11. Tools

Depending on the type of product you are working with during origination, the Tools screens enable you to calculate Loan and Vehicle value details.

Tools in the main menu are standalone and information calculated using them can only be viewed.

11.1 Loan Calculator

The Loan Calculator screen facilitates you to calculate various parameters. You can also define flexible repayment options, and generate amortization schedules.

This screen is similar to the Loan Calculator screen opened from Underwriting or Funding screens; however, calculators opened from Tools master tab are standalone and do not link calculations or loan information to any specific application.

11.1.1 Parameters

The Parameters section allows you to calculate the payment amount, term, interest rate, loan amount, and blended rate. You can also generate a quote based on the details specified.

In the Parameters section, you can select the following parameters:

• Calculate Payment
• Calculate Interest Rate
• Calculate Term
• Calculate Loan Amount
• Calculate Blended Rate

11.1.1.1 Calculating Payments

The Calculate Payment option on Loan Calculator screen calculates the standard payment based on information you provide, such as the amount financed, terms, interest rate and finance fee. You can click Initialize in Loan Calculator screen to clear (or ‘refresh’) the Loan Calculator screen at any time.

To calculate a loan payment

1. Click Tools > Tools > Loan Calculator.

   

2. Click Initialize and maintain the following fields.

   Field:	Do this:
   Loan Details Section
   Product Category	Select the category as Standard for conventional loan product and Islamic for the Islamic loan product.
   Contract Dt	Specify the contract date. The system displays current date as the default value.
   First Pmt Dt	Specify the first payment date. The system displays the date one month from today as default value.
   Loan Term	Specify the number of payments.
   Maturity Dt	System automatically displays the maturity date based on the val­ues entered for first payment date, term and billing cycle (i.e. Maturity Date = First Payment Date + Term (based on billing cycle).
   Amt Financed	Specify the amount financed.
   Pre Paid Fees	Specify the prepaid fees, if any exist.
   Financed Fees	Specify the financed fees, if any exist.
   Loan Amt	View the estimated loan amount: amount financed plus the pre­paid fees.
   Balloon Pmt Amt	Specify the balloon payment amount, if any exist.
   Payment/Finance Charge
   Pmt Amt	View the payment amount.
   Interest Amt	View the profit amount.
   Finance Charge	View the finance charged.
   Total of Pmts	View the payment amount.
   Final Pmt Amount	View the final payment amount.
   Calculator Options
   Billing Cycle	Select the payment frequency. System supports ‘Biennial’ (once every 2 years) and Triennial (once every 3 years) type of billing cycles. Based on BILL_CY­CLE_CD lookup, the billing cycle ‘frequency’ can be defined. During ‘Term’ calculation, the 'Rate' field is always considered as per Year only. System displays an error to refine the input data if the calculation for Biennial term goes beyond 15 years and Trien­nial term goes beyond 10 years. For additional considerations of Biennial and Triennial term calculations (if any), refer to product release notes available at OTN library.
   Balloon Method	Select the balloon method.
   Accrual Base Method	Select the accrual base.
   Time Counting Method	Select the time counting method.
   Installment Method	Select the installment method: equal payments or final payment differs. For more information, see the Installment method section in this chapter.
   Bill Method	Select the billing method as either Level, percentage of principal plus interest, interest only, Fixed Princi­pal plus Interest, percentage of outstanding bal­ance.
   Calendar Method	Select the calendar method as ‘Hijri’ or ‘Gregorian’ for this loan contract. This field will be enabled only if the product category is selected as Islamic.
   Accrual Start Dt Basis	Select to define the start date from when the interest accrual is to be calculated for this instrument from the drop-down list. Note: If you select the Effective Date, then the interest is calculated from the Contract date + Start Days (indicated below). If you select the Payment Date, then the interest is calculated based on (first payment date + Start Days (indicated below) minus one billing cycle).
   Accrual Start Days	Specify the number of grace days after which the interest accrual is to be calculated. Ensure that the number of grace days is less than first payment date.
   Rate
   Rate	Specify the interest rate. Note: For Islamic products this field is displayed as ‘Profit Rate’.
   APR	View the system calculated the Annual Percentage Rate.
   First Period section
   Calendar Days	View the number of calendar days between contract date and the first payment date. The calendar days will differ based on the cal­endar method selected.
   Interest	View the profit accrued for the calendar days.

