37.2 Procedure For Setting Up ADCo Process
To set up an ADCo process, follow these steps:
- Mapping of the ADCo function to ALM Admin user
- Set up the 7 Indices to use with ARMs.
- Set up the 2 year, 10 year rate IRCs.
- Set up the National HPI.
- Load the STG_LOAN_CONTRACTS table.
- Run the T2T batch to populate the FSI_D_MORTGAGES table.
- Select the NHPI from Application Preferences.
- Forecast the 2 year, 10 year rate IRCs.
- Forecast the 7 indices (only required where indicies are mapped to ARMs).
- Forecast the National HPI (optional).
- Setup the Prepayment Rule mapping ADCO method to the required Mortgage – USD combinations.
- Setup the Static Deterministic Process including the rules defined above (Forecast Rates and Prepayments).
- Select the Smm Rates Output flag (optional).
- Execute the Process.
The detailed procedure for using ADCo prepayment method comprises utilizing the above mentioned specific settings in various ALM modules is explained in the following sections.