Product Feature Guide
Increments Items, Their Description & Functionality
Adding or Deleting an Increment
Selecting Increments by Category
Setting the Max Standard Increment Percentage
