i23n LoanMaker® WebService
Product Features
Fast, accurate & reliable calculations
The i23n WebService provides fast, accurate, and fully-featured installment
loan calculations to any user with a browser and internet connection. This
includes not only PC's runing Windows, but also Apple or Linux systems, as
well as many handheld devices which have a web connection.
The i23n WebService uses formulas and algorithms that have been in use for
over 30 years -- you can count on the same reliable and correct calculations
that you have received from other PROM Software products over the years.
Moving these calculations to a web-based platform is the next logical step in
providing our services to the financial and insurance industries.
PROM's i23n WebService is hosted at redundant sites in data centers with
backup facilities. Our primary dedicated server is located in a Tier IV
datacenter facility located inside the well known INFOMART telecom center in
Dallas, Texas. Specializing in datacenter and hosting facilities, INFOMART is
home to multiple datacenters including MCI, Level 3, Equinix, Verio, Switch
& Data, Verizon, DataSides, and more. The building sits atop three
redundant electrical grids from the TXU Electric Company delivering diverse
power to each quadrant of the building. HVAC needs are supplied via five one
hundred ton onsite water chillers to deliver N+1 cooling requirements. Home
to over twelve switch sites and thirty-five different carriers, INFOMART
houses technology and telecom related businesses in a complex communications
ecosystem.
Replaces New York 623J/623N LoanMaker Calculator
The i23n WebService is a replacement for the long-used
PROM 623J/623N LoanMaker Calculators.
The i23n WebService computes full-term and truncated single-premium credit
insurance premiums in accordance with New York Regulation 27 (revised 2000).
The program is specially designed for New York lenders who are clients of
AIG/American General Life Ins Co and other carriers for group credit insurance.
Maximum life benefit can be calculated by either the level-excess ('Flat-top')
or pro-rate method.
Disability benefits can be limited by either the total of payments, the
individual payment amount, or both.
Easy to use, works with any browser
One of the biggest advantages of PROM's i23n WebService is that it works on
any internet browser. It doesn't matter whether it's on a Windows PC, Apple,
Linux, PDA, or a front-end or back-end system. There's no special training
required for end-users.
Virtually no maintenance costs
Two other major advantages of the PROM i23n WebService is that it virtually
eliminates any maintenance costs for you. Because no software is installed on
client PC's, there's no need to maintain the software throughout your
organization.
Even if PC software is "free" there is a significant maintenance effort and
associated cost in maintaining the software and required hardware.
"Free" applications (typically provided by insurance companies) usually only
run on one operating system -- typically Windows. And not all versions are
typically supported which requires your customers to change or update their
PC's just to run the "free" software. And keeping "free" programs properly
installed and running on a variety of Windows platforms can incur quite a bit
of support costs.
Upon an update to the "free" PC program, all PC's have to be tracked down and
updated. If some are missed, they will continue to run the old version, likely
producing incorrect results. It is quite often very hard to find all the
installations that need to be updated.
If you're using the i23n WebService and a change in the calculations becomes
necessary (due to an insurance plan change for example), the i23n WebService
is updated on our webhosts at the appropriate time.
From that point forward, ALL clients will be running the new version.
If you use our WebService to support a dealer network, the advantages are
even greater -- the change will automatically appear to the dealers at the
specified time. No need to chase down PC's all over the city, state or
country!
Unlimited number of users, no per-copy license hassle
Because our i23n WebService is delivered over the internet, you can give an
unlimited number of users in your organzation access to the service. There is
no 'per-seat' licensing and none of the associated complicating issues such
as restrictive copy-protection schemes that often fail to work easily or
properly.
As a WebService client, you're free to use the service on any PC or system
you want, and you can change or update any system without having to
uninstall, reinstall, obtain a new license, and so forth. Your employess can
use the service from home or in your customers' offices. If you're an
indirect lender, you can allow your dealers to access the system to get
accurate calculations.
(Access to the i23n WebService is protected by a User Name and password to
prevent unauthorized use. You can change the password from time-to-time if
you want, and you can have different User Names and passwords for different
WebServices -- for example for use in different states where the credit
insurance plan varies.)
