Add a Recurring Fee

Using the Add a Recurring Fee action template, rule authors are able to automatically add fees to a loan application that are assessed periodically, and not included as part of the loan proceeds, such as an annual fee for a line of credit. Like standard fees, recurring fees are added during application initialization, when an application is decisioned, and as part of the Calculate process.

To begin authoring a rule to add a recurring fee, navigate to System Management > Origination > Rules Management, and click to open Rules Manager. Create a new rule using the Fees category and Application Entity.

When authoring the If Statement, define the conditions that must be met in order for a recurring fee to be added. For example, SubProduct has a value of Home Equity Line of Credit.

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:

[Fee Type] - allows rule authors to select a fee type. This list includes all values configured for the RECURRING_FEE_CODE lookup in System Management > Origination > Field Configurations.
[Amount] - allows rule authors to enter a fee amount.
[Assessment Frequency] - allows rule authors to identify the frequency in which the fee is to be assessed. This list includes all values configured for the ASSESSMENT_ FREQUENCY lookup in System Management > Origination > Field Configurations.

The example below provides a demonstration of a rule that adds a recurring fee to an application based on the sub-product:

Assigning Recurring Fee Rules

After a Fee rule is created for a recurring fee, and saved to the rule application, the rule can be assigned to the desired application type within the Fees tab in System Management > Origination > Loan > Loan Application Types.

For more information, please see the Fees section of the Loan Application Types topic in this guide.

Logic to Add or Update Recurring Fee Records

During execution of the Recurring Fee rules assigned to an application type, the system reviews each recurring fee on the application to verify whether a new recurring fee record should be automatically added by the rule(s).

If the Fee Type in the rule matches the Fee Type for an existing recurring fee that was manually added to the application (Is Manual = True), the system does not execute the rule logic, and a new recurring fee is not added to the application.
If the Fee Type in the rule matches the Fee Type for an existing recurring fee added through rules (Is Manual = False), the recurring fee record is updated to include the values set for the Amount and Assessment Frequency in the rule.
If the Fee Type in the rule DOES NOT match the Fee Type for any other recurring fees added through rules, the system adds a recurring fee record to the application with the values set in the rule.

After the applicable recurring fee records are added or updated per the rule logic, the system loops through the existing recurring fees on the application (where Is Manual = False), and removes any records that are no longer applicable to the application (Fee Type for the record does not match the Fee Type for any Recurring Fee rules executed).