Collateral
A collateral is a property or other asset that a borrower offers a lender to secure a loan. You can define the collateral types your organization accepts from customers. Collateral may also be the asset against which a loan or lease is taken. For example, if a borrower takes a loan to construct a house, then the property becomes collateral.
Using the COLLATERAL tab, you can add collateral, view the details of the collateral, such as Collateral Description, Collateral Type, and Collateral Value of all the collaterals associated with the application, and re-evaluate the existing collateral. Collaterals are represented in this section for secured loan applications. In the case of a lease, the selected set of equipment is displayed.
To navigate to the Collateral page:
Log in to your Salesforce account.
Go to
(App Launcher) > Applications.On the Applications tab, and from the list of applications, select the required application.
The loan dashboard is displayed.
Select the Collateral tab.
Manage collateral
The process of adding and maintaining complex secured loan and lease collateral structures, and ensuring that the required information has been gathered for each type of collateral, is a complex task. Q2 Origination provides a simple and standardized process to create and manage complex collateral structures. On the COLLATERAL tab of the application dashboard, you can view collateral pledged to a loan. You can also add new or existing collateral to a loan.
Cross collateralization- There may be cases where multiple loans or lease applications are being processed for the same borrower. In some cases, the same collateral may be pledged against more than one application for part of its value. The cross-collateralization feature helps you maintain details of the collateral appraisal, its appraised value, and pledged value across applications. Cross collateralization ensures that collateral is not pledged beyond its appraised value and an application is not under-collateralized, especially when the collateral is pledged against multiple applications. It calculates the total pledged value of the collateral and displays an error if this value exceeds theappraised value. You can view all the applications which are pledged against collateral and the appraised and remaining amount of the collateral on the COLLATERAL tab.
You can complete the collateral appraisal using Q2 Origination's appraisal management capability or externally. However, the appraised value must be made available in Q2 Origination's Collateral Valuation record for collateral to be pledged against an application. The collateral that is pending appraisal is pledged with no value. Once the appraisal completes, you can update the pledged amount.
Capture rent roll details -
As part of creating/updating collateral in the application, you will now be able to capture the cash flow details related to collateral. For example, you will be able to upload a rent roll against real estate collateral. On an upload, a preview of the uploaded CSV file is shown. The preview consists of the header and all the records of the file. You can then map the header fields, or in case the correct header names are already provided, you can skip this step.
You also can associate the rent roll document category with a rent roll document definition. On Save, the rent roll data is inserted, and a new document category is created with the collateral and application in context and linked to the document definition selected. If the collateral is part of multiple applications, then this document will be visible across applications.
You can manage the collaterals in the following ways:
Add collateral to the application
View all the collaterals added to the application
View allrelated data segments of the collateral such as collateral details, collateral owners, collateral valuation, collateral liens, appraisal management, questionnaire, flood determination details, geocode
Edit the collateral's details
Delete the collateral
Raise a collateral appraisal request