Loan Screens > Account Information Screen Group > ARM Information Screen > ARM Detail tab > P/I Payment field group > Statement Option field group > Calculate & Display Optional Year P/I on Bill/Receipt

Entry: User, numeric, 2 digits

F/M: Yes

Mnemonic: MLTRMY

Screen: Loans > Account Information > ARM Information > ARM Detail tab

This field stores the number of years to be used for the optional P/I to be displayed on the Bill and Receipt (FPSRP003). A message on the statement shows an optional P/I that would amortize the loan on a shorter term than the contractual term.

For example, if the loan is a 30-year ARM and you enter "15" in this field, then when the bill and receipt is created, a message will indicate what the optional P/I would be to amortize the loan as though it had been a 15-year loan. The P/I is always calculated based on the first payment due date and the current principal balance. In other words, it doesn’t calculate 15 years from the statement date but 15 years from the beginning of the loan.

In the above example, if the loan term is 360 months and 12 installments have been paid, the term used to calculate the 15-year optional P/I would be 168 (180 months minus 12 payments equals 168 remaining payments).

The optional P/I is calculated by taking the number of payments represented in this field (if 15 is stored in this field, the system converts it to 180 (15 years x 12 months/year)) and subtracting the number of installments paid to determine the remaining number of payments. The system then uses the remaining number of payments and the current principal balance to calculate the optional P/I.

Once the number of installments on the loan reaches the number of years in the field, then the disclosure on the bill and receipt stops. In the above example, when 180 installments have been made the message stops.

If the optional P/I would be less than the actual P/I, then the message will not appear.