Auto assignment of adverse reasons

Prior to the Platinum release, the standard rejection reasons were configured (as Reason Codes) in Q2 Originate and were manually assigned to an application upon rejecting it. With the Platinum release, you can automate the processing of rejected loan applications by associating the reason codes with policy conditions and scorecards. Once the reason codes are associated with policy conditions and scorecards, they can be automatically attached to the application when the application is in Rejected or Withdrawn status.

Scenarios:

• When the policy condition is not satisfied, the reason codes associated with that policy condition are auto-assigned to the associated application.
  

  For example, if the policy condition status is changed to Exception/Rejected and the application status is changed to Rejected, the reason codes associated with the policy condition are automatically assigned to the application.

• When the scorecard evaluation is failed, the reason codes associated with that scorecard are auto-assigned to the associated application as adverse action reasons
  

Configuration

For the adverse reasons to get assigned automatically, ensure that the following prerequisites are met:

• An application is created, and the status of the application is either Withdrawn or Rejected.

• Reason codes are configured. 
  

  To know how to configure reason codes, see Q2 Origination Administration Guide>Reason Codes Setup.

• Configured reason code is associated with the policy condition.
  

  To know how to associate reason code with policy condition, see Q2 Origination Administration Guide > Policy Condition Setup > Enhanced Policy Condition.

• Configured reason code is associated with the scorecard failure action.
  

  To know how to associate reason code with scorecard, see Q2 Origination Administration Guide>Credit Setup > Rule-Based Scorecard Setup.

Additional information

The assignAdverseAction API is invoked and assigns the reason codes to the application for which the policy condition or the scorecard evaluation fails.

You can view the reason codes for which the application is rejected:

• On the Adverse Action Application Junctions tab or

• On the application details page, in the Manage Adverse Reasons (go to More > Adverse Action) section