Parties

What is a party?

In a business/commercial loan application, an individual may be associated with multiple roles. For example, an owner of a business needs to be associated with roles like Beneficial Owner, Signer, Guarantor and Beneficial Owner Manager in a loan application transaction.
Prior to this release, the user would have to add the same individual(account) as a party for every single role. This would mean that the user would have to perform the add party action four times in the above example.

With this release, users will now be able to associate multiple roles and additionally establish a relationship between the business entity and the individual as part of a single party addition.Business Case

Solution

Q2 Origination has been enhanced to support the creation of multiple parties/roles for a single entity (individual/business) as part of a single party addition transaction. This will also establish relationships between the accounts being added.

Benefits

Improves user experience and reduces chances of error.

When Related Business Entity = True, the related business entity field is displayed in Add Party. Based on Party Type, additional fields are displayed for capturing information pertaining to the specific party type.

In Q2 Originate, a Party object is used to associate an Account with an Application and Party type describes the relationship of an Account with an Application. Party is also categorized based on the Role. A Party can play single or multiple roles. For Instance, a party can act as a co-borrower and a guarantor in the application.

At the same time, a party can be a Signer or Beneficial Owner to other accounts on the application. To achieve this, we already have a defined Party relationship that links a Party type to a related non-Individual or a related Individual. For instance, a Party (John Smith) can act as a Signer for Acme Bricks. BUT the same Party (John Smith) can also act as a Signer for Acme Constructions.

Earlier Origination system had a 1:1 relationship between a Party and a Related Entity, it was becoming restrictive to cater to such business needs.

As it is a common lending scenario wherein a Child Entity might be a Borrower with Parent Entity as a Co-Borrower and Beneficial Owner. And there might be multiple parties playing a common role towards all the Primary Parties. Hence, Q2 Originate has been enhanced to consider the 'Party-Related Entity' relationship from 1:1 to 1: many.

Parties indicates the name and types of parties, such as Borrower, Guarantor, and Signer associated with the selected application. All the parties associated with the application are represented in this section.

For example, if there are two types of parties, such as Borrower and Cosigner, and in case of non-availability of the borrower, the financial institution can contact the cosigner when required. 

In Q2 Origination, the Party object is used to associate an account record to an application record, as well as describe the relationship between the account and the application. For example, is the account/entity a borrower or guarantor?  Is the account entity a signer?  And if so, what is their signing capacity? etc.  The problem is this, we describe the relationship between the Account and the Application using Party Type (which is a lookup on the Party object to the Party Type object – which contains these relationship values, such as BORROWER, GUARANTOR, SIGNER, etc); however, a single entity (Account) can play multiple roles in a loan.  

What is a relationship?

Q2 Origination can manage both, single and complex relationships associated with an application. You can manage the following for each business customer:

• Business ownership

• Subsidiary companies

• Business related by common ownership

• Other related/affiliated companies

In addition, you can manage all financial accounts associated with each business customer.

You can add parties that are associated with a loan opportunity using the Loan Dashboard. For example, you can specify the borrower, co-borrower,grantor, and signer on the loan. Each of these parties is a borrowing relationship for that application.

Detailed information for the party, such as contact details, financial accounts, loan opportunities the party is associated with, its relationship graph with other related entities, and the credit report information are displayed in the Relationship Dashboard. You can access the Relationship Dashboard through the party's details via the Accounts tab.

How you can manage both parties and relationships?

• What is a relationship dashboard?

• What is the current state?

• What is the enhancement?

• How to add a party?

• How to add multiple parties for the same application?

To navigate to the Parties dashboard:

1. Log in to your Salesforce account.

2. Go to  (App Launcher) > Applications.

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

   The loan dashboard is displayed.

4. Select the Partiestab.
   

   
   

Manage parties

You can manage the parties in the following ways:

• Add a party to the application

• View all the parties added to the application

• View all related data segments of the party (borrowing entity) such as party details, party address, deposits and loans, relationship graph, financial statement summary, loan opportunity, questionnaire, geocode

• Delete a party of the application

• Edit the party's details

• Add/Edit/Delete the party's address

• Edit the financial statement summary

• Add a loan opportunity

View All

Select this to view all the parties and then select the party to view more details about it.

View Party Details

The Party Details tab displays the details of each party added to the application, such as Details of Identity, Contact, Financial accounts held by the party, credit information such as its credit score and any delinquencies, bankruptcies, and open and closed accounts held by it. 

View Party Address

Deposits and Loans

Loan Opportunity

This section displays other active loan opportunities associated with the specific relationship. It enables users to create new loan opportunities.