OPT SADF stops deferring if a loan is delinquent.

OPT I AMIP uses the institution portion of the principal balance to amortize the deferred fees or costs.

OPTC MSRA uses the institution portion of the principal balance to amortize the mortgage servicing rights.

OPT 4 AMRT (Use Accrual Rate for ARMs Method) uses the Current Rate (LNAMRT) pulled from the ARM Information screen.

OPT F YMGN (Use Index Plus Margin for ARMs) uses the index plus the margin.

If the Amortization Method is 2 (Rule of 78s), and action code 78 and a date are entered, the action date will be used instead of the Date Loan Opened field to begin amortization. If there is an action code 78 and no date, then the date opened will be used. Refer to the Amortization Method field for the calculation of Rule of 78s.

The following update functions must be turned on for the amortization to process: 42–Fees, 53–Costs, 60–Disc/Gain, 61– Prem/Loss, and 69–MSRs.

Afterhours update function 59 automatically changes performing loans to non-performing loans if the loan is 93 or more days delinquent (excluding loans with general categories 50 through 69 (securities)).

OP01 DFAM will amortize only up to the month of the due date. If a loan is delinquent and one or more payments are made, amortization will only occur for the months for which the payments were made, possibly leaving the date last amortized in the past.

Example: A loan has a due date of 6-15 with a payment frequency of 1. It will amortize at 6-30 up to 5-31. (It will only amortize for the loan payments that have been paid.)

Option NPDY can be used to store the number of days delinquent to set the Non-Performing field if you do not want to use 3 payment frequencies.