Policy conditions

Policy conditions are conditions that a lending application must comply by as part of the origination process. An exception to the policy condition occurs when any aspect of a borrower's application lies outside the lending policies of the financial institution. Lenders must report such exceptions to their credit policy during the loan origination process. For example, a financial institution’s credit policy may indicate that a borrower’s credit score or debt service coverage must be above a certain threshold. If a loan opportunity includes a borrower whose credit score or debt service coverage is below this threshold value, the lender must report these policy exceptions, regardless of whether these exceptions have been mitigated by other means. 

Policies define the boundaries within which applications can be originated. Q2 Origination enables financial institutions to define potential policy exceptions, including the exception type, description, and value (if the policy is threshold-driven) as configurations within the system. 

When the criteria configured for the specific condition is satisfied - either by updating a record or uploading a document - the status of the policy condition is updated as follows:

• For data-specific conditions - Satisfied

• For document conditions - In File

If the criteria is not met, then status is marked as Exception. You can go and update the application, party, collateral, or document to satisfy the condition or mark an Override and record the comments.

Add a Policy Condition

Prerequisites

• At least one policy condition and policy condition criteria is defined.

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

Steps

1. Log in to your Salesforce account.
   

2. Go to  (App Launcher) > Applications , and select the required application.
   

3. On the application dashboard, select Exceptions.
   

   The Policy Conditions window with the policy conditions and their statuses, such as Satisfied, In File, or more, is displayed.
   

4. Select Create New Policy Condition, select a context, and then select Next Step.
   

   Note:

   Context can be any existing application, party, or collateral.
   

5. Perform the actions as described in the following table, and then select Save:

   Field Name	Action and Information
   Policy Condition Definition	Select a Policy Exception Definition. The Description field is auto-populated based on the selection.
   Officer Comments	Specify the comments regarding the exception.

6. You can edit the status of a policy condition manually. To override the status of the policy condition, select , and then select the Override checkbox. 
   

   Note:

   • The Enable Override flag needs to be enabled while defining the policy condition.

   • The Enable Override with Comments flag needs to be enabled while defining the policy condition to provide the comments while editing the status of the policy condition.

7. Select the required status from the Status list of the policy condition status, and then select Save.