Automatic Promise Fulfillment

Complexity:    

Audience: Loan Servicer or Collector, Loan Servicing/Collections Managers, Administrator, Data

Introduction

Lenders find value in tracking promises, especially promises to pay, from their borrowers. Numbers surrounding promises and promise fulfillment are also valuable in determining things like borrower reliability and agent effectiveness. A lender may choose to track something like how many promises an agent obtains and the percentage of those promises that are ultimately fulfilled.

Promise fulfillment can be done manually in in the Loan Management System (LMS), but this introduces human bias and error to the fulfillment process. LoanPro also offers a way to have LMS fulfill promises automatically. This article will go over how to set up automatic promise fulfillment, and how it can be used in day-to-day lending operations.

If you are unfamiliar with the concept of promises in LMS, check out our Promises 101 article.

How Automatic Promise Fulfillment Works

Automatic promise fulfilment lets you choose the specific conditions under which a payment or credit will fulfill a promise on a loan. You can add an unlimited number of promise fulfillment scenarios. For each scenario, you can use a Clojure rule to specify which loans the scenario will apply to.

For each scenario, you can choose whether payment and/or credits can fulfill a promise. You can also set specifics about the date range and the payment or credit amount that will determine whether the payment or credit will fulfill a promise.

Create a New Promise Fulfillment Scenario

To create a new Promise Fulfillment Scenario, navigate to Settings > Loan > Promises > Promise Fulfillment.

Click the ADD button.

Now you can enter the following information about the Promise Fulfillment Scenario:

  • Name - This is the name of the Promise Fulfillment Scenario. This field is alphanumeric and will allow a maximum of 50 characters.
  • Fail promise when transaction is reversed and promise due date has passed - When checked this means that if the payment/credit that caused a promise to move to a fulfilled status is reversed or deleted, then the promise will be moved to a failed status. If the promise due date has not yet passed, promises will be put in pending status.
  • Evaluate On - Check the Payments Posted and/or the Credit Posted box to specify whether payments, credits, or both should be considered when determining if a promise should be fulfilled.
  • Rule Validation - Use this box to enter a Clojure rule that will be used to evaluate whether this Promise Fulfillment Scenario will apply to a loan. If this box is left blank, the Promise Fulfillment Scenario will apply to all loans.
  • Date Range - Enter a number of days before and a number of days after the promise due date as a range that either the apply date or process date of a payment or credit must fall into in order to be eligible to fulfill a promise. For example, if you enter 10 as the days before and 10 as the days after, and the promise is due on January 15th, then any payments/credits that were logged from January 5th to January 25th could potentially fulfill the promise.
  • Evaluation Date - Specify whether the date used in order to determine whether a payment falls within the Date Range is the payment's process date or the payment's apply date.
  • Amount - Specify how much the amount of a payment can vary and still be considered eligible to fulfill a payment promise. Either a percentage of the promised amount or a dollar amount difference can be entered. Payments/credits that exceed the promise amount will be eligible to fulfill a promise.

Once you have entered the information for the Promise Fulfillment Scenario, click SAVE.

Common Uses & Questions

This feature is most commonly used to ensure that promises are fulfilled automatically instead of manually. Usually if promises are set to be fulfilled automatically, no manual promise fulfillment will be required or wanted.

Loan Servicer or Collector Use
If it is decided that promises should not be manually fulfilled, loan services and collectors probably shouldn't have access to fulfill them manually. If non-payment processes are common in servicing, access should remain in tact, but servicers and collectors should not manually fulfill payment promises.
Loan Servicing/Collections Managers Use
Information about promise fulfillment, promises set up by agents, and the percentage of each promise fulfilled can help manage a call center and determine which agents use promises most successfully.
Administrator Use
This feature is a great way to remove humans from promise fulfillment. This won't fulfill non-payment processes, so plan accordingly. If you would like the rules for automatic promise fulfillment to be different for loans in different scenarios, make sure and create the appropriate number of Promise Fulfillment Scenarios and write rules that will ensure the right promise-fulfillment rules apply to loans under the right conditions.
Data Use
If automatic promise fulfillment is used by your company, you may want to pull information about loan promises and the agents that took those promises. If promises are tracked over time, you should be able to generate information on which agents are most successful in obtaining promises that are ultimately fulfilled. The information about promises can be found in the loan_promise_entity table.

Can multiple payments fulfill one promise? If a payment promise is made for $100 and then two $50 payments are made, the combined payments will not be considered in order to fulfill one promise.

Will a promise status changed to "Failed" if a payment is reversed? Yes. If you reverse the payment or credit that was considered to have fulfilled a promise, the promise status will change to "Failed". If the due date for the promise has not yet passed, the status will be set to "Pending".

Promises is one way to keep track of a borrower interaction. Notes and alerts help do this too. If you want to read more about notes and alerts check out these articles:

What’s Next

Promises help keep track of borrower interactions and things they have said they would do. Promises can be found within a loan, but there is also a promises report. To read about promises and the promises report see these articles:


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