Good afternoon! We are trying to do an ARM disclosure in LaserPro to have in our mortgage application packages, and we are having trouble with the floor. We don't want to put a specific rate for the floor. The floor is whatever the start rate is which is the index plus the margin. However, the software is wanting a number for the rate floor. Is there any way to get the system to state something like, "Your interest rate will never be less than the initial rate."

I'm not familiar with LaserPro but our software gives an option for the floor equaling the initial rate. I would venture a guess LaserPro has the same option. You most likely will need to talk to their tech support to locate that option.

Thank you, Dan. Yes, that is why I am asking because it would seem to me that it would have that option, but staff is insisting it does not. Just doesn't seem right it wouldn't have that.

If there's no floor the margin becomes the floor by default, unless the index ever were to be negative. We ran into the same issue with LaserPro several years ago. See if the Uniform FHLMC/FNMA note is available - if so, it does have the floor available.

Thank you! Yes, these do have a floor - it's the start rate. The start rate is the index plus the margin rounded to the nearest 1/8th. . Example: Start rate is 4.10 which is the Index + Margin is 4.10 rounded to the nearest 1/8th. LP is trying to show that floor then as 4.10%. Since we are using this as the ARM disclosure in our application packages, we don't want it to state that the floor rate is 4.10% - it's not...it will be whatever the start rate is (at any given time.