Loan Product Definition

The sub-products identified within Loan Product Definition are the items that populate in the Product: Sub-Product field when initializing an application.

The Sub-Products tab displays a list of all loan sub-products organized by the associated category. Within each category, sub-products are arranged according to their assigned product type. From this tab, administrators are able to create, copy and edit sub-products available at an institution.

The first sub-product created for each product type becomes the default. Default sub-products may be used as a base for creating and copying sub-products and may also be available for application processing

The grid within the Sub-Products Listing page displays the following columns of information for each sub-product:

Column	Description
Category	Displays the name of the category associated with the sub-product.
Product	Displays the name of the product type associated with the sub-product.
Sub-Product	Displays the name of the sub-product.
Active	Displays a if the sub-product is active.
Risk Model	Displays the name of the risk model assigned to the sub-product.
Pricing Model	Displays the name of the pricing model assigned to the sub-product.
Decision Model	Displays the name of the decision model assigned to the sub-product.
Workflow Model	Displays the name of the workflow model assigned to the sub-product.
Last Modified	Displays the date that the sub-product was last modified.
Last Modified By	Displays the name of the user who made the last modification.
Date Created	Displays the date that the sub-product was created.
Created By	Displays the name of the user who created the sub-product.
Product ID	Displays an automatically generated number that allows instutions to assign sub-products to certain connectors.

This topic includes the following attributes and instructions that assist administrators with creating, copying and editing sub-products:

Sub-Product Attributes
Creating a Loan Sub-Product
Copying a Loan Sub-Product
Editing a Loan Sub-Product

Sub-Product Attributes

Each sub-product contains attributes which are organized into a series of tabs. The defined attributes determine the settings and defaults for the sub-product.

General

General attributes define the sub-product's defaults, tolerances, terms and models. These items drive sub-product behaviors within the Framework. General Attributes are broken down into the following sections:

Product Attributes
Loan Terms/Draw Period Terms
Repayment Period Terms
Model Selection

Product Attributes

Product attributes include all configurations which determine the sub-product defaults and tolerances. The table below provides field details for the Product Attributes section:

Field Name

Details

Sub-Product Name

Enter the name of the sub-product.

If it is the ‘default,’ the Sub-Product name cannot be changed.

Active

Check the box to activate the Sub-Product.

Product Name

Defaults to the Product selected.

Category Name

Defaults to the category associated with the selected product.

Loan Type

Select Closed End (installment) or Open End (revolving).

Real Estate Type

Select "None" for Non-Home Equity Sub-Products or "Home Equity" for all Home Equity Sub-Products.

Debt Protection Account Class

Used for loan calculator settings to determine how to properly calculate insurance/debt protection coverage. This selection determines which Debt Protection plans are available for selection in the Debt Protection panel.

Trade Type

Used to determine if an application should be added into Post-Loan Aggregate and Ratio calculations.

Trade Category

Used to determine if an application should be added into Post-Loan Aggregate and Ratio calculations.

Disbursement Method

Used to determine which active connector interface should be used to disburse the application (e.g. Symitar, DataSafe, OSI, PSCU).

Interest Type

Select appropriate option for interest calculation.

Document Set

Used to determine which IMM Document Set is requested during Document Processing.

Core Processor Product Codes one and two

Enter the Core Product Code. Both fields may be needed depending on the core processor.

Disbursement Date (days from App Date)

Enter the number of days to default the Disbursement Date from the Application Date. This is just to set a default value. The Disbursement Date can be updated manually on the Loan Application.

First Due Date (days from Disbursement (days from Disbursement Date)

Enter the number of days to default First Payment Due Date from the Application Date. This is just to set a default value. The First Payment Due Date can be updated manually on the Loan Application.

Minimum Loan Amount

Enter the Minimum Loan amount for the Sub-Product. If an application is entered for less than the minimum amount, the system requires an override to continue with the loan process.

If an application is submitted via WebLoan or a third-party connector, Minimum Loan Amount validation is bypassed. If this sub-product is exposed to WebLoan or Indirect sources, it is advised that decision model contains logic that defines Minimum Loan Amount.

Maximum Loan Amount

Enter the Maximum Loan amount for the Sub-Product. If an application is entered for more than the maximum amount, the system requires an override to continue with the loan process.

If an application is submitted via WebLoan or a third-party connector, Maximum Loan Amount validation is bypassed. If this sub-product is exposed to WebLoan or Indirect sources, it is advised that decision model contains logic that defines Maximum Loan Amount.

Maximum LTV

Enter the Maximum LTV for the Sub-Product (if applicable). If an application exceeds the Maximum LTV, the system requires an override to continue with the loan process.

Values entered within this field should be entered as a decimal. For example:

If the Maximum LTV is 80%, this value should be entered as 0.80 NOT 80.
If the Maximum LTV is 110%, this value should be entered as 1.1 NOT 110.

