How to Customize Loan Decisioning Rules in TurnKey Lender

With the new challenging economic reality, the demand for loans has grown and lenders have to adjust their borrower evaluation and decisioning workflows. A sophisticated set of decision rules helps reduce the strain on loan origination officers, cuts credit risks, and streamlines the performance of a business.

Decisioning rules help lenders automate loan origination processes and flexibly weed out the borrowers they don’t want to do business within the very early stages of the loan’s lifecycle. 

As a leader in Unified Lending Management (ULM), TurnKeyLender fully automates all steps of the lending process while also making it flexible and adjustable. The Unified Lending Management System comes with a set of pre-configured decision rules but also allows for complete customization. The default or custom decision rules will apply to every loan application. 

In this article, we’ll go over the step-by-step process of adjusting the credit decisioning rules in your TurnKey Lender portal.

Decision Rules in TurnKey Lender

In order to access and edit the decisioning rules, navigate to System -> Decision Rules. Here you can disable or enable separate rules by clicking the checkbox next to each rule. 

The three default behaviors for matching each rule are as follows:

• Refer – Pass the application along to the Underwriting Officer. 
• Reject – The loan application is rejected. 
• Do Nothing – No actions are taken on the loan application. 

The credit decisioning rules are divided into several categories:

• Anti-fraud Rules
• Credit Policy Rules
• Internal Rules
• Alternative Rules

Let’s go over each category in more detail.

Anti-fraud Rules

This is a basic list of rules that compare the borrower’s data against the internal and external databases. 

• Open Sanctions Database – TurnKey Lender runs borrower data through the international open sanction lists to make sure you avoid doing business with dangerous people. 
• Blacklisted – Runs the borrower and application data against the internal blacklists. 
• Identical Phone Numbers – Checks if borrowers with identical phones exist in the System. 
• Mobile Phone Number – Checks if borrower’s mobile phone number has already been used by another user.
• Suspicious Age – Specify the age you may consider suspicious. 
• Suspicious Phone Number – Searches for borrower’s phones in the list of suspicious phone numbers.
• Driver’s License – Checks the uniqueness of the driver’s ID.
• Minimal Age – Specify the minimum age you are willing to work with. 
• SSN – Checks the borrower’s SSN against your database. 

Credit Policy Rules

The credit policy rules check the borrower’s sources of income, financial stability, and residence. 

• Employment – Check the borrower’s official employment.
• Residence At The Registration Address – Specify the time you prefer borrowers to have lived in the place of residence. 
• Net Income – Specify the acceptable lower income limit. 
• Loan To Income – Specify the acceptable loan to income ratio. 

Internal Rules

A few more rules check the number and quality of loans the borrower has in the System. 

• Number of Active Loans – Specify the number of active loans you consider to be acceptable for a borrower. 
• Delinquency Check – Check the minor and major delinquency rates you consider acceptable. 

Alternative Rules

Alternative rules check borrower’s psychometric and behavioral factors. 

• Application Details Pasted From The Clipboard – Checks if the data was pasted into the application form from the clipboard.
• Replacement Of Attachments – Checks the number of times the borrower has replaced the attachments. 
• Suspected Copy/Paste From Filling or Abnormally Fast Typing – Checks if the application was filled too fast to be filled manually. 
• Suspected Irresponsible Behavior – Checks if the maximum loan term and loan amount were specified too quickly. 
• Too Doubtful About The Loan Term – Checks the number of times the loan term has been changed.

Click Save Changes once you are happy with the decision rules settings. The changes will be applied to all the loans originated from that point forward. 

Multiple Credit Products

TurnKey Lender also allows for offering different types of loans (e.g. personal and mortgage) if your lending operation needs to. This is achieved with the help of several sets of decision rules and scorecards built-in within the System.

Each tab contains a separate set of decisioning rules to make sure you have a flexible business flow that covers all your digital lending needs.

Final Thoughts

That’s it, now you know how to customize the loan decisioning rules in TurnKey Lender. The applications that match the decision rules will either be rejected or passed along to the Loan Underwriters for further analysis. 

An additional security measure that comes pre-configured with the TurnKey Lender System is that the adjustable scorecard is powered by the company’s proprietary AI-driven technology. The scorecard and the rules operate as part of the TurnKey Lender decision engine which allows for an unmatched credit decisioning accuracy.  

 Get in touch with our team for a demo that is tailored to your business.