Consumer Credit Underwriting and Origination

Transcription

1 Consumer Credit Underwriting and Origination

2 DECISIONPRO PART OF OUR END-TO-END CONSUMER LENDING SOLUTION Whether you re a community lender, bank, credit union or finance company, DecisionPro provides automated workflow, better credit and compliance risk management, and improved operational efficiency. DecisionPro delivers a powerful suite of productivity and risk mitigation tools to address the key areas of credit underwriting and origination workflow management for direct, and indirect lending. Tight integration with LaserPro provides an end-to-end loan processing system. Customers can enter their consumer loan application online through Consumerbot or uopen. For mortgage loans, the application can be entered into Mortgagebot. The data goes straight to DecisionPro for underwriting, then the loan information goes directly to LaserPro, which provides the compliant loan documentation. DecisionPro also integrates with UltraData and PhoenixEFE, D+H s core solutions. Credit Application Underwriting Done Right DecisionPro draws on over 20 years of experience in consumer credit, underwriting millions of direct and indirect applications. Able to accommodate automated decisions in small to large volumes and a wide range of credit products, the system is built on a solid foundation of practical experience using today s technology. It can be quickly deployed in workgroups, or for enterprise-wide access and functionality. Credit Risk Management DecisionPro improves decision quality and reduces credit risk by considering score, rules and internal policy to ensure fast, fair and consistent treatment of each applicant. It enables you to enforce lending limits and override limits for each officer, documenting any exceptions, and employ OFAC and bureau alerts, such as Fraud and Active Duty Alerts, to minimize related exposure. Flexible and Powerful Workflow DecisionPro is highly flexible to meet your institution s lending needs. Users can define the level of decision automation, and tailor the workflow to your product types employ automatic work routing and queue management for efficient information flow and access. Credit analysts can work applications sorted by preference, routing them for fast service, specialized handling or anything in between. Decisions are instantly and automatically delivered by fax or , or you can follow up by phone when personal interaction is desired. To address a variety of loan programs for your diverse customer base, you can change fields, populate drop-down lists, adapt form flows and more to match the way loan programs are structured. The system provides staff with consistently prepared data, making it easy to see what is strong, weak or unique about an applicant. Key Features Window flow appropriate to product type Duplicate application, OFAC and bureau alerts Automatic retrieval and parsing of credit bureau reports Comprehensive financial and budget analysis What-if calculations Extensive set of flexible underwriting rules available Notifications, adverse action letters auto-generated Messaging between system users Suite of reports Direct and indirect lending Automobile dealer loan processing via DealerTrack and RouteOne Credit card lending Audit Log Integration with LaserPro for compliant documents Vehicle Valuation (NADA, Black Book, Kelley Blue Book and CARFAX) Tracking List Collateral Types Standard Risk-Based Pricing Module Policy-based automated decisions or recommendations Application and Decision Notes Lending Payments Core Channels

3 Increase Loan Volumes, Manage Credit Risk and Ensure Compliance Better Compliance Smoother Audits The lending business is subject to a myriad of regulations, and DecisionPro is designed to help you comply. Use DecisionPro functionality to facilitate HMDA data collection, HPML risk-based pricing, FACT Act and Regulation B compliance, and a welldocumented transaction history. Furthermore, ensure compliant documentation nationwide through integration with LaserPro. Data Entry Apply Workflow Strategy and Rules Auto Decision Manual Review Credit Reports Collateral Valuation Incomplete/Updated Data Fast and Consistent Decisions Making approve/decline decisions is the heart of credit application processing. To recommend decisions, you need objective tools, such as credit reports, flood, title and appraisal reports, budget and ratio analysis, and statistical decision models. The human touch is also valuable to maintain oversight of technology, provide a reality check and properly consider exceptions. DecisionPro pulls it all together, automates a majority of credit underwriting steps, and makes it faster and easier to process a credit application. Adverse Action Letters Decline, Counter or Request Fax Phone Manual Decision Notification Closing Document Preparation Validation and Discounting Approval Improve Your Closing Process ing, faxing, verifications, collateral searches, appraisals, insurance certificates, and tracking receipt of signed and recorded documents there are many steps in addition to making the approve/decline decision. DecisionPro automates most steps and helps you track the rest. Workgroup status and progress reports help you find bottle necks, reassign workloads and adjust the process to streamline your operation. Open Technology Design Utilizing the latest Microsoft.NET technology platform, DecisionPro has been designed with an open architecture to capitalize on third-party resources. Application data is housed in a Microsoft SQL database, NT services and Web services are provided for many of the processing services that support the software. The optional Client Service Manager module provides a browser-based user interface for application data entry and streamlined credit processing functions, making it easy to deploy and manage. Risked-Based Pricing The DecisionPro Risk-based Pricing feature enables a financial institution to use any credit parameters to help automate a discount or premium rate for an applicant. This allows the institution to increase yields on riskier accounts or retain key credit-worthy clients. Implementation Services 1 Follow-up 2 New Account Setup We believe successful software implementation is a team effort that combines our expertise in banking, technology and compliance to complement the skills and needs of your staff. To guide and focus implementation, a single project manager can be assigned, dedicated to and accountable for success in meeting your goals and objectives.

