month specified in the New Effective Date field. No adjustments to the scheduled payment amount are indicated when the current payment amount is displayed in this field. The system will automatically enter a new, maintainable loan payment amount in the field during the back-office cycle immediately following a rate change is completed using the Loan Adjustable Rate Mortgage/Variable Rate Change window or by Variable Rate Index Processing. The field will contain 0.00 if no rate change is pending for the loan. Length: 12 numeric including decimal Keyword: NP Reporting Analytics: New Pymt Amt (Rate Change Info subject in Loan folder and ME Rate Change Info subject in Month-end Information\ Loan Month-end folder) |
| New Nbr Pmts |
The new number of payments remaining on the loan once recalculation occurs. This field applies only to loans with payment type 009 or 006 and rate option D, or payment type 007 with type 007 calculation option 6 or 9, and ARM disclosure notices supported. A blank will appear in this field if a rate change is completed using the Loan Adjustable Rate Mortgage/Variable Rate Change window, and the Rate Change field on the Loan Profiles - Recalculations tab specifies N. The system will not change the Remaining Number of Payments field on the Loans - Payment tab when the new rate becomes effective. Length: 3 numeric Keyword: NN Reporting Analytics: New Nbr Pymts (Rate Change Info subject in Loan folder and ME Rate Change Info subject in Month-end Information\ Loan Month-end folder) |
| New Payment Effective |
The loan due date the new payment amount will take effect. The new payment effective date is only updated by Variable Rate Index Processing when the loan type supports ARM Disclosure notices (467 and 468 Reports). Reporting Analytics: New Pymt Date (Rate Change Info subject in Loan folder and ME Rate Change Info subject in Month-end Information\ Loan Month-end folder) |
| Recalculation Balance |
The balance determined by simulating payments that the loan will be when the new rate change takes effect. This is the balance used to determine the new payment amount. Reporting Analytics: Recalc Balance (Rate Change Info subject in Loan folder and ME Rate Change Info subject in Month-end Information\ Loan Month-end folder) |
Click Save to save your changes to the adjustable rate information. Click Cancel to close the Adjustable Rate Information dialog box.
Pending rate change entries are only applied and deleted at month-end. Pending rate change entries are deleted the month end after both the rate change effective date and the new payment due date are in the past.
When a rate change is completed using the Loan Adjustable Rate Mortgage/Variable Rate Change window or by Variable Rate Index Processing, the Adjustable Rate Information dialog box stores the recalculated loan information or rate change until the effective date of the rate change is reached when a new payment effective date is not reported, or until the month end after the new payment effective date when a new payment effective date is reported.
For 360-day interest loans that do not produce ARM disclosure notices, the rate change effective date is the same as the due date the rate is effective. For 360-day interest loans that do produce ARM disclosure notices, the due date the rate change is effective is the month after the rate change effective date.
ARM Variable Rate Change (payment type 009 or payment type 007 with type 007 calculation option 9)
During the month-end back-office cycle prior to the rate change effective date, Portico transfers the values in the New Payment Amount, New Nbr Pmts, and New Rate fields in the Pending Rate Changes grid on the Adjustable Rate Information dialog box to their respective fields on the Loans – Payment tab, or when creating a loan payment entry. The new rate and payment amount become effective the first day of the month.
The New Payment Amount, New Nbr Pmts, and New Rate fields on the Adjustable Rate Information dialog box are changed to blank the month end after the new payment effective date has been reached.
Loan Variable Rate Change (Rate Option D)
If the payment amount or the interest rate changes, the Adjustable Rate Information dialog box stores the new payment amount, new rate, effective date, and new number of payments until month-end.
If a rate change and a loan advance occur in the same month, the system uses the new rate stored on the Adjustable Rate Information dialog box instead of the current rate during month-end recalculation.
The following occurs during month-end processing if the Effective Date field specifies the next month:
- Portico transfers the values in the New Payment Amount, New Nbr Pmts, and New Rate fields in the Pending Rate Changes grid on the Adjustable Rate Information dialog box to their respective fields on the Loans – Payment tab.
- The system blanks out the New Rate and Last Changed field on the Loan Profiles - Rate Information tab.
- Portico checks the Month field in the Anniversary group box to verify that the month shown is the next month. If the field displays the next month, Portico moves the rate in the New Rate field to the Rate field in the Anniversary group box. This ensures that the rate will not exceed the percentage in the Annual Cap field in any given year.
- The system increases the date in the Year field by one year.
- The system blanks out the New Payment Amount, New Nbr Pmts, and New Rate fields in the Pending Rate Changes grid the month end after the new payment effective date has been reached.
If N appears in the Rate Change field on the Loan Profiles – Recalculations tab or if the Payment Type field is 001, 004, or 007 (and does not produce ARM Disclosure notices) on the Loan Profiles – Account Information tab, Portico will not recalculate a loan payment amount because of a rate change, but will change the interest rate. In this scenario, Portico will insert a blank in the New Payment Amount and Number of Payments fields on the Adjustable Rate Information dialog box during recalculation. This action ensures that no adjustment will be made to the Number of Payments field when the Adjustable Rate Information dialog box information becomes effective at month-end, thus preventing Portico from replacing a valid remaining term with one that has not been adjusted for potential activity. For payment 002 or 003 the Number of Payments field will always be blank, even if the Rate Change field is not N. The term for payment type 002 and 003 loans will never be changed. Payment type 004 is being discontinued and no longer available for new loan types.
Portico also stores interest rate percentage limitations for the loan on the Adjustable Rate Information dialog box and checks these when a rate change is applied to an eligible loan.
To maintain the member's adjustable rate information, the following security permissions are included in the Lending – Manager, Lending – Officer, and Lending – Clerk security groups.
- Loans – Button – Adjustable Rate Info – View: view the Adjustable Rate Information dialog box.
- Loans – Button – Adjustable Rate Info – Maintain: maintain the Adjustable Rate Information dialog box.
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- New Loans Report 080
- Non-Financial Transaction Register Report 030
- Loan Payment Recalculation Report 460
- Adjustable Rate Mortgage Report 470
- Initial ARM Disclosure Notice (467 Report)
- Recurring ARM Disclosure notice (468 Report)
- Rate Adjustment Loan Notice Report 469
To reverse the transaction on the same day, perform the Reversals - Same Day Reversals tab or maintain the Adjustable Rate Information dialog box. For a prior-day correction, perform the Reversals - Prior Day Loan Reversal tab or maintain the Adjustable Rate Information dialog box.
- Variable Rate folder in Loan Base subject in Loan folder
- Variable Rate folder in ME Loan Base subject in Month-end Information\Loan Month-end folder
- Rate Change Info subject in Loan folder
- ME Rate Change Info subject in Month-end Information\Loan Month-end folder
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