Calculate Core Liabilities with Event Processing

Overview

Currently Trade Processing rules only execute when Credit Reports process. During an application, this only happens once, which may result in inaccurate liability information being used to decision an application if liabilities are changed through an “Update from Core.” Through the use of Event Processing, institutions are able to tie rules to key events that allow the application to calculate host liabilities with conservative payment values.

This provides institutions the ability to apply an assumed monthly payment to liabilities with balances and payments of zero, when the credit limit is updates. This enables institutions to render decisions based upon conservative information.

In order to implement this solution, an Event Processing rule must be written and paired with an Action.

Rule Logic

To write the required rule, navigate to Rules Management. Create a new Event Processing rule using Business language. Select the Applicant.Liabilities entity and click OK.

Click Create Rule and select an If… Then…

Click [Build Condition] and begin building the following If Statement:

Payment Amount is equal to 0 AND
Balance is equal to 0 AND
Limit is not equal to 0

Once the If Statement is complete, click [Add Action] and use the “set the value of a field” template to build the following Then Statement:

Set Assumed Monthly Payment to Limit multiplied by 0.03
Set Payment Amount to Limit multiplied by 0.03

The value 0.03 is a standard amount used for documentation purposes. This amount can be defined to meet the risk tolerances of each institution. For instance, this rule would calculate an estimated payment of 3% of a line of credits limit. If the line of credit in question has a limit of $10,000, the estimated payment would be $300.

Once this rule is complete, click Save and Close. Upon returning to the Rules Management home screen, save the rule app prior to closing Rules Management.

Event Processing Logic

Once the Event Processing rule has been authored, navigate to System Management>Lending>Event Processing. Create a new event pair. On the General tab, enter a Name and Description that fits the Calculate Payment from Limit event pair. Select the Active check box.

Select the Events tab, click Add and choose the Field Changed event. Once chosen, the Select Fields window opens. Locate the Application.Applicants.Liabilities.IsFromHost object and click Done.

Click the Actions tab, click Add and choose the Execute Rules Action. Once chosen, the Edit Action – Execute Rules window appears. Locate the newly created Event Processing rule and assign it to the Action.

Once the rule has been assigned, click Save and Close to finalize the Action. The Edit Action window closes and the user returns to the Event Processing window. Click Save and Close to finalize the Event pair.

Once finalized, this event pair executes and updates core liabilities with conservative payment amounts.