ARTA has a 7 yr high mtg payment field. We offer a 1 yr ARM that can change every yr by 1 point with a cap. Does anyone using ARTA have a problem with this field not working?

I just looked through our screens and didn't see this field. What screen section is it in and/or does it only appear if you have a HPML? Also what is not working?

We have yet to run across this field, or at least it has not been brought to my attention but we also have not yet made a HPML.

At the bottom of the calculation screen, hit calculate payments and a field will show up as 7 year high payment. When we process a 1 yr arm, this field stays the same as the initial payment.

OK, saw it. Just have never paid attn to it before but generally I'm not looking at the payment calculation screen.

As long as your rate at consummation is fully indexed that payment would be the same as your initial payment. That payment should only be affected if your initial rate is discounted or has a premium.

See the Commentary to 226.34(a)(4)(iii)(B).

How are you all still using Arta? We were a previous user of Arta until 2008 when we swtiched to Laser Pro.

We changed because Wolters told us back in 2007 that they were sunsetting Arta and that they were no longer gonna provide maintenance support. They told us at that time that loan processing platform they were going to be pushing was Compliance One which was new at the time (essentially the old Gulf Pak system). Rather the switch over to Compliance One (we heard lots of horror stories), we opted to swtich to Laser Pro.

Surprised and a little bothered come to think of it that Arta is still being used out there particularly when we made a swtich because we were told the platform was going away. Otherwise, we would have stayed with Arta .

My guess would be a sales rep that wanted to sell Compliance One.

Thanks for the information, I guess I'm just really confused. If our 1 yr arm product caps at 10.5% int rate within the first 7 yrs of the loan, do I calculate the payment for DTI based on the balance as of the 6th year at 10.5%?

If you review the Commentary I cited above it will give you some examples of how you calculate the ability to repay.

If the loan is fully indexed as consummation that is the payment you use to calculate the ability to repay.

Thanks Dan.

Glutes - WK did say they were going to sunset ARTA and support ComplianceOne. However, with all of the problems CO has had, they backed off from the 2008 sunset date and haven't announced the new date yet.