The product category Mortgage classifies long-term loans that are secured by an encumbrance and that can be mapped according to your requirements by means of product types. You can use object management in this product category.

The system assigns a status to mortgage loans, which indicates the stage a loan has reached in the contract process. Depending on the settings you have made in Customizing under Company Code-Dependant Settings for Product Type , you can start or continue processing a loan in any status.

The possible statuses are:

• Application
• Offer
• Contract

The following graphic illustrates the different ways you can enter loan transactions (mortgage loans given) The Decision function, which is based on a credit rating calculation and collateral value determination, supports the decision to create an offer or contract for mortgage loans: