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If an application has undesirable loan terms or if a decision cannot be reached using the current terms, a user with appropriate permissions is able to create one or more counteroffers that contain alternative loan terms that are more desirable to the institution.

Counteroffers provide an interface for loan officers with security permissions to add, edit, or delete one or more counteroffers that can be reviewed and selected by the borrower. The processing can then proceed automatically, if indicated, without resubmitting to the decision engine. Counteroffers also allow support of expirations and reminders of counteroffers using email.

Counteroffers may also generate automatically using Event Processing rules. Counteroffers generated by rules may be automatically approved or flagged for underwriter review. At the conclusion of automated counteroffer processing, users are alerted to the successful and failed processing with General Notifications. Each counteroffer generated may contain comments and stipulations which are also assigned automatically by rules. From the counteroffers panel, users may view all manual and automatic counteroffers.

The Counteroffer topic includes an overview of the following counteroffer information:

• Counteroffer Screen
  • Toolbar
  • Details
• Counteroffer Panel
• Counteroffer Actions
  • Creating
  • Editing   
  • Deleting
  • Reviewing and Accepting

Counteroffer Screen

The Counteroffer screen consists of a toolbar and a series of panels, which contain the counteroffer's details.

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Toolbar

At the top of the Counteroffer screen, a toolbar allows users to perform the following actions:

Icon	Description
	Allows a user to save the Counteroffer to the application without closing the Counteroffer screen.
	Allows a user to save the Counteroffer to the application and close the Counteroffer screen.
	Allows a user to exit the Counteroffer screen without saving a Counteroffer.
	Allows a user to perform calculations, run pricing and amortization on the provided Counteroffer terms.
	Allows a user to accept a counteroffer and assign the terms to the loan application. Clicking Accept also performs a Save. The toolbar is only available when Edit is selected in the Counteroffer panel grid.
	Allows a user to reject a counteroffer.

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Counteroffer Details

A counteroffers consist of the following details, which are broken into separate panels:

• Inputs
• Comments
• Dates
• Stipulations
• Ratios
• Inputs    
• Aggregates 
• Review Indicators

Inputs

The input panel is broken into six sections, which contain the countered terms:

• Solve For
• Interest Rates
• Decisioning Results
• Repayment Period Terms
• Dates
• Originally Requested Terms

Solve For

The Solve For section allows a user to enter the Counteroffer’s loan calculations and interest rate information.

The Solve For section contains the following fields:

Field Name	Description
Currently Solved For	Use the drop-down list to select the value the calculator is to “solve for.”
Frequency	Use the drop-down list to select the payment frequency.
Requested Amount	Enter the amount of the loan. If Requested Amount is the Solve For option, this is a read-only field that displays the amount of the loan.
Payment Amount	Enter the Payment Amount. If Payment Amount is the Solve For option, this is a read-only field that displays the payment amount of the loan.
Term	Enter the Loan Term. If Term is the Solve For option, this is a read-only field that displays the term of the loan.
Payment Type	Displays payment type selected within the application.
Balloon Amount	Enter the remaining balance at the end of the Balloon Term.
Billing Percentage Rate	Enter the percentage of the loan balance that is used to calculate the payment amount.
Balloon Term (Months)	Enter the number of months that must pass before the Balloon Amount comes due.
Minimum Payment Amount	Enter the minimum payment amount that the borrower must pay, regardless of the payment amount calculated by Billing Percentage Rate.

When performing Solve For calculations, Payment Types limit Solve For calculations in the following way:

If Payment Type is:	Can Solve For:
Level Pay	Payment, Term and Requested Amount
Interest Only	Payment
Principal and Interest	Payment and Term
Balloon	If Open End Loan and Real Estate Type is Home Equity, or if Real Estate Type is None and Convert to Closed End is Yes: Balloon Amount and Payment & Balloon Amount Else If Balloon Payment Type = CALCULATED o   Payment & Balloon Amount Else Payment, Balloon Amount and Payment & Balloon Amount
Billing Percentage	Payment

Interest Rates

The Interest Rates section provides users the ability to view and edit the interest rate.

