Collateral type setup

  • Updated

Collateral type setup

Collateral Type describes the type of collateral being pledged to a loan opportunity and drives the application processing requirements associated with the collateral. Defining Collateral Type is extremely important to Q2 Origination as 26 specific Collateral Type values - as well as approximately 120 new Collateral fields - are supported out-of-the-box in Q2 Origination 2.1003 and later releases. For example, the data intake requirements associated with an aircraft would differ from those associated with a warehouse.

Collateral Type is used while pledging collateral to a loan using the Pledge Collateral Wizard on the Loan Dashboard. It determines the fields that are displayed to the user on the third step of the wizard. If these values are not set, the wizard may not work properly.

Q2 Origination currently supports the following Collateral Types* within the default collateral categories:

Collateral Type Collateral Category
  • Motor Vehicle 
  • Mobile Home 
  • Pleasure Boat 
  • Ship 
  • Aircraft 
  • Trailer 
  • Other Titled 
Titled
  • Savings/CD's 
  • Securities 
  • Note/Instrument 
  • Receipts/Bills 
  • Letter of Credit 
  • Other Possessory 
  • Life Insurance 
Possessory
  • 1-4 Family 
  • Multi-Family 
  • Construction
  • Lot 
  • Land 
  • Farm Land 
  • Office 
  • Warehouse 
  • Retail 
  • Oil and Gas 
  • Other RE
Real Estate
Government ContractsOther

These values are loaded when you run the following script as a post-install step:

 genesis.PostInstallManager.createSeedDataOnInstall();

You can define additional collateral types. However, you must set up the required pages, workflows, and approvals for these.

Prerequisites 

Before you proceed to set up a collateral type, ensure that the following prerequisite is met:

  • At least one collateral category is set up.

Steps

To set up a collateral type:

  1. Log in to your Salesforce account.

  2. Go to Origination Configuration > Application Setup > Collateral Type.

  3. Select New Collateral Type on the page that appears.

  4. On the New Collateral Type page, specify a name for the collateral type, for example, Hatchbacks.  

  5. Select Save.

    The system creates the collateral type and refreshes the page where you can associate the collateral type to a CL product as primary or secondary collateral.

Associate Collateral to a Collateral Type

For a given collateral type, you can create a list of collateral that can be pledged while creating an application.

When you create collateral, you need to select the record type of collateral. Based on the record (collateral) type, a template is displayed for capturing the information related to the specific collateral. For example, the set of fields displayed for a mobile home could be different from that of an aircraft.

Prerequisites

None.

Steps

To associate collateral with a collateral type:

  1. Log in to your Salesforce account.

  2. Go to Origination Configuration > Application Setup > Collateral Type.

  3. Select the Collateral Type Name to which you need to associate new collateral.

  4. Select the appropriate Record Type of new record.

    If the record type is not listed, you need to create one. Perform the following steps to create a new record type:

    1. Select Setup and go to Build > Create > Objects.

    2. Select the object Collateral for which the referenced package is CL Common.

    3. Under Record Types, select New to create a new record type.

    4. Keeping the Existing Record Type as Master, enter the Record Type Name and Record Type Label for the new record type.

    5. Scroll down to your user profile and select the Enable for Profile checkbox for it.

    6. Select Next, and apply the layouts as desired. 

      You can create a new page layout of your choice by performing steps a and b, and then selecting New under Page Layouts.

    7. Select Save.

  5. Select Continue.

  6. Enter the collateral details.

Associate Collateral Type to a Product

You can assign a collateral type to CL products as primary or secondary collateral to define the collateral types that can be pledged in applications for that product. This enables Q2 Origination to display the related template for capturing the details while pledging the collateral. A collateral type may be the primary collateral type or the secondary collateral type for that product. For example, for Vehicle Loans, Motor Vehicle may be the primary collateral type.

Prerequisites

Before you proceed to associate a collateral type to a product, ensure that the following prerequisite is met:

  • A lending product or CL product is set up.

Steps

To associate a collateral type to a product:

  1. On the Collateral Type page, go to the CL Products section.

  2. Select New CL Product.

    The New CL Product page is displayed.

  3. Specify the Product Name to be associated.

  4. Do one of the following :

    • The collateral type you created in the procedure above is displayed by default. Select another Primary Collateral Type to associate this as the primary collateral type. 

    • Select the collateral type you created in the Secondary Collateral Type field to set it up as the secondary collateral type.

  5. Select the Class.

    This can be Consumer or Commercial.

  6. Select Save to associate the collateral type.

Field Reference

Field Name Information
Collateral NameThe name of the collateral.
AddressThe address of the collateral.
CityThe city where the collateral is located.
Collateral CodeA unique code for the collateral.
Postal CodeThe postal code of the location.
StateState to be selected.
Contract DateThe start date of the contract.
Contract NumberThe contract number.
Contracting PartyThe party associated with the contract.
Purchase MoneyWhen selected, this option indicates that money is purchased using the collateral.
Secure Future Advances
Collateral TypeThe type of collateral.

In This Article