The underwriter needs a system check before funding an application to determine if any important stipulation hasn't been met. Stipulations are lending product-specific compliance requirements that a borrower has to clear before
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application approval, or
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signing documents, or
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fund release
Generally, a standard set of stipulations applies to all your borrowers with the provision to specify additional stipulations in specific cases. These are verified against checklists. The checklist is a rule-driven feature. A rule in Q2 Origination is a declarative method of defining a stipulation on an application. Supported stipulation types are Funding and Contract.
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Contract: lets you define which documents (from a pre-defined list of document names) are mandatory and should be checked. For example, if a required document is missing, the checklist feature will red flag it.
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Funding: lets you define declarative rules on Application and related objects (including custom objects). For example, you could define a rule such as - show a red flag if the borrower's FICO score is less than 600.
Examples of contract stipulations include:
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Contract Document
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Proof of Residence
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Proof of Employment
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Government ID
Examples of funding stipulations include:
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Vendor Invoice
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Proof of Insurance
On approval of credit, the credit analyst specifies the stipulations to be fulfilled by the borrower for the financing. These stipulations have to be fulfilled for the application to be deemed as complete.
See the Rules section of the Q2 Origination Administration Guide for more information.
A Checklist is used to verify the fields and documents associated with an application so that the unfulfilled stipulations of the application are brought to notice. This helps in ensuring completeness and consistency in the application. If you have missed out on entering any information under Application Details, Parties, Credit Pull, Scorecard, Equipment Details, Pricing, Business, or Documents, this missing information is displayed in the checklist. You must take a considered decision about closing or ignoring these gaps, as these can hamper the conversion of the application to a contract.
Ensure that you configure Documents and Rules to view the missing information displayed in the checklist.
Please note, a checklist is generated for the failures as per the criteria defined under Rule and not for the criteria defined for the success of a Rule.