New Business Tab

18.2.3 New Business Tab

The assumptions made on the New Business tab impact forecast business only. These assumptions are used together with the other Forecast Assumption Rules including Forecast Balances, Pricing Margins, and Maturity Mix to determine the behavior of the forecast instruments.

Figure 18-4 New Businesses Tab of Product Characteristic to Define the Product Characteristic Rule

The following secondary tabs are available in New Business tab:

Define Core Product Attributes
Define Payment Attributes
Define Adjustable Rate Attributes
Define Negative Amortization Attributes
Define Other Mortgage Attributes *
Define Inflation Adjustment Attributes **

Note:

* This tab will be displayed only if OFS ALM is mapped to ADCo LDM functionality and currency is selected as USD.

** This tab will be displayed, if the Inflation Indexed Instrument option is selected in Define Core Products Attributes tab for New Business.

Relationship Triggers

There are dependencies built into the tabular structure of this window. Based on the assumptions made in the first two tabs, the remaining two tabs may not be active.

Table 18-2 Relationship Triggers of All Businesses and New Businesses

Field	Value	Behavior
Amortization Type Code	Conv. Fixed, Conv Adjust., Adjst/Ng Amrt	Always interest in arrears, therefore, disables Interest Type.
Amortization Type Code	Conv. Fixed, Rule-of-78's	No repricing occurs, therefore disables the Define Negative Amortization Attributes and enables the Adjustable Rate Attributes tab. In this case, Rate Change Rounding Type, Rate Change Rounding Factor (when there is Rounding), Rate Floor Life, and Rate Cap Life fields will be enabled in the Adjustable Rate Attributes tab.
Amortization Type Code	Adjst/Ng Amrt	Enables Negative Amortization Attributes tab.
Amortization Type Code	Payment Pattern	Enables the Payment Pattern drop-down list.
Amortization Type Code	Behavior Pattern	Enables the Behavior Pattern drop-down list.
Amortization Type Code	Conv Fixed, Conv Adjust., Level Principal, Non-Amortizing	The Inflation Indexed Instrument check box will be selected.
Adjustable Type Code	Other Adjustable, Fixed Rate, Floating Rate, or Repricing pattern	Repricing Frequency is inapplicable, or it is defined elsewhere, therefore disables Repricing Frequency and Multiplier. Enables the Adjustable Rate Attributes tab. When Adjustable Type Code is Fixed, the Adjustable Rate Attributes tab is enabled. In this case, Rate Change Rounding Type, Rate Change Rounding Factor (when there is Rounding), Rate Floor Life, and Rate Cap Life fields will be enabled in the Adjustable Rate Attributes tab.
Adjustable Type Code	Repricing Pattern	Enables the Repricing Pattern drop-down list. Also, the repricing attributes that are defined elsewhere are disabled in this Rule. Only periodic increase and decrease, rate change rounding are enabled.
Repricing Frequency	"0"	No repricing occurs and therefore disables the Adjustable Rate Attributes tab.
Model with Gross Rates	Off	Net Margin Flag options are only necessary when modeling with different gross rates and net rates, and therefore disables Net Margin Flag.
Rate Change Rounding Type	"No Rounding" or "Truncate"	Rounding does not apply, and therefore disables Rate Change Rounding Percent.
Currency		Allows display of Interest Rate Codes and Transfer Rate Interest Rate Codes for which the selected currency is the reference currency. In Product Characteristics, Default Currency allows all Interest Rate Codes, regardless of currency.

Field

Value

Behavior

Amortization Type Code

Conv. Fixed, Conv Adjust., Adjst/Ng Amrt

Always interest in arrears, therefore, disables Interest Type.

Amortization Type Code

Conv. Fixed, Rule-of-78's

No repricing occurs, therefore disables the Define Negative Amortization Attributes and enables the Adjustable Rate Attributes tab. In this case, Rate Change Rounding Type, Rate Change Rounding Factor (when there is Rounding), Rate Floor Life, and Rate Cap Life fields will be enabled in the Adjustable Rate Attributes tab.

Amortization Type Code

Adjst/Ng Amrt

Enables Negative Amortization Attributes tab.

Amortization Type Code

Payment Pattern

Enables the Payment Pattern drop-down list.

Amortization Type Code

Behavior Pattern

Enables the Behavior Pattern drop-down list.

Amortization Type Code

Conv Fixed, Conv Adjust., Level Principal, Non-Amortizing

The Inflation Indexed Instrument check box will be selected.

Adjustable Type Code

Other Adjustable, Fixed Rate, Floating Rate, or Repricing pattern

Repricing Frequency is inapplicable, or it is defined elsewhere, therefore disables Repricing Frequency and Multiplier.

Enables the Adjustable Rate Attributes tab.

When Adjustable Type Code is Fixed, the Adjustable Rate Attributes tab is enabled. In this case, Rate Change Rounding Type, Rate Change Rounding Factor (when there is Rounding), Rate Floor Life, and Rate Cap Life fields will be enabled in the Adjustable Rate Attributes tab.

Adjustable Type Code

Repricing Pattern

Enables the Repricing Pattern drop-down list. Also, the repricing attributes that are defined elsewhere are disabled in this Rule. Only periodic increase and decrease, rate change rounding are enabled.

Repricing Frequency

"0"

No repricing occurs and therefore disables the Adjustable Rate Attributes tab.

Model with Gross Rates

Off

Net Margin Flag options are only necessary when modeling with different gross rates and net rates, and therefore disables Net Margin Flag.

Rate Change Rounding Type

"No Rounding" or "Truncate"

Rounding does not apply, and therefore disables Rate Change Rounding Percent.

Currency

Allows display of Interest Rate Codes and Transfer Rate Interest Rate Codes for which the selected currency is the reference currency. In Product Characteristics, Default Currency allows all Interest Rate Codes, regardless of currency.