The Approval tab allows you to review all the approval instances generated for an application. You can approve, reject, or conditionally approve an approval instance.
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If the reviewer has not reviewed the approval instance, the approval instance status remains Submitted.
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If the reviewer approves the approval instance, the approval instance status changes to Approved.
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If the reviewer rejects the approval instance, the approval instance status changes to Rejected.
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If the reviewer conditionally approves the approval instance, the approval instance status changes to Conditionally Approved.
Note
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For an application, multiple approval instances can be generated based on the Q2 Origination Administration Guide > Approval process configuration.
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The status of the approval instance depends on the type of cadence. To know how the status changes, see Approvals.
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To know how to provide conditional approval on an application, see Conditional Approval.
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The status of the application depends on the rules defined for your organization.
Prerequisites
Before you proceed to review an application, ensure that the following prerequisites are met:
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The approval process is configured by an administrator.
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An approval instance is generated and assigned to you. An approval instance can be assigned from the approval dashboard.
Steps
To review an application:
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Log in to your Salesforce account.
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Go to
(App Launcher) > Applications and select the application id that you want to review.
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Go to More > Approval.
The following sections appear on the Approval page:
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Select the approval instance you want to review and then select Review Approval.
Approval instances are generated based on the approval process configured by an administrator. It can be Simple Unanimous, Complex Unanimous, and more.
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In the Review Commentssection, perform one of the following:
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On Hold-To put the approval instance on hold, specify the reason or any other information in the comments box, and select On Hold.
When you put an approval instance on hold, the status changes to On Hold, and the Review Approvalbutton changes to Start Approval. If required, you can review the approval instance in the future by selecting the Start Approval button.
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Reject-To reject the approval instance, specify the reason for a rejection or any other information in the comments box and select Reject.
When you reject the approval instance generated due to a change in the application, the value of the field that is changed is reverted to the value before the approval instance was generated.
For example, the loan term is changed from 10 to 5, and an approval instance is generated. If you reject this approval instance, the value of term reverts to 10.
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Approve- To approve the approval instance, specify the reason for approval or any other information in the comments box and select Approve.
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Add Conditions- To approve the approval instance conditionally, add policy conditions to it by selecting Add Conditions. To know how to provide conditional approval on an application, see Conditional Approval.
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Conditional approval is a statement from a lender asserting that the lender is willing to lend funds to the potential borrower after the borrower meets specific conditions. When the borrower receives conditional approval on an application, it makes a stronger case for their application than prequalification alone. However, it is not a guarantee that the application will be approved.
For example, there is a scenario where a clear approval is not possible for an application due to various reasons like insufficient evidence of ability to repay or the low credit rating of the applicant. In such scenarios, the lender may offer conditional approval and ask for additional documentation/data from the borrower to meet the required guidelines. The lender can also lower the borrowing amount or increase the rate of interest if documents/data to support the application are not submitted. These documents/data might be entered early in the application life cycle as additional factors to the scorecard to approve the application. For example, a borrower may declare their property assets or submit proof of a secondary source of income, to establish financial soundness. Or, a borrower may appoint a guarantor to mitigate the credit risk from a low FICO score.
Here are some common approval conditions when the borrower may be asked to provide the supporting documents:
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Income and bank statements verifying the monthly income
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Additional paperwork to meet specific loan requirements
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Verification of homeowners insurance
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Gift letters for home buyers using gift funds for their down payment
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A letter of explanation for a recent large withdrawal
Note
This list is just an overview of common approval conditions the borrower may encounter and is not an all-inclusive list.
Conditional approval can help speed up the closing process as the underwriting (which is a lengthy process) is already completed. So it could take less time to review and finalize the closing documents if the borrower is conditionally approved.
With the Spring'22 release, Q2 Origination’s approval feature is enhanced to support conditional approval by allowing lenders to add policy conditions (of type Approval) to the application while reviewing the application. Prior to this release, when an application was submitted for review, it was either Rejected or Approved. This new feature allows the lenders to keep a check on the conditionsbefore full approval is provided to the borrower.
The APPROVAL tab allows you to review all the approval instances generated for an application. You can approve, reject, or conditionally approve an approval instance.To approve an approval instance conditionally, add policy conditions to it. You can add more than one policy condition to an application/party/collateral. When all the added policy conditions are satisfied, the approval instance's status changes from Conditionally Approved to Approved. The status of the approval instance depends on the cadence. To know how the approval instance status changes based on the cadence, see Approvals.
Until the application is in conditional approval status, it cannot move ahead in the loan origination process. This is achieved by setting up a task generation rule on the Approval Type policy conditions. When all these conditions are satisfied, a task is generated to mark them satisfied.
Prerequisites
Before you proceed to conditionally approve an application, ensure that the following prerequisites are met:
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The approval process is configured by an administrator.
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An approval instance is generated and assigned to you.
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Policy conditions of Type Approval are configured.
Steps
To conditionally approve an application:
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Log in to your Salesforce account.
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Go to
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Go to More> Approval.
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Select the approval instance you want to review and then select Review Approval.
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In the Review Comments section, select Add Conditions.
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In the Create Policy Condition window, select the object to which you want to add the conditions and then select Next Step.
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Select
to select the preconfigured policy condition.
Note
Policy conditions of Type Approval should be configured before approving an application conditionally.
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In the Select Policy Condition Definition window, select the policy condition that you want to add.
Note
This screen should only display the Approval Type policy condition.
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Specify the comments in the Officer Comments field, and then select Save.
The added policy condition is displayed in the Review Comments section.
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Specify the reason for conditional approval or any other information in the comments box, and then select Approve With Conditions.
Note
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The added policy condition is displayed in the Policy Conditions section. The details of all the fields displayed in this section are explained here.
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If the application requires only one reviewer to review the application, the approval instance Status should be updated to Conditionally Approved.
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The Status of the policy condition should be in Exception when it is added.
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The status of the approval instance remains to be Conditionally Approved until all the policy conditions are satisfied.
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