Loan Screens > Account Information Screen Group > ARM Information Screen > ARM Detail tab > P/I Payment field group

Entry: User, checkbox

F/M: Yes

Mnemonic: MLUSNR

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

When this box is checked, each time a new rate is calculated, a new P/I will also be calculated, based on the rate change date. This field would generally be used for daily simple interest loans (payment method 6 with Use ARM Fields box checked) that have annual payments, annual rate, and P/I changes.

Example: A loan is set up for annual payments due on November 4, with an annual rate change effective November 4 of this year and an annual P/I change effective November 4 of next year. The new rate and P/I payment are to be calculated on October 21 of this year (14 days prior to the rate change effective date).

Additional Information

The Rate Change Frequency and the P/I Change Frequency fields must be the same. For example, if the Rate Change Frequency field contains 12 (12 months), the P/I Change Frequency field must also contain 12.

The Next P/I Change Date field must be equal to, or one payment frequency behind, the Next Rate Change Date field. For example, if the rate change is 11/04 of the current year, the P/I could be 11/04 of the following year.

In the previous example, the Days Before Rate Change field is 14, and the number of days between the Next Rate Change Date field and the Next P/I Change Date is 365; therefore, the number of days before the P/I change would be calculated to be 379 (365 + 14 = 379).

Note: The Days Before P/I Change field is not used, regardless of whether the field contains data. In addition, it automatically becomes non-file maintainable when the Calculate Next P/I With Rate Change checkbox is checked.

GOLDPoint Systems Only: Report setups for the Event Letters Report (FPSRP175) and the ARM Rate Change Report (FPSRP230) must have ML in the Input Records field.