Navigation:  Loan Screens > Account Information Screen Group > ARM Information Screen > Rate Caps & Negative Amortization tab > Negative Amortization field group > Use Event Letter 40

Entry: User, checkbox

F/M: Yes

Mnemonic: LNE040

Screen: Loans > Account Information > ARM Information > Rate Caps & Negative Amortization tab

 

This field indicates if a special ARM change letter is to be created. If this field is checked, the ARM change letter will be created at the time of the P/I change only, not when the rate changes. Do not check this field if the P/I change frequency and the rate change frequency are the same.

 

This would be used, for example, if a loan has monthly rate changes but an annual P/I change. The event 40 letter will generate only when the P/I is changed, but it will display the last 12 monthly interest rates.