Temenos Lifecycle Management Suite - Loan Origination Product Guide
The Applicant with the Highest or Lowest Aggregate or Ratio Value
| Administrator Guide > Rules Management > Rules Management - Available Templates > Vocabulary Template Examples > The Applicant with the Highest or Lowest Aggregate or Ratio Value |
Using the following templates, rule authors are able to write a rule to set certain application details, such as review indicators, risk, or pricing, based on the applicant with the highest or lowest value for a specific aggregate or ratio:
For example, these templates could be used to set the rate on an application based on the risk tier of the applicant with the highest income or set review indicators on an application based on the applicant with the lowest debt to income ratio.
To begin authoring this type of rule, navigate to System Management > Origination > Rules Management and click 
to open Rules Manager. Create a new rule using a category such as Decisioning, Risk, Pricing, or Event Processing and the Application Entity.
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These rule templates are available under the Application Entity for multiple categories. The category selected should reflect the type of rule being authored. For example, if the rule is being assigned to an Event/Action pair, the Event Processing category should be selected. If the rule is being assigned to a Decision model, the Decisioning category should be selected. |
Within the If Statement, use the applicable applicant with the highest/lowest aggregate or ratio value template to define the aggregate or ratio that is evaluated across all applicants, as well as identify whether the applicant with the highest or lowest value is used to determine the action that occurs in the application. When selected, the following vocabulary populates for each of the below templates:
| Template Name | Vocabulary | Example Template |
| The applicant with the [highest/lowest] aggregate value |
the applicant with the [highest/lowest] [aggregate] value
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| The applicant with the [highest/lowest] ratio value |
the applicant with the [highest/lowest] [ratio] value
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For an overview of the logic used to calculate each Aggregate and Ratio in the Lifecycle Management Suite, please see the Underwriting Review topic in the User Guide. |
The examples below provide a demonstration of a business rule and decision table including the above templates:
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There are many ways to author a rule. The following rules should be used as an example ONLY. |
The following example provides a demonstration of a business rule configured to set review indicators on an application at time of decision based on the debt to income value of the applicant with the highest ratio:
The following example provides a demonstration of a decision table rule configured to set the rate on an application based on the risk tier of the applicant with the highest income:
Below is an example of a condition set within the rule:
An example of an action set within the rule is as follows:
Once the rule is authored, it must be assigned to the applicable area within the Lifecycle Management Suite in order to execute during the application process, such as the Execute Rules action for an Event Processing rule, the Pricing Model for a Pricing Rule, the Risk Model for a Risk rule, or the Decision Model for a Decisioning rule.
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For more information on assigning rules within these areas of the Lifecycle Management Suite, please see the following topics in the Administrator Guide: |
When a rule including the applicant with the highest/lowest aggregate or ratio value template executes, the system automatically evaluates the applicants on the application to determine which applicant has the highest or lowest value for the aggregate or ratio defined in the rule, and sets application details based on that value.
If there are multiple applicants that meet the rule condition, the system uses the value for the primary applicant. If the primary applicant does not meet the rule condition, the system looks at the value for each joint applicant, and uses the value for the joint applicant who was added to the application first to further execute the rule logic.
The following example provides an overview of how pricing is set in an application based on the value of the risk tier of the applicant with the highest value for the Total Income aggregate:
Example for Applicant with the Highest Total Income
For this example, the following rule was configured to execute as part of the Pricing Model assigned to the Loan Application Type:
When the above rule executes, the rate for the application is set according to the risk tier for the applicant with the highest value for the total income aggregate. Reference the table below for an overview of how a rate is set with this rule in the following scenarios:
| Primary Total Income | Primary Risk Tier | Joint Total Income | Joint Risk Tier | Guarantor Total Income | Guarantor Risk Tier | Result |
| Scenario 1 - Primary and Joint have the same income, but the Primary is assigned a higher risk tier | ||||||
| 75,000 | EXCL | 75,000 | GOOD | N/A | N/A | The rate is set to 2.5. The total incomes are the same, but the primary is assigned a higher risk tier; therefore, pricing is set based on the primary applicant values. |
| Scenario 2- Primary is assigned a higher risk tier, but the Joint has a higher total income | ||||||
| 55,000 | EXCL | 90,000 | GOOD | N/A | N/A | The rate is set to 3.00. Though the risk tier is higher for the primary, the joint applicant's total income is higher; therefore, pricing is set based on the joint applicant values. |
| Scenario 3 - Primary and Joint have the same income and risk tier | ||||||
| 100,000 | EXCL | 100,000 | EXCL | N/A | N/A | The rate is set to 2.5. Since both applicants have the same total income and risk tier, the system automatically uses the values for the primary applicant to set the rate. |
| Scenario 4 - Guarantor has the highest income, but is not assigned a Risk Tier | ||||||
| 90,000 | EXCL | 75,000 | FAIR | 100,000 | NONE | The rate is set to 18.00. Since the guarantor has the highest income, pricing is set based on the guarantor values; however, a risk tier of NONE does not satisfy rule conditions; therefore, the higher interest rate is assigned to the application. |
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If a rule is written for an aggregate or ratio that is not assigned to the application type, the rule is not executed during the application process.
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