Enhanced Policy Conditions

Policy conditions are the requirements of central regulatory authorities by which the applications must comply to be moved ahead in the workflow. An exception is raised for applications that do not satisfy the defined policy conditions. These policy conditions are often recorded in the credit memorandum. 

In Q2 Origination, these policy conditions are used to configure various stipulations or constraints that govern the credit approval or usage of funds in a loan application. These policy conditions evaluate exceptions against credit policies/due diligence policies. Due diligence policies include KYC Due Diligence, Income Verification, Real Estate due diligence, Credit Risk, and so on.

You can now enhance the management of the policy conditions by using a rules setup. These rules enable you to manage the attributes and their values based on which the applications, parties, and collaterals are fetched, and the defined policy conditions are applicable to those. As a result, the banks or financial institutions can effectively monitor and manage the implementation of policy conditions for multiple parties and collaterals on an application. Using the rules, the resolution criteria are defined for the policy conditions based on which any exceptions to the policy conditions are resolved automatically.

A policy condition can now be associated with the automated task resolution. When the policy condition is satisfied, the associated task can be resolved. For example, all KYC due diligence and income verification exceptions must be satisfied before moving to the Approval Stage. This can be achieved through configuring the Automated Task resolution criteria on the status of policy condition and the type of policy condition.

Earlier, whenever there was an update to the Application, Party, or Collateral object, the policy conditions were still listed on the Manage Policy Conditions page even if these policy conditions did not satisfy the generation criteria. Now, such policy conditions are archived and are no more listed on the Manage Policy Conditions page. The policy condition generation criteria are evaluated on every update of the Application, Party, or Collateral object. If the policy conditions do not satisfy the generation criteria, then these are archived.

For example, below are the generation criteria to associate a policy condition with an application.

In the initial phase of the application, the KYC Verified will be FALSE. So, the policy condition is generated. But on running the KYC, if the KYC Verified becomes TRUE, the generated policy condition should be archived and removed from the Manage Policy Conditions page.

Add a policy condition

While adding a policy condition to an application, you can add policy conditions that are defined on Application/Party/Application Collateral. You can do this by selecting the context from the Select Context list as instructed below.

Prerequisites

Before you proceed to add a policy condition, ensure that the following prerequisite is met:

At least one policy condition and policy condition criterion are defined.

Steps

To add a policy condition:

1. Log in to your Salesforce account.

2. Go to  (App Launcher) >  Applications.

3. On the  Applications tab, from the list of applications, select the required application.

4. On application dashboard, select Exceptions.
   

   The Policy Conditions window with the policy conditions and their statuses, such as Satisfied, In File, or Exception, are displayed.

5. Select Create New Policy Condition.
   

6. In the Create Policy Condition window, from the list of contexts available, select a context.

   Note:

   Context can be any existing application, party, or collateral.

7. Select Next Step.
   

   Note:

   This button will be enabled only after you select a context.

8. In the Create Policy Condition window, to get a list of the available policy condition definitions, select , and then go to step 9.
   

   
   

   Else, if you know the Policy Condition Definition, enter it in the Policy Condition Definition, and then go to step 10.
   

   
   

9. In the Select Policy Condition Definition window, select the required Policy Exception Definition Name.
   

   This window lists the policy conditions specific to the selected context. If the selected context is Party, policy conditions related to that party are displayed here.
   

   
   

   After the Policy Condition Definition is selected, the Policy Condition Definition field in the Create Policy Condition window is populated with the selected policy condition, and the Description field is auto-populated based on the selection.

10. In the Create Policy Condition window, in the Officer Comments box, specify the comments regarding the exception, and then select Save.
    

    Note:

    The added policy condition is listed in the Policy Conditions window with Status as Exception.

Policy Condition Status

When an application is first created, and if the condition type of the policy condition definition is Document, the status of the policy condition by default is assigned as Exception or Satisfied. Once you upload the file to that Document Category, the status of the policy condition changes to In File.

If you change the status of that document to approved, the status of the policy condition changes to Satisfied.
If the Policy Condition Resolution Criteria for condition type Document is not satisfied, the status of the policy condition changes to Exception. If the document is reviewed and approved, the status of the policy condition changes to Satisfied.

If the documents/files are not uploaded, the status of the policy condition changes/continues to remain as an Exception.

When the Document status is changed to Rejected, the status of the policy condition changes to Rejected if the evaluation expression of the policy condition resolution criteria is FALSE. But if the evaluation expression of the policy condition resolution criteria is TRUE, the status of the policy condition does not change to Rejected even if the Document status is Rejected.

Sometimes, when a document is rejected, there is a need to retain the policy condition status as Exception instead of Rejected. You can now set one of the following values that must be displayed when a document is rejected:

• Rejected

• Exception

You can set it in the Custom Settings > Org Parameters > Policy Condition Status for Documents field. If you do not set any value, then the system, by default, assumes it as Rejected and displays Rejected for a rejected document status.

The change in the status of the policy condition in various scenarios is illustrated with the help of the following table:

Actions

The Policy Condition tab of the application's dashboard displays the policy conditions associated with the application. This tab offers the following options to perform certain actions on the listed policy conditions:

• Documents

• Comments

• Audit Log

• Override Status

Documents

This option enables you to perform documents-related tasks, such as viewing the details of documents and performing various actions on the documents, such as delete document categories, upload files, add comments, and edit status. To know more about Documents, see Q2 Origination Administration Guide > Tracking Document Status.

