10.2.13 Reduction of CoC balances for HFI Contracts

The system reduces HFI balances on a pro-rata basis during VAMI event due to HFS transfer, if the box HFS Transfer in the Value Dated Amendment screen is checked. It computes prorata reduction of the following balances for individual loans based on the VAMI amount:

• Pro-rata reduction of write-off
• Pro-rata reduction of contra interest
• Pro-rata release of FAS 114 funded reserve

CoC balances are not applicable for LC loans. The box HFS Transfer is not applicable for commitment VAMI.

You need to manually reduce FAS 114 unfunded reserve on a prorate basis during HFI to HFS transfer as part of internal HFI Sell trade processing.