If these values are entered as a whole number rather than as a decimal, the Maximum LTV will likely never be exceeded.

If an application is submitted via WebLoan or a third-party connector, Maximum LTV validation is bypassed. If this sub-product is exposed to WebLoan or Indirect sources, it is advised that decision model contains logic that defines Maximum LTV.

Minimum Term

Enter the Minimum Term for the Sub-Product. If an application is entered for less than the minimum term, the system requires an override to continue with the loan process.

If an application is submitted via WebLoan or a third-party connector, Minimum Term validation is bypassed. If this sub-product is exposed to WebLoan or Indirect sources, it is advised that decision model contains logic that defines Minimum Term.

Maximum Term

Enter the Maximum Term for the Sub-Product. If an application is entered for more than the Maximum Term, the system requires an override to continue with the loan process.

If an application is submitted via WebLoan or a third-party connector, Maximum Term validation is bypassed. If this sub-product is exposed to WebLoan or Indirect sources, it is advised that decision model contains logic that defines Maximum Term.

Approval Tolerance Type

Select Amount or Percent of Approved Amount from the Approval Tolerance Type dropdown to calculate how much over the approved amount an application can be funded for.

Approval Tolerance Factor

Set either the Dollar Amount or the Percentage of Approved Amount based on the selection for Approval Tolerance Type. If the end user tries to fund the loan for more than the Approved Amount plus the tolerance factor, the system requires an override to continue with the loan process.

Example: Approval Tolerance Type is set to Amount. Approval Tolerance Factor is set to $500.00. A loan was approved for $10,000.00. The end user could fund the loan up to $10,500.00. If the end user tried to fund the loan for $10,501.00, the system would require an override.

Queue Escalation Threshold (hours)

Set the maximum amount of time an application should be in a queue. If time is exceeded, the system highlights the application in the queue contents and sends an email notification.

Null values in this parameter are treated as zeros. To avoid behavior of this parameter, it is advised to enter all nines as the field value.

This parameter only works if threshold notifications are activated for the queue.

Queue Aging Limit (days)

Set the maximum number of days an application should be in a queue. If maximum number is exceeded, the system highlights the application in the associated queue and sends an email notification to all parties in the Queue Notification.

Null values in this parameter are treated as zeros. To avoid behavior of this parameter, it is advised to enter all nines as the field value.

This parameter only works if threshold notifications are activated for the queue and Queue Escalation Thresholds are established.

Prepayment Penalty

Set the dollar amount charged as a Prepayment Penalty.

Doc Stamp Program

Select the Doc Stamp Program which applies the Sub-Product.

This is specific to Florida institutions.

Billing Cycle Required

Select the checkbox to enable the Billing Cycle field to appear in WebLoan. When this checkbox is selected, the Billing Cycle field must be completed during application processing.

Loan Terms/Draw Period Terms

The Loan Terms/Draw Period Terms section includes configurations which determine how a sub-product's payments and draw terms are calculated. The fields available in this section toggle based on the selections made in the Loan Type, Real Estate Type and Payment Type fields.

The table below provides field details for the Loan Terms/Draw Period Terms section:

Field Name	Details
Payment Type	Select appropriate payment type for the Sub-Product. Only one payment type may be selected. If a Sub-Product allows for more than one payment type, an additional Sub-Product needs to be created. The Payment Types that populate in this drop down depend on the selection made in Loan Type. Selections for Closed End Loan Type: Selections for Closed End Loan Type:
Balloon Payment Types	Balloon Payment Type becomes active if Balloon is selected for Payment Type.
Balloon Term (Months)	Becomes active if Balloon is selected for Payment Type. Enter the number of months in which the balloon has to be repaid. Example: the loan is for 60 months and amortized over 120 months. Sixty would be entered in the Balloon Term field.
Billing Percentage Rate	Becomes active if Open End was selected for Loan Type. Enter the percentage to be used to calculate payments.
Minimum Payment Amount	Becomes active if Open End was selected for Loan Type. Enter the minimum payment amount for the Sub-Product. This shows as the payment amount if the calculated payment is lower than the minimum payment amount.
Draw Period Term (Months)	Becomes active is Open End was selected for Loan Type. Enter the number of months for the term of the Draw Period.
Factor per Hundred	Enter the numeric value multiplied by the Balance to calculate the Payment Amount.
Factor Partial	Informs the calculator how to handle the last partial factor (to round it up, truncate it, or use the partial portion as is).

Repayment Period Terms

The Repayment Period Terms section includes configurations which determine the payment terms for balloon sub-products. The fields available in this section toggle based on the selections made in the Loan Type, Real Estate Type and Payment Type fields.

