Rules Applied – Intermediate

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

In this article, we'll explain Rules Applied in greater detail and describe how you can set up your own rules. Here, we build upon the information provided in our Rules Applied Basics article, so we recommend that you read that article before reading this one.

Like we mentioned in our Basics article, Rules Applied work as actions that are applied to a loan when it meets specific criteria (written as Clojure "rules"). It's an easy way to automate the task of updating the settings of loans; and if you have a vast collection of loans, LoanPro's Rules Applied system can nearly eliminate the burden of updating loans for you and your team.

But you may be wondering how exactly an implementation of Rules Applied looks. For example, let's say your company has a policy that states that when a loan account is more than 120 days past due, the loan will be charged off and closed. You set up the criteria — such as the loan needs to have an outstanding balance, be 120 days past due, and accruing daily interest — then, when a loan fits the criteria, it applies the action of closing the loan and placing it in the charge-off category.

How to Set Your Own Rules

To set up your own Rules Applied, you will first need to navigate to Settings > Loan > Rules Applied. This is where you will create, edit, and delete the rules and actions you set. To create a new set of rules and actions, click 'Add' in the top right corner.

Basic Settings

Clicking 'Add' will cause the following window to appear. Here, you can determine the name, status, rule(s), and when the system checks rule criteria for the new Rule Applied.

Start by setting a name for the Rule Applied, then selecting the status of "Active" or "Inactive". If you set the status to 'Inactive', the system will not actively check loans for the rule criteria. But don't worry about it too much, as you can change this at any time.

And speaking of the system checking for rule criteria, the checkboxes on the bottom half of the screen can be set to determine when that happens. Selecting 'Evaluate in Daily Maintenance' tells the system to check loans for the determined rule criteria when your tenant account runs daily maintenance. Selecting 'Evaluate in Real Time' tells the system to check loans whenever an interaction on the loan occurs, such as making a payment.

The other two checkboxes, 'Add to New Loans' and 'Preactivation Loan', determine which loans will be checked by the system. Selecting 'Add to New Loans' does exactly what you may think — new loans created after the Rule Applied will be checked as well. Selecting 'Preactivation Loan' will ONLY include loans with an Inactive Loan Status to the list of loans that will be checked. Activated loans will not be included.

Selecting 'Preactivation Loan' removes the option to select when the system checks loans for loan criteria. This happens because Daily Maintenance only runs on loans with an Active Loan Status. If you select 'Preactivation Loan', the system will check loans for rule criteria in real time.
When are rules evaluated?
It's useful to know when rules are evaluated by the LMS system. Here's a bit more information.

There are three times when a rule can be evaluated by LMS: when loans are updated daily, when events occur on the loan, or when you choose to force a rule.

Daily Maintenance Update – LMS updates all live loans on a daily basis. The system does this to compute interest accrued on the loans, update numbers for payoff, record data for specific reports, add automatic fees, and other values. At this time, rules will be applied to loans that fit the set criteria, and any necessary changes to loans will be made.

Loan Events – Loan events such as logging a payment or fee, adjusting past-due balance, and other events can also trigger the evaluation of a rule application. This will only happen if the 'Evaluate In Real Time' checkbox is filled in inside the rule application.

​Force – You may force a rule for a single loan by clicking "Force Rule" in Rules Applied inside the appropriate loan tab. For example, you could force the rule application for a specific loan by navigating to Rules Applied > Loan Settings within an individual loan and then selecting "Force Rule". If the account meets the correct rule criteria, the necessary changes will be applied.

In the following section, we'll cover the rules themselves.

Rules

Like we've mentioned above, Clojure rules tell the system what your criteria are. To create a new rule, click 'Empty' listed under the Rule header. This will display the Formula Editor window which allows you to write a new rule.

Like mentioned in our Basics article, rules are written using Clojure equations. If you have written a Clojure Rule before, this window will look familiar to you. If not, we recommend reading our Clojure 101 article for some help. To begin writing a rule, you can type in the text box or use the operator buttons to add them in automatically. You will need to select some variables to use in your equation, and you can do so by typing them manually or selecting them from searching like shown below.

The rule used in our examples is (and (= status-days-past-due 10)(= loan-status "Active")). Let's break that Clojure equation into sections to understand what it does.

This Clojure equation states that if a loan is exactly 10 days past due AND its loan status is "Active", then the loan fits the criteria. First, the entire statement needs to be enclosed with parentheses, and these are highlighted in green. Then, there are three separate sections within our parentheses. The first is the "AND" operator, and this tells the system to make sure that both of the next two sections are true. Next, in yellow, we have the "status-days-past-due" variable. Our equation tells the system to look for loans that are equal to 10 days past due. Finally, our last variable in blue tells the system to also look for loans with an "Active" loan status. Closing the parentheses combines our two variables and completes the equation.

However, you can easily change an equation if you'd like to. For example, you could choose different variables; or you could instead include loans that are more than or equal to 30 days old by writing (and (> status-days-past-due 30)(= loan-status "Active")). The possibilities are endless, and Clojure equations can get much more specific.

Actions

Once you have created rules, you need to create an action for the system to apply. To add an action, click 'New Action' in the bottom right corner.

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Like rules, actions are highly customizable. Begin by naming the action. Next, you will need to determine what changes, or actions, the system makes to loans that fit the criteria set by your rules. Actions are broken into categories, and you can select a category from the 'Rules Applied Action' dropdown like shown in the image above. Each category has a lot of options, so here is a breakdown of what's available.

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.

You can add multiple actions to a single rule. When you use multiple actions, you can also determine their order of operations by using the drag-and-drop icon.

Once you have chosen your settings, click 'Save Changes' to finalize your new rules and actions.

In the newest version of LoanPro, a single rule can be set to complete several actions. If you set your rules applied to do this, the rule will evaluate only once, and not each time a step in the rule is checked. If you want rules to evaluate multiple times during the process, you will need to set your rules up like in past versions of LoanPro. In other words, you will need to create multiple, separate rules instead of one rule that checks multiple criteria.

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).

Name

This is the name of the rule to distinguish it from other rules. (For example, "Checklist Pre-Activation Rule").

Active

This shows if the rule is active signified by either a green "YES" or a red "NO".

Add to New Loans

If you want this rule to apply to any new loans that are created.

Real Time

Anytime a user interacts with a loan.

Daily Maintenance

Every night (based on the company time zone setting) LoanPro runs processes on all live accounts.

Pre Activation Loan

This allows you to add rules to inactive loans.

Use Cases

Rules Applied is obviously used to automate specific actions based on the criteria of a loan, but they often work best if implemented in tandem with other servicing tools, like Loan Statuses, Checklists, Portfolios, and Process Wizards. This blended approach will allow you to automate repetitive tasks while maintaining a human presence on tasks that require case-by-case decision making. You can also daisy-chain rules, wizards, and other tools together to create a comprehensive pathway for more complex servicing processes.

Rules Applied are similar to to some other features that LoanPro offers. You may be interested in utilizing Trigger-Based Notifications if you would like to use your rules to automate the notification process. Check out Wizards if you're interested in standardizing processes and simplifying complex tasks for your team members. And Checklists can help you standardize your own company policies within LoanPro.

What's Next

At this point, you should be able to create your own rules and actions to apply to your loans. Now, we suggest becoming comfortable writing complex Clojure equations, and we'll help you do so. To get started, take a look at our Clojure Rules 101 article where we explain the basics. If you'd like more of a challenge, skip ahead to our Next Steps with Clojure article.

We also suggest taking a look at our Rules Applied – Actions article, which lists all available actions that rules can apply.


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