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Index & Margins field group

Navigation:  Loans > Loan Screens > Account Information Screen Group > Account Detail Screen > Interest Detail tab >

Index & Margins field group

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The Index & Margins field group on the Loans > Account Information > Account Detail screen contains information about the index and margins for the account.

 

laiad_indexmargins

 

The fields in this field group are as follows:

 

Field

Description

Interest Rate Pointer

 

Mnemonic: LNRPTR

This field displays the rate pointer from the Interest Rate Table. A rate pointer allows rate changes on loans using the Interest Rate Table which allows prime sensitivity on loans. The Interest Rate Table is set up in the System Setup Screens in CIM GOLD and is user-defined. Rate pointer 255 indicates that the interest rate for this loan should never change. See below for more information.

 

This field is called Payment Rate Pointer/Index on ARM loans (payment method 7) and daily simple interest loans (payment methods 4 and 6) with the Use ARM Fields field checked. This field controls the rate at which the payment is to be calculated. Therefore, the rate pointer entered in this field should be the same as that entered in the Index Rate Pointer field on the Loans > Account Information > ARM Information screen for the loan unless you, in fact, want the payments to be calculated based on a different rate than the loan is accruing.

 

For payment methods 5 and 6, and LIP loans that are rate sensitive, when the rate is pulled from the rate table, the new rate becomes effective on the Effective Date found on the Interest Rate Table screen. If the effective date falls on a weekend or a holiday, the system will accrue interest up to the effective date and change the Date Last Accrued to the effective date. In addition, the system will write the effective date to history.

Last Index

 

Mnemonic: LNAPIN

This field is used to enter the rate retrieved from the Interest Rate Table (from Loans > System Setup Screens) on the last interest rate roll for this account. The system supplies this information, but the user is allowed file maintenance if necessary.

 

This rate is used in ARM event letters.

 

For delinquent loans, the index rate appearing here does not match the rate for the delinquent payment;  it displays the rate as if the loan were current.  To see the rate for the delinquent payment, you must look in the history of the loan.  It will appear in the history as "LST RT INDX____".

Payment/Interest Offset/Margin

 

Mnemonic: LNROFF

If the customer account is an ARM (payment method 7) or daily simple interest (payment method 4 or 6) loan, then the name of this field is Payment Offset/Margin. Otherwise, this field appears as Interest Offset/Margin.

 

This field is used to enter a percentage that is used in conjunction with the Interest Rate Pointer above to calculate a new loan rate. It can be either positive or negative to allow points above or below the index rate indicated by the rate pointer.

 

This is generally used with a rate pointer other than "255."

Round Rate

 

Mnemonic: LNRDUP

Use this field to indicate how the interest rate calculated by the system is rounded in relation to the value indicated in the To Nearest field below. See below for more information.

 

Possible selections in this field are:

 

Up - The system will round up to the nearest value indicated in the To Nearest field. For example, if "Up" is selected in this field and Quarters (1/4th) is selected in the To Nearest field, a calculated rate of 8.01684% will be rounded up to 8.25000%.

 

Down - The system will round down to the nearest value indicated in the To Nearest field. For example, if "Down" is selected in this field and Eighths (1/8th) is selected in the To Nearest field, a calculated rate of 8.18947% will be rounded down to 8.12500%.

 

Nearest - The system will round to the nearest value indicated in the To Nearest field. For example, if "Nearest" is selected in this field and Sixteenths (1/16th) is selected in the To Nearest field, a calculated rate of 8.03125% will be rounded up to 8.06250% and a calculated rate of 8.03124% will be rounded down to 8.00000%.

 

If "No Rounding" is selected in the To Nearest field, then the rate will remain as calculated by the system.

 

The following field values are rounded using the parameters set up through this and the To Nearest field:

 

Interest Rate

 

Next Rate (on the Loans > Account Information > ARM Information screen)

 

Accrual Rate

 

Next Guaranteed Rate (on the Loans > Investor Reporting > Loan Investor Fields screen)

 

Next P/I Rate (on the ARM Information screen)

To Nearest

 

Mnemonic: LNRRND

Use this field to indicate the value to which the interest rate calculated by the system will be rounded according to the to the rounding rule indicated in the Round Rate field above. See below for more information.

 

Possible selections in this field are:

 

No Rounding

Eighths (1/8ths) - GOLDWriter mnemonic LNRRND

Quarters (1/4ths) - GOLDWriter mnemonic LNRRTQ

Sixteenths (1/16ths)

Tenths (1/10ths) - GOLDWriter mnemonic LNRR10

 

For example, if "Up" is selected in the Round Rate field and "Quarters (1/4th)" is selected in this field, a calculated rate of 8.01684% will be rounded up to 8.25000%. If "No Rounding" is selected in this field, then the rate will remain as calculated by the system.

 

The following field values are rounded using the parameters set up through this and the Round Rate field:

 

Interest Rate

 

Next Rate (on the Loans > Account Information > ARM Information screen)

 

Accrual Rate

 

Next Guaranteed Rate (on the Loans > Investor Reporting > Loan Investor Fields screen)

 

Next P/I Rate (on the ARM Information screen)

Prime Lower/Upper Limit

 

Mnemonic: LNPSLO, LNPSHI

When a loan is rate sensitive, these fields will display the minimum and maximum rates allowed on the loan after adding the index rate plus the margin (on the ARM Information screen).

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