Loan Screens > Account Information Screen Group > Additional Loan Fields Screen > Origination/Maturity tab

Entry: System, date

F/M: Yes

Mnemonic: LNREPR

Screen: Loans > Account Information > Additional Loan Fields > Origination/Maturity tab

The repricing date is used to show the next date the interest rate can or will be adjusted to market value, or the maturity of the loan for the TFR reports.

Note: An action code 29 and date will prevent a loan from repricing from that date forward. A blank date field after action code 29 will not prevent the loan from repricing. This is generally used to stop securities from repricing.

The Repricing Date field will be updated by the system using the earliest date derived from the following criteria (update option 43).

•Payment method 3 loans will always enter the maturity date.

•The system will enter the first day of the following month for rate-sensitive loans—those loans that look at the rate tables on a daily basis. This is any loan, other than payment method 7, with a rate pointer other than 255.

If the loan is in process with LIP method 002 or 102, or the LIP is not in process and has LIP method of 000, the rate, dates, and procedures will be from the regular loan fields. If an LIP has method code 001 or 101 and is not rate sensitive (the LIP rate pointer is 255), the calculated maturity date is used. Otherwise, the first of the next month is also used.

•For payment method 5 loans with a fixed P/I constant, the system will calculate and place a new repricing date in the Repricing Date field if the date calculated will occur sooner than the date already in the field. The date is calculated by amortizing the loan using the current balance, interest rate, P/I constant, and maturity date.

For payment method 5 loans with no P/I constant and no maturity date, the loan is skipped and no repricing occurs.

•If the loan is payment method 7 or payment method 4 or 6 with Use ARM Fields checked (on the Loans > Account Information > Account Detail screen, Payment Detail tab), the system will use the date in the Next Rate Change Date field on the Loans > Account Information > ARM Information screen for the repricing date, if the loan has such a date and looks at the Rate Tables. However, the rate change date will not be used and will be ignored if the loan rate is at its maximum, dictated by the Lifetime Maximum Rate Cap (found on the ARM Information screen).

•The system will calculate and place a new maturity date in the Repricing Date field if the date calculated will occur sooner than the date already in the field. The date is calculated by amortizing the loan using the principal balance at the beginning of the afterhours process, the interest rate, and the P/I constant. One of the reasons the repricing date could be different from the maturity date would be due to principal decreases made by the borrower throughout the life of the loan. The only action code recognized is the one calling for a balloon payment. As the loan is amortized, if action code 1 (balloon payment) is encountered, the loan will terminate the amortization and the action date will be entered in the Repricing Date field. (Action codes are found on the Loans > Misc Secured F/M Data screen, Actions/Holds/Events tab.)

NOTE: The principal balance at the beginning of the afterhours process is used to calculate the remaining term. This means that the principal balance will not have been adjusted by any payments or principal increases or decreases processed in the afterhours.

Repricing is done on a monthly basis for all loans. The day of the month for the repricing is determined by your institution through an institution option (update option 43). It generally is set up to process a few days prior to monthend. If you want to prevent a loan from repricing starting in February of 2010 for example, use an action code of 29 and an action date several days prior to the 25th of the month. This will allow for Saturdays or Sundays when processing does not occur.

•If this date cannot be calculated, the system will place the loan maturity date in this field.

•The following applies when opening a new loan (tran code 680):

1.For a payment method 7 (ARM) loan with a rate pointer less than 255 and the next rate change date not equal to zero, the system will place the next rate change date in the Repricing Date. (It will not amortize.) If a payment method 7 (ARM) and the next rate change date is zero, the system will use the maturity date and then amortize the loan. If the amortization results in the principal balance being "0" sooner than the maturity date, the amortized date will be used.

2.If the rate pointer is 255 (fixed rate payment method 0), the system will use the maturity date and then amortize the loan. If the amortization results in the principal balance being "0" sooner than the maturity date, the amortized date will be used.

WARNING: If you open a new loan for the wrong principal balance, the program will amortize using the wrong principal balance and the repricing date will be calculated incorrectly.

Although the system supplies the data for this field, it can be file maintained, if necessary.