FTP Straight Term Method Calculation Appears to Not Consider Tease Period

(Doc ID 2332325.1)

Last updated on NOVEMBER 29, 2017

Applies to:

Oracle Financial Services Funds Transfer Pricing - Version 8.0.0 and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Funds Transfer Pricing (FTP)
Transfer Price (TP)
Cash Flow Edits (CFE)

Symptoms

The FTP Straight term method calculation appears to not consider the defined tease period. There are may records with same issue and below is an example:

ID_NUMBER LD1600700019
TRANSFER_RATE 10.34
ORIGINATION_DATE 1/7/2016
MATURITY_DATE 12/28/2020
ORG_TERM 60.00
ORG_TERM_MULT M
TEASER_END_DATE 4/1/2017
ADJUSTABLE_TYPE_CD 50.00
REPRICE_FREQ 3.00
REPRICE_FREQ_MULT M

Ideally in standard approach, it is expected that the engine should go with tease period but the transfer rate calculated is 10.34 matching with org_term 60 Months. The data in Loan contracts is checked and corrected using CFE (with preview mode off).

Cause

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