Introduction

Portfolios help your company specify groups of accounts. They can be used to group things like location, account size, investor, servicing company or any other category you choose. Once accounts are assigned to Portfolios, you can filter the account search and reports so that you can more easily track performance, delinquency, and many other things based on Portfolio.

Highlights

Portfolios have a many-to-many relationship with accounts: one account can have any number of tags, and a tag can be applied to any number of accounts. 

• Portfolios are useful in countless situations and processes thanks to LoanPro's Automation Engine. First, Portfolios can be used in the business logic that triggers an automation (e.g., if an account has the ‘Requested Due Date Change’ tag, notify the assigned agent.) The action of adding and removing Portfolios can also be automated (e.g., if an account is more than sixty days past due, add the ‘>60 DPD’ tag.)
• You can also create and assign Sub Portfolios, allowing you to create more specific labels within each tag. For example, you might have one Portfolio for SCRA, and several Sub Portfolios for SCRA – Submitted, SCRA – Accepted, and SCRA – Rejected.
• You can categorize Portfolios into categories, making it easier to find the tags you're assigning and removing from specific account.
• They're different from a loan status because a loan can only have one status, but can have many Portfolios. Thus, Portfolios can indicate a broader range of information. For instance, you might have Portfolios for static information like a borrower's state or province, or use them to track recurring processes like collections or a manager review.
• Portfolios are simple and powerful tool that groups your loans in a flexible way. This article explains how to create new Portfolios and assign loans to them. There's no limit on the number of Portfolios and sub-Portfolios you can create.

Portfolio Categories

Since you might use Portfolios in a number of different ways, you can assign a category to each Portfolio to keep track of its purpose. These categories are configured in Settings > Loan > Portfolio > Portfolio Categories. The screen lists all of your current categories, and each entry contains an ID, title, and whether the Portfolio is active. At the right of each entry are icons that let you toggle the category as active or inactive, edit its name, or delete it altogether. The 'Add' button in the top right lets you create a new Portfolio category.

Portfolio Management

With their categories set up, you're ready to configure the Portfolios themselves. Navigate to Settings > Loan > Portfolio > Portfolio Management. This screen lists all of the primary Portfolios, and shows their sub-Portfolios beneath them. To the right of each entry are icons to edit or delete a Portfolio (which will also delete its sub-Portfolios).

Clicking the buttons to add or edit a Portfolio brings up a window that lets you toggle the Portfolio as active or inactive, select a category, name it, and manage its sub-Portfolios.

How to Add Portfolios to a Loan

You can add Portfolios either as the loan is created, or at any time afterward.

New Accounts

When creating a new account, the first page includes an 'Add Portfolio' button in the bottom right. From there, choose the category, Portfolio, and (if applicable) sub-Portfolio. You can repeat this process for any number of Portfolios you'd like to add to the loan.

 

 

This Features is Not

Let's take a second to clear up any misunderstandings about what Portfolios are, and what they aren't:

• Should I use Portfolios to track where an account is in it's lifecycle? We'd recommend using account statuses instead. An account can only have one account status, which makes them the natural choice to follow an account from application to payoff. Portfolios, on the other hand, are great for tracking other events and processes that might concur with that lifecycle.

What's Next?

Now that you have learned how to add accounts to Portfolios and create a new Portfolio category, see Comparison of Loan Tagging and Grouping Options if you'd like more details on the difference between Portfolios and statuses. If you'd like more details on the difference between Portfolios and statuses, check out Comparison of Account Tagging and Grouping Options.