This tab is where you see the scoring information, credit policy messages (if any), recommended decision, and other pertinent information, and it's also where you record your decision.

For all Baker Hill Origination offerings, the Decision page Product Bar displays both Score and Credit Policy Based recommendations, except in the case of Baker Hill Bank2Business Judgmental decisions. In that case, only Credit Policy Based recommendations are displayed on the Decision page.

The following information is listed on the Product subsection header bar for each product:

• The score retrieved from the credit bureau

• The score-based recommendation. The possible recommendations are:

• • (Approve) – The score falls above the Upper Cutoff value in the Gray Area Schedule.

  • (Decline) – The score falls below the Lower Cutoff value in the Gray Area Schedule.

  • (Approve-Gray Area) – The score falls in the upper part of the Gray Area in the Gray Area Schedule.

  • (Decline-Gray Area) - The score falls in the lower part of the Gray Area in the Gray Area Schedule.

    Note:  The phrasing of the Approve- or Decline-Gray Area can be changed to suit your financial institution. For example, your financial institution can change the phrasing to Approve and Decline, Favorable and Unfavorable, just Gray Area for both Cutoff areas.  If there is no valid score or a system error prevents the GAS table from being evaluated, there will be no Score-Based recommendation. Contact Baker Hill Client Support for assistance in changing the phrasing.

• The Credit Policy-based recommendation – the application triggered one or more credit policies. The credit policy triggered determines the recommendation:

• • Approve - The credit policy triggered is set to recommend that the application be approved.

  • Decline - The credit policy triggered is set to recommend that the application be declined.

  • Review - The credit policy triggered is set to recommend that the application be reviewed by an underwriter for decisioning.

  • Decision – the final decision for this application.

  • Amount Approved – the amount approved for this application.

Click the plus icon (or click anywhere in the product's subsection heading) to expand the product subsection.

You can remove products that have not yet been decisioned and add more products to the application by reprocessing the application and then using the Change Products feature on the Edit Application page.

Note the following:

• The Amount Approved information is not displayed in the heading bar when the current product decision is Decline or Withdraw.

• If the Carleton Calculations (Carleton 2000 Quoter Calculator) option is turned on in product configuration for a consumer product, then the Decision Application page for an application containing that product will include the Carleton Calculator. If approving Bank2Consumer applications, you can use the Carleton 2000 Quoter forms to calculate amounts, if desired.

Each product subsection is further divided into three more subsections: Scoring Summary, Credit Policy Messages, and Recommendations and Decisioning.

Scoring Summary

The scoring information is shown within the Scoring Summary section.  

• Suite Number: If your institution uses ARM scoring, this field indicates the version number of the ARM model suite (1.0 or 2.0) used to generate the score. If your institution uses credit bureau scoring, the field displays the text Credit Bureau Score.

• Score: Application score (for this product). Only available for scored products.

• Credit Policy Rec: CPM-based recommended decision (for this product). Only available for CPM-based judgmental decisioned products.

• Potential Score Based Decline Reasons: This field lists the reasons for a decline decision for all SBSS products. The Fair Isaac decline reasons display on the Decision page below the Scores section.

• Model Type:  In order to provide additional information concerning the Intelliscore Plus score and model used and to match up with data for Portfolio Risk Advisor (PRA) clients who use Intelliscore Plus, the Model Type associated with that particular score is now displayed in the Bank2Business user interface and is contained in the daily and weekly performance download. The model types are:

• • Commercial/Large

  • Commercial/Medium

  • Commercial/Small

  • Commercial/Micro

  • Demographic Commercial

  • Blended

  • Small Business Owner

  • N/A  (When the Model Description is empty)

To examine details about how the scores were derived, see summary sections of the decision page. You can also look at the original application by clicking the View Application button.

Note: In certain cases, a Scoring Exception may occur, with only non-predictive scores returned. The Scoring Summary section will indicate that a Scoring Exception has occurred.