3. Specify the required information and click Calculate.The system computes the standard loan payments with the details specified.

Installment Methods

• Equal Payments: If you select Equal Payment option, then the repayment amount will be equal for all installments including the final installment.
• Final Payment Differs: If you select Final Payment Differs option, then the final repayment amount may be slightly more or less than the outstanding loan amount due to precise rounding calculations. The final payment amount will be equal to the outstanding loan amount.

When completing Frequency fields, note the following:

• Biweekly in the system means ‘once every two weeks’ and not ‘twice a week’.
• Bimonthly in the system means ‘once every two months’ and not ‘twice a month’.

For more information on frequency, see ‘Appendix B: Payment Amount Conversions’ section.

11.1.1.2 Calculating Interest Rates

The Calculate Interest Rate option back-calculates the interest rate and APR using the amount financed, standard payment and terms. It also provides the amortization schedule of the loan.

To calculate an Interest Rate

1. Click Loan Calculator tab.
2. In the Parameters section, select Calculate Interest Rate.
3. Specify the required information. (Refer the section Calculating Loan Payment in this chapter for more information.)
4. After you specify all the required information click calculate.The system computes the payment change schedule.

You can perform the following activities when the Interest Rate is calculated:

• Creating an amortized schedule of payments (Applications screen)
• Copying the Interest Rate Calculations to the Decision tab (underwriting)
• Copying the Interest Calculations to the Contract tab (funding)

11.1.1.3 Calculating Term

The Calculate Term option back-calculates the term and APR using the amount financed and standard payment. It also provides the amortization schedule of the loan.

To calculate an Interest Rate

1. Click Loan Calculator tab.
2. In the Parameters section, select Calculate Term. The system enables the required fields based on this selection.
3. Specify the required information. (Refer the section Calculating Loan Payment in this chapter for more information.)
4. After you specify all the required information click calculate.
   The system computes the payment change schedule.

You can perform the following activities when the term is calculated:

• Creating an amortized schedule of payments (Applications screen)
• Copying the term calculations to the Decision link (underwriting)
• Copying the interest calculations to the Contract link (funding)

The system will use this information during the funding process when you select an instrument.

11.1.1.4 Calculating Loan Amount

The Calculate Loan Amount option calculates loan affordability of a customer based on term, payment amount and the rate quoted.

To calculate an Interest Rate,

1. Click Loan Calculator tab.
2. In the Parameters section, select Calculate Loan Amount. The system enables the required fields based on this selection.
3. Specify the required information. (Refer the section Calculating Loan Payment in this chapter for more information.)
4. After you specify all the required information click calculate.
   The system computes the payment change schedule.

You can perform the following activities when the Interest Rate is calculated:

• Creating an amortized schedule of payments (Applications)
• Copying the loan amount calculations to the Decision link (underwriting)
• Copying the loan amount calculations to the Contract link (funding)

11.1.1.5 Calculating Blended Rate

The Blended Rate option calculates a combined single rate (Blended Rate) for multiple amounts each of at different rates. On selecting this option, system displays the ‘Advances’ section to add multiple records to derive the blended rate. It also provides the amortization schedule of the loan.

To calculate an Blended Rate,

1. Click Loan Calculator tab.
2. In the Parameters section, select Calculate Calculate Blended Rate. The system enables the Advances section.
3. Click Add and maintain the following details:

   Field	Do this:
   Amt Financed	Specify the financed amount.
   PrePaid Fees	Specify the pre-paid fees.
   Financed Fees	Specify the financed fees.
   Balloon Pmt Amt	Specify the balloon payment amount.
   Rate	Specify the rate.
   Payment Amt	The system displays the calculated payment amount on clicking ‘Calculate’ button.
   Interest Amt	The system displays the calculated interest amount on clicking ‘Calculate’ button.
   Action	Click add button to add next contract details.

4. Perform any of the Basic Actions mentioned in Navigation chapter.
5. Specify the required information. (Refer the section Calculating Loan Payment in this chapter for more information.)
6. After you specify all the required information click calculate.
   The system computes the blended rate of contracts.

