Comparison of Loan Status, Portfolio, Custom Field, Checklist Item, Source Company, and Associated Company Directory

Introduction

Our software includes a lot of different labelling options. If you're new to LoanPro's Loan Management System (LMS), it can be a lot to wrap your head around. This article describes each, and gives a matrix for each set of options to help you make decisions when configuring your company. A check mark indicates that the option has the specified feature, while a dash indicates that it does not.

Descriptions

Loan Status 

A loan’s status shows where it is in the loan lifecycle. Common statuses, for instance, include “Underwriting”, “Open”, and “Paid Off”. There are also sub statuses, like “Open - Repaying” or “Open - Delinquent”. These labels are customizable, so you can edit them to suit the peculiars of your own lending model. A loan can only have one status at a time, though, so you should configure these labels as independent steps with no overlap.

Portfolio

Portfolios are like folders that you can use to categorize loans. Some portfolios might indicate unchanging facts about the loan, like the borrower’s state or province, or whether the loan is secured with collateral. You could also use them to keep track of changing information, such as a “Bankruptcy” or “Repossession” portfolio. While a loan can only have a single status, it can have many portfolios.

Custom Field

Every lender wants to keep track of different information. Rather than trying to track everything natively, LMS lets users create their own custom information fields on loans, customers, and other entities. For instance, you might want to ask borrowers if they’re in the armed forces to comply with the Servicemembers Civil Relief Act (SCRA), which caps active military personnel’s interest rate at 6%. On its own, this field would simply hold that piece of information: This borrower is in the armed forces. But with Rules Applied, this could automatically kick off the process to verify their military status and give them an appropriate interest rate, like adding them to a SCRA portfolio or enrolling them in a SCRA checklist.

Checklist Item

Checklists help you manage processes for loans that aren’t natively supported by LoanPro, such as ensuring that proper documentation is received before the loan is funded, or that everything has been done to process a bankruptcy. Within an individual loan, one of your servicing options is to mark checklist items. Entire checklists and individual boxes can both be used in Rules Applied.

Source Company

Source companies were originally conceived as a label that a related finance company could use to keep track of where their loans originated. For instance, a related finance auto lender could use the field to note which dealerships sold the car to their borrower. This use is still viable, but we’ve also expanded source companies with new features and functionality. A lender with multiple brick and mortar stores, for instance, could create a source company for each of their locations. Then, they can assign LMS users to each company and use the Cash Drawer and Vault to manage transactions at those stores, as well as tracking where each loan originated.

Associated Company Directory

Associated Companies are business partners that you can assign to a loan. For instance, a lender who works across several states might need to employ different repossession companies in each region. First you’ll create a directory for the type of business you’re partnering with, such as insurance or law firms. Within the directory, you can add any number of companies — different attorneys who you regularly work with. Then, in your settings for loans, customers, or source companies, you can create a custom field with a directory. When editing the custom fields on that entity, you’ll be able to select an associated company from a dropdown list. Since Associated Company Directories are a type of custom field, they behave like them and can be used in all the places where custom fields can be used, as shown in the tables below.

Comparisons

The rest of this article lists what each can and can't do.

Search & Reports

Loan Status

Portfolio

Custom Field/ Associated Company Directory

Checklist Item

Source Company

Drop-down selection option

X

X

-

-

X

Many-to-one relationship

X

-

-

-

X

Many-to-many relationship

-

X

X

X

-

Search option on Loan Manager and all reports

X

X

-

X

X

Loan Manager Summary grouping

X

X

-

-

X

Show as column on Loan Manager and all reports

X

-

X

-

X

Included in keyword search

-

-

X

-

-

Access

Loan Status

Portfolio

Custom Field/ Associated Company Directory

Checklist Item

Source Company

Search restriction configuration option

X

X

-

-

X

Restriction groups configuration option

X

X

X

X

X

Trigger and event notifications restriction configuration

X

X

-

-

X

Rules

Loan Status

Portfolio

Custom Field/ Associated Company Directory

Checklist Item

Source Company

Can be used in Rules logic

X

X

X

X

X

Can be updated via Rules Applied

X

X

X

X

X

Audit

Loan Status

Portfolio

Custom Field/ Associated Company Directory

Checklist Item

Source Company

Change history posted in system notes

X

X

X

X

X

Value captured at time of payment

X

X

X

-

X

Daily snapshot saved in Historical Loan Archive

X

X

X

-

-

Servicing Features

Loan Status

Portfolio

Custom Field/ Associated Company Directory

Checklist Item

Source Company

Group setting customer website access, email enrollment, SMS enrollment

X

-

-

-

-

Available as a variable in emailsforms, etc.

X

X

X

X

X

Displayed in loan header

X

X

-

-

X

Supports parent/child associations (e.g. status & sub-status)

X

X

-

X

X


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