The Interest Rates section contains the following fields:

Field Name	Description
Interest Rate	Enter the Interest Rate assigned to the Counteroffer. The Interest Rate defaults to the rate calculated by the Pricing Model each time a counteroffer is created. If the interest rate needs to be different for the counteroffer, then the user should select the Override Interest Rate check box and update the Interest Rate field.
APR	Displays the calculated APR.
Override Interest Rate	Select the Override Interest Rate check box to edit the Interest Rate field. Accepting a counteroffer where the Interest Rate has been overridden sets the Interest Change Reason.
Requires Review	Select the Requires Review check box to submit the countered loan terms to underwriting for final loan approval. Users with Counteroffer - Approve Application on Counteroffer Acceptance permissions do not need to check this check box, however, users that do not have this permission must select this checkbox. If a user fails to select this check box prior to accepting the counteroffer, the application is approved as LO Approve and the countered terms are applied to the application's loan terms.

Decisioning Results

The Decisioning Results section allows users to view the counteroffer's decision and indicate if it requires underwriting review.

The Decisioning Results section contains the following fields

Field Name	Description
Counteroffer Decision	Displays the counteroffers current decision.
Requires Review	Select the Requires Review check box to submit the countered loan terms to underwriting for final loan approval. Users with Counteroffer - Approve Application on Counteroffer Acceptance permissions do not need to check this check box, however, users that do not have this permission must select this checkbox. If a user fails to select this check box prior to accepting the counteroffer, the application is approved as LO Approve and the countered terms are applied to the application's loan terms.

Repayment Period Terms

The Repayment Period Terms section allows users to view the counteroffer's repayment terms.

When performing Repayment Solve For calculations, Repayment Payment Types limit Solve For calculations in the following way:

If Repayment Type is:	Can Solve For:
Level Pay	Payment
Interest Only	Payment
Principal & Interest	Payment and Term
Balloon	Balloon Amount and Payment & Balloon Amount
Billing Percentage	None (empty drop-down)

Dates

The Dates section allows users to define dates which trigger applicant notifications or automatically withdraw abandoned countered applications.

The Dates section contains the following field:

Field Name	Description
Expiration Date	The date in which the Counteroffer expires.
First Notification Date	The date when the first notification is sent.
SecondExpiration Date	The date when the second notification is sent.

Originally Requested Terms

This section allows users to view the application's original terms.

Comments

The Comments panel enables users to enter an informative comment that supports the issuance of a Counteroffer, as well as modify existing comments for the Counteroffer.

When a comment is added, it populates within the Comments grid, along with the username of the user who added the comment, an indicator to identify if comment is internal, the date the comment was submitted, and the comment classification.

Stipulations

The Stipulations panel enables users to enter new stipulations that must be met prior to approval or disbursement. Any stipulation currently on the existing application automatically copies to all counteroffers created.

For more information on Stipulations, please refer to the Stipulations topic under Decision Processing.

Ratios

The Ratios panel displays the ratios for each applicant within a Grid. When a Counteroffer is added and calculated, the ratios update based on the results of the Counteroffer calculations.

The Ratios for both the Application and Applicant appear on the Counteroffer screen. This provides the underwriter the ability to set a goal value and calculate loan terms until the goal ratios have been attained.

Aggregates

The Aggregates panel displays the aggregates for each applicant within a Grid. When a Counteroffer is added and calculated, the aggregates update based on the results of the Counteroffer calculations.

The Aggregates for both the Application and Applicant appear on the Counteroffer screen. This provides underwriters the ability to set a goal value and calculate loan terms until the goal aggregates have been attained.

Review Indicators

The Loan Review Indicators panel displays various indicators to highlight the status of particular decision criteria and allow institutions to review any indicators that do not align with their lending guidelines prior to rendering a decision. 

Within the Loan Review Indicators panel, all of the review indicators related to an application's Loan decision are displayed in alpha-numeric order by name.

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Counteroffer Panel

The Counteroffer panel enables users to create one or more counteroffers that contain alternative loan terms that are more desirable to the institution.

 

This panel contains a toolbar that allows users to perform the following functions:

Icon	Title	Description
	Add	Allows a user to create a counteroffer to the application. When counteroffer is added to the application.
	Edit	Allows a user to edit a counteroffer currently on the application. For more information on editing counteroffers, refer to the editing counteroffers topic.
	Delete	Allows a user to remove a counteroffer from the application. When a counteroffer is deleted, a row is removed from the counteroffer grid. For more information on deleting counteroffers, refer to the deleting counteroffers topic.
	Send to Third Party	Allows a user to send the selected counteroffer to the indirect connector that submitted the application.  If multiple counteroffers have been created, the Send Counteroffer to RouteOne/DealerTrack action transmits only the last counteroffer created to the third party. This button allows users to transmit the counteroffer of their choosing to the third party. If a subsequent counteroffer is created or an existing counteroffer is modified, the DealerTrack/RouteOne Counteroffer Update event pair transmits the new or modified counteroffer. If a counteroffer other than the new or modified is to be presented to the dealer, reselect the counteroffer that is to be transmitted and click Send to 3rd Party. This button is only enabled if an application was submitted by DealerTrack or RouteOne.

Each counteroffer populates as a separate row within a grid containing the following columns:

Column Name	Description
Status	Indicates whether the counteroffer was accepted or rejected.
Approved Amount	Indicates the countered loan amount.
Term	Indicates the countered loan term (months).
Interest Rate	Indicates the countered interest rate.
Payment	Indicates the countered payment amount.
Goals	A check box that indicates if the counteroffer has goal aggregates and/or ratios.
Stipulations	A check box that indicates if the counteroffer has stipulations.
Comments	A check box that indicates if the counteroffer has comments.
Requires Review	A check box that indicates if the counteroffer requires underwriting review.
Counteroffer Decision	Indicates the counteroffer decision.

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Counteroffer Actions

Counteroffer actions include the ability to create, edit, or delete counteroffers. Users are also able to review and accept counteroffers.

Creating Counteroffers

Counteroffers may be issued in the following methods:

• Counteroffer Panel
• Workflow
• Application Toolbar
• Automatic

Counteroffer Panel

Click the Add button, the Counteroffer screen opens within the workspace.

• Enter all the details.
• Click Calculate on the Counteroffer toolbar. 
• Review the Aggregates and Ratios panels to check if the countered terms have changed and brought the Aggregates and Ratios to acceptable levels.
• Click Save and Close on the Counteroffer toolbar to retain the countered terms and close the Counteroffer screen.

Workflow

From the last screen assigned to a workflow's Underwriting stage, users with the appropriate permissions are able to create counteroffers

Select Create New Counteroffer to issue a loan counteroffer. The Counteroffer screen opens within the workspace.

• Enter all the details.
• Click Calculate on the Counteroffer toolbar. 
• Review the Aggregates and Ratios panels to check if the countered terms have changed and brought the Aggregates and Ratios to acceptable levels.
• Click Save and Close on the Counteroffer toolbar to retain the countered terms and close the Counteroffer screen.

Application Toolbar

Within the Application Toolbar, users with appropriate permissions are able to create counteroffers.

To create a counteroffer, select the More drop down from the Application Toolbar to populate the additional decision processing drop down. Select Create New Counteroffer to issue a loan counteroffer. The Counteroffer screen opens within the workspace.

• Enter all the details.
• Click Calculate on the Counteroffer toolbar. 
• Review the Aggregates and Ratios panels to check if the countered terms have changed and brought the Aggregates and Ratios to acceptable levels.
• Click Save and Close on the Counteroffer toolbar to retain the countered terms and close the Counteroffer screen.

Automatic

Based on configurations made in System Management, the Loan Origination module may automatically process counteroffers. At the conclusion of automated counteroffer processing, users are alerted to the successful processing with a General Notification stating the following: "Counteroffer processing completed and generated <insert number> counteroffers."

Counteroffers generated by rules may be automatically approved or flagged for underwriter review. Users are able to view each counteroffer from the counteroffers panel.

Editing Counteroffers

Editing counteroffers provides users the opportunity to revisit a counteroffer that has been previously added to the application. When users choose to edit a counteroffer, they are able to update the terms included in the counteroffer. Additionally, users are able to approve a counteroffer and assign its loan terms to the application.

• Navigate to the screen that contains the counteroffer panel.
• Select the counteroffer that is to be edited.
• Click the Edit button.
• When the Counteroffer screen opens, make the desired changes and click Save and Close.

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Deleting Counteroffers

Deleting counteroffers provides users the opportunity to remove a counteroffer that has been previously added to the application. 

• Select the counteroffer that is to be deleted from the counteroffer grid.
• Click the Delete button.
• The module prompts the user to confirm the counteroffer deletion. Click Yes to remove the counteroffer. Click No to keep the counteroffer and return to the application screen.

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Reviewing and Accepting Counteroffers

Existing counteroffers can only be viewed from the counteroffer panel grid.

• Users have the ability to review all existing counteroffers on application prior to accepting. To review an application's counteroffers, navigate to the screen that contains the counteroffer panel. Double-click or highlight and click Edit on the desired counteroffer.
• When the Counteroffer screen opens, review the counteroffer terms.
• In order for a Counteroffer to be accepted, the application must have a status of In Progress, Pending Review, or Countered. Once created, Counteroffers are able to be reviewed with applicants prior to acceptance.
• If the counteroffer’s terms are agreeable, click the Accept button.
• When a counteroffer is accepted, the following occurs:

  If a countered loan application requires an account decision, the Account Decision Model does not run until the counteroffer is accepted.

If Requires Review is	If Approve Application on Counteroffer Acceptance is	If Counteroffer Decision is	Application Status is Changed to	Decision Status is changed to	Counteroffer Terms are Applied to Application	Comments
Yes	No	Auto or LO Approved	Countered	None	No	If the Loan Officer clicks the Accept button, the result is one of the following rows.
Yes	Yes	Auto Approved	Decisioned	Auto Approved	Yes
Yes	Yes	LO Approved	Decisioned	LO Approved	Yes	The approval process runs as the lending system user and LOA rules are bypassed.
No	N/A	Auto Approved	Decisioned	Auto Approved	Yes
No	N/A	LO Approved	Decisioned	LO Approved	Yes	The approval process runs as the lending system user and LOA rules are bypassed.

• The application workspace updates according to the status. If the status is Countered, the Underwriting workflow stage becomes active. If a counteroffer is Decisioned, the Approval workflow stage becomes active. However if the counteroffer Requires Approval, the workflow stage remains Underwriting.

Users without Approve Application and Counteroffer - Add, Edit, Delete permissions are unable to Save or Accept a counteroffer if Met Stipulations do not have Comments entered.

• Accepting a new or updated counteroffer triggers a full calculation of the application. All aggregates, ratios, and review indicators update on the application based upon the terms of the counteroffer.

  If a counteroffer is saved and later accepted without prior modifications, a full calculation is not triggered. The application updates base upon the terms of the counteroffer.

• Additionally, the workspace updates in the following ways:
  • Save, Calculate and Accept become disabled for all existing counteroffers.
  • Users are unable to modify a counteroffer, unless the counteroffer's decision is removed.
  • Users are unable to add any new counteroffers.
  • Actions in the More button become disabled.

Once the user accepts a counteroffer and approves the application, the Loan Origination module automatically rejects the original application and any other counteroffers. If no action is taken, the automatic withdrawal process updates the application with the correct status and final decision.

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