1. Cash Flow Engine Reference Guide
  2. Cash Flow Dictionary
  3. Cash Flow Columns
  4. Teaser-rate End Date (TEASER_END_DATE)
  5. Module Usage

8.2.132.2 Module Usage

The Cash Flow Engine references TEASER_END_DATE when calculating a Forecasted Interest Rate. The TEASER_END_DATE defines the end of a tease period, which is an initial low-interest-rate period from the origination of a loan. At the TEASER_END_DATE, the low rate is repriced to a value defined by the market index (IRC) plus a margin.

Oracle ALM

  • The Cash Flow Engine does not adjust the rate on an Adjustable-Rate Account until the TEASER_END_DATE is less than the current date within the modeling horizon.
  • TEASER_END_DATE takes precedence over NEXT_REPRICE_DATE and REPRICE_FREQ. Even if NEXT_REPRICE_DATE < TEASER_END_DATE, the record does not reprice until the TEASER_END_DATE.
  • TEASER_END_DATE does not apply to Fixed-Rate Accounts.

Oracle Funds Transfer Pricing

  • Because TEASER_END_DATE overrides the other repricing fields, if a record is currently in its tease period, the last repricing date equals the ORIGINATION_ DATE and the Next Repricing Date equals the TEASER_END_DATE.
  • If the TEASER_END_DATE is greater than the AS_OF_DATE, the Oracle Funds Transfer Pricing mid-period Repricing does not apply. For further information, see the Oracle Financial Services Funds Transfer Pricing User Guide.