Covenant Evaluation and Notification Batch Job

Covenant Evaluation Batch Job

A covenant evaluation is a process of checking whether the borrower is complying with the covenants or not on a regular basis. Considering that each application can have multiple covenants and bank can have many applicants at the same, it is important to automate the evaluation records management using a batch process.

Covenant evaluation batch job can be created and scheduled using Salesforce Batch Management. The covenant evaluation job will create an evaluation record and update the next evaluation date based on the frequency of the covenants. The evaluation record remains in Open status until it is reviewed or is overdue.

Batch Management allows you to automate the processing of large volumes of records in a flow. You can specify the batch size, retry count, retry interval, and filter conditions for the records that must be processed. You can also provide input variables to the flow that runs the batch job.

The evaluation record can have one of the following statuses:

• Open: The document/proof of compliance is expected to be submitted by the borrower OR is to be reviewed by the lender.

• Complied: The document/proof of compliance is reviewed and approved by the lender.

• Waived: The lender decides to waive off the covenant or document for some reason.

• Overdue: The document/proof of compliance is not received and approved by the due date.

For a given evaluation, the evaluation record is not duplicated for each status update, but the same record is updated with the latest status and updated date. For the next cycle, a new evaluation record is created irrespective of the status of the previous evaluation record.

Covenant Notification Batch Job

A covenant notification batch job enables sending email notifications to customers about the status of their covenants. A covenant notification batch job gets triggered in the following scenarios:

• When the system date falls before the expiry date and the covenant is active, and the notification date is the same as the system date, then a notification is sent to the customer to remind them of the covenant’s compliance and the associated dates.

• When the customer has multiple covenants for a given application that are due on the same date, then borrowers receives a single email with all the covenants listed.

• When the system date falls after the due date of the covenant and the covenant is Open (not Complied or Waived), then an overdue notification is sent to the customer and the status is changed to Overdue.

The status of a covenant can be one of the following:

• Open: The document/proof of compliance is expected to be submitted by the borrower OR is to be reviewed by the lender.

• Complied: The document/proof of compliance is reviewed and approved by the lender.

• Waived: The lender decides to waive off the covenant or document for some reason.

• Overdue: The document/proof of compliance is not received and approved by the due date.