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Loan Covenants define the conditions that must be upheld by an applicant during the term of a loan, and provide institutions with a method of ensuring that a loan is paid back on time, in full, and in accordance with the loan terms.

This topic provides system administrators with instructions on how to create and manage the loan covenants available for their institution, as well as an overview of the additional configurations required to add and manage loan covenants throughout the application process. 

Creating and Managing Loan Covenants in System Management

The Loan Covenants page in System Management (System Management > Origination > Loan > Loan Covenants) enables administrators to define the loan covenants available to assign to applicants during the application process.

This page displays a list of the loan covenants configured for an institution, and provides administrators with the ability to create and manage loan covenants based on their institutional standards and guidelines.

The grid in this page displays the following columns of information for each loan covenant:

Column	Description
Name	Displays the name of the loan covenant.
Description	Displays the description text for the loan covenant, including the placeholders added to the description.
User Defined Description	Displays a  to identify the covenant description as user-defined.
Last Modified	Displays the date and time that the loan covenant was last modified.
Modified By	Displays the name of the user who last modified the loan covenant.
Date Created	Displays the date and time that the loan covenant was created.
Created By	Displays the name of the user who created the loan covenant.

Loan Covenant Attributes

All loan covenants share the same attributes when creating, copying, or editing a covenant.

The loan covenant configuration window allows system administrators to define a name for the loan covenant, the value sent for the covenant to the core, as well as the description text, which identifies the condition(s) to be upheld by the applicant during the course of loan servicing. 

This window includes the following attributes in the top of the window:

Attribute	Description
Name	Enter a unique name for the loan covenant. This is a required field. Each loan covenant name must be unique; therefore, if the covenant name matches a loan covenant already configured for the institution, an error is received when trying to save to inform that there is an existing loan covenant with that name, and a new name must be entered. When a loan covenant is deleted, the record is removed from the Loan Covenants page, but the data for the covenant remains in the database; therefore, the above error is also received when trying to save a loan covenant with the same name as a covenant that no longer appears in the Loan Covenants page.
Core Value	Enter the value used to identify the loan covenant in the data sent to the core during disbursement.
User Defined Description	Select the check box to identify that placeholders are not being added to the covenant description. When this check box is selected, the Placeholder Definition section is removed from the configuration window, and the description for the covenant can be edited by a user when adding or editing a covenant from the Loan Covenants panel.
Description	Enter the text to appear for the loan covenant, which explains the condition(s) to be upheld by the applicant for the loan. If the User Defined Description check box is not selected, this section consists of the description text, as well as any desired placeholders from the Placeholder Definition section.

If the User Defined Description check box is not selected, a Placeholder Definition section appears under the above attributes to provide the ability to customize up to five placeholders for the loan covenant description, which can be used to automatically populate information in the description text. 

From this section, administrators are able to define the text to appear for each placeholder, and/or assign default mapping to the placeholder that automatically populates data from Temenos Infinity in the description when a loan covenant is added to an application for an applicant. 

The Placeholder Definition section includes an editable grid that allows administrators to define the following information within a separate row for each of the five placeholders:

Column	Description
Placeholder Name	A read-only column that displays the name of each placeholder. Each placeholder is named as follows: ##PlaceHolder1##, ##PlaceHolder2##, ##PlaceHolder3##, ##PlaceHolder4##, and ##PlaceHolder5##.
Placeholder Label	An editable column that provides the ability to enter a label for the placeholder. For example, Applicant Full Name. If default mapping is set for the placeholder, the Placeholder Label column automatically populates with the name of the field; however, the label value can be modified after the mapping is set if desired. This value populates as the placeholder name within the Edit Placeholder section of the loan covenant details window. If default mapping is not set for a placeholder, a value must be manually entered within this column. If a Placeholder Label is not defined, the placeholder does not populate within the Edit Placeholders section, which prevents users from modifying the value of the placeholder when adding or editing a convenant during the application process.
Default Mapping	An editable column that provides the ability to map the placeholder to a flattened field from Temenos Infinity, in order to automatically populate data from the application in the loan covenant description. The drop-down in each row includes a list of the Applicant fields available in the Field List for Application screens, and the Collateral fields available to be added to the Pledge, Real Estate, Stock and Vehicle Collateral panels on an Application screen. This list does not include fields in the Applicant sub-folders for Addresses, Connectors, Incomes, or Phones, or the Collateral sub-folders for Housing Expenses, Liens, Other Owners, or Property Address.

Loan Covenant Actions

The Loan Covenants page allows administrators to create and manage the loan covenants for their institution. The buttons in the top of the page provide the ability to perform the following actions:

• Create Loan Covenants
• Copy Loan Covenants
• Edit Loan Covenants
• Delete Loan Covenants

Creating Loan Covenants

To create a loan covenant:

• Click  within the top of the Loan Covenants page.
• In the configuration window, enter a unique name for the covenant.
• If desired, enter a value to identify the covenant in the data sent to the core.
• If placeholders are not being added to the loan covenant description, select the User Defined Description check box, and enter the desired text within the Description text box.
• If placeholders are being added to the loan covenant description:
  • Enter text that describes the conditions for the loan covenant within the Description text box, leaving spaces for any placeholders to be added.
  • Navigate to the Placeholder Definition section to define the placeholders for the loan covenant description.
  • For each of the desired placeholders, enter text within the Placeholder Label column, and/or select a field within the Default Mapping column.
  • Once all placeholders are defined, click within the Placeholder Name column, and highlight the name. Once highlighted, click on the name to drag and drop the placeholder to the desired space in the loan covenant description.
  • Repeat for each placeholder.
• When the description is complete, click to create the loan covenant.
• The loan covenant is added to the grid in the Loan Covenants page, and is available to add to an application through rules, or manually from the Loan Covenants panel in an Application screen.

Copying Loan Covenants

To copy a loan covenant:

• Select the desired covenant within the Loan Covenants grid, and click .
• Enter a new name for the loan covenant.
• If desired, update the description text, and/or placeholder values.
• When all updates are complete, click to create the new loan covenant.

Editing Loan Covenants

To edit an existing loan covenant:

• Double-click the covenant to be modified within the Loan Covenants grid, or highlight the desired covenant, and click .
• Make the necessary modifications within the configuration window.
• When all updates are complete, click to retain the changes.

Deleting Loan Covenants

To delete a loan covenant:

• Highlight the desired covenant within the Loan Covenants grid, and click .
• A message appears to confirm that the loan covenant should be deleted. Click Yes to delete the covenant, or No to retain the covenant, and return to the Loan Covenants page.
• Once Yes is clicked, a success message appears to confirm that the loan covenant was deleted. Click OK.

Additional Loan Covenant Configurations

In addition to creating Loan Covenants within the Loan Covenants page, the following configurations must also be made by system administrators to support the ability to add and manage loan covenants during the application process:

Configuration	Where Configured	Location of Supporting Documentation
Configure values for the VALIDATION_FREQUENCY and COVENANT_DURATION lookups.	System Management > Origination> Field Configurations	Please see the Field Configurations topic in this guide.
Add the Loan Covenants panel to an Application screen. If desired, a Loan Covenants panel can also be added to an Application screen for Virtual Capture in System Management >Origination > Virtual Capture > Virtual Capture Screens.	System Management > Origination > Screens	For an overview of the Loan Covenants panel, please see the Loan Covenants topic in the User Guide. To learn more about adding the Loan Covenants panel to a screen, please see the Screens topic in this guide. For more information on the Loan Covenants panel for Virtual Capture, please see the Virtual Capture Screens topic in this guide.
Assign users the appropriate Application Processing permissions to Add, Change, Waive, and/or Delete loan covenants.	Permissions tab in System Management > Users and System Management > Groups > Security Groups	Please see the Permissions section of the Users or Security Groups topics in this guide.
If it is desired to automatically add loan covenants through rule logic, author Loan Covenant rules that include the Add a Loan Covenant template. Rules can also be authored to set loan covenant document processing fields, which map the covenant data from an application to IMM documents.	System Management > Origination > Rules Management	Please see the Add a Loan Covenant Rule Vocabulary Template Example in this guide. To learn more about the Set Loan Covenants Document Processing Field template, please see the Rules Management - Available Templates topic in this guide, For more information on the IMM tags available for loan covenants, please see the IMM Field Mapping document.
If Loan Covenant rules are authored, configure an Event Processing pair that includes the Process Loan Covenant Rules action.	System Management > Origination > Event Processing	Please see the Event Processing topic in this guide.
Add the following fields to rules, reports, and/or views to capture and display loan covenant data:               Application > Applicants > Loan Covenants > Applies To Application > Applicants > Loan Covenants > Comments Application > Applicants > Loan Covenants > Date Waived Application > Applicants > Loan Covenants > Duration Application > Applicants > Loan Covenants > Is Waived Application > Applicants > Loan Covenants > Loan Covenant Application > Applicants > Loan Covenants > Next Due Date Application > Applicants > Loan Covenants > Other Description Application > Applicants > Loan Covenants > Validation Frequency Application > Applicants > Loan Covenants > Waived By By default, the above fields are set to be editable both pre-decision and post-decision; however, the editability of these fields can be modified in the Fields tab of System Management > Origination > Editability. The Application.LoanCovenants collection can also be modified in the Collection Members tab to determine the editability of the entire collection of loan covenant fields if desired.	System Management > Origination > Rules Management The Reports icon in the Ribbon Bar The Views icon in the Ribbon Bar System Management > Origination > Editability	For more information on adding fields, or configuring field editability, please see the following topics in this guide: Rules Management Reports Administration Views Administration Editability

 

 

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