Lending overview
The lending service underwrites, funds and services two kinds of credit: loans that amortize on a schedule, and facilities that are drawn, billed and paid. Every product is defined as code.
Products
GET /loan-products lists the live products. A product carries its rate, day count, principal and term ranges, origination fee, late fee, grace days, debt-to-income limit, minimum credit score, and the days past due at which a credit stops accruing and is charged off. A loan or facility keeps the product_code and product_version it was underwritten on.
| Opened with | product_code |
|---|---|
POST /loans | term_loan_business, personal_loan, sba_7a_term_loan, commercial_mortgage, residential_mortgage |
POST /facilities, revolving | commercial_revolver (under a borrowing base), credit_card_consumer, overdraft_line, heloc |
POST /facilities, other kinds | construction_loan, standby_letter_of_credit, factoring_facility, floor_plan_line, warehouse_line, merchant_cash_advance |
A facility product applied for through POST /loans is refused, and the other way round. A residential mortgage collects escrow and goes through mortgage origination for its Loan Estimate and Closing Disclosure. An SBA 7(a) loan carries the product's 75 percent guarantee.
The objects
| Object | What it is |
|---|---|
| Loan | The application, its underwriting decision, and after funding the balance, accrued interest, schedule, payments and delinquency state. |
| Facility | A committed line: limit_amount, drawn_amount, available_amount, draws, statements and payments. |
| Loan Product | The terms a loan or facility is underwritten on. |
| Closing | The signed terms, documents, reviews and funding release that a loan needs before it can be disbursed. It lives under the loan or facility. |
| Mortgage Origination | Mortgage intake, calculated disclosures and their delivery evidence, bound to the approved loan. |
| Collateral Loan | A loan's facts as the bank's collateral register sees them, and the register's pledge on it. |
| Credit Bureau Furnishing | A Metro 2 file built for a reporting cycle and its submission. |
A loan names the deposit account it funds into and is paid from, its disbursement_account_id. A facility names a settlement_account_id for the same purpose. The account must be open, belong to the applicant and match the product's customer type and currency. Funding opens a receivable account in the ledger, the credit's ledger_account_id. A credit card is issued on a revolving facility.
The bank's lending controls
Three figures are configuration, set by the bank and not through the API.
LENDING_CAPITAL_MINORintegerThe capital figure the legal lending limit is measured against, in minor units.
LENDING_LIMIT_BPSintegerThe share of that capital one borrower's total exposure may reach, in basis points. Never above 10000. A local stack that leaves it unset gets 1500.
LENDING_DRAW_APPROVAL_MINORintegerThe amount at or above which a staff advance on a facility needs a draw authorization that a second officer approved.
An application that would take the borrower past the limit is recorded as declined with that reason. Approving a credit in review measures the limit again and answers 409 conflict if it no longer fits. Exposure counts a credit in review at its full amount. Outside the local environment the service does not start unless all three figures are positive. A local stack may leave them unset, which turns the limit check and the draw rule off.
Who may call
A customer token can read that customer's loans, schedules, payoff quotes and facilities, and can pay a consumer loan after a step-up within five minutes. Every other route needs a staff or service identity, and API keys are refused. A credit decision needs staff with operations:approve and a recent step-up. Closing records need lending:write and a recent step-up.
Daily runs
The servicing jobs are API calls that take a business_date: POST /loans/accrual-runs, POST /loans/delinquency-runs and POST /loans/allowance-runs. POST /facilities/statements bills facilities for a period.