37.2.1.1 Rate Management

Interest Rates

In Rate Management Interest Rates Detail window, the Curve Identifier drop-down list contains the list of four Curve Identifier types, that is, Par Treasury, Zero Coupon Treasury, Par Libor/ Swap, and Zero Coupon Libor Swap. These curve identifiers can be mapped to the seven indices to be used with the Adjustable Rate Mortgages(ARMs) meant for ADCo purposes, whose reference currency is always US Dollar. The seven indices are

Table 37-1 List of seven indices that are used with the Adjustable Rate Mortgages(ARMs)

Element Name	Element Description
PAR_TSY_1YR	1-Year Par Treasury Monthly Yield (%)
PAR_LIBOR_6M	6-Month Par LIBOR Monthly Yield (%)
PAR_LIBOR_1YR	1 Year Par LIBOR Monthly Yield (%)
MTA_12	12 Month MTA Monthly Yield (%)
PAR_TSY_3YR	3-Year Par Treasury Monthly Yield (%)
PAR_TSY_5YR	5-Year Par Treasury Monthly Yield (%)
COFI_11D	11th District COFI Monthly Yield (%)

Define the seven indices to use with the ARMs, with the same name as expected by ADCo. Also, the IRC to supply 2 year and 10 year rates also must be defined in Rate Management window. Do not enter the Term structure parameters if the IRC is to be used only for ADCo purposes.

Economic Indicators

In the Economic Indicators Detail window, the historical data for the National Housing Price Index (NHPI) is entered. Setting up the NHPI is an optional step.

Loading the STG_LOAN_CONTRACTS table:

For the purpose of ADCo, this step of loading the STG_LOAN_CONTRACTS table must be performed. The following columns are available in this table for ADCo purpose:

Table 37-2 STG_LOAN_CONTRACTS table

COLUMN NAME	DISPLAY NAME
d_last_delinquent_date	Last Delinquent Date
f_payment_option_flag	Payment Option Flag
f_relo_loan_flag	Relocation Loan Flag
f_sub_prime_flag	Sub Prime Flag
n_first_reset_cap	First Reset Cap
n_first_reset_floor	First Reset Floor
n_joining_score	Original Credit Score
n_loan_charge	Loan Charge
n_mrtgg_insrn_amount	Mortgage Insurance Amount
n_mrtgg_insrn_cutoff	Mortgage Insurance Cutoff
n_mrtgg_insrn_premium	Mortgage Insurance Premium
n_no_of_interest_only_mths	Number of Interest Only Months
n_no_of_prop_units	Number of Property Units
n_orig_cust_ltv	Original Customer LTV
n_prepmt_index_term	Prepayment Index Term
v_loan_doc_status	Loan Documentation Status
v_prepmt_index_cd	Prepayment Index Code
v_prepmt_index_term_unit	Prepayment Index Term Unit
v_prop_loc_state_cd	Property Location State Code
v_prop_purpose_cd	Property Purpose Code
v_prop_sub_type_cd	Property Sub-Type Code

Run the T2T Batch to populate FSI_D_MORTGAGES table:

To run the T2T Batch to populate FSI_D_MORTGAGES table, perform the following steps:

1. Navigate to the Common Object Maintenance menu and select Operations.
2. Set up a batch in the Batch Maintenance window. For more information, see the Oracle Financial Services Analytical Applications Infrastructure User Guide.
3. Execute the batch. This populates the FSI_D_MORTGAGES table. For more information, see the Oracle Financial Services Analytical Applications Infrastructure User Guide.