Action Menu

An action menu on the Product bar in the Credit Request section of the  Decision page. If a product meets the Credit Analysis Collation Rule(s), the Open Commercial Product Definition menu item is available in the Action Menu.

Credit Policy Messages

The number of credit policy messages that were triggered by this application appears in parentheses in the Credit Policy Messages heading bar. If the number you see in parentheses is greater than zero, click the plus sign in the Credit Policy Messages heading bar to expand the section and see the messages.

Recommendations and Decisioning

In the Recommendations and Decisioning section, the Requested fields are taken directly from the application. The Recommended fields derive from the base price schedule and credit risk schedule.

Note: The Recommended Amount field will be affected if the product configuration includes a credit limit schedule. See your administrator with questions about product configuration.

• If the credit policy recommendation is Decline, up to four Potential Credit Policy Decline Reasons are displayed.

• If the credit policy recommendation is Approve, the Credit Policy Approval Messages are displayed. There is no limit to the number of credit policy approve messages that can be listed on the Decision page.

In the Authorized section, choose your decision from the drop-down list. (If you want to enter comments about your decision, use the Comments section.)

Note: Your Score Authority settings, as defined in your security record, affect your ability to override decisions. If the application's Total Score is not within your Score Authority range, you will not be able to override the decision yourself. See the Lending and Score Authority topic for more details.

Note: The Lending Authority setting, Allow Override of Rate, as defined in your user record, affects your ability to override the Authorized Rate, Rate Type, and Index fields. If the application's Total Score is not within your Score Authority range, you will not be able to override the decision yourself.

• Approve. If you choose Approve, additional fields appear (as applicable) for you to enter the amount, term, and rate for which you’re approving this application, as well as any up front fees that you want to charge.

  If your Approve decision is an override (that is, the recommended decision was to decline), you also see the Override Reasons drop-down lists. If you are overriding a CPM-based decline, choose the override reason from the Credit Policy Decline Override Reason list.

  If you choose Variable as the rate type, an additional drop-down list appears with your index options (defined by your financial institution in its setup).

  You also have the option of placing conditions on your approval.

  Fill in the Est. Monthly Payment field if desired. If you do not enter a payment value, the default calculation shown next to the field will be used. Note: For HELOC products, the default calculation is controlled by whether your administrator defined this product as revolving or term.

• Decline. If you choose decline, you must select a Decline Type and the associated decline reasons:

  • Choosing Credit Score automatically fills the Decline Reason fields with the information pulled from the credit bureau report. These pre-populated decline reasons cannot be changed.

  • Selecting Judgmental enables all four Decline Reason fields and allows you to select from the custom decline reasons defined by your institution. None of the fields is completed automatically.

    Your administrator can now set up Bank2Business judgmental applications to be auto-declined based on the triggering of a CPM. To use this feature, your administrator must set up the configurable workflow to auto-decline based on one or more Credit Policy Messages (CPMs).  

    If a judgmental application is automatically declined, an adverse action letter is created listing the reasons for the judgmental declination.  Score based declination reasons are not available for the adverse action notices through the auto decline process.

  • Choosing Credit Score and Judgmental allows you to enter two of each type of decline reasons on the application. The first two Decline Reason fields are completed automatically with the first two reasons pulled from the credit report and are read-only. The other two Decline Reason fields allow you to select from the custom decline reasons defined by your institution. At least one judgmental decline reason is required.

  If you choose a decline type that includes judgmental decline reasons (Judgmental or Credit Score and Judgmental), the question Was information from an outside source or an affiliate who is not a consumer reporting agency (usually a credit bureau) used? appears. Choose Yes or No from the drop-down list. When you select Yes in this field, an FCRA third party disclosure is added to the decline letter generated for this product.

  Note: If your Decline decision is an override, you are also required to select an Override Reason from the drop-down list.

• Counteroffer. A counteroffer decision opens the terms of the product to negotiation with the client. After the decision is entered, the application moves to the Customer Acceptance task in the Baker Hill Origination workflow. Counteroffer is similar to overriding a recommended approve; when choosing counteroffer, you also choose your Decline Type, Decline Override Reason, Decline Reasons, and Counter Offer Conditions (these conditions are set up for your institution by your system administrator).

