Rules Applied – Basics

New Features: In LoanPro's most recent update, we've improved our Rules Applied system. Before, a rule could only trigger a single change, but now one rule can prompt multiple actions. Instead of a daisy-chain of rules, checklists, and portfolios, you'll be able to simplify your automation and loan servicing processes.
And don't worry — the change is completely backwards-compatible, so all of your existing rules still work.

Introduction

This article will be a basic overview on what rules applied are and how you can use this feature to automate your loan servicing. Rules applied is a customizable automation system in LMS that allows you to specify criteria, and when those criteria are met, the system will automatically update the loan with actions you've set up.

Why Rules Applied are Useful

Let's say that your company has a policy of forgiving debt when the remaining payoff is less than $10. You could search through all your loans, check the remaining payoff, and issue a credit to those that qualify, but that process will require a lot of time and resources from your loan servicers. Instead, Rules Applied lets you specify a criterion — Payoff is less than $10 — and attach an action — Forgive the remaining balance. The system will check which loans match your criteria and automatically issue the credit. And in the future, the system will continue to check if any new loans qualify.

The only thing a lender has to do is create a rule and then the system will take over. The lender will no longer need to go back into every loan and make those changes.

Criteria and Actions

It's important to know the difference between criteria and actions when creating a rule. The criteria are what needs to happen for an action to take place. The action is what takes place when the criteria are met. For example, lets say that you set up a rule that stated that if any loan is greater than 120 days past due, then the status of the loan would be changed automatically to "charged-off". Your criteria is that Days past due are greater than 120, and your action is to Change the Loan Status to "Charged-off".

Criteria and Clojure

A person can read your criteria and understand what you mean. Computers, however, need things to be written out very clearly in code. LMS uses a coding language called Clojure for Rules Applied. Clojure expresses your criteria with equations and variables, creating something like a true-or-false statement describing the loan. When the statement is true, LMS will implement the action you specified on the loan.

How do Clojure Rules Work?

Here's an example of a Clojure rule for the criterion we described above:

(> status-days-past-due 120)

The whole rule is enclosed in parentheses, and the math symbol, greater than >, comes at the far left. To the right, we have a variable, status-days-past-due, and a value, 120. Altogether, this says that Days past due are greater than 120. When the system evaluates a loan, it pulls from the loan data and plugs it into that equation. If a loan is only 90 days past due, the system sees that the rule is currently false, and nothing happens. But as soon as the loan is 120 days past due, that rule will evaluate as true, and apply the actions you've specified.

This rule is pretty straightforward, but automating a more complex process will require more complex Clojure rules. We have several articles on Clojure, starting with Clojure Rules 101, to help bring your tech team up to speed with the language. If you don't have any tech personnel on staff, you can enlist the help of our own Support Engineers. For more info, reach out to your Success Specialist.

Actions

When the system evaluates a rule on a loan and finds that it's true, it will apply the action you've set up. In the past, a single rule could only trigger a single action, but with our most recent update, rules can trigger multiple actions, further simplifying your automation and servicing.

Actions can alter a loan's settings, prompt a transaction, or update its checklists and portfolios.

Expand All Available Actions
Here's a full list of the different action categories you can select from:

Category

Actions

Loan Settings

Lets you set various credit and loan status changes, date changes, and convenience fee options.

Account Tools

Lets you activate, inactivate, archive, or delete an account.

APD Reset

Lets you determine Amount Past Due adjustment types and dates.

Bankruptcy

Lets you determine various bankruptcy settings as well as custom fields.

Change Due Date

Lets you modify due dates and base dates.

Credits

Lets you determine credits settings and set charge-offs.

Customer Tools

Lets you apply customer roles, pull credit, and validate customer information.

Loan Checklist

Lets you update loans via created checklists.

Stop Interest Date

Lets you suspend and resume interest accrual on a loan.

Terminology

These are the terms used in rules applied:

Term

Description

Criteria

These are the conditions you define when you create the rule. If the criteria are met, the system will implement actions on the loan.

Action

This is the action once the criteria is met on the rule. If the criteria are met, the action will then take place making changes to the loan.

Rule

The Clojure expression of your criteria.

Variables

These are part of writing a rule, there are a lot of variables to choose from (these need to be formatted correctly).

The Feature is Not

Automation inherently means giving control over to the system. However, some users may dislike using rules applied because they may feel as though they aren't as involved in the loans that they manage or that it is "not in their hands". If you want a loan agent to have close oversight over every step of your servicing process, you might want to limit your use of Rules Applied, and instead check out tools like Process Wizards.

It's also worth noting that rules applied will do exactly what you tell them to — even if that's not what you want. For example, consider our rule from earlier, (> status-days-past-due 120). If you had a minor typo and flipped the math symbol to less than, this rule would do the exact opposite of what you want. This is going to ruin your day.

What's Next

This is a basic overview on rules applied. For more complex steps on creating rules in LMS, take a look at our Rules Applied Intermediate article. For more info on Clojure, see Clojure 101.


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