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Custom Rule Editor Overview |
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Custom Rule Editor Overview |
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Custom Rules Editors are powerful tools that enable you build your own criteria.
Custom Rules can be created to do the following:
1. Change the Decision to Refer and generate review reasons
2. Modify the Tier, Loan Amount, or Rate
3. Define which applications that will be underwritten by a product (see Routing)
4. Add Stipulations to approved applications
The table below provides the Action rules perform for each work area, what triggers the action (a rule that is True or one that is False), and how the rule should be set up for proper use.
Work Area |
Action |
When Rule is… |
Set up rule criteria that… |
|---|---|---|---|
Routing |
Matches applications to product |
TRUE |
defines the product to be underwritten |
Verification |
Stops application from being processed before credit is pulled |
TRUE |
defines the applications that should not have been submitted and/or should not be processed |
Tier |
Drops the tier (increases the risk) by one level |
FALSE |
place requirements for qualifying for the Tier in question |
Loan Amount |
Sets or modifies the Maximum Loan Amount |
TRUE |
identify applications whose Maximum Loan Amounts should be altered. Since amounts can be increased or decreased, the criteria may identify weaknesses or strengths |
Rate |
Sets or modifies the Rate |
TRUE |
identify applications whose rates should be altered. Since rates can be increased or decreased, the criteria may identify weaknesses or strengths |
Decision |
Changes the Decision to "Refer" and/or appends a Reason |
TRUE |
Category: Approve to Refer identifies weaknesses that require review Category: Decline to Refer Set up rule criteria that identifies strengths that merit review |
Stipulations |
Adds a Stipulation |
TRUE |
identify applications to which Stipulations should be applied |
Below are the definitions of the terms used in Custom Rule Editors:
Description – The business rationale behind the rule; the purpose; used so others can understand what you are trying to accomplish
Reason – The text the system will store and display in the application processing system
Expression – A statement or series of statements that contain the criteria for determining the result: True or False. The expression is made up of the following:
| ▪ | Association – A connector that defines the relationship between two statements. The following associations are available in custom rule editors: AND, OR, AND (…), or OR (…). These latter two begin a nested expression by inserting an open parenthesis after the association. The association "EXPR" is used in the first line of a new expression and on the first line after an opening parenthesis: AND (...) or OR (...) |
| ▪ | Statement – A single evaluation (one line) composed of one variable, an operator and an operand (two operands if the operator is “between”) |
| ▪ | Variable – An element from the application, credit, or a combination that is unique to each application |
| ▪ | Operator – An evaluator such as: <, >, =, <=, >=, between, and NOT |
| ▪ | Operand – The input or argument (i.e. cutoff) used with the operator. This is often a numeric value or a pick-list value |
Category – Limits the applications to which the rule will be applied. For example, the Tier work area has a category for each tier so that the rule created will target a specific tier. If an application is never assigned that tier, the rule will not be applied
Result – All rule expressions are written in a way that there can only be two outcomes: True or False. The result is what determines whether an action is generated
Action – The change invoked as the outcome of a rule being True (or False). Some actions are pre-defined by the work area and are not configurable. For example, Verification will automatically decline an application when a rule is True. There are no other options. Other Actions are configurable. For example, the Rate Custom Rules can increase or decrease a rate by a percentage. When Actions are configurable, there will be a Modifier field and a Value field for you to define the Action.
Modifier – The type of action to be triggered: Add, Subtract, Multiply, Divide, Equals
Value – The amount to add/subtract/multiply/divide by or the amount to override (equals)
Page url: https://decision.cudl.com/help/index.html?rule_editors_overview.htm