The table below provides field details for the Loan Terms/Draw Period Terms section:

Field Name	Details
Payment Type	Select an appropriate payment type for the repayment period. Only one payment type may be selected. If a Sub-Product allows for more than one payment type, an additional Sub-Product needs to be created.
Balloon Term (Months)	Becomes active if Balloon is selected for Payment Type. Enter the number of months in which the balloon has to be repaid. Example: the loan is for 60 months and amortized over 120 months. Sixty would be entered in the Balloon Term field.
Repayment Period Term (Months)	Enter the number of months when a balloon fully matures.

Model Selection

The Model Selection section includes configurations that define application workflow and decision rendering for each sub-product. The table below provides field details for the Model Selection section of the General attributes:

For more information on the Models below, please see the Defining Models topic within this guide.

Field Name	Details
Risk Model	Select the appropriate Risk Model for the Loan Sub-Product from the drop-down list. This drop-down list includes all active Risk Models configured in System Management > Lending > Risk Models.
Pricing Model	Select the appropriate Pricing Model for the Loan Sub-Product from the drop-down list. This drop-down list includes all active Pricing Models configured in System Management > Lending > Pricing Models.
Decision Model	Select the appropriate Decision Model for the Loan Sub-Product from the drop-down list. This drop-down list includes all active Decision Models configured in System Management > Lending > Decision Models.
Workflow Model	Select the appropriate Workflow Model for the Loan Sub-Product from the drop-down list. This drop-down list includes all active Workflow Models configured in System Management > Lending > Workflow Models.

Credit Bureaus

Credit Bureaus enables institutions to assign specific Credit Bureaus and Risk Models to loan sub-products. An institution is also able to specify the sequence to be used when ordering credit reports and assign the number of days in which a previously order credit report has expired. These configurations ensure appropriate and current scores are used when decisioning sub-products.

Credit Bureaus is broken down into the following sections:

Aging and Rollover
Products and Options

Aging and Rollover

Aging and Rollover enables institutions to determine when a new credit report is required and which credit bureaus are used when processing credit for a sub-product.

The Aging and Rollover section includes the following fields:

Field Name	Details
Credit Bureau Report Age (Days)	Enter the number of days a credit report can be used, before requesting a new one from the bureau.
Use Credit Bureau Assignment Rule	Select this option if the institution is using business rules to determine which credit bureau to use. For example: geographic preference. Select an appropriate rule from dropdown list of the particular sub-product.
Use a Specified Sequence	Select this option if the institution wants to specify which order to use the credit bureaus and doesn’t need additional business logic. Check the box to the left of each bureau the institution uses. The order the bureaus are listed in the grid determines the order in which the bureaus are called. Drag and drop the bureaus in the grid to change the order. For example, the list in the screen shot above has Experian and Equifax set to be used. Experian appears 1^st in the list, therefore they are the bureau that is called 1^st to get a credit report. If there is no response or no file available, the system rolls to Equifax which is the next bureau in the list.

Products and Options

Products and Options contains configurations which enables institutions to configure the credit models that are to be pulled when pulling credit for each sub-product.

The Products and Options section includes the following fields:

Field Name	Details
Credit Bureau	Select the specific credit bureau from the Credit Bureau dropdown.
Available/Assigned boxes	Assign the products to be pulled from the bureau for this sub-product by selecting a product and/or option from the Available box and moving it to the Assigned box using the arrows on the screen. Repeat for all bureaus that are active and selected for use.

Table Entries

Within the Table Entries tab, administrators can define the field options available for each sub-product. These configurations ensure only relevant options populate as options within drop-downs and tables.

The following fields can be configured:

Field

Description

Collateral Code

Select the collateral codes that are available when disbursing an application.

Payment Frequency

Select the payment frequencies that are available when inputting loan terms.

Purpose Code

Select the purpose codes that are available when disbursing an application.

Ratios

Select the ratios that are to be displayed in the ratios panel.

Ratios assist institutions with evaluating an individual's total amount of indebtedness and creditworthiness. Ratios are values that compare two aggregates to assess the strength of an application. An example of a ratio is Total Debt to Income.

Aggregates

Select the aggregates that are to be displayed in the aggregates panel.

Aggregates assist institutions with evaluating an individual's total amount of indebtedness and creditworthiness. Aggregates are values that are used to calculate a whole value or sum. An example of an aggregate is Total Annual Income.

Vendor Type

Select the vendor types available when processing new applications.

Vendor Type is an attribute associated with the companies listed in Vendor Management.

UDAP Overdraft Fee Option

Select the UDAP overdraft options when inputting the loan terms of credit card sub-products.

UDAP Overdraft Fee does not apply to all credit card processing connectors.

Skip Payment Type

Select the skip payment types that are available when inputting loan terms.