Dealer reserve (participation) and buydown
calculations
If you specify a 'buy rate' (the lender retention rate), the i23n WebService
will calculate the dealer reserve.
If the buy rate is greater than the loan
interest rate, the dealer buydown payment will be calculated (the amount the
dealer has to remit to the lender in order for the lender to maintain their
desired return).
Qualifies as a Reg Z calculation tool
There are benefits to an institution under Regulation Z when they use a
calculation tool both from the perspective of disclosure violations and of
meeting the requirement to use an alternate tool to verify calculations.
Footnote 45d to Section §226.22(a) of Regulation Z states:
"An error in disclosure of the annual percentage rate or finance charge shall
not, in itself, be considered a violation of this regulation if: (1) The
error resulted from a corresponding error in a calculation tool used in good
faith by the creditor; and (2) upon discovery of the error, the creditor
promptly discontinues use of that calculation tool for disclosure purposes
and notifies the Board in writing of the error in the calculation tool."
And Section 1305.14 of the Examination Handbook (January 2004) of the Office
of Thrift Supervision states:
"When a financial institution claims a calculation tool was used in good
faith, the financial institution assumes a reasonable degree of
responsibility for ensuring that the tool in question provides the accuracy
required by the regulation. For example, the financial institution might
verify the results obtained using the tool by comparing those results to the
figures obtained by using another calculation tool."
XML output available for system integration
PROM's i23n WebService can generate XML output which makes it very easy to
incorporate its calculation ability into other computer systems.
The i23n WebService Engine can be called directly (without having to go
through a HTML form) using GET and POST protocols.
This option enables a back-end system, website, or document generation system
to use the highly accurate calculations of the i23n WebService product.
Operation is transparent and seamless to the end-user.
Specifications
Computes installment loans with single-premium (net or gross) credit
insurance
Interest can be calculated by any of three interest calendar systems:
Actual/365, Actual-to-first-payment, and the Federal
Calendar.
All interest calculations are done by the U.S. Rule (United
States Escrow Rule) which makes sure that no compounding of interest
(interest-on-interest) occurs during the loan.
The computed monthly payment can be rounded to the nearest whole cent or
truncated to the lower whole cent. In consumer lending, it is common to
truncate the payment. If the payment is rounded to the nearest whole cent,
it can increase the finance charge by several cents or more -- and it is
possible that the effective interest rate could be greater than the
stated loan rate. Truncating the payment prevents this. Default is to
truncate the payment.
Credit life insurance can be calculated by a variety of methods, both net
payoff and gross coverage. Provisions are included for single and joint
coverage, maximum benefit limits, maximum term limits, and truncated
coverage.
Credit disability (accident-&-health) insurance is available with single
and joint coverage. Provisions are included for both a maximum total benefit
and a maximum monthly benefit (the lower of the two applies). Maximum term
limits also apply, and truncated coverage is available. The i23n WebService
provides the special New York Regulation 27 calculations --
see above.
Filing fees (fees
paid to public officials) are available -- these fees are added to the loan
amount and become part of the amount financed.
Loans up to $100,000,000 and more can be accurately calculated. The formulas
and algorithms used in PROM's i23n WebService engine have been developed and in
use for more than 30 years, and have calculated millions of loans. The
i23n WebService engine is written in a high-level compiled language (over 10,000
lines of C++) which maintains a very high degree of accuracy and precision to
16 significant digits.
The dealer reserve or buydown calculation is done by any of three methods:
Difference
in Charges, Present Value, or Pro-rate.
A minimum dealer reserve amount can be specified. First the dealer reserve
is calculated and, if it is less than the minimum amount, the minimum
amount is shown. Default is no minimum. (Note: The dealer buydown feature
does not work if a minimum reserve is specified.)
A percentage paid can be specified. It is a fairly common practice to pay
only a percentage of the dealer reserve to compensate the lender for the
expected early terminations. Rather than issue a chargeback for a portion
of the dealer reserve paid on a terminated loan, the lender just pays a
percentage of the dealer reserve (commonly 70% - 80%) on all loans. Default
is 100%.
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