Servicing RVL Loan - SCRA (Doc ID 2944059.1)

Last updated on APRIL 22, 2023

Applies to:

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 product 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.

Account updated to Balloon method = N PMTS Transaction updated to calc = CONTRACT BALANCE, TERM AND RETAIN BALLOON

After posting interest rate is reduced from 8.04 to 6%
Payment amount in the transaction is not reduced = contract payment 507.80
in repayment reschedule the payment amount is 575.14 which is greater than the contract payment amount
 

EXPECTED BEHAVIOR
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System should calculate the repayment schedule properly for Borrower on SCRA and Borrower off SCRA transactions posting with balloon loan payments.


STEPS
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The issue can be reproduced at will with the following steps:
1. Not mentioned.

BUSINESS IMPACT
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The issue has the following business impact:
Due to this issue, users cannot have the repayment schedule calculation of payment amount correctly.

Cause

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