1. Cash Flow Engine Reference Guide
  2. Cash Flow Dictionary
  3. Cash Flow Columns
  4. Negative Amortization Equalization Frequency (NEG_AMRT_EQ_FREQ)
  5. Module Usage

8.2.87.2 Module Usage

Oracle ALM and Funds Transfer Pricing Cash Flow Methodologies reference NEG_AMRT_EQ_FREQ in calculating the current payment for negative amortization-type accounts. This is relevant only for adjustable-rate accounts with AMRT_TYPE_CD = 600.

  1. From the NEG_AMRT_EQ_DATE, the Cash Flow Engine rolls forward by the NEG_AMRT_ EQ_FREQ until the Maturity Date.
  2. At each instance of a NEG_AMRT_EQ_FREQ, the Cash Flow Engine recalculates the payment as it did for the NEG_AMRT_EQ_DATE. On these roll dates, the record's CUR_ PAYMENT will be fully re-amortized. NEG_AMRT_EQ_FREQ will ignore payment decrease/increase limits per period and payment decreases/increase limits for the life of the record. Therefore, after the payment recalculation of a NEG_AMRT_EQ_FREQ, the record will no longer be negatively amortizing.
  3. If NEG_AMRT_EQ_FREQ = 0, once the modeling date is past the NEG_AMRT_ EQ_DATE, the Cash Flow Engine will not attempt to re-amortize the Negative Amortized Amount. In this case, any negative amortized balance will balloon at maturity.