Skip Payment Type can be configured as a table option, however Skip Payment functionality is not available for all Cores. If Skip Payment fields are completed within an application, but the functionality is not available for the institution, an error message is received at time of disbursement.

Payment Type

Select the payment types that are available when inputting loan terms.

With the exception of Aggregates and Ratios, the available field lookup values are defined within Field Configurations.

To add table entries, click on a Field in the grid to display the available table options. Move the appropriate options from the Available box to the Assigned box by dragging & dropping or using the arrow keys. Repeat for all fields listed in the grid.

Cross-sell Products

Cross-sell Products allows administrators to assign the cross-sell product rules to sub-products. This configuration enables institutions to generate specific cross-sells for sub-products, if the conditions identified in the assigned rules are met. If rule conditions are met, opportunities are presented in the Cross-Sells screen.

To assign cross-sell rules, drag and drop the desired items from the Available grid to the Assigned grid or by using the arrow keys. The Assigned rules determine which Cross-sell Products are offered on the Cross-Sells screen.

Prior to assigning cross-sell product rules, they must first be authored within Rules Management using the Cross-sell Products rule category

Stipulations

Stipulations allows administrators to assign the stipulation rules to sub-products. This configuration enables institutions to automatically add stipulations to an application, if the conditions identified in the assigned rules are met.

Stipulation can be open for all users to complete or permission based. Stipulation permissions allow institutions to define which security groups are able to clear outstanding stipulations. Without identifying security group permissions, there is no distinction between who cannot clear stipulations. Using specific vocabulary templates, institutions are able to indicate which security groups have permission to clear specified stipulations.

If rule conditions are met, stipulations are presented in the Stipulations panel and/or Notifications tab in the left navigation pane.

To assign stipulation rules, drag and drop the desired items from the Available grid to the Assigned grid or by using the arrow keys.

Prior to assigning stipulation rules, they must first be authored within Rules Management using the Stipulations rule category

Sales Script

Sales Script allows administrators to enter a sub-product value statement that can be used as a sales tool when initiating a new application. This sales script populates on the New Loan Application screen and varies based on the selection made in the Product: Sub-Productfield.

Within the text box, enter the desired sales script using the following rich text options:

Font choices (e.g. Arial, Calibri, Tahoma, Times Roman)
Font options (e.g. bold, italic)
Font sizes
Font color
Text alignment
Bullets and Numbering
Hyperlinks

LOA Limits

LOA Limits allows administrators to assign the loan officer approval limit rules to sub-product. This configuration allows institutions to ensure only specific users and groups can manually approve loan applications.

To assign loan officer approval rules, drag and drop the desired items from the Available grid to the Assigned grid or by using the arrow keys.

Prior to assigning LOA Limits rules, they must first be authored within Rules Management using the Loan Officer Approval Limits rule category.

Default Values

Default Values allows administrators to assign rules to sub-products that determine the default values which populate in the specified fields. This configuration allows institutions to decrease the amount of time required to process an application and increase accuracy by pre selecting the values of fields within an application.

To assign default value rules, drag and drop the desired items from the Available grid to the Assigned grid or by using the arrow keys.

Prior to assigning default value rules, they must first be authored within Rules Management using the Default Values rule category.

Fees

Fees allows administrators to assign fee rules to sub-products. This configuration enables institutions to automatically add fees to an application, if the conditions identified in the assigned rules are met. If rule conditions are met, fees are assigned to the application and presented in the Fees panel.

Fees decreases the amount of time required to process an application and increases revenues by ensuring appropriate fees are assessed.

To assign fees, drag and drop the desired items from the Available grid to the Assigned grid or by using the arrow keys.

Prior to assigning fee rules, they must first be authored within Rules Management using the Fees rule category.

Rates

Rates allows administrators to configure Introductory and Variable rates for applicable sub-products.

The below table defines the fields used in the Introductory Rates section:

Field Name

Details

Introductory Rate

Check the box if this Sub-Product has an introductory rate.

Term (Months)

Enter the number of months the introductory term applies to the sub-product.

Rate Method

Select appropriate way to calculate the introductory rate:

Method	Description
Actual Rate	The rate designated is used for all applicants regardless of the regular rate set by the Pricing Model; selecting this option activates the Actual Rate field.
Discount Rate	The regular rate set by the Pricing Model is discounted by a set percentage; selecting this option activates the Discount Rate field.

Actual Rate

Enter the introductory rate; this is required if Actual Rate is selected in the Rate Method field.

Discount Rate

Enter the amount of discount that should be applied to the rate assigned by the Pricing Model. This is required if Discount Rate is selected in the Rate Method field.

The below table defines the fields used in the Variable Rates section:

Field Name

Details

Variable Rate

Check the box if this Sub-Product has an introductory rate.

Maximum Rate Decrease for Loan

Enter the Max Rate Decrease Amount for the duration of the loan.