Servicing An RVL Loan - SCRA
(Doc ID 2835285.1)
Last updated on JANUARY 22, 2022
Applies to:
Oracle Financial Services Lending and Leasing - Version 14.8.0.0.0 and laterInformation in this document applies to any platform.
Symptoms
ACTUAL BEHAVIOR
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Servicing an RVL loan - SCRA
When a customer with a balloon loan (and an interest rate greater than 6% SCRA rate) qualifies for SCRA protection and benefits then the account must receive an interest reduction and lower payment for the duration of coverage and protection. The recalculation options in OFSLL are for outstanding balance and term or contract balance and term but there appears no way to consider the unequal payments of a balloon loan when recalculating the monthly installments. The repayment schedule gets updated incorrectly for Borrower on SCRA and Borrower off SCRA transactions
EXPECTED BEHAVIOR
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System should consider the Balloon amount while posting the SCRA transaction
STEPS
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1. Process a new account with balloon amount
2. Post multiple billings
3. Post a "Borrower On Military transaction" on the account
4. Verify the new payment calculated using the balloon amount
BUSINESS IMPACT
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The issue has the following business impact:
Due to this issue, bank unable to use SCRA with balloon amount.
Changes
Cause
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In this Document
| Symptoms |
| Changes |
| Cause |
| Solution |