Compliance Guardrails is a customizable tool that allows you to write rules that will prevent agents from taking noncompliant actions on a line of credit account. These rules are completely customizable and can be stacked to ensure you're meeting all of the regulatory requirements. In this article we'll provide examples of how Compliance Guardrails can be used and explain how to configure them.

Using Compliance Guardrails

Compliance Guardrails can help you ensure you're meeting all of the necessary regulations—like the CARD act. These guardrails act as a protective layer during the creation of an entity in LoanPro that ensure all rules have been met before allowing an agent to proceed. For example, lenders are required to give borrowers a 45-day notice before changing their interest rate. Using Guardrails, you can write a rule that will require the Apply Date of an interest rate adjustment to be 45 days after the current date. Alternatively, lenders may want to prevent an interest rate from being changed at all during the first year of an account. This can be achieved with custom rules as well. You could use both of these rules and more, and they stack on top of each other to ensure you're meeting all regulation requirements—not just one. Compliance Guardrails also apply to actions taken via the LoanPro API. If an API request is restricted by a guardrail, an error is provided to the user.

Configuring guardrails

Compliance Guardrails are configured by creating groups of rules which can be assigned to specific programs in your tenant. Within the group, you can stack rules associated with different transaction types (outlined below). You can decide if the rule will only warn the agent or completely prevent them from continuing with the action. 

To configure guardrails, navigate to Settings > Company > Compliance Guardrails. Click ‘Add’ to create a new Guardrail Group or click the pencil icon to edit an existing one. Name the group and click ‘Save’. The status button next to the name will ensure this group is currently active and runs on any programs it is assigned to. 

When you're ready to add rules, click ‘+ Add Rule’. A window will appear where you can configure and write your rule. Different fields will be required depending on the type of transaction you select. The options are outlined below:

Once you've selected the Transaction Type, choose a Field Name. The Field Name will determine what criteria should be considered when evaluating the rule. Next, select a validation type. 

• Warning: a warning will notify the agent with a message of your choice, but the agent can choose to continue with the action anyway.
• Error: an error message of your choice will appear and the agent will be prevented entirely from taking the attempted action. 

Next, you'll write a rule that will define when the warning or error should be triggered. The rule will be triggered when it evaluates as ‘TRUE’. For example, if you'd like to require the Apply Date for an interest rate change to be 45 days after the current date, your rule may look something like this:

(>= (v/date-compare apply-date-placeholder current-date) 45)

When your rule is complete, click 'Save'. Then, you can repeat the steps to add additional rules. The rules will evaluate in the order you add then to the group. If the first rule fails, the system will send the warning or error and prevent the action. If the first rule passes, the system will automatically move to the next rule and so on. 

Add the group to a program

Compliance Guardrails are applied to line of credit programs by editing the program's configuration settings. When either creating or editing a program (Settings > Programs), click the Guardrail Groups tab and select which groups you'd like to apply with the check boxes. When you're done, click ‘Save Changes’. 

To view which Programs are assigned to which groups, open Settings > Company > Compliance Guardrails, and hover over ‘See Programs’.