Temenos Lifecycle Management Suite - Origination Product Guide
Application Collateral
| End-User Guide > Application Processing > Origination > Application Collateral |
While processing an application, users are able to input loan collateral information. The following collateral types can be added to an application:
This topic includes the following sections to assist users with accessing collateral records in the application workspace, adding and managing the collateral on an application, and understanding the information captured for each collateral type:
Collateral is collected within user-defined application screens and panels that may appear in the following locations:
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Depending on the configuration of collateral screens, actual screen content and names may vary. The images and processes listed below may not reflect an institution’s loan terms screen. Refer to the following processes for example purposes only. |
Depending on the configuration of the workflow model, the workflow may contain the option to add, edit, and delete application collateral. When proceeding through an application’s workflow, collateral information may be collected in user-defined application screens that exclusively contain collateral panels. Application screens may also be configured with a combination of applicant, loan, and collateral panels. Both of these application screen types may be configured to a workflow’s Origination category.
Back to Collateral in the Workspace ^
Depending on the configuration of the workflow model, the Application Navigator may contain a screen that allows users to identify collateral. Upon selecting the collateral screen, users are able add, edit, and delete the collateral to be added to the loan application.
Back to Collateral in the Workspace ^
When collateral is added to an application, the collateral records appear in the Application Navigator for easy access. Each collateral record is added to the Collaterals list located beneath the Workflow. If multiple collaterals are assigned to the application, a number corresponding to the amount of collaterals displays next to the Collaterals heading.
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For the Collaterals section to be available, a collateral screen must be mapped to the Workflow Model. |
In addition to indexing each collateral record, users are able to add, edit, and delete collateral from the Collaterals screen.
There are two methods to add collateral:
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For more information on adding collateral, refer to the Adding Collateral section in this topic. |
Back to Collateral in the Workspace ^
Collateral actions include the following:
When processing an application, collateral information may be collected through panels that are configured to appear in user-defined Application screens. There are two types of panels that may be configured in an Application screen:
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The application screen(s) that contain these panels may be assigned to both the Workflow and screens sections. |
Additionally, collateral may be added from the Collaterals section in the Application Navigator.
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Reference the following list for an overview of information to consider when entering collateral information:
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The collaterals panel is a user-defined grid that displays various pieces of collateral information across multiple collaterals.
The collaterals panel contains a toolbar that allows users to perform the following functions:
| Icon | Description |
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Allows a user to add collateral to the application. |
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Allows a user to edit collateral currently on the application. |
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Allows a user to remove collateral from the application. |
Clicking presents a drop-down list that allows users to select one of the following the collateral types:
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In order for a collateral type to appear in the drop-down list, an edit screen must be assigned to appear for the collateral type in the Collaterals panel. If the system administrator does not assign an edit screen, the collateral type cannot be added from the Collaterals panel. |
Once a type is selected, the screen assigned to the collateral opens in a new window.
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The screen to capture details for the collateral record is configured in System Management > Origination > Screens, and assigned to the collateral within the Edit Screens tab of the configuration window for the Collaterals panel. |
Within the Collateral screen, complete all fields required to add and, if applicable, valuate the collateral.
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If vehicle collateral is being added via a Collaterals panel, a save must be performed prior to clicking Valuate. Failure to save may result in a second collateral record being added to the application. One collateral record is complete, including the valuation result and vehicle details, and the other is incomplete, only including the valuation results. If this situation should occur, delete the incomplete record. |
When all fields are complete, click 
to retain the information. If applicable, click Valuate to process a valuation.
Once all information has been added, click 
in the top of the screen to add the collateral to the application. A record for the collateral populates in the Collaterals grid, and a card is added to Collateral Card View.
A descriptive collateral panel is a user-defined panel that is able to collect information for a single piece of collateral. Descriptive collateral panels may be used for all collateral types, and added to any user-defined Application screen.
To add collateral to an application with a descriptive collateral panel, navigate to the screen that contains the panel. Complete all necessary and required fields.
Once the screen containing the descriptive collateral panel is saved, the collateral is added to the loan application.
Upon adding collateral from the descriptive collateral panel, the collateral also populates in the Collaterals list located in the Application Navigator, and in any collateral grids in the application.
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Upon navigating to the Vehicle Collateral panel, users are required to select a check box to indicate vehicle collateral is being added. Once the check box is selected, a window titled Add Vehicle Collateral appears, which prompts users to select either New Valuation or Enter Manually.
When processing vehicle valuations:
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Collateral can be added to a loan application by clicking 
in the Application Navigator. The Add Collateral option is located beneath the Workflow section, and indexed under Collaterals.
