Loan Adjustable Mortgages
Overview of IL450
Loan Adjustable Mortgage Maintenance gives your organization the ability to re-evaluate market conditions and automatically adjust loan interest rates at regular intervals. Based on the adjustment date of the loan and the number of months until its amortization date, you can define the new interest rate DDI-Connect will assign. Actual reassignment of the new rate occurs as a result of Adjustable Mortgage Processing (IL448), which usually runs on a regular basis during job processing. This attaches a historical transaction (transaction ID: 415) to the loan record. IL448 only evaluates loans with an adjustment method of 3.
Note: Ideally your organization should plan to access Loan Adjustable Mortgage Maintenance and make any necessary updates to the rate-adjustment levels prior to each instance when Adjustable Mortgage Processing is run
- From the DDI Connect main menu, double-click Financial Services
- Double-click Loan
- Double-click Setup
- Double-click Loan Adjustable Mortgage Setup. You will see this screen:
Please note that what you see on this screen will depend entirely on what your organization has already set up for adjustable mortgages
- On the toolbar, click the Add button. The following fields will activate for editing:
Note: You will not be able to save a new adjustment level with the same adjustment frequency and minimum/maximum term as an existing adjustment level
The following fields should be completed for each new adjustment level:
| Field | Description |
|---|---|
| Adjustment Freq (months) | The number of months between interest-rate adjustments. The system uses the loan’s adjustment date and this value to determine when interest adjustments should be made in Adjustable Mortgage Processing. This field accommodates any value greater than or equal to 0. It allows you to set up adjustment frequencies of however many months are required |
| Minimum Term | Beginning number of months until the amortization date when a loan with an eligible adjustment date will have its interest rate modified by Adjustable Mortgage Processing |
| Maximum Term | Ending number of months until the amortization date when a loan with an eligible adjustment date will have its interest rate modified by Adjustable Mortgage Processing |
| Interest Rate | Adjusted interest rate that will be assigned to loans with eligible adjustment dates and whose amortization dates are between the minimum and maximum terms indicated (in months).
|
When you have added the information, click Save to retain your changes.
