Using a Service Oriented Architecture to Redefine Loan, Lease or Mortgage Origination and Servicing Software Solutions
Efficient Credit Decisioning, Using Flexible System Workflow To More Effectively Automate and Manage Product Requirements for Mortgages and Loans.
ARMnet Integrated Banking Software provides the user with a very comprehensive mortgage and loan origination and servicing functionality. Financial Institutions can effectively manage retail or commercial loans from origination through to settlement and rollover or discharge. If the secondary mortgage market is a key part of your firms current business or seen as a future goal, ARMnet Integrated Banking Software has its own securitization module allowing you to model new products and create an unlimited number of Special Purpose Vehicles (SPVs) and associated tranches. The application is also easily structured for the Payday Lending and Microfinance institutions and their associated products as well.
ARMnet Integrated Banking Software manages a wide range of loan products including residential Uniform Consumer Credit Code (UCCC) compliant, residential non compliant, commercial, leasing, credit cards and of course personal loans. A wide range of calculation types can be easily configured and include interest only, principal and interest or combinations of both, either in advance or arrears. Product options cater for construction, redraw, line of credit and purchase on both residential and commercial projects. Interest charging can be calculated on a daily through to an annually basis, in advance or in arrears.
Financial Product Servicing Workflow (Status) for Loan Origination and Servicing
ARMnet Integrated Banking Software has a workflow management system that enables complete control of the processing of all financial products. This allows mapping of all of the steps for example that a loan application passes through when it arrives within your business (i.e. application received, valuation ordered, valuation received, LMI submitted, LMI approved, approved, ready for settlement, current, withdrawn, discharged etc). These steps are created using your own terminology and methodology. You can report at any time on loans that are in a particular status or those that have been in a particular status during a specified date period.
The Special Servicing core collections screen allows in one area to validate loan status , funder, loan balance as well as all workflow associated with managing any arrears or servicing issues the client may be facing including promises to pay and associated actions with them. The Collections Overview screen also allows you to view loan details, collection notes, client contact data and loan history including promises to pay. Each of these screens can also be edited easily to add or remove additional workflow to any of the screens as desired.
Strict controls can be applied such that access to the loan origination at various workflow positions (statuses) can be controlled to ensure only authorised staff are working on the account.
In addition different workflows can be defined to different products and at each point in the workflow you can control quality of data entry, trigger document production, create a tasks, etc as well as build in “yes” and “no” paths or decisioning reflecting your business rules and policies.
Interest Rate Categories
ARMnet Integrated Banking Software uses “interest rate categories”, linked to each product. In turn for example, each loan is linked to an interest rate category. As ARMnet works off effective dates you set the date at a category level, that the new rate is to be implemented. When that date is reached all loans linked to that category will automatically be updated, This process can also be linked to processes that will automatically generate correspondence to borrowers advising of impending rate changes etc., thus making the process of changing interest rates a very efficient and easy task. Each interest rate category retains a history of rate movements.
Within ARMnet Integrated Banking Software you can easily create your own products as required. All of the generic rules for each product are part of a “product’s” properties. When creating a new loan account, the user must choose a product from the list of those available. Once chosen the product populates the entire associated loan screens with default information. If the user has the appropriate authority these “defaults” can be overridden at a loan account level to tailor a particular loan product.
Use of the product defaults cuts down on user error and prevents unauthorised use of inappropriate conditions.
ARMnet Integrated Banking Software is distributed with a comprehensive range of financial transactions which can all be modified and renamed if required. ARMnet Integrated Banking Software also provides the functionality that allows a user organisation to create new transactions simply by setting the parameters on the “create transaction screen”.
The system also has the ability to track multiple currencies and manage exchange rates between them in an accurate structure. We can effectively set up sub ledgers within ARMnet that allow us to track the excahnge in one country as an example but also using ghost transactions bring that currency amount back to a common currency (i.e. US Dollar, Euro) and be able to track and report on this so proper hedging can be performed. This means that one ARMnet system can effectively deal with clients running in a multijurisdictional environment easily.
For further information on Axcess Canada, the ARMnet Integrated Banking Software or to arrange a demonstration of the solution please contact us via email or telephone at:
- Email: ARMnet Sales
- Telephone: 1-888-883-2852 Extension 401
ARMnet Financial Product Management Solutions –
“Tomorrow’s Financial Product Management Solutions, Here Today.”