Clicking opens the Add Collateral screen in a new window.
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In order for a collateral type to appear in the Add Collateral window, a screen for the collateral type must be assigned to the loan workflow model for the application type.
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Select the radio button that corresponds with the type of collateral being added and click OK. Once OK has been the selected, the corresponding collateral screen opens in the application workspace.
Complete all applicable fields, panels and grids in the Collateral screen. Once all collateral information has been entered, save the screen to finalize the collateral addition. When the save completes, the collateral populates in the Collaterals grouping in the Application Navigator, and is added as a record in the Collaterals panel grid.
Selecting the Collaterals heading in the Application Navigator navigates users to the Collaterals screen that includes the Collaterals Card View. This screen displays a card for each collateral on an application, and provides the ability to add, edit and delete collateral records.
Each card in the screen includes the following information for each collateral type:
| Collateral Type | Card Information |
| Life Insurance |
Insurance Information Policy Number Name of Insured Adj Market Value Collateral Value Collateral Code |
| Marketable Securities |
Account Number Adj Market Value Collateral Value Collateral Code |
| Other |
Adj Market Value Collateral Value Collateral Code |
| Pledge |
Type Account Number Product Code Balance Available Balance Pledge Amount Collateral Value Collateral Code |
| Real Estate |
Residence Type Legal Owner Legal Description Adj Market Value Collateral Value Collateral Code |
| Stock |
# of Shares Adj Market Value Collateral Value Collateral Code |
| Vehicle |
VIN Adj Market Value Collateral Value Collateral Code |
To add a collateral from this screen, click . The Add Collateral screen appears.
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As previously mentioned, in order for a collateral type to appear in the Add Collateral window, a screen for the collateral type must be assigned to the loan workflow model for the application type. |
Select the radio button that corresponds with the type of collateral being added and click OK. Once OK has been the selected, the corresponding collateral screen opens in the application workspace.
Complete all applicable fields, panels and grids in the collateral screen. Once all collateral information has been entered, save the screen to finalize the collateral addition.
When the save completes, the collateral populates in the Collaterals section located in the Application Navigator and in any collateral grids in the application.
When processing an application, collateral information may be edited. Editing collateral provides users the opportunity to revisit collateral that has been previously added to the application and update the accuracy of the information previously provided. Collateral may be edited within:
. to finalize the collateral updates. The updated information populates in the collateral grid.
After an application has been decisioned or disbursed, users may revisit the screen containing the collateral grid to update collateral information, if editability rights have been granted.
After an application has been decisioned or disbursed, users may revisit the screen containing the descriptive collateral panel to update collateral information if editability rights have been granted.
.When processing an application, collateral information may be deleted from the application. Deleting collateral provides users the ability to remove collateral from an application that is no longer relevant. Collateral may be deleted from the Collaterals panel, or the Collaterals Card View.
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Users are unable to delete a collateral record from an application using a descriptive collateral panel. Users are able to delete values that are entered in a descriptive collateral panel field, however, removing information from all of a descriptive collateral panel’s fields does not delete a collateral record. |
. A message appears to confirm the collateral deletion. Click Yes to remove the collateral. Click No to keep the collateral, and return to the Application screen..When processing an application, users are able to input the following types of loan collateral:
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The screens to capture information for each collateral type are user-defined, and configured by the system administrator in System Management > Origination > Screens; therefore, the images in the following section for each collateral type should be used as an example ONLY. |
When adding life insurance collateral to a loan application, users are prompted to enter various types of information on the policy being used to collateralize the loan. This information is able to be collected in Collateral or Application panels.
Depending on the configuration of the screen, panels may include fields to collect the following information:
When adding Marketable Securities collateral to a loan application, users are prompted to enter various types of information on the stock or fixed income investment being used to collateralize the loan. This information is able to be collected in Collateral or Application panels.
Depending on the configuration of the user-defined screen, panels may include fields to collect the following information:
Depending on the screen’s configuration, users may be able to select an asset to be held as collateral from the Pledge Collateral grid. Additionally, users may be able to provide additional information about the pledge in fields such as Description, Identification, and Legal Owner.
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The Pledge Collateral panel can be added to a screen for any collateral type. |
The Pledge Collateral panel contains Asset information from the core for all applicants on the application. This panel includes a grid that displays all assets marked as available for the collateral type in the ASSET_TYPE lookup in System Management > Origination > Field Configurations. If the panel appears on a screen for the Pledge collateral type, a required field populates above the grid to allow users to identify the total pledge amount for the Pledge collateral, as shown in the above example.
