Decrements

Product Feature Guide

Table of Contents

Introduction

Decrements Configuration

Decrements Items, Their Description & Functionality

Adding a Decrement

Editing a Decrement

Deleting a Decrement

Introduction

Decrements are deductions applied to the interest rates on an application. They are essential because they help underwriters evaluate risk more precisely, ensure compliance with regulations, maintain financial stability by preventing overestimation of a borrower’s repayment capacity, and support market competitiveness by offering tailored mortgage products. This guide will introduce you to managing decrements effectively within our software, enabling sound, compliant, and profitable lending decisions. 

Decrements can be created and managed by admin-level users with the relevant permissions in the Manager Portal. To achieve efficient decrements management, it is important to properly configure the roles for users handling this responsibility. At the application level, the ability to manage decrements is permission-based and linked to the following permission:

Decrements Configuration

Decrements need to be configured manually by the company within the Manager Portal. To locate the decrements management section, follow these steps:

1. Navigate to the Manager Portal. 
2. Click on the Decrements option within the left-hand navigation. 

Decrements Items, Their Description & Functionality

Search Box - Located at the top left corner of the section. In the search box you are able to enter text/keywords related to the previously created decrements. All decrements within the search criteria in them will appear in a list view.

Sort the Decrements List - You can sort the decrements list by ascending or descending order. Simply click on the arrow icon next to the column header you wish to sort by. When the arrow points upwards, the list is sorted in ascending order; when it points downwards, it is sorted in descending order. The arrow in the sorted column will remain fixed, indicating your chosen criteria.

Ascending:	Descending:

‘Add New Decrement’ Button - Enables you to create a new decrement. When selecting this button a pop up will appear with fields to input data. The fields consist of: Type and Amount. 

Column List Headers

Type - The Type field refers to the category or classification of the decrement being applied. This could include various types such as income adjustments, expense deductions, or specific loan risk factors.

Amount (%) - The Amount specifies the percentage value of the decrement to be applied. This directly impacts the overall calculation in the loan application.

Active - This toggle button is used to activate or deactivate a specific decrement. When toggled on, the decrement can be applied at the application level. 

Ellipsis - Clicking on the ellipsis opens up the option to delete a decrement if necessary.

Items Per Page - Depending on how large your list is, you may have more than one page of decrements. To navigate through the pages, use the Items per page navigation at the bottom right hand side of your screen. With this functionality, you can indicate how many items per page you would like to see in groups of 10, 15, 25, 50, or 100. You can see how many pages there are and scroll forwards and backwards through the pages if need be. 

Adding a Decrement

To add a new decrement to the list, follow these steps: 

1. Click on the "Add New Decrement" button. 
2. A popup will appear providing fields to fill out for the new decrement.
   
   
3. Fill out the appropriate details:
   
   Note: The fields marked with an asterisk (*) are mandatory.
   • Type*: Enter the type of decrement e.g., "Preferred Broker Special Rate". 
   • Amount*: Enter the percentage value of the decrement.
4. Click on the "Create Decrement" button. 

The decrement will be added to the list. If you wish to cancel the process of creating the decrement, click on the cancel button .

Editing a Decrement

To edit the details of a Decrement, follow these steps: 

1. Find the decrement you wish to edit.
2. Navigate to the field you wish to edit and click on it. 
3. Update the data as necessary in the field. 

The system will automatically save any updates made. 

Deleting a Decrement

To delete a decrement, follow these steps: 

1. Find the decrement you wish to delete. 
2. Click on the ellipsis to the far right and select the “Delete” option.
   
   
3. Click on the “Remove” button in the pop-up that appears.  

The decrement will be removed from the list.

To understand how the Decrements configuration in the Manager Portal carries through to the application level, refer to the Increments and Decrements section of the Loan Details Widget PFG.