Last updated on JUNE 22, 2007
Applies to:Oracle Financial Services Applications (OFSA) 4.5.39
Oracle Risk Manager - Version: 4.5.39
Information in this document applies to any platform.
In Risk Manager (RM), you are processing an adjustable rate loan product that has AMRT_TYPE_CD = 600 (negative amortization) and a Tease Period. You have setup the product to have a payment event on the Teaser End Date by setting PMT_ADJ_DATE = TEASER_END_DATE. However, the first two buckets after the Teaser End Date have no payment runoff. As a result, RM is generating negative payment runoff (Financial Element 192) that is equal to Interest Cash Flow (FE 430) multiplied by -1.
Instead of beginning on the PMT_ADJ_DATE, the positive payment runoff (FE 190) begins on the date equal to the PMT_ADJ_DATE + the PMT_CHG_FREQ/MULT. For example, if the PMT_ADJ_DATE is '07/02/2007' and the PMT_CHG_FREQ/MULT is 3M, the positive payment runoff begins on '10/02/2007'.
Note: PMT_ADJ_DATE and PMT_CHG_FREQ are used because the product has AMRT_TYPE_CD = 600.
How can you get Risk Manager to generate positive payment runoff beginning on the Teaser End Date / Payment Adjust Date?
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