Generate a Credit Memo
FIs can generate credit memo (loan presentation) documents as a component of the loan approval process. The credit memo documents include information on the relationships, loan, collateral, covenant, and fees and the applicable attachments such as, financial statements and appraisal documents. A credit memo is typically created once a loan opportunity has completed the underwriting stage of the loan origination life cycle and the lender intends to submit the loan for approval. The credit memo is presented to the loan committee in order to describe the borrowing relationship, outline the terms of the loan, highlight any potential risks and mitigations, and justify the loan opportunity.
Credit Memo also allows you to view the relationship graph by selecting View Relationship under the Relationship Summary tab and it also displays the ownership percentage of the party type.
Q2 Origination presents credit memo templates that can be used to create credit memo documents on demand. These templates include the applicable content sections, containing information on the loan, borrowing entities, collaterals, fees, covenants, risk assessments, financial analysis, and field mappings from each of these contexts. Users can generate comprehensive credit memo documents containing data mapped from the Q2 Origination database into each of the defined content sections. Users can apply custom narratives to each content section to describe the section in further detail or identify potential risks and possible mitigations. Users can also attach documents stored in Q2 Origination to the credit memos. The resulting comprehensive credit memo document outlines the details of the loan opportunity, illustrates the benefits of the loan relationship, highlights key risks and mitigations, details the results of financial analysis, and includes supporting documentation, such as financial statements, tax returns, and appraisal documents.
To generate a credit memo, perform the following steps:
Go to the required application.
Select the Credit Memo option from the More list.
Provide the required information and select Generate Credit Memo.
To save details without generating the credit memo, select Save.
