29.2.1.1 Rate Management
In the Rate Management Interest Rates detail screen, is a drop-down list called the Curve Identifier. This is a drop-down list that contains the list of 4 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 purpose, whose reference currency is always US Dollar.
Figure 29-1 Interest Rates Maintenance Screen
The seven indices are:
Table 29-1 Seven Indices to be used with Adjustable Rate Mortgages(ARMs) meant for ADCo purpose
| 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 (%) |
The user has to define the 7 indices for use with the ARMs, with the same name as expected by ADCo. Also, the IRC to supply 2 years and 10 year rates must be defined in this UI. Users need not enter the Term structure parameters if the IRC is to be used only for ADCo purposes.
Economic Indicators: In the Economic Indicators detail screen, 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 ADCo, this step of loading the STG_LOAN_CONTRACTS table should be performed. The following are the columns that have been included in this table for ADCo Purpose:
Table 29-2 Columns included for ADCo Purpose
| 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 |
Running the T2T Batch to populate the FSI_D_MORTGAGES table: To run the T2T Batch to populate the FSI_D_MORTGAGES table, perform the following steps:
- Navigate to Common Object Maintenance > Operations.
- Set up a batch in the Batch Maintenance UI.
- Select the above batch set up in step 2 and for a particular information date, execute the batch. This populates the FSI_D_MORTGAGES table.