4 DecisionPro Features and Add-On Components Capitalize on the credit risk management and flexible workflow management capabilities in DecisionPro, the industry-leading, in-house loan origination and underwriting system. Rely on DecisionPro to ensure fair and consistent credit decisions based on strictly-defined policy parameters. Easily comply with lending limits and carefully document overrides. Promote regulatory compliance through seamless integration to LaserPro for closing documents, a well-documented transaction history, support for HMDA Data collection, and FACT Act and Regulation B compliance. DecisionPro streamlines operations and meets your unique business requirements with tailored workflows, service bureau interfaces and automated decisioning based on your institution s policies and guidelines. It is a powerful solution that helps you realize a high ROI from the onset while maintaining the ability to tailor the application to meet your business needs. DecisionPro Product Features Standard Product Features Alert Record Processing Application and Decision Notes Application Documents Audit Log Automated Decisions Budget Analysis Collateral Types Credit Bureau Interface for CBCInnovis, Equifax, Experian Factual Data SM and TransUnion 1 Credit Policy Characteristics Credit Management Data Entry Decision recommendation based on Credit Policy Document Generation (Direct System) HMDA FFIEC Extract Source Notifications (Fax/ ) Integrates with uopen Integration with LaserPro Report and Letter Management Standard Scorecard Integrator 2 Source Locations (Branches and Dealers) Standard Risk-Based Pricing (Rate Table) System Tailoring Tracking List Validation and Discounting (Indirect System) Vendor Notifications (Fax/ ) Integrates with Consumerbot Integrates with Mortgagebot What-if Calculator Workflows Additional Cost Options The following value-added options are available: Application Processing and Query Services Automobile Dealer Interfaces (DealerTrack and RouteOne ) 3 Client Service Manager (Browser-Based) Customization Custom Reports Extended Services (Appraisal, Flood and Title) 4 External Alert File Import FICO LiquidCredit Integration Geocode Integration HMDA Export Interface Host Interface (Demographic Prefill, Direct and Indirect Upload) Indirect ACH Export OFAC Alert Integration Scorecards (Integrates third-party custom scorecards) Risk-based Pricing CARFAX Vehicle Valuation interfaces (NADA e-valuator, Black Book and Kelley Blue Book 3 ) (1) Interface supports Tri-merge Bureau Reports (2) Scorecard separately priced (3) Valuations are separately priced (4) Interface to respective service provider requires additional third-party licensing Lending Payments Core Channels

5 Expanding Your Possibilities In addition to built-in functionality, we offer a number of add-on features that extend DecisionPro, available at an additional cost and requiring supplemental Implementation Services. These add-on components are described below. Application Processing and Query Services The Application Processing and Query Services within DecisionPro extend your touch points to allow you to better serve your customers needs. Institutions that are looking to expand their delivery channel through the Internet or other third-party systems will benefit from these two services. The Application Processing Service accepts requests from an external system via an HTTP transaction in a pre-defined XML format. The service creates a DecisionPro application just as if it were entered directly via the Data Entry or Client Service Manager within DecisionPro. For example, you can enter a loan transaction request on your institution s website. The completed transaction is then passed to the Application Processing Service that creates the completed transaction in DecisionPro. A loan processor can then complete the request in DecisionPro without any need for interim steps. The Application Query Service allows a third-party provider to query the decision status, as well as the terms of the loan application. The information is returned back from DecisionPro in an XML form that can be displayed back to a customer via a webpage on your institution s website. Automobile Dealer Interfaces Automobile dealer interfaces provide the ability to receive and process loan applications from remote automobile dealerships through third-party dealer processors (DealerTrack and RouteOne ). Depending on your institution s environment, additional hardware and third-party software components may be required to use this feature. Client Service Manager 1 Improve users ability to easily enter, manage and decision credit applications with the browser-based Client Service Manager. Simple to install, accessible everywhere on your network, and easy on network resources, Client Service Manager is designed to fulfill key customer service functions in loan origination and underwriting: Leverage fast browser performance for entering new loan applications Update pending application information by adding comments and notes Update credit bureaus, tracking list items and active trade lines Render credit decisions, or check on the decision status of pending applications Add closing instructions and detailed comments View and print application details, predisclosures and closing documents Rely on Client Service Manager to deliver valuable underwriting knowledge and information to users throughout your institution. Extended Services Request Flood Determinations, Appraisals and Title Information for real property collateral items on an application initiated from any DecisionPro client. The information returned will be stored in the DecisionPro database. Application Processing and Query Services Key Benefits Provides additional delivery channel to the Internet or from other third-party systems Facilitates a seamless integration between the back-end processing capabilities of DecisionPro and a third-party system, such as a Web provider Eliminates the need to manually re-key data for application requests originated from external systems Supports capabilities to offer specific products and decision criteria for transactions generated through the third-party systems

