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Early Redemption Showing Incorrect Results for FE 180 Prepay Runoff and FE 440 Interest Accrued (Doc ID 2909303.1)

Last updated on JANUARY 31, 2024

Applies to:

Oracle Financial Services Asset Liability Management - Version and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Asset Liability Management (ALM)


ALM Process with Early Redemption showing incorrect results for Financial Element (FE) 180 Prepay Runoff and FE 440 Interest Accrued.
FE 180 Early Redemption run off occurring in the current month for new business, the expectation is to have prepay runoff timing start in the second bucket when new business timing 'at bucket end'.
FE 440 Interest Accrued was generated incorrect amount when early redemption is applied.

Steps To Replicate:
1. Forecast Balance, new volume growth assumption is set at 0%, desiring to hold the balance sheet flat.
2. Observed runoff happening on the first bucket month, expect it is running off on second month bucket onward.
3. Tried for all prepayment methodologies (CPR, Prepayment Model,etc.) and get the same result
4. Hold flat works for all other balance sheet items and other assets with prepayments, this only occurs on a specific rule.


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