1. Loan Origination Setup Guide
  2. Product
  3. Origination Fees

4.14 Origination Fees

The system supports the auto computation of origination itemized fees. System administrators can define and maintain the itemization formula on the Origination Fees screen.

An itemization formula can be set up as a computation of other itemizations (such as adding or subtracting one itemization from another) and can consist of multiple itemizations. An itemization formula will have a minimum and maximum value. You can set up a formula value range to be used as the final value.

Itemizations are linked to a product with the Products screen’s Product Itemizations subtab.

One itemization can be based on one formula, while the same formula can be attached to multiple itemizations. If a formula is attached to a contract itemization and that formula requires an itemization not present in Formula Definitions screen, then the system displays an error message.

The system will search for any circular dependency at the time the contract is enabled. An example of a circular dependency is when Itemization1 has Formula1 attached requiring Itemization2 for computation and Itemization2 has Formula2 attached requiring Itemization1 for computation.

To set up the Origination Fees
  1. On the Oracle Financial Services Lending and Leasing home screen, click Setup > Setup > Administration > User > Products > Origination Fees > Loan.
  2. In the Formula Definitions section, perform any of the Basic Operations mentioned in Navigation chapter.

    Figure 4-16 Origination Fees


    Description of Figure 4-16 follows
    Description of "Figure 4-16 Origination Fees"

  3. A brief description of the fields is given below:

    Table 4-44 Formula Definitions

    Field Do this
    Formula Specify the formula code to define computation.
    Description Specify the description for the formula.
    Min Amt Specify the minimum value that should be considered to compute the final value of formula.
    Max Amt Specify the maximum value that should be considered to compute the final value of formula.
    Enabled Check this box to allow the origination fees.
  4. Perform any of the Basic Actions mentioned in Navigation chapter.
  5. In the Formula Details section of Setup > Setup > Administration > User > Products > Origination Fees > Loan > Detail, perform any of the Basic Operations mentioned in Navigation chapter.
    A brief description of the fields is given below:

    Table 4-45 Formula Details

    Field Do this
    Itemization Select the itemization based on which the itemization formula will derive its computed value, from the drop-down list.
    Percentage Specify the percentage value that should be considered while computing value for itemization formula.
    Sort Specify the sort sequence for the itemization to be considered while computing the value of the itemization formula.
    Sign Select the +ve or -ve sign that needs to be considered between two itemizations for computing the value of the itemization formula.
    Enabled Check this box to allow the itemization details to be used by the system.
  6. Perform any of the Basic Actions mentioned in Navigation chapter.
  7. In the Range Details section of Setup > Setup > Administration > User > Products > Origination Fees > Loan, perform any of the Basic Operations mentioned in Navigation chapter.
    A brief description of the fields is given below:

    Table 4-46 Range Details

    Field Do this
    Amt From Specify the value up to which the percentage of final value of the itemization formula to be considered for the final value of itemization formula.
    Percent Specify the percentage value that should be considered while computing the value for the final value of the itemization formula.
    Enabled Check this box to allow the range details to be used by the system.
  8. Perform any of the Basic Actions mentioned in Navigation chapter.

Parent topic: Product