Interest on Escrow Calculations

Interest on Escrow Calculations

Servicing Director calculates interest on escrow as follows:

Monthly Calculation Method
This calculation determines the day of the month on which the accrual is based and then on that day, computes the accrual. If State.IOECalcMethod = "3" (monthly) and Status.PrimStat = 1.
  1. If State.IOEMonthlyAccrualDay = 0, make it the last day of the month.
  2. Then, compare the day portion of State.IOEMonthlyAccrualDay with tempAccruedThruDate
    1. If State.IOEMonthlyAccrualDay <> tempAccruedThruDate, Then skip the loan.
    2. If State.IOEMonthlyAccrualDay = tempAccruedThruDate, Then begin calculation.
  3. Calculation: State.IOEInterestRate * tempBaseAmount / 12  (Rounded to 10 positions)
Daily Calculation Method
This calculation is performed each time through the loop. The calculation currently uses a 365 day method for all years -- even leap years.
  1. Compute the Interest Accrual factor and the accrual amount for any days before today.
  2. Determine Interest Amount for today. today (@f_tempCurrentAccrualAmount).
  3. If @f_tempCurrentAccrualAmount is > 0 and less and 1, set it to .01 so that at least 1 cent is accrued
  4. Calculation: @f_tempCurrentAccrualAmount = Round(@f_tempDailyInterestFactor * @m_tempBaseAmount,2)
Update the Accumulation Value for both Monthly and Daily Calculations
Select @m_Accum_Current Accrual = IS(Round(@f_tempCurrentAccrualAmount,2) + @m_accum_CurrentAccrual,0)

ArticleNumber:

000055210

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