  Underwriters can set approval conditions when an application decision set to counteroffer. When the Decision drop-down field is set to Counteroffer, then the drop-down fields appear with the Approval Conditions label. These fields serve the same purpose as the Approval Conditions fields that are displayed when the application decision is set to Approve.

  For Bank2Business applications, six Approval Conditions drop-down fields are displayed. Only four Approval Conditions drop-down fields are displayed for Bank2Consumer and Bank2Dealer applications. These drop-down fields will be displayed whether the page is in edit or view mode.

  If the decision is an override, then either the two score override fields (Score Approve Override Reason, Other Score Override Reason) or the two credit policy override fields (Credit Policy Approve Override Reason, Other Credit Policy Override Reason) are displayed.

• If the counteroffer is accepted, then the application's decision will be treated as an approval and the application advances to the next task in the approved product workflow (document preparation, booking, etc.). If it is rejected, it is recorded as a decline. Appropriate decline documents are generated and the application is complete.

  Note: If the counteroffer is declined, the decline letter or adverse action letter will reference the original amount, not the countered amount.

• Withdraw. A withdraw is used when the applicant no longer needs the funds. If you choose Withdraw, three drop-down list boxes of reasons appear. You must select at least one reason.

  Note: If the application had already been decisioned and was sent back to be redecisioned, you'll see the original underwriter's decision. Even if you agree with the original decision, you still need to select your decision and complete the application.

Potential Score-Based Decline Reasons and Potential Credit Policy Decline Reasons

The Potential Score Decline Reasons are now displayed in the Recommendations and Decisioning sub-section of the Decision page.

For Credit Policy recommended Declines, the Credit Policy decline reasons are also displayed in the Recommendations and Decisioning sub-section of the Decision page.

Display Credit Policy Approve Messages

For Credit Policy recommended Approves, the Credit Policy Approve messages are displayed on the Recommendations and Decisioning sub-section of the Decision page.

There is no limit to the number of Approve reasons that are displayed on the Decision page. The number of Approve reasons is dependant on the number of Approve Credit Policies that are triggered.

Conditional Approval

When approving the application, you can choose to apply conditions to your approval. The list of possible conditions is defined by your financial institution in its setup.

After you complete the application, it moves to the Customer Acceptance task, where the relationship manager presents the terms and conditions to the applicant. If the applicant wants to counter the terms and/or conditions, the relationship manager records the applicant's position and sends the application to the Pending Negotiation task.

Inappropriate Decline Reasons

Some Credit Policy rules are not appropriate for all application types. Although no rule prevents assigning an inappropriate decline Credit Policy to a Credit Policy set, the system does alert you if the application triggered an inappropriate decline Credit Policy. The decline reasons associated with any Credit Policy that is triggered are now displayed on the Decision page, even if the Credit Policy is not appropriate to the offering type for the application. Inappropriate decline reasons are labeled as such so you can notify your system administrator to correct the issue.  

Populating Default Decline Reasons on Decision Page

For decline decisions, the Decline Type is automatically set to Judgmental if there is no valid score (the score is empty or negative), or 0, 998, or 999.  

When your underwriter selects a Decline Type, the default decline reasons are based on the selected Decline Type. The decline reason choices are:

• Credit Score – These decline reasons are populated automatically based on the reasons returned in the credit bureau report. If you select Credit Score as the Decline Type, the decline reasons cannot be changed.

• Judgmental - These decline reasons can be selected from an editable list of Credit Policy-triggered reasons (if any).

• Credit Score and Judgmental – Two of these reasons list the first two score-based decline reasons and two come from the first two Credit Policy-triggered reasons (if any). The two score reasons are read-only and two judgmental reasons are editable.

If the underwriter changes the Decline Type, the listed reasons are updated to reflect this change. If the underwriter changes from a Judgmental Decline Type to one of the other Decline Types, the judgmental decline reasons entered by the underwriter are deleted.