Navigation:  Loan Screens > Account Information Screen Group > ARM Information Screen > ARM Detail tab > Periodic Rate Caps field group > Start of Accrual Period

Entry: User, date

F/M: Yes

Mnemonic: LNAMPD

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

 

This is the starting date of the current rate cap period on this loan. This field is automatically updated based on the Length of Rate Cap Period field and is only used when there is a checkmark in the Use Rate Cap field. Enter the date using MMDDYYYY format, or use the drop-down calendar to select the date.

 

This date is essential in capping rates for a period. If a wrong date is entered here, rate caps will not function. The date must be exactly one length of rate cap period behind the date in the Next Rate Change Date. The rate cap period is determined to be from the Start of Accrual Period date to one length of rate cap period in the future plus one day. If a wrong start date is entered, the system may determine that the period has passed, and rate caps will not apply.

 

For example, if rates roll on a yearly basis, and the Next Rate Change Date is 06-01-08, then the Start of Accrual Period date must be 06-01-07.

 

For new loans, this field must be manually entered. The date should be the same date as the Date Last Accrued on the Loans > Account Information > Account Detail screen. After the first setup, the system will roll automatically.