You can perform the following activities when the Blended Rate is calculated:

• Creating an amortized schedule of payments (Applications)
• Copying the loan amount calculations to the Decision link (underwriting)
• Copying the loan amount calculations to the Contract link (funding)

11.1.2 Repayment Options

If the calculation involves flexible repayment options, you can include the same through the following options:

Option	Description
Flexible Repay­ment Allowed	Select the check box to include a flexible repayment schedule in cal­culation. On selection, the following sections are enabled. Repayment Schedule Payment Change Schedule Rate Schedule Based on the selection of repayment type in the subsequent field, any or all of the above sections are enabled to define the required flexible repayment schedules.
Type	Select any of the following repayment type that you want to use from the drop-down list. UNDEFINED SKIP PERIOD USER DEFINED graduated payment extendable balloon

1. Depending on the repayment type selected, complete the following sections:

• If you have selected the type as UNDEFINED (default), you can specify only the ‘Rate Schedule’ as explained in step 2.
• If you have selected the type as SKIP PERIOD, select the months which you want to exclude in repayment schedule by selecting the adjacent check box.
• If you have selected the type as USER DEFINED, click Add in ‘Repayment Schedule’ section and specify the following information:

  Field:	Do this:
  Seq	Specify the sequence number of the repayment schedule.
  Pmt Amt	Specify the repayment amount borrower agreed to pay during the schedule.
  # of Payments	Specify the number of payments borrower agreed to pay for stated repayment amount during this schedule.
  Generated	View if the repayment schedule is generated.

• If you have selected the type as Graduated Payment, click Add in ‘Payment Change Schedule’ section and specify the following information:

  Field:	Do this:
  Seq	Specify the sequence number in which the repayment is calcu­lated.It prioritizes the calculation.
  Option Type	Select the repayment option type: Step up, step down and bullet.
  Frequency	Select the frequency of payment. The default value is Term.
  Period	Specify the loan period.
  # of Adj.	Specify the number of times the step up, step down or bullet needs to happen.
  Value	Specify the value. For step down, value ranges from 1 to 99. For step up, value ranges from 1 to 990. For bullet, value ranges from 1 to 99999999.

• If you have selected the type as EXTENDABLE BALLOON, specify the maximum number of terms in the ‘Extendable Baloon’ section.

2. If the calculation includes a promotion, complete the Rate Schedule section. Click Add and specify the following information:

   Field:	Do this:
   Seq	Specify the sequence number of the rate schedule.
   Rate	Specify the repayment amount borrower agreed to pay during the schedule.
   Start Dt	Specify the date on which the borrower agreed to make the first payment.

3. After you specify all the required information click calculate. The system computes the payment change schedule and populates the Repayment Schedule section.

When you fund the loan application, the system copies repayment schedule information to the loan account on Customer Service screen where it appears in the Repayment Schedule section.

11.1.3 Amortization Schedule

You can use the calculated payment data to derive the Amortization Schedule. Click Amortize in the ‘Amortization Schedule’ section. The system generates an amortized schedule with the calculated data with the following headers:

Field:	View this:
Seq	Payment number.
Pmt Dt	Payment date.
Pmt Amt	Payment amount.
Principal Amt	Component of the payment amount allocated towards reduction of the principal balance.
Interest Amt	Component of the payment amount allocated towards reduction of the interest balance.
Balance Amt	Remaining principal balance.

You can click Print Report to extract a PDF version of the generated amortized schedule.

11.1.4 Printing a Quote

You can generate a summarised report using the calculated loan details in the format of quote with charges, payment structure, financed amount allocation, and amortization scheduled.

In the Loan Calculator screen, click Print Quote. The system generates a PDF document to the default downloads repository consisting of the following information in the respective headers:

Loan Details

The Loan Details section consists of Contract Start Date, Contract End Date, First Payment Date, Total Loan Term, Rate, and Total Loan Amount (Inc. Fee).

Payment/Finance Charge

The Payment/Finance Charge section consists of Total Interest Amount, Finance Charge, Total Of Payments, and Balloon Payment Amount.

Payment Structure

The Payment Structure section consists of details based on the number of payments, billing cycle followed and the payment amount. The payment structure repeats based on the flexible repayment options defined.

Financed Amount Allocation

The Financed Amount Allocation section consists of total amount that can be financed at the specified rate. If there are multiple records included to derive blended rate, then the Financed Amount Allocation varies based on the total number records.

