Define policy condition

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Define policy condition

Q2 Origination enables financial institutions to define different types of potential policy conditions as configurations within the system. Once you configure these, you can report policy exceptions as they occur during a loan's origination life cycle. The policy condition definition includes the item on which the policy is defined and the criteria for it. Each exception is configured for a specific currency. For example, you may define a policy condition as Loan-to-value is less than 80% where you have defined a policy around LTV to be higher than 80%.  

If a policy exception requires approval or explanation, that is handled outside of the Q2 Origination system. You can configure the required approval process(es) in Salesforce.

You can approve commercial loans even with policy exceptions associated with them, though sound business practices require that such exceptions be balanced by elements that mitigate the risk of the exception.  For example, the primary borrowing entity in a commercial loan - a corporation - has great cash flow and no outstanding debt, but the primary guarantor on the loan has bad credit, with a credit score below acceptable levels described in the financial institution's credit policy. This creates a policy exception. However, the primary borrowing entity's (the corporation) great financial position may potentially mitigate any risk resulting from the guarantor's bad credit score.  

Policy conditions can be defined for an Application or Application Document Category Junction (Documents in an Application).

Prerequisites

Ensure that the field history tracking is enabled for the Policy condition object.

Steps

To define a policy condition:

  1. Log in to your Salesforce account.

  2. Go to  (App Launcher) > Origination Configuration > Policy Condition Definition.

  3. On the page that appears, select New Policy Condition Definition.

  4. On the Policy Condition Definition page, select New.

  5. Provide the details as described in the following table, and then select Save:

    Field Name Action and Information
    Object Type

    Select the object type on which you want to define the policy condition with the following supported options:

    • Application

    • Application Document Category Junction - Select this option to define policy conditions on documents linked to the application.

    DescriptionSpecify a description of the policy condition.
    Policy Condition NameSpecify a name for the policy condition to identify it.
    ActiveSelect this check box to have the policy condition as Active.
    Resolution Criteria Expression
    Evaluate Expression Input an expression here if the Policy Condition is conditional based on an expression.
    Enable Override

    Select this check box to allow override of the policy condition status if the policy condition criteria are not met.

    Enable Override with CommentsSelect this check box to allow override of the policy condition status only with comments if the policy condition criteria are not met.
    Enable Override with ApprovalSelect this check box to allow override of the policy condition status with approval if the policy condition criteria are not met.

Policy Condition Criteria

Policy condition criteria are the criteria that determine if an application satisfies the policy condition or results in a policy exception. This will automate the process of checking if the policy conditions are already complied with and raise exceptions where the criteria are not met. 

Prerequisites

Before you proceed to define execution criteria for a policy condition, ensure that the following prerequisite is met:

  • A policy condition is defined for an object.

Steps

To define execution criteria for the policy condition:

  1. Log in to your Salesforce account.

  2. Go to  (App Launcher) > Origination Configuration > Policy Condition Definition.

  3. On the Policy Condition Definition page, from the list of policy exceptions, select the required policy exception definition name.

  4. Select the Record Type of new record as Policy Condition and select Continue.

  5. Specify the task criteria details:

    1. Specify the Sequence (serial) number of the task. This number is used while defining the evaluation expression involving multiple criteria.  

    2. Select the Related Object for the task.  

    3. Specify the object's Field Name to define the task criteria. When you tab out of the field, the field's API Name is updated on the page. If the field is a lookup field, the Lookup Object Field Name is displayed.

    4. Select the Matching Type operator for the field name and its value. For example =, >, Contains.

    5. Specify the Matching Value of the selected field.

    6. Select Save.

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