The first step in the Loan origination process is entering credit application data into Oracle Financial Services Lending and Leasing Application. The Application Entry screen enables you to specify information from credit application into the system and request a credit bureau report.
This chapter explains how to use the Applications screen to specify and validate a credit application.
There are four main steps in entering an application
You can also enter credit application data into Oracle Financial Services Lending and Leasing Application using the Fax-In container. For more details, refer to ‘Application Entry using Fax-In’ section.
Once the basic details are entered, the user has to check whether the application pre qualifies or not. Once the pre-qualified edits are satisfied, click Submit in the Application screen. Pre-qualification edits can be viewed from the 'Verification' sub tab.
When finished, Oracle Financial Services Lending and Leasing checks the application for completeness using a predefined set of edits. These edits search for errors and warnings based on your system setup. Status change of the application can be determined by credit bureau and scoring model of the application. The prescreening checks ensure that automatic credit bureau reports are pulled only for applications which meet set criteria, thus saving cost.
After an application clears the edits check, click Process Application in the Applications section. The system begins the processes of prescreening the application and pulling a credit bureau while you can begin entering the next application in your queue.
You can also load credit applications created in external system into Oracle Financial Services Lending and Leasing for further processing.
OFSLL integrating with external system facilitates to transfer the pre-populated credit application data into the system through an xml file. Such credit applications are categorized in OFSLL as either 'eCONTRACT/DEALER CONTRACT in the actions section. However, OFSLL generated credit applications are marked as MANUAL CONTRACT.
Once a credit application is successfully validated and loaded in Application Entry screen, a response is sent back from OFSLL to the external system. Similarly, all subsequent status changes initiated in OFSLL are updated to the external system. All communications between OFSLL and external systems are recorded into a log and is accessible through Dashboard > System Monitor > Database Server Log Files screen. Also the ‘Comments’ screen facilitates to exchange information regarding credit application processing between OFSLL and external system as comments, provided the comment Sub Type is selected as 'OUTBOUND TO INTERFACE' for such communications.
Hence effectively you can by-pass the need to re-create the application in OFSLL and helps in faster processing of credit applications and decision making.
To enter a new application
The Recreate Instance button appears only when the BPEL parameter is YES.
For details on this screen refer Applications section in Underwriting chapter.
Using the information supplied on application, complete Applicants tab details and the following sub tab details:
The system uses the information on the Financial and Liabilities sub tabs in determining the applicant’s net worth. The system uses information on the Employments screen and Other Incomes sub screen to calculate the applicant’s debt-to-income ratio.
To complete the Applicants Details screen
For details on this screen refer Applicant Tab section in Underwriting chapter.
Oracle Financial Services Lending and Leasing can record SME business related financial information and business partners on the Business screen to assist in approving the Loan application during underwriting. The Business Applicant screen is available for Loan and contains the following sub screens:
To complete the Business Applicant screen
The Business tab appears on the Application Entry screen.
For details on this screen refer Business Tab section in Underwriting chapter.
Depending on the type of product you select, the following screen will be available from Requested link
To complete the request tab:
For details on this screen refer Request Tab section in Underwriting chapter.
The Bureau tab displays credit report (if pulled) for an applicant. If there is a need for another pull for any applicant, it can be done here manually using the New Request section.
To verify the credit bureau data using the Bureau tab
For details on this screen refer Bureau Tab section in Underwriting chapter.
Depending on the type of product or producer you select, the Collateral tab opens one of the three following collateral screen: a vehicle information screen, a home information screen or an other information screen. Complete the screen that is available on your Applications screen. After that, complete the Valuation and Tracking sub screen, which the Collateral link’s screens share. If you are entering an unsecured Loan, the Collateral link is present but inactive; in which case, skip this step.
To enter vehicle information from the Collateral tab
If the collateral is a home, the Collateral link displays information about the home.
If the collateral is any other, the Collateral link displays information about that collateral.
For details on this screen refer Collateral Tab section in Underwriting chapter.
When using the Application Entry screen, you can add comments to an application at any time in the application entry process by clicking the Tracking tab.
To complete the Comments screen
On the Application Entry tab, click Comments.
For details on this screen refer Comments Tab section in Underwriting chapter.
The Tracking tab enables you to record further information associated with the application. What items you choose to track are setup during implementation.
To track attributes
For details on this screen refer Tracking Tab section in Underwriting chapter.
Application Entry’s Documents screen enables you to view Application Documents and Application Documents Details.
For details on this screen refer Document Tab section in Underwriting chapter.
Oracle Financial Services Lending and Leasing can be configured to automatically validate portions of an application when you attempt to change its status. The results of this data check appear on the Verification link’s Edit screen as an Error, a Warning or an Override.
If it is an Error, the system will not allow you change the application’s status and approve the Loan until you fix all the errors.
If it is a Warning, the system enables you to change an application’s status without correcting the matter. While you should still investigate the problem, Warning messages are of a lesser importance than Error messages.
If it is an Override, the system displays a dialog box informing you that an override is needed; your responsibility level does not have the authority required to process this step. (Choose Yes on the dialog box to move application to queue of the user with required authority.)
To validate a credit application
For details on this screen refer Verification Tab section in Underwriting chapter.
The Tools tab calculates the payment amount, term, interest rate, Loan amount, amortization schedule and allows for the printing of a report.
For detailed information on using the tools, refer Tools chapter.
You can enter credit application data into Oracle Financial Services Lending and Leasing Application using the Fax-In image functionality using the Fax-In container. Once the all the images are loaded into the system using the steps mentioned in ‘Entering a Credit Application’ section, you can view those images in the Fax-In container and perform data entry concurrently.
The Fax-In container option is a simple image holder which is available to the user on clicking the ‘New Application’ button. The option is available only if has been enabled in the system settings by the administrator.
If you are the administrator, you can enable/disable this feature to the users in the access screen. However, you can view the availability of this feature by navigating to Main Menu > Setup > Administration > User > Access screen. Select Screen tab and in the Security Access Definition section, the status of “ACCESS TO MENU IMAGE MAINTAINENCE” flag defines the availability of this feature. If the flag is set to ‘Y’ then the Fax-In container is available in Application Entry screen.
The image container displays the image with the header information stored in the tables loaded as a part of the loading process. You can navigate through the pictures using the navigation buttons (First, Previous, Next and Last) available on the top right.
After entering the Application details, you need to select the Image check box placed on the top of Fax Image container. By doing so the system will automatically associate the current image with the application and save it along with the other application details. Also the image will no longer be available in the container since the container only holds those images which are not associated with any application.
The Review Request tab facilitates to flag an Application for the attention of another Oracle Financial Services Lending and Leasing user and ask for review / feedback. It allows the system users to send and receive requests (including e-mail) commenting on a specific account or application. The Review Request tab supports iterative review of selected Application and also to process the review with multiple reviewers.
For detailed information on using this feature, refer to ‘Review Request’ section in Underwriting chapter of the document.