Custom Scheduled Loan Rate Change

This custom application allows institutions that have variable rate products where there is a rate change schedule less than annually and an annual rate cap that needs to be enforced.   This capability is not currently supported in core as the existing rate change process supports per review caps and life of loan caps only when re-pricing adjustable rate accounts.

This custom application allows adjustable rate loans. Home Equity products need to be able to have adjustable rate option that match the agreement.  The loan rate does not adjust up or down more than 2 points per year and not more than 6 points up or down from the initial rate for the life of the loan. This not to be based on the introductory rate (teaser rate), but the rate in effect after the introductory rate. In addition, when the introductory rate (teaser rate) expires, the loan account's rate is to be set to the rate that had been in effect as of the contract date plus any applicable margin.    

Benefits

The Custom Scheduled Rate Change application is enhanced to optionally exclude teaser rates when a teaser rate falls within the review period. In addition, the application is enhanced to update a loan account's rate to the rate in effect at the time of the contract rate plus any applicable margin when the preceding rate is a teaser rate.