Navigation:  Loan Screens > Account Information Screen Group > ARM Information Screen > ARM Rates & P/I Tables tab > P/I Payment Information field group > Days Before P/I Change

Entry: System, numeric, 3 digits

F/M: No

Mnemonic: LNAMID

Screen: Loans > Account Information >ARM Information > ARM Rates & P/I Tables tab

 

This field contains the number of days prior to the P/I change date you want the new P/I to be calculated. You can use either 30 day months or actual number of days in the month.

 

If the number in this field is based on 30-day months and “75” is in the field, the new P/I will be calculated two months and 15 days prior to the P/I change date. For the rate and P/I to roll at the same time, this field should contain 30 more days than the Days Before Rate Change field.

 

Institution option 9 AMAD allows this field and the Days Before Rate Change field to work on actual day months.

 

The following is an example of how to determine exactly which night the new rate and P/I are calculated and when notice letters are generated. The example is using 30-day months with 75 days in the Days Before P/I Change; the Days Before Rate Change is 45, the Next Rate Change Date is 03-01, and the Next P/I Change Date is 04-01.

 

Using 30-day months means that for every full month you count back, you use 30 days regardless of the actual days in the month. If 03-01 is the rate change date, you would count 30 days for February and then back 15 more days in January (using Jan. 31st), ending up on 01-17. The system will always process the calculations and generate the change letters in the afterhours the night before the change date.

 

In the example above, if you use Institution Option AMAD, the actual number of days option, then the date will be 01-16. The system will generate the night before 01-16, which is also 75 days before the P/I change date. (Remember, in some years February has 29 days.)

 

Note:  When using the 30-day month option (default), the system assumes every month consists of 30 days.

 

If Institution Option AMAD is used, the system will count every calendar day, including the 31st day of applicable months or 28/29 days for February, except as noted below. If the rate and P/I calculations occur within 5 days of one another, the system will roll them together when the rate adjustment normally would occur. When the adjustment occurs, the system will automatically create the appropriate ARM event letter notice.

 

If you are using the actual number of days option, the following will occur: