Introduction

The Sherman Calculation Engine with XML Interface (SCEX) is a lightweight suite of lending, depositing, compliance, and support modules that provides lenders with a lightning-fast API tool to meet all calculation needs.

The SCEX is secure - neither receiving, retrieving, storing, or exporting any information particular to any individual. Being free of proprietary user information means being free of the security concerns associated with disclosing personal information to a 3^rd party vendor. By focusing exclusively on the math, the SCEX slims down to focus on computing quick calculations exclusively.

Getting Started

Each solution for the SCEX has its own particular technical platform configurations. To assist your technical team get up and running, we offer:

• SCEX Project History - A quick historical overview of the SCEX project.
• Installation Instructions - How to properly integrate the SCEX calculation engine into your platform.
• Implementation Assistance - Once physical access to the engine has been established, get connected to the SCEX with your particular software solution.
• Module Structure - An overview of the structure common to the modules found implemented in the SCEX.
• Legend - Understand quick identifier conventions used in this manual.

Module Overview

Now that the SCEX is up and running and queries can be run, get assistance on how to craft xml payloads to correctly represent your calculation request and review the result structures for consuming the solutions.

Loans

The SCEX provides a broad spectrum of closed-end loan computation tools, which over the years has culminated with our flagship module, LoanBuilder.

• LoanBuilder is designed to compute any loan from any lending market in any country ¹. The particulars of a loan are added, element-by-element, to reflect precisely the particulars of that loan.

The modules that follow are all legacy modules for single advance, specific repayment structure loans.

• Equal Payments - Compute an equal payment loan.
  • Compute Payment
  • Compute Proceeds
  • Compute Term
• Balloons - Specify the amortization term, regular payment or balloon.
  • Specify Regular - Specify the regular payment to compute the balloon.
  • Specify Final - Specify the final balloon payment to compute the regular payment.
  • Specify Amortization Term - Specify a long term amortization to compute a regular payment and balloon at the short term call.
• Single Payment Notes - Term or Bridge Loans where one borrows cash and pays off the loan with a single payment at maturity.
• Interest Payments - These modules are for loans that focus on payments paying off interest, with or without a specified principal reduction.
  • Interest Only - Pay only interest until the final balloon payment.
  • Fixed Principal Plus Interest - Pay interest and specified amounts of principal.
• Skips, Pickups, Irregular - Skip payments, or specify payments or specify additions to regular payments (Pickups) with these modules.
  • Skipped and Irregular Pmts - Skip payments and specify payment amounts with this module.
  • Skipped and Pickup Pmts - Skip payments and boost regular payments with this module.
• Mortgage Loans
  • ARM - Adjustable Rate Mortgages - Teaser Rate and Term precede an evolving interest rate.

Open-End Lending

Support for open ended lending is available through the SCEX in two fundamental ways:

• Initial Disclosure - The initial disclosure for an open ended loan is done with a closed-end loan module. We recomment Loan Builder for this purpose.
• Periodic Disclosures - Lines of credit require periodic minimum payment disclosure and payoff information. Use the linked module for periodic disclosures.

Loan Servicing

As the servicing of a loan continues, various information may wish to be explored, such as given the current state of the loan, what new payment would be computed? The Loan Builder module should be used for all loan Servicing needs.

Deposit Modules

The SCEX comes with several common deposit modules, broadening your suite of solutions. They are as follows:

• Annuities - Streams of income paid in a series of regular monthly payments.
• Certificates of Deposit - Compute CD payoffs and APY's
• Individual Retirement Accounts - Compute retirement payments or the payment to produce a retirement income goal.

Compliance Modules

Loans require specific sets of mandated disclosure quantities. The SCEX comes with several modules to assist lenders to determine several critical quantities. These modules are as follows:

• APR Module - Compute the regulatory Annual Percentage Rate along with all relevant supporting data to prove compliance to an examiner.
• APY Module - Compute the annual percentage yield for a deposit.
• HCM - High Cost Mortgage - Determine if the loan is a High Cost Mortgage plus the triggers causing it to be one.
• HPML - High Priced Mortgage Loan - Determine if the loan is a High Priced Mortgage Loan with supporting data.

Miscellaneous Modules

Several solutions in the SCEX are unique modules, which are as follows:

• Dealer Reserve - Dealers can calculate their portion of the finance charge when they, themselves, have financed vehicles with this module.
• Refunds - Single Premium insurance products may require refunding part of the original premium when a loan is paid off early.
• Auto Assist - The various taxes and fees are computed and bundled with the Auto Assist module.

Diagnostic Modules

The SCEX provides several diagnostic and data reporting modules for a more robust solution. These modules are as follows:

• Version - Reports the version of the SCEX being used.
• Account Listing - Lists all available solutions represented by setup files currently operating with the SCEX, each solution represented by a positive Account integer.
• Input Tool - The setup files for a given account solution are queried with this module, revealing all of the protection products and parameters active for that account. This reporting tool may be used by clients designing a responsive user interface to the particulars of a client solution.
• Setup Cache - This module is a dynamic version of the "Account Listing" module, and queries the currently running SCEX to limit and list all currently Setup Files in active cache.

This powerful suite of calculation modues will provide your company with the tools necessary to fully represent all of the loan products. As importantly, should capability or functionality be lacking, contact Sherman and Associates at support@shermanloan.com to modify the SCEX to include the new functionality.

The SCEX is a constantly growing engine and represents the accumulation of lending intelligence over decades of use. Quarterly releases announce this new functionality which may or may not be implemented depending on whether or not the new functionality is needed.

^1. Only ARM's requiring TILA RESPA data are not currently supported by LoanBuilder. For these loans, choose the ARM module defined above.