SCEX Calculation Specifications

The SCEX includes virtually all loan calculations, accrual methods, and payment protection products used across the country.The SCEX supports virtually all loan types, accrual methods, and payment protection products used across the country. A quick overview of the loan structures and calculations supported by the calculation engine follow.

Consumer Loan Calculations

  • Equal payment loans (compute payment, proceeds, term, or rate given the other three values)
  • Single payment notes
  • Balloon loans (specify regular - compute final, specify final - compute regular, or specify an amortization term and loan term - compute regular and final payments)
  • Student loans (multiple advances)
  • Lines of credit

Commercial Loan Calculations

  • Interest only loans (which may also precede equal and skipped payment loans)
  • Principal plus interest loans (compute fixed principal reduction, specify principal reduction - compute final balloon, mixed principal plus / interest only [e.g. monthly interest only payments with quarterly fixed principal payments)
  • Skipped and irregular payment schedules (specify skipped and irregular payment amounts - compute payment for all payments left unspecified, interest only payments may be specified instead of skipped [zero] payments, pickup payments [a specified addition to the computed regular payment amount] may be used instead of irregular payments), skipped payments with principal plus loans)
  • Commercial Loans supporting multiple advances, overlapping payment streams, variable interest rates, and time-wise irregular payments

Mortgage Loan Calculations

  • Construction loans - monthly only, up to 60 months, with or without a permanent loan attached
  • Adjustable rate, equal payment, and balloon loans
  • FHA and PMI coverage
  • Mortgage Disclosure Improvement Act (MDIA) disclosures
  • TILA RESPA Integrated Disclosures
  • HOEPA / HCM compliance test
  • HPML compliance test

Payment Frequencies

  • Weekly and biweekly
  • Semi-monthly, monthly, bimonthly
  • Quarterly, semi-annual, annual

Fee Types

  • Non-APR Affecting Fees - These include fees such as intangible tax and doc stamps for Florida, auto registration and license fees, and generally any fee that is financed, but not required directly by the lender for the extension of credit. Inclusion of these fees will not affect the Regulation Z APR. Up to fifty (50) non-APR affecting fees may be included.
  • APR Affecting Fees - These are generally called "Prepaid Finance Charges", and are considered additions to the finance charge and will affect the Regulation Z APR for the loan in question. These may be paid up front or added to the principal and financed. Up to fifty (50) APR affecting fees may be included.

Interest Accrual Methods

 The following unit period interest accrual methods are supported in the SCEX:

  • Actuarial, as defined in Appendix J to Regulation Z
  • Unit period simple interest and U.S. Rule, with the choice of both 360 and 365 basis days per year, for all payment frequencies
  • True 360 simple interest and U.S. Rule
  • Simple interest and U.S. Rule using the federal calendar for days between dates
  • Add-on, with rule of 78s accrual
  • Split simple
  • Split add-on

The following actual day interest accrual methods are supported in the SCEX:

  • Actual/360, actual/365, actual/actual simple interest for all payment frequencies
  • Actual/360, actual/365, actual/actual U.S. Rule interest for all payment frequencies
  • 365/365 simple and U.S. Rule (actual day except ignores Feb. 29)

Regulation Z and Other APR Calculations

Payment Protection Products

  • Single premium products for all 50 states (gross, level, net, etc.)
  • All monthly outstanding balance (monthly pay) methods
  • All debt protection / cancellation methods
  • CUNA Mutual insurance (single premium, level rate, monthly renewable)

Other Calculations

  • CD / single deposit
  • IRA / multiple deposits
  • Dealer reserve