1. Cash Flow Engine Reference Guide
  2. Cash Flow Dictionary
  3. Cash Flow Columns
  4. Payment Increase Limit - Cycle (PMT_INCR_CYCLE)
  5. Module Usage

8.2.113.2 Module Usage

Oracle ALM and Funds Transfer Pricing Cash Flow Methodologies reference PMT_INCR_CYCLE when re-calculating the current payment for negative amortization events such as NEG_AMRT_LIMIT, PMT_ADJUST_DATE, and PMT_ CHG_FREQ. This is relevant only for adjustable-rate accounts where AMRT_TYPE_ CD = 600.

  • For negative amortization-type accounts, the cash flow engine uses PMT_ INCR_CYCLE to calculate the maximum increase in the payment amount allowed from the previous payment change to the next.

Note:

PMT_INCR_CYCLE is defined in terms of a percentage. The cash flow engine performs the following check:

Newly calculated payment - Previous Current Payment > (PMT_INCR_CYCLE/100 * Previous Current Payment)

If the newly calculated payment satisfies the earlier equation, the cash flow engine limits the increase to the amount = (PMT_INCR_CYCLE * Previous Current Payment).

For example, if PMT_INCR_CYCLE = 5.00, the calculated current payment is not allowed to increase by more than 5% of the previous current payment.

  1. If PMT_INCR_CYCLE = 0, the cash flow engine assumes that there is no pay increase limit per payment change period.
  2. The PMT_INCR_CYCLE is referenced when the following negative amortization events occur:

    NEG_AMRT_LIMIT

    PMT_ADJUST_DATE

    PMT_CHG_FREQ

    For an explanation of PMT_INCR_CYCLE's relationship with other related negative amortization fields, see Negative Amortization Amount (NEG_AMRT_AMT).