Configuring Underwriting Codes (2)

Description

This code determines the “type” of underwriting code being created. The type is used primarily for credit unions who have turned on Underwriting Control in their master system parameters, to require appropriate underwriting codes be entered before a loan can be created or denied, or for credit unions who want to control changes after underwriter review. You may have several underwriting codes of each type.

Approval (A)

This code type is used to indicate that underwriting approval has been granted on the loan as submitted. Once a code of this type is entered on a loan request, that loan request cannot be edited without manually clearing the code or entering an “M” type code (also see Record underwriter audit below).

In addition, if your credit union uses Underwriting Control, an underwriting code of this type is required in order to use the Create Loan Account button on the Loan Recap screen and create the loan.

• NOTE: Wait times shown on the Work/View Application screen will omit loans flagged with underwriting codes that are Type A (approval).

Denial (D)

This code type is used to indicate that the loan has been denied by underwriting as submitted. Once a code of this type is entered on a loan request, that loan request cannot be edited without manually clearing the code or entering an “M” type code (also see Record underwriter audit below).

If your credit union uses Underwriting Control, an underwriting code of this type is required in order to use Deny Loan on the Loan Recap screen and process the loan denial.

• NOTE: Wait times shown on the Work/View Application screen will omit loans flagged with underwriting codes that are Type D (denial).

Memo (M)

This code type is used for memo-type notes, such as “Approved pending income verification” or “Submitted to Underwriter.” Changes will still be allowed to the loan request information. If your credit union uses Underwriting Control, codes of this type will not allow loan to be created or denied.

If your credit union does not use Underwriting Control, the system will not check this code to determine whether or not a loan can be created or denied. The system will still ensure that an employee has the proper security clearance to create or deny a loan, but will not check to see if an Underwriting Code has been entered. This is good for credit unions who do not use underwriting codes but still want to control who actually creates loan accounts or processes denial notices. In that case, you may choose to set up all underwriting codes as “Memo” types, so that changes will always be allowed on the loan request.

Enter a description of the underwriting code. This description will appear on the Loan Recap screen, as well as the Application Status screen.

Learn more about underwriter security and underwriter approval limits in the Configuring Tools for Loan Team booklet.

This flag limits the use of this code to your loan underwriters only. If this flag is checked, when this code is entered on the Loan Recap screen, the system will check the underwriter ID and password against employee security, and will only allow this code to be entered if Loan underwriting is checked for this employee.

• NOTE: If this is checked, the Use interviewer security flag must be unchecked. If you want this code to be used by all employees, regardless of security, uncheck both flags.

• If unchecked, no special security will be required; any employee can assign this code.

Underwriter Approval Limits

If underwriting approval limits are activated in the Master Parameter Controls, this text will include the additional “& approval limits.” Learn more about Underwriter Approval Limits. The system will also check the underwriter approval limits of the underwriter ID to determine whether the user can enter this code for the amount of the loan. Underwriter approvals limits might be assigned, for example, to restrict employees from approving a loan over a specific dollar amount. Underwriter approval limits are configured via employee special security.

This flag limits the use of this code to your loan interviewers/processors only. If this flag is checked, when this code is entered on the Loan Recap screen, the system will check the underwriter ID and password against employee security, and will only allow this code to be entered if Loan interviewer/processor is turned on for this employee.

If unchecked, no special security will be required; any employee can assign this code.

• NOTE: If this is checked, the Use underwriter security flag must be unchecked. If you want this code to be used by all employees, regardless of security, uncheck both flags.

Check this flag if you wish an audit record to be created whenever this code is added to a loan request, or cleared from an existing loan request. This record will appear as part of the Underwriter Audit Report and is used to track what the loan request looked like at the time this code was assigned or cleared.

This flag should be turned on for any code where you want to keep control and monitor any changes made to a loan request after this code has been assigned.

If this flag is checked, when this code is entered on the Loan Recap screen, the system will automatically display the Underwriting Comments screen. This is especially helpful for denial-type codes, to prompt the user to record comments about why the loan was denied.

• This simply makes the comments screen appear; it does not require that a comment actually be entered. Once the comments screen appears, the user can elect to cancel without entering any comments.

If unchecked, the Underwriting Comments will not appear automatically. If comments need to be entered, the screen must be accessed manually.

If this flag is checked, when this code is entered on the Loan Recap screen, the system will automatically display a screen for Loan Applicant Comments. (This is the same screen that can be accessed while in the loan application screens.) These comments will print on the last page of the generic loan application form.

• Leave the flag unchecked if you do not wish this comment screen to appear.

If this flag is checked, when this code is entered on the Loan Recap screen, the system will begin the loan denial process, displaying the first Denial Notice screen automatically. This is simply a shortcut, replacing the separate step of using the Deny Loan button to generate the denial notice, and allows your underwriters to process denial notices immediately once they decide to deny the loan.

If your credit union uses Underwriting Control, this code must also be type “D” in order for the system to allow the denial notice to be created.

• BE CAREFUL: In order for an employee to process a denial notice, the Loan interviewer/processor flag in their employee Special Security must be checked. If this code also has Use underwriter security turned on, the Loan Underwriting flag must also be checked in employee Special Security. Therefore, any employee that will be entering a code with Prompt for denial notice flag checked must be set up as both an interviewer and an underwriter. Otherwise, the system may let them put the code in but won't let them proceed into the denial notice.

If you would like applications marked with this underwriting code to be displayed in the Key Activity Tracking area of the Application Status screen, enter a display sequence number (01 to 06) here.

• This feature is designed primarily for underwriting codes configured as “submit” codes, representing new applications awaiting underwriting action. This is particularly helpful for credit unions with branch locations submitting new loan applications to a central loan underwriting department, to ensure that newly submitted applications get prompt attention. Up to six codes can be included on the main status screen (the user can click a button to see record counts for the rest of your codes).

Check this flag to send a notification email whenever this code is entered onto a pending loan application.  Enter an email address into the Send to email address field as described below.  Sample email content:

Subject:  Status change for Loan App #62455

The Underwriting Code on this loan application was changed by JOHN EMPLOYEE to APPROVED as of 12:43:32 on 2015-03-15.

• For the Home Banking (HB) underwriting code only:  If this is checked for this underwriting code, and email will be sent to the address below when an online banking loan application appears in the loan queue.

If the Generate email... flag is checked, enter an email address here to receive the notification emails.  Only one email address can be specified per underwriting code, so use a group email address that you can adjust separately to add and remove recipients as needed.