Amortization Schedule

The Amortization Schedule section consists of records in tabular format with the following details:

• Pmt No.
• Payment Date
• Scheduled Payment
• Principal
• Interest
• Ending Balance

11.1.5 Copy Calculation to Contract or Decision tab

Depending on the screen from where you have accessed the tools sub tab, you can copy the calculated values to either Contract or Decision tab. If you are in Underwriting stage, you can copy the values to decision tab. Similarly during Funding stage, you can copy the values to contract tab.

1. Click Initialize and reset the calculator.
2. Click Import values. System displays basic values entered in previous tabs.
3. Select one of the following option “Calculate Payment / Interest Rate / Term / Loan Amount” and click Calculate. System displays calculated values based on selection.

Click Copy to Contract/Decision. The calculated details are copied to the respective fields in Contract/Decision tab.

11.2 Vehicle Evaluator

The Vehicle Evaluator screen allows you to calculate the value of a vehicle. You can use the Vehicle Evaluator screen to calculate the value of either a vehicle you are entering as the new collateral or vehicle currently listed as the application’s collateral.

The Vehicle Evaluator screen can be cleared or refreshed at any time by clicking Clear.

To calculate a vehicle value

1. On the Oracle Financial Services Lending and Leasing home screen, click Tools > Tools > Vehicle Evaluator

   

2. In the Vehicle Evaluator section, use Asset field to select the vehicle you want to appraise. This can be either NEW COLLATERAL or a vehicle entered on the Collateral link.
3. In the Vehicle Evaluator section, click Initialize. The system completes Valuation Source, Period and Region fields.
4. If needed, you can change the default contents of the fields in Vehicle Evaluator.
5. If you selected a vehicle from the Collateral link in step 3, information from the Vehicle section appears in Vehicle section in Vehicle Evaluator screen.
6. If you selected NEW COLLATERAL in step 3, complete the Identification #

-or-

Complete the fields in the Vehicle section.

7. In the Vehicle Evaluator section, click Evaluate.

• If you have specified the vehicle identification number, system searches for the value of that vehicle with that identification number, then completes Vehicle Evaluator screen with information about that exact match.
• If you completed the Vehicle section, system searches for the value of a vehicle matching that description.
• In either case, the system displays following information about the vehicle:
• In the Vehicle section, view the returned information:

Field:	View this:
Year	The asset year.
Make	The asset make.
Model	The asset model.
Body	The asset body style.
Usage	The asset usage or current mileage.
Weight	The asset weight.

In the Valuation (Total Value) block, view the returned information:

Field:	View this:
MSRP	Manufacturer’s suggested retail price value of the asset.
Total	Total value of the asset.
Usage	Adjusted usage value of the asset.

In the Base and Attribute Value section, view the returned information:

Field:	View this:
Base Retail	Total retail value of the asset.
Base Loan	Base loan value of the asset.
Base Trade	Base trade value of the asset.
Retail	Retail value of the asset attributes.
Loan	Loan value of the asset attributes.
Trade	Base trade value of the asset attributes.

11.2.1 Attributes Tab

In the Attributes section, view the following information:

Field:	View this:
Attribute	Asset attribute.
Retail	Attribute retail value.
Loan	Attribute loan value.
Trade	Attribute trade value.
Standard	Standard indicator. If selected, indicates that the attribute is a standard.
Package Incl	If selected, indicates that the attribute is inclusive.
Selected	If selected, indicates that the attribute is selected.

If you want to re-calculate the values using other data in Total Value and Base and Attribute Value section, do the following:

• Make the required changes to the desired parameters fields in Vehicle Evaluator and Vehicle sections.
• In the Vehicle Evaluator section, click Recalculate.

The system updates the values in Total Value and Base and Attribute Value sections.

If you choose, use Attributes section to select or clear the Selected box for attributes of the vehicle. This automatically updates the values in Total Value and Base and Attribute Value sections. (Note: Attribute amounts within brackets reduce the amount in Totals field in the Total Value section.)

To copy the calculated value to the Collateral link

You can copy the calculated value to Collateral link only if you have accessed the tools tab either from Underwriting or Funding Tab. Accessing Tools from the main menu does not support this option.

1. Complete the following steps in the section To calculate a vehicle value.
2. In the Vehicle Evaluator screen, click Copy to Asset.

The system uses calculations on the Vehicle Evaluator screen to complete Valuation sub screen on Collateral link. Any pre-existing collateral is no longer the primary collateral.