Using Mortgage Offset Account (MOA) Attributes to Handle Endowment Mortgages in ALM
Last updated on DECEMBER 28, 2017
Applies to:Oracle Financial Services Asset Liability Management - Version 8.0.5 and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Asset Liability Management (ALM)
Implementation question on using Mortgage Offset Account (MOA) attributes to handle endowment mortgages as follows:
Current requirement is to be able to manage 'spaarhypotheek' products into the data model. These products are effectively the same as an endowment mortgage in the UK, i.e. where one or more savings accounts are linked to a loan account, and over the term of the mortgage the savings plans are designed to repay the mortgage in a tax friendly manner. This is a feature of the product that benefits the customer; there is no direct inter-relationship between the accounts from an operational point of view.
As such, these are different to the mortgage offset accounts where there is a relationship and the savings portion reduces the interest charge that is levied on the mortgage loan.
Based on the above, can the MOA attributes be used to provide a key to relate the endowment components together? Basically STG_CASA.v_offset_acct_nbr would provide a key between the savings components stored in STG_CASA and the loan component in STG_LOAN_CONTRACTS.
Need to confirm that use of these attributes should not trigger any unwanted activity in the Cash flow engine. In addition, guidance is required in populating the other MOA related attributes.
It is believed that the following default mappings required by MOAs should have no impact on cash flows:
EXPECTED_BAL = 0
EXPECTED_BAL_GROWTH_PCT = 0
MINIMUM_BALANCE = 0
OFFSET_PERCENT = 0
Please confirm whether there is any issue using the above in terms of the ALM Cash Flow Engine when designing the mappings for these non typical 'spaarhypotheek' product MOAs.
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