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If the panel appears on a screen that is not related to a Pledge collateral, the Total Pledge Amount field does not display above the panel grid. |
This panel also includes a Copy Asset Information button, which provides the ability to copy data from the selected asset directly to the collateral record. When this button is clicked, values from the asset record are populated within the applicable fields on the Collateral screen.
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Reference the list below for an overview of the fields that can be copied to a Collateral screen the selected asset record:
When the Copy Asset Information button is clicked within the Pledge Collateral panel, values are populated directly from the asset record for the selected asset to the corresponding fields configured to appear on a panel in the Collateral screen. The table below provides an overview of the values that populate from each field in the asset record to the corresponding field in the Collateral screen:
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Depending on the core interface for the institution, this panel may also populate assets or collateral other owners, and provide the ability to copy data from a collateral other owner asset record. For more information on collateral other owner assets, please see the applicable core connector guide for the institution. |
The grid in the Pledge Collateral panel includes the following information for each asset:
| Column | Description | ||||
| Active | An editable field that provides the ability to identify the asset to be held as collateral for the collateral type. Select the check box next to the desired asset. | ||||
| Type |
Displays the asset type. For example, saving, checking, or certificate.
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| Account | Displays the account number of the asset. | ||||
| Product Code | Displays the product code associated with the asset. | ||||
| Description | Displays a description the asset. | ||||
| Full Name | Displays the full name of the applicant associated with the asset. | ||||
| Balance | Displays the actual balance of the asset. | ||||
| Avail Balance |
Displays the available balance of the asset. This is the balance after the asset is adjusted according to the percent included value and hold amount.
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| Maturity Date | Displays the maturity date of certain asset types, such as certificates. | ||||
| Dividend Rate | Displays the dividend rate for the asset. | ||||
| Collateral Number |
Displays the associated collateral number from the core.
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| Hold Amount |
Displays the amount of the asset on hold.
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The Core interface is updated to include the hold information on the collateral during Disbursement. |
When adding real estate collateral to a loan application, users are prompted to input various types of information on the property being used to collateralize the loan. This information is able to be collected in collateral or application panels.
Depending on the configuration of the real estate collateral screen, panels for this collateral type may include fields to collect the following information:
Additional panels or screens may be configured to record optional real estate information such as:
Within a Real Estate Collateral screen, a general panel may be configured to capture basic collateral information.
Basic real estate collateral fields such as Description, Collateral Code, and Legal Owner may appear in this panel.
Within a Real Estate Collateral screen, a valuation panel may be configured to capture the real estate valuation information.
Collecting valuation information allows users to record important real estate valuation information such as Market Value, Appraised Value, Appraisal Date, Available Equity, Equity Lending Cap, Tax Value, and Last Assessment Date.
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When a number greater than or equal to 1,000 is entered in the Equity Lending Cap field, an arithmetic overthrow error is received. |
Within a Real Estate Collateral screen, a panel may be configured to capture the location information for the real estate collateral.
Collecting property location information allows users to record important real estate location information such as Residence Type, Census Tract Number, Recording District, Street Address, City, State, Postal Code, Township, and County.
If there are multiple applicant addresses associated with the application, they populate within Copy from Applicant window.
Errantly selecting the Set as Principal Dwelling field may prevent credit insurance premiums and debt protection fees from being financed. For more information refer to the Debt Protection section within the Loan Terms topic.
Clicking Copy prompts the system to check if the Is Total Monthly Expense flag is set to false for the address being copied. If the Is Total Monthly Expense flag is set to false, the Monthly Expense Amount and Balance are set to zero for the copy of the address, but can be updated through the Applicant Address panel.
Within a Real Estate Collateral screen, the Collateral Housing Expense grid-panel may be configured to capture any additional housing-related expense information.
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The housing expense data collected within this panel may be used to record and calculate escrow payment information. |
This grid enables users to indicate payment, policy and coverage information for additional housing-related expenses such as:
The additional housing expense grid contains a toolbar that allows users to add, edit, and delete additional housing-related expenses.
Adding Additional Housing Expenses
Clicking displays a drop-down list, which allows users to select the expense type. Indicate the type of expense by clicking the desired type from the drop-down list.
When the type of expense has been selected, the Additional Housing Expense screen opens in a new window. Within the Additional Housing Expense screen, complete all fields associated with the housing expense.
When all applicable fields have been completed, finalize the housing expense by clicking at the top of the screen. When the collateral window closes, the additional housing expense populates in the grid.
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Housing expenses flagged to be included in escrow, also populate within the Escrow Summary panel. |
Editing Additional Housing Expenses
To edit a housing expense:
. to finalize the housing expense updates. The updated information populates in the collateral.Deleting Additional Housing Expenses
To delete a housing expense:
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Reference the section below for an overview of the fields that are calculated each time a housing expense is saved: When each collateral housing expense is saved, the following fields are calculated:
When an application is calculated, the following escrow values are calculated:
Aggregate Analysis CalculationThe Aggregate Analysis calculation is a basic balance sheet for the escrow account that starts with the month from the Start Date field.
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Within a Real Estate Collateral screen, a grid may be configured to capture any additional liens on the collateral.
The Lien Information grid enables users to indicate existing lien information on the collateral, such as Lien Type, Lien Amount and Lien Description.
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The Collateral Liens panel can be added to a screen for any collateral type. |
The toolbar in the top of the grid provides the ability to add, edit, and delete lien information.
To add lien information to collateral record:
. the Collateral Lien screen opens in a new window. 
at the top of the screen.To edit a lien:
. to finalize the lien information updates.To delete a lien:
.Within a Real Estate Collateral screen, a grid may be configured to capture the additional owners of the collateral. The Other Owner Information grid allows users to indicated additional owner of the collateral and capture information such as Name, Address, Phone Number, and Email Address for each.
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The Other Owner Information panel can be added to a screen for any collateral type. |
The Other Owner Information grid contains a toolbar allowing users to add, edit, and delete other owner information, as well as add an additional owner by copying information from previously added collateral records.
Adding Other Owner Information
To add additional owners to collateral, select the Add button. When the Add button has been selected, the Collateral Other Owner screen opens in a new window.
at the top of the screen. When the Collateral Other Owner screen closes, the other owner information populates in the grid.Editing Other Owner Information
To edit an Other Owner record:
. to finalize the updates. The updated information populates in the grid.Deleting Other Owner Information
To delete an Other Owner record:
.Depending on the configuration of the Collateral screen, a 
button may be configured to appear in the panel. This button enables users to cut down on application processing time by adding an additional owner from previously added collateral records that have multiple collateral owners.
When Copy Other Owner is clicked, a window appears to select the other owner to copy to the collateral record:
Select the radio button that corresponds with the other owner of the collateral. Click Copy to import the other owner information to the other owner information grid on the Collateral screen.
When adding stock collateral to a loan application, users are prompted to input various types of information on the stocks/shares being used to collateralize the loan. This information can be collected in collateral or application panels.
Depending on the configuration of the user-defined screen, panels for this collateral type may include fields to collect the following information:
Depending on the configuration of the stock collateral screen, a General panel may be configured to capture basic collateral information.
Basic stock collateral fields such as Description, Collateral Code, Legal Owner, Stock Collateral Type, and Stock Certificate Numbers may appear in this panel.
Depending on the configuration of the stock collateral screen, a Valuation panel may be configured to capture the stock valuation information.
Collecting valuation information allows users to record important stock valuation information such as Adjustment Percentage, Market Value, Appraised Value, Stock Price, Stock Margin, and Stock Valuation Date.
When adding vehicle collateral to a loan application, users are prompted to input information on the vehicle being used to collateralize the loan. This information is able to be collected in collateral or application panels.
Depending on the configuration of the user-defined screen, panels for this collateral type may include fields to collect the following information:
Depending on the configuration of the vehicle collateral screen, a General panel may be configured to capture basic collateral information.
Basic vehicle collateral fields such as Description, Collateral Code, Legal Owner, and Purchase Price may appear in this panel.
Depending on the configuration of the Vehicle collateral screen, a valuation panel may be configured to capture the vehicle valuation information.
Collecting valuation information allows users to record important vehicle valuation information such as VIN, Vehicle Type, Vehicle Condition, Make, Model, Sub Model, and Collateral Value. Complete a vehicle valuation and input any other fields required to accurately valuate the vehicle collateral.
The valuation panel may be configured with the following buttons:
| Icon | Description |
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Allows a user to process a vehicle valuation. |
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Allows a user to review the details of previously processed vehicle valuation. |
While entering vehicle collateral, select the Valuate button to initiate the vehicle valuation process. The Valuation screen opens in a new window.
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Information that is manually entered on the Collateral screen does not migrate to the Valuation screen. It should be a user’s best practice to click the Valuate button prior to entering vehicle collateral information so the vehicle information does not need to be entered a second time. |
Starting with Valuation Source, complete all the required fields.
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The required fields that appear in the Valuation screen vary according to the selections made in the Valuation Source and Vehicle Type fields. |
After identifying the Year, the choices available within subsequent fields depend on the selection made within the previous field. For example, when the year 2013 is selected, the Pontiac Make is not available, wherein if the year 2008 is selected, Pontiac would be a valid choice.
Use the following table to assist completing a vehicle valuation:
| Field Name | Details | ||
| Valuation Source | Select appropriate vendor from drop-down list (e.g. NADA, KBB). | ||
| Vehicle Type | Select appropriate option from drop-down list (e.g. Car, Truck, Boat, Motorcycle). This list is filtered by the selected options available under Valuation Source. | ||
| Year | Enter the year of the vehicle. | ||
| Vehicle Age | Displays the rounded vehicle age (in years only) according to the Vehicle age calculation month parameter set on the Origination page in System Management. | ||
| VIN |
VIN is not required to get a valuation but may be entered if it is available.
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| Valuation Comment |
Enter a comment specific to this Valuation.
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| Make | Select appropriate option from drop-down list (e.g. Chevrolet, Ford, Jeep). This list is filtered based on the vehicle Year that was entered. | ||
| Model | Select appropriate option from drop-down list (e.g. Impala, Focus, Wrangler). This list is filtered based on the vehicle Year and Make that was selected. | ||
| Sub-Model (Trim) | Select appropriate option from the drop-down list (e.g. Sedan, Coupe). This list is filtered based on the vehicle Year, Make and Model selected. | ||
| Engine Type | Select the appropriate option from drop-down list (e.g. V-6). | ||
| Transmission | Select the appropriate option from drop-down list (e.g. Automatic, Manual). | ||
| Drivetrain | Select the appropriate option from drop-down list (e.g. FWD, AWD). | ||
| Vehicle Condition | Select the condition of the vehicle. For example: Excellent, Good. | ||
| Mileage | Enter the mileage of the vehicle. If not known, leave blank and the average mileage for the vehicle age is used for valuation purposes. |
The following buttons are also included in the Valuation screen:
| Button | Description |
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Processes the valuation request. The returned default value populates the Market Value field. All values and options returned from the valuation source show in the Results and Vehicle Options boxes. |
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Saves the valuation to the application. |
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Cancels the valuation process. |
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Select a specific Value Type to be used as the Market Value for the application. |
Once all the required vehicle fields have been completed, click the Valuate button to process the valuation, and transmit the request to the selected valuation source.
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If vehicle collateral is being added via a Collaterals panel, a save must be performed prior to clicking Valuate. Failure to clicking Save may result in a second collateral record being added to the application. One collateral record is complete, including the valuation result and vehicle details, and the other is incomplete, only including the valuation results. If this situation should occur, delete the incomplete record.
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Before the collateral value is returned, users are prompted to select any additional options from the Vehicle Options panel.
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The standard vehicle options are pre-selected. Cancel the selections that may not apply to the vehicle. |
Once the Vehicle Options have been selected, click once more to receive the valuation results.
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If the Mileage is unknown, the valuation connector inputs an assumed mileage based upon the age of the vehicle. |
The institution’s preferred Value Type pre-populates in the Market Value field. Additional values populate within the Results panel. Review the additional results. If a more appropriate Value Type is applicable, highlight the Value Type and click the Set as Market Value button.
After the valuation is complete, click 
to finalize the vehicle valuation. Once back on the vehicle collateral screen, the Valuation History button is enabled for selection (if configured to the screen).
Depending on the configuration of the vehicle collateral screen, a Valuation History button may be configured to display previous vehicle valuation results.
Click Valuation History to access the previous vehicle valuation results. When clicked, the Valuation History screen opens in a new window. By default, the information from the most recent valuation is displayed as read-only within the fields.
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If multiple valuations exist, click the drop-down located in the top-right and select the desired valuation to review. |
By default, Market Value is blank in the Valuation History. If editability is true for Application.Collaterals.MarketValue in System Management > Origination > Editability, 
is enabled, and allows users to update the Market Value for the collateral.
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If editability is false for Application.Collaterals.MarketValue, is disabled. |
To update the Market Value for the collateral:
.Once complete, click 
within the top of the window to save the changes to the collateral record, and close the Valuation History screen.
Depending on the configuration of the vehicle collateral screen, a panel may be configured to capture insurance information for the collateral.
Collecting insurance information allows users to record important insurance information such as Insurance Carrier, Policy Number, Policy Expiration Date, and Policy Deductible. Complete all required fields and continue entering vehicle collateral information in subsequent panels.
In instances where the item to be used as collateral does not fall under a category of Life Insurance, Marketable Securities, Pledge, Real Estate, Stock, or Vehicle, users can add a collateral type of Other to the application.
Depending on the configuration of the user-defined screen, panels for this collateral type may include fields to collect the following information for various different types of collateral:
