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Creating a loan

How to create a loan in LoanPro.

In our loan management system (LMS), there are four ways to create a new loan in the system:

  • Manually enter loan information (Standard and Quick Quote)
  • Create and use pre-configured loans
  • Create and use a custom onboarding process
  • Import bulk information using a .csv file

This article will explain the details of manually creating a loan and how to configure and use a custom onboarding process. The other two options, pre-configured loans and imports, have dedicated articles and are linked throughout the article. 

Manual loan creation

To manually create a loan, open the Account Manager inside LoanPro. In the top right corner click ‘New Loan.’ A menu will appear with loan creation options. In this case select 'Standard'.' 

Next, a window with loan class options will appear. Select your desired loan class to continue.

 

Configure a loan

Each of the fields on the screen contribute to the configuration of the loan. The fields will automatically be set to the tenant defaults. Pre-configured loans will display their unique default settings. These settings can still be changed by an agent who has access to this page. 

Here is a breakdown of each field:

Field Description
Loan ID Option

You can select either a System Generated ID, or choose to create a custom one yourself.

 

System Generated ID: LoanPro will automatically assign an ID. This feature can be customized to follow a numbering structure of your choosing in Settings > Loan > Labeling > Account Numbering. 
 

Custom ID: the user creating the loan can input an alphanumeric ID of their choosing in the “Loan ID” field below.  
Loan ID Depending on your Loan ID option, this field will either contain a system-generated ID or you will be able to input the ID of your choosing. If the Loan ID Option is set to “System Generated ID” the user cannot edit this field.
Loan Type

The loan type determines how the loan will be repaid. The options include:

 

  • Credit Limit: With this option, the customer has a credit limit with a definite end date. They  can both repay the loan and receive additional advancements up to the credit limit.
  • Installment: This is the most typical options, where mostly-uniform payments will be repaid over a specified loan term.
  • Flooring: This type is given to a company to finance their inventory. Payments are called 'curtailments' and the loans are usually short-term.
  • Lease: A typical lease will rent an automobile or other collateral to a borrower. This option will use the typical lease payment calculation.
Calculation Type

The calculation type determines how the loan’s interest (or lease fee) is calculated. 

  • Interest Only – This option will calculate payments equal to the amount of interest that accrues on the loan balance in a single payment period.
  • Rule of 78 – A simpler, but less accurate, way of calculating interest.
  • Simple Interest – This option will calculate interest based on the loan balance and the interest rate. Payments contribute to both interest and principal. 
  • Simple Interest Locked – This will calculate interest in the same as simple interest, but the dollar amount of interest is locked at the beginning of the loan and the borrower does not pay more than the original interest amount even if they are behind on payments.
Source Company A field generally used to track either the company that referred the loan or the brick-and-mortar location where the loan originated. 
Portfolios  A field that allows you to assign portfolios to the loan. A portfolio is a type of custom label used to group loans together. Portfolios can be used in automations throughout LoanPro.
Agent User A field that allows you to assign a specific employee (agent user) to the loan you are creating. 

Once you have entered all of the desired information, click ‘Next’.

Assign collateral

The collateral function allows lenders to track collateral associated within the loan. Each loan can have up to 50 collateral items. To assign a collateral item, click ‘Add Collateral’. 

Next, you will be able to select the ‘Collateral Type’ and input the information. Different types will have different fields to meet your tracking needs.  

If you have more than one piece of collateral, click the ‘Add Collateral’ button again and repeat the steps above. 

Assign a customer

The final step before configuring the setup terms of the loan is to assign a customer. From this page you can either create a new customer (click ‘Add Customer’) or select one from your existing customers (click ’Link Existing Customer’). 

If you choose to add a customer, enter the customer details below. Multiple customers can be assigned to one loan.

If you choose to link a customer, search for their name in the search bar.

Once you’ve created or linked a customer, click ‘Save’ to move on to the setup terms portion of loan creation.

Set loan terms

Once the basic setup is complete, you will be directed to the Setup Terms page within the loan. Here, you can set all of the loan terms according to your loan contracts.The ‘Loan Terms’ page is required to activate the loan. The other pages—Escrow Calculator, Additional Information, Advanced Configuration, and Late Fee Configuration—are not required. 

See more detail on setup terms here. Once you’ve entered your desired loan terms click ‘Save & Calculate’. This will save your loan data and calculate the APR. If you do not reach your desired APR, you can use LoanPro’s contract matching tools to ensure your contract is an exact match. 

Quick Quote

LoanPro's Quick Quote tool allows users to calculate the values of a loan's entire life without permanently saving it. This feature is great for proposing the terms of a loan to a potential borrower before creating and saving the information in your account. 

To create a new Quick Quote, navigate to Tools > Quick Quote. Determine the category and type of loan you're quoting, then click ‘Continue’. This will determine what default settings LoanPro should use to calculate this loan. 

Next, enter all the loan terms—just like you would if you were creating a new loan within the Account Manager. Enter the applicable loan terms, escrow calculator data, and advanced configuration data. If you'd like, you can also enter Custom Field information and late fee configurations. When you're satisfied with the terms you've entered, click ‘Save & Calculate’ to run the calculator. The values of the loan will be displayed below.

You also have the option to test some other loan setting tools under the ‘Schedule Tools’ button and the “TIL Tools.” There's also the funding tool that lets you set up a funding request. 

If you would like to convert the data you entered into a permanent account, click the ‘Convert to Loan’ button. Otherwise, you can click ‘Cancel’ to exit the Quick Quote tool, and the quote will be removed from your account after 24 hours.

Create a custom onboarding process

A custom onboarding process walks you through onboarding a loan in the order of your choosing. You specify which values are required to complete the onboarding process, all based on your specific lending needs. Below, we'll explain how to create your own custom onboarding process.

In LoanPro navigate to Settings > Loan > Setup New Loan > Custom Onboarding Process. 

Here, you can either edit an existing process or create a new one. To create a new one, click ‘Add’. The following page will open:

For the process to be usable, the status must be set to ‘Active’. Next, enter a title for the process. The ‘Loan Class’ and ‘Loan Calculation Type’ fields will determine which type of loans should use this custom onboarding process. You can set a different process for each loan type and a corresponding loan calculation type.

To add steps to the process click the ‘Add New Step’ button. Here, you can determine which steps of the process are required and which are not. Each step will allow you to set constraints for the action. Below is an example of the restraints that can be set if you require each loan to have a customer. 


 

You may set requirements and constraints for the following:

  • Add Customer
  • AutoPay
  • Bankruptcy
  • Checklist
  • Collateral
  • Custom Forms
  • Documents
  • Escrow
  • Loan Setup
  • Insurance
  • Loan Settings

 

 Steps and constraints

Step Name Additional Constraint Options Description
Add Customer # of References Enter a numeric value for the number of references that must be entered in order to set up the loan.
  # of Payment Methods Enter a numeric value for the number of payment methods that must be entered in order to set up the loan.
  Employer Info Required Choose whether to require Employer Information.
  Primary Address Verified Choose whether the primary address for the customer must be verified by our USPS integration in order to set up the loan.
  OFAC Tested Choose whether OFAC InstaCheck will be required.
  Credit Score Requested Choose whether the customer credit score must be pulled in order to set up the loan.
AutoPay # of AutoPays Required Enter of numeric value for the number of AutoPays that must be scheduled in order to set up the loan.
Bankruptcy N/A N/A
Smart Checklist Tenant Check the box for any checklist items that must be checked in order to set up the loan.
Collateral Tracking N/A N/A
Custom Forms N/A N/A
Documents # of Documents Required Enter a numeric value for the number of documents that must be uploaded in order to set up the loan.
Escrow # of Transactions Required Enter a numeric value for the number of escrow transactions that must be logged in order to set up the loan.
  # of Adjustments Required Enter a numeric value for the number of escrow adjustments that must be entered in order to set up the loan.
Initial Setup N/A N/A
Insurance Tracking N/A N/A
Loan Settings N/A N/A
 
 

 

Once you have set your constraints click ‘Save’ at the bottom of the window. After all desired steps have been added, click ‘Save’ in the top right corner. 
 

Use a custom onboarding process to create a loan

To use a custom onboarding process, navigate to the Account Manager and select ‘New Loan’. From the menu, select ‘Custom Onboarding’.

From the window select which custom onboarding process you would like to use by clicking ‘Start’. 

The process will begin and guide you through each required step as outlined. A progress bar will be displayed across the bottom of the page to reflect your progress. 

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Creating a loan Manual loan creation Configure a loan Assign collateral Assign a customer Set loan terms Quick Quote Create a custom onboarding process Use a custom onboarding process to create a loan
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