Add a Loan Covenant

Using the Add a Loan Covenant action template, rule authors are able to automatically add loan covenants to an application, which define the conditions that must be met by applicants during the course of loan servicing.

To begin authoring a rule to add a loan covenant, navigate to System Management > Origination > Rules Management, and click to open Rules Manager. Create a new rule using the Loan Covenants category and Applicant Entity.

When authoring the If Statement, define the conditions that must be met in order for a loan covenant to be added. When authoring the Then Statement, select the "Add a Recurring Fee" action template. Upon selecting this template, the following vocabulary populates in the Definition tab:

[Covenant Type] - allows rule authors to select the covenant to be added. This list includes all loan covenants configured in the Loan Covenants page in System Management (System Management > Origination > Loan > Loan Covenants).
[Placeholder1] - allows rule authors to enter text, or a select a field, to populate as a placeholder in the covenant description. If a Placeholder 1 value is defined for the selected covenant in the Loan Covenants page, enter "" to leave this field blank, and use the default mapping for the covenant, or enter text to override the default mapping.
[Placeholder2] - allows rule authors to enter text, or a select a field, to populate as a placeholder in the covenant description. If a Placeholder 2 value is defined for the selected covenant in the Loan Covenants page, enter "" to leave this field blank, and use the default mapping for the covenant, or enter text to override the default mapping.
[Placeholder3] - allows rule authors to enter text, or a select a field, to populate as a placeholder in the covenant description. If a Placeholder 3 value is defined for the selected covenant in the Loan Covenants page, enter "" to leave this field blank, and use the default mapping for the covenant, or enter text to override the default mapping.
[Placeholder4] - allows rule authors to enter text, or a select a field, to populate as a placeholder in the covenant description. If a Placeholder 4 value is defined for the selected covenant in the Loan Covenants page, enter "" to leave this field blank, and use the default mapping for the covenant, or enter text to override the default mapping.
[Placeholder5] - allows rule authors to enter text, or a select a field, to populate as a placeholder in the covenant description. If a Placeholder 5 value is defined for the selected covenant in the Loan Covenants page, enter "" to leave this field blank, and use the default mapping for the covenant, or enter text to override the default mapping.
[Validation Frequency] - allows rule authors to select the frequency in which the covenant is to be reviewed. This list includes all values configured for the VALIDATION_FREQUENCY lookup in System Management > Origination > Field Configurations.
[Duration] - allows rule authors to select the time-frame that the covenant is applicable for after the loan is originated. This list includes all values configured for the COVENANT_DURATION lookup in System Management > Origination > Field Configurations.
[Next Due Date] - allows rule authors to enter a date that determines the next date the loan covenant is to be validated.

Values must be set in the Add a Loan Covenant template for the Covenant Type, Validation Frequency, and Duration fields, or an error is received when trying to save the rule application. Additionally, while the Placeholder 1-5 fields, and Next Due Date field are optional, they cannot be left blank in the template. If it is not desired to populate a value for Placeholder 1-5, and/or Next Due Date, enter "" for the applicable fields(s).

The example below provides a demonstration of a rule that adds a loan covenant to an application for a new applicant:

When the above rule executes, the loan covenant is linked to the applicable applicant on the application, and populated in the Loan Covenants panel with the values set in the rule.

If no value is set for Placeholder 1-5 in the rule, the system reviews the configurations made for the selected covenant in the Loan Covenants page, and applies any default mapping for Placeholders 1-5 to the description for the covenant being added.

For more information on the Loan Covenants panel, please see the Loan Covenants Panel topic in the End User Guide. To learn about configuring Loan Covenants, please see the Loan Covenants topic in this guide.

Event Processing Configuration

In order for Loan Covenant rules to execute in an application, an Event/Action pair must be configured to include the Process Loan Covenant Rules action. This action processes Loan Covenant rules based on the configured event types. When triggered, all rules authored under the Loan Covenants category in Rules Management are executed, and new loan covenants are added to the application based on the rule criteria.

To configure an Event/Action pair to process Loan Covenant rules:

Navigate to System Management > Origination > Event Processing.
Click .
Complete the attributes within the General tab.
Navigate to the Events tab, and click . A window appears to select the desired event type.
Select the event to trigger the Loan Covenant rules from the drop-down, and click .
Once the desired event has been defined, navigate to the Actions tab.
Click . A window appears to select the desired action type.
Select the Process Loan Covenants Rules action from the drop-down, and click .
Once all configurations for the Event/Action pair have been made, click .

For more information on configuring Event/Action pairs, please see the Event Processing topic in this guide.