Mortgage Loan Processing
Purpose
Create
You can use the Application/Contract Offer ® Create function to enter all the data required for a potential contract in the system, without creating a contract.
For loans given, the Application function allows you to enter concrete inquiries from potential borrowers, including the terms and conditions of a potential loan contract. Alternatively, you can choose to enter only the customer’s basic borrowing requirements (such as the capital applied for). When you create an application, you can also enter data relating to a collateral object or assign an existing object to the application.
In offer status for loans given you can define and save several contract versions with different condition values. An offer can comprise various alternatives for a potential borrower, who can then choose the relevant version for concluding the contract.
You can use the Contract ® Create function to enter all the contract data relating to a loan given or a loan taken. In addition to the basic data and conditions, you can also enter master data for the partner, object and other collateral, as well as regulatory reporting data for a loan.
Transfer to Offer/Contract, Contract Acceptance
By defining status transfers, you can enter a concrete inquiry by a customer (for example, as an application) and use the Transfer to Offer function to convert the application into an offer. From here, you can send loan offers to the customer, and then use the Contract Acceptance function to convert the offer the customer has accepted into a contract. Alternatively, you can convert the application into a contract directly using the Transfer to Contract function, or start the loan process by entering a contract offer or contract directly. Status transfers let you adjust the loan processing steps to reflect your own company procedures.
Decision-making
The Decision-Making function allows you to review mortgage loan applications with respect to the collateral value and prime costs of the collateral objects and the credit standing of the borrower, and to convert an application into one or more corresponding offers or contracts.
The results of the collateral value calculation for the objects and the credit standing calculation for the partner form the basis for decision-making. When you enter the relevant application, the system displays this information automatically on the Decision-Making screen. If you have not yet calculated the collateral value for the object entered or the credit standing for the partner, you can make the calculations from the decision-making screen. From the decision-making function, you can only access the short version for calculating the collateral value (see also
Collateral Value Calculation: Short Version; for the long version, see Collateral Value Calculation).If the decision-making function is included in the release procedure, the initial release status is set to "released". Before you can enter contract offers or contracts using this function, you must set the release status to "not released". Once all the loans that have been created have been released, the loan officer with the appropriate authorization can release the decision-making process.
Decision-making is a specific type of application transfer. It allows you to create one or several contract offers or contracts on the basis of one application. The underlying application is kept in the system, allowing you to trace the history.
Change, Display, Waive, Reactivate, Disburse
You can complete the data for an existing loan, enter additional data or display the loan at a later stage. Status management also extends to activities such as loan waivers, reactivation and disbursement.
Process Flow
Function |
Procedure |
Create |
Lets you create an application, contract offer or contract. See also: Creating a Mortgage Loan |
Transfer to offer |
Lets you convert an application directly into a contract offer if the decision-making process has not been set to active. See also: Transfer to Offer |
Transfer to contract |
Lets you convert an application directly into a contract if the decision-making process has not been set to active. See also: Transfer to Contract |
Decision-making |
Lets you review an application by looking at the collateral values and prime costs of the object and the credit standing of the partner. On the basis of the results, you can make an internal decision about the loan commitment and create on or several contract offers based on the application. See also: Decision-Making |
Contract acceptance |
Lets you convert a contract offer directly into a contract. If several offer versions are assigned to a contract offer, you must select one of them. See also: Contract Acceptance |
Change |
Lets you change the data for an application, contract offer or contract. See also: Changing a Mortgage Loan |
Display |
Lets you display, but not change, the application, offer or contract data that has been entered in the system. See also: Displaying a Mortgage Loan |
Waive |
Lets you cancel further processing for an application, contract offer or contract. You can waiver the loan capital for a contract offer or contract partially or fully. See also: Waiving a Mortgage Loan |
Reactivate |
Lets you reactivate an application, contract offer or contract that you have previously removed from processing. See also: Reactivating a Mortgage Loan |
Disburse |
Lets you carry out full disbursements or partial disbursements for a contract. See also: Disbursing a Mortgage Loan |