June, 2010 Interest Change for FHA and VA ARM Loans Page 1 of 2

Interest Change for FHA and VA ARM Loans

This document explains how to create a business rule that will fill in the number of months for the first rate change (based on the loan type, loan program, and first payment date) for FHA and VA ARM loans. In a typical scenario 3/1, 5/1, and 7/1 loans have their first rate change at 36, 60, and 84 months respectively. However, with FHA and VA ARM programs, additional months need to be added to the 1st rate change based on the first payment date.

Business Rule Creation In the following image, the number next to the month in the First Interest Change Date column represents the number of months to be added to the first rate change field (field 696).

For example, if the loan program is a 3/1 ARM, the 1st change would be no sooner than 36 months (field 696). If the first payment date (field 682) was in January, then 4 additional months would need to be added to the 1st change field (field 696) for a total of 40 months.

June, 2010 Interest Change for FHA and VA ARM Loans Page 2 of 2

You can create a Field Triggers business rule to automate the change to the 1st change field. To create field triggers: 1 On the menu bar, click Encompass and then click Settings.

2 On the left panel, click Business Rules, and then click Field Triggers.

3 On the Field Triggers window, click the New icon.

4 Create a Trigger name.

5 Select the channels where this rule will be applied.

6 Select “No – Always Apply this rule” for the condition option.

7 Add and apply the following field events.

Click Add to open the Add/Edit Trigger window.

Set the Activation Type to Field value modified.

Set the Trigger Field ID to 682.

Set the Criterion to Any change in field value.

Set the Action Type to Run advanced code.

In the Advanced Code field enter the following code: If [1172] = "FHA" And UCase([1401]) = "3/1 ARM" Then [696] = Choose(Month([682]), 4,6,5,4,6,5,4,6,5,4,6,5) + 36 Elseif [1172] = "FHA" And UCase([1401]) = "5/1 ARM" Then [696] = Choose(Month([682]), 4,6,5,4,6,5,4,6,5,4,6,5) + 60 Elseif [1172] = "FHA" And UCase([1401]) = "7/1 ARM" Then [696] = Choose(Month([682]), 4,6,5,4,6,5,4,6,5,4,6,5) + 84 End If Note: In the advanced code we use the loan programs of "3/1 ARM", "5/1 ARM", and "7/1 ARM". If your loan program name is different, replace the loan program name after the phrase "UCase([1401]) =" and substitute the name of the loan program that you use in your environment. For example, if your program is named "3/1 ARM FHA" then your code would be changed to UCase([1401]) = "3/1 ARM FHA".

8 Click OK.

9 Repeat step 7 to create two additional field events. Set the value for the Trigger Field ID to 1401 and 1172 respectively. Use the same advanced code for each field event.

10 Once the three events have been created, click Save.