It also enables in determining the status of the policy condition. When the condition type of the policy condition is Document, the status of the policy condition depends on the status of the Document associated with it. For example, when the Document status is changed to Approved, the Policy Condition Status changes to Satisfied. 

To know more about the Policy Condition Status, see Policy Condition Status.

Prerequisites

Before you proceed to perform the documents-related tasks, ensure that the following prerequisites are met:

• A Policy Condition Definition is configured. To know more about defining a policy condition, see Q2 Origination Administration Guide > Enhanced Policy Condition.

• An application is created.

Steps

To perform the documents-related tasks for a policy condition:

1. Log in to your Salesforce account.

2. Go to  (App Launcher) > Applications.

3. On the Applications tab, from the list of applications, select the required application.

4. On application dashboard, select Exceptions.
   

   The Policy Conditions window with the policy conditions and their statuses, such as Satisfied, In File, or Exception, is displayed.

5. In the Policy Conditions window, in the Action column, from the drop-down list, select Documents.

   

   The Documents window is displayed.

   
   

   Note:

   For more information on actions on Documents, see Q2 Origination User Guide > Managing documents of an application > Tracking Document Status and Adding comments to document.

Comments

This option enables you to add comments to the corresponding policy condition.

Prerequisites

Before you proceed to add comments to a policy condition, ensure that the following prerequisites are met:

• A Policy Condition Definition is configured.

• An application is created.

Steps

To add comments to a policy condition: 

1. Log in to your Salesforce account.

2. Go to  (App Launcher) >  Applications.

3. On the  Applications tab, from the list of applications, select the required application.

4. On application dashboard, select Exceptions.
   

   The Policy Conditions window with the policy conditions and their statuses, such as Satisfied, In File, or Exception, is displayed.

5. In the Policy Conditions window, in the Action column, from the drop-down list, select Comments.
   

   
   

6. Specify the comments, and then select Save.
   

   The comments are saved with the timestamp and user name.

   

   Note:

   If there are more than two comments for one policy condition, more options gets displayed to view all the comments together.
   

Audit Log

This option enables you to view logs that are created due to the changes made to the policy conditions. For example, if you change the status of the policy condition to In File manually, this action is logged in the audit log.

Prerequisites

Before you proceed to view the audit logs of a policy condition, ensure that the following prerequisites are met:

• A Policy Condition Definition is configured.

• An application is created.

• Tracking History is enabled.

  Note:

  To enable Tracking History, see Q2 Origination Administration Guide > Enhanced Policy Condition.

Steps

1. Log in to your Salesforce account.

2. Go to  (App Launcher) >  Applications.

3. On the  Applications tab, from the list of applications, select the required application.

4. On application dashboard, select Exceptions.
   

   The Policy Conditions window with the policy conditions and their statuses, such as Satisfied, In File, or Exception, is displayed.

5. In the Policy Conditions window, in the Action column, from the drop-down list, select Audit Log.
   

   

   The Audit Log window is displayed.
   

Override Status

This option enables you to override the status of a policy condition manually.

Prerequisites

Before you proceed to override the status of a policy condition, ensure that the following prerequisites are met: 

• A Policy Condition Definition is configured.
  

• An application is created.

• The Enable Override flag is enabled while defining the policy condition. 

Steps

To override the policy condition status:

1. Log in to your Salesforce account.

2. Go to  (App Launcher) >  Applications.

3. On the  Applications tab, from the list of applications, select the required application.

4. On the application dashboard, select Exceptions.
   The Policy Conditions window with the policy conditions and their statuses, such as Satisfied, In File, or Exception, is displayed.

5. In the Policy Conditions window, in the Action column, from the drop-down list, select Override Status.
   

   
   

   The Override Status window is displayed.
   

6. On the Override Status window, provide the following details:
   

   1. To override the status of the policy condition, select , and then select the Do you want to override the status of this policy condition? checkbox.
      

      Note:

      You will see this icon only when you hover over the checkbox. Else, you can double-select the checkbox to enable it.
      

   2. To change the Status, select , and then select the required status from the list of the policy condition status as depicted in the following image:
      

      Note:

      You will see this icon only when you hover over the Status value. Else, you can double-select the value of the Status to enable it to see the options. 
      
      
      
      

   3. To add Comments, select , and then add the required comments.

      Note:

      You will see this icon only when you hover over the empty space near the Comments. Else, you can double-select the empty space near the Comments to bring up the text box to enter the comments. 
      The comments are saved with timestamps. New comments are added to the previous comments with a timestamp. These comments are displayed in the Comments column on the Policy Conditions page of the Exceptions tab. A maximum of 255 characters is supported for each comment. 

      

7. Select Save.

Context-Based Policy Condition

Context-based policy conditions are the policy conditions configured for Object Type as Party or Application Collateral. Based on the context, you can satisfy the policy condition for an individual party or application collateral by defining rule and resolution criteria for a selected party or application collateral when more than one party or application collateral is associated with an application.

For example, if there are two parties present in the application as borrower and co-borrower, you can choose to satisfy the policy conditions only for the borrower.

Scenario: Archive Policy Condition

This scenario explains when a policy condition is archived. 

1. The following two policy conditions are defined to explain the policy conditions archival concept:

   

   

2. Log in to Salesforce, and create an application with Term = 25.
   

3. Go to Policy Condition.

   The policy conditions defined above are generated for the application as shown in the following image:
   

   

4. Edit the application and update the Term from 25 to 15.
   

   The generation criteria of Policy Condition - 2 is failed. So, Policy Condition - 2 is archived and is not listed on the Manage Policy Conditions page as shown in the following image: