Promises – Intermediate

Complexity:    

Audience: Upper Management, Developers, Loan Servicing/Collections Managers, Administrator, Data

Introduction

The promise feature in our Loan Management System (LMS) helps you keep track of when borrowers promise to make a payment by a certain date, typically outside of their regular payment schedule. In our article Promises 101, we explain more about why you'd want to log a promise and how it might fit into your lending model. This article builds on those ideas, showing you how to create, track, and fulfill promises in the software.

This information is then made available inside of each account and in aggregate in the promises report.

How Promises Work

A promise starts with customer communication. Maybe a collections agent phoned them, or maybe they reached out on their own accord. In any case, they explain that they cannot meet their original payment schedule, but they commit to pay a certain amount by a certain date. The agent then logs the commitment as a promise. Later, they can review the promises made on the loan, and mark whether they were fulfilled or failed.

To create a promise, first navigate to the specific loan you want to add the promise to. Within the loan, click Servicing > Promises in the navigation window on the left. This screen will show all the existing promises on the loan. Each promise displays a subject, type, amount, due date, note, and whether it's been fulfilled yet. It will also include some information about how the promise was recorded, namely the user, their IP, and the date.

At the top of the page, you can filter by status (pending, fulfilled, or failed) and category.

You can export promises in a .csv file. From this page, click the 'Data Options' button in the top right, and then select 'Excel Data Dump'.

Creating a Promise

To create a new promise, click 'Add' in the top right corner.

Enter the following information about the promise:

  • Subject – Enter the subject of the promise.
  • Due Date – Choose a due date for the promise either by entering a date directly into the field or by clicking the calendar button and selecting a date.
  • Type – Choose the type of promise from the drop-down. The promise type can be Payment, Insurance, or Other.
  • Note – Enter any additional information about the promise that may be useful later. You can format this information using the formatting options provided.

After you've entered the information, click 'Save'.

Fulfilling Promises

You can set up a scenario to have LMS automatically fulfill your promises.

Promises are fulfilled from that same screen within the loan. To mark a promise as fulfilled, click the check box next to the promise you would like to mark as fulfilled.

Once in the edit section, enter the desired promise fulfillment date and select 'Save'. The promise will now be marked as fulfilled.

Common Uses & Questions

Promises' place in your collections efforts is fairly straightforward, but specific people at your company might get some specific use out of them as well.

Loan Servicer or Collector/Manager Use
We imagine servicers and collections agents will be in the software recording and fulfilling promises, but if you only want certain agents logging promises, you can restrict users' access with roles. Set up roles with the ability to record promises, fulfill them, or both, and then assign those roles to the specific users you want performing each task.
Data Use
If you'd like data on all the promises throughout all your loans, try Running a Promises Report. This tenant-level report lets you search and filter through loans, and delivers you a record of all the promises made on those loans in the time period you've specified. This can help you analyze which servicers or collections agents get the most promises, and how often those promises are fulfilled.
Developer Use
Like most of LMS tools, you can set up promises through the API. We have an article on it here in our help system, or interactive ReadMe pages where you can test out the requests to Add, Edit, or Get promises.
Administrator Use
It isn't required that you record promises made by customers, but it is an option that LoanPro offers. If your collections teams or servicing teams uses the feature, note that payment promises can be set to automatically be fulfilled if a payment that meets your specified parameters is made.

If I record a promise, does it change the due date or late fees on the account? No. The payment schedule and late fees will remain the same, but you can change either of them. If you want to change the due date every time a promise is logged, we recommend setting up a Process Wizard that includes a step to change the due date.

What’s Next

If you've recorded promises on several accounts and want to keep track of who you need to follow up with, you should check out the promises report.


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