6 HMDA Export Interface Institutions that utilize a third-party system for HMDA Reporting may use the HMDA Export Interface in lieu of the standard HMDA FFIEC Export. This enhanced interface provides the ability to extract HMDA reportable data from the DecisionPro database, which can be imported into one of the following third-party reporting systems: Census Traks Plus Centrax HMDA CRA Wiz QuestSoft Indirect ACH Export The Indirect ACH Export feature allows for institutions that process indirect dealer loans to extract funding information and generate a standard ACH transaction. The extracted transactions can then be forwarded to the institution s ACH Origination System for further processing, eliminating the need for manual entry. External Alert File Import This feature allows alert information from an external system, such as a host or charge-off system, to be imported into the DecisionPro Alert Table. The imported data is automatically checked each time a new application is entered into DecisionPro. FICO LiquidCredit Integration This feature enables the use of FICO s LiquidCredit Application Risk Models. You can request a FICO LiquidCredit score using applicant and credit bureau information sent from DecisionPro to Fair Isaac. Additionally, you can generate standard reports for Population Stability, Characteristic Analysis and Override Tracking. This interface requires an additional license from FICO for the scoring model. Geocode Integration This interface provides the ability to pass an address from DecisionPro utilizing the same geocode component as LaserPro. The feature is only available to those clients using LaserPro. A separate license for the LaserPro geocode feature is required. OFAC Alert Integration This feature allows data to be imported into the DecisionPro Alert table from the Office of Foreign Assets Control of the U.S. Department of the Treasury (OFAC). The imported data contains the names of individuals or businesses who have U.S. government sanctions against them. This data is automatically checked each time a new application is entered into DecisionPro. We import both the Specially Designated Nationals (SDN) list and the Consolidated Sanctions List (CSL). For more information about OFAC, please refer to their website at: Scorecards Third-party custom scorecards may be purchased and integrated into DecisionPro to automatically analyze the application and credit report data to calculate a scorecard result. With the addition of credit scoring, DecisionPro can incorporate the score as part of the credit policy for deriving instant decisions on applications that are clearly approvals or denials, leaving more time to focus on marginal situations where judgment and experience is needed to review the gray area applications. Lending Payments Core Channels

7 Third-Party Host Interfaces A key benefit of the integrated design of DecisionPro is its ability to interact with third-party host systems saving time and eliminating errors. Leveraging the Flex Connect Series host interfaces, D+H offers interface solutions to many of today s most popular host systems. Our download (demographic prefill) and upload (transaction boarding) interfaces minimize the need to re-key previously entered data and are designed to deliver vital information from the DecisionPro database to your loan servicing system. Flex Connect takes interfaces one step further, providing institutions with the ability to configure their interface presentation and data, defaulting to their specific needs. Vehicle Valuations 2 The Vehicle Valuation Integrator Service within DecisionPro provides you with the ability to value used vehicles. To do this, you must purchase valuation data for your desired third-party vendor (NADA e-valuator, Black Book or Kelley Blue Book ). NADA e-valuator block sizes are purchased directly from D+H. Valuation data for Black Book and Kelley Blue Book are purchased directly from the vendor. CARFAX DecisionPro integrates with the most trusted provider of vehicle history information, CARFAX. When making a loan decision, it is important to gain as much information as possible about the collateral securing the loan. The integration with CARFAX enables you to set up your system to automatically request the CARFAX Total Loss Report for specific types of auto loans. (1) If pre-disclosures will be printed from Client Service Manager, a LaserPro license for E-Print Connect and LaserPro Application is required. Please contact your D+H Sales Representative about additional hardware, software, security and communication requirements needed for Web server and browser applications. (2) Used cars and light trucks, boats, motorcycles and RVs are not supported in the electronic interface. Currently, only NADA e-valuator is available for use with the browser-based Client Service Manager. Key Features Provides an additional delivery channel to the Internet or from other third- party systems Facilitates a seamless integration between the back-end processing capabilities of DecisionPro and a third-party system, such as a Web provider Eliminates the need to manually re-key data for application requests originated from external systems Supports capabilities to offer specific products and decision criteria for transactions generated through the third-party systems Policy-based automated decisions or recommendations Application and Decision Notes

8 D+H is a leading financial technology provider the world's financial institutions rely on every day to help them grow and succeed. Its global transaction banking, lending, payments and enterprise solutions are trusted by nearly 8,000 banks, specialty lenders, community banks, credit unions, governments and corporations. Headquartered in Toronto, Canada, D+H has more than 5,500 employees worldwide who are passionate about partnering with clients to create forward-thinking solutions that fit their needs. The company is recognized as one of the world's top FinTech companies on IDC Financial Insights FinTech Rankings and American Banker's FinTech Forward rankings. For more information, visit dh.com D+H USA Corporation. All rights reserved. Laser Pro, PhoenixEFE, UltraData and Mortgagebot are registered trademarks, Decision Pro, uopen and Consumerbot are trademarks of D+H USA Corporation. D+H is a trademark of D+H Limited Partnership. All other product names or brand names are trademarks and/or service marks of their respective owners D+H dh.com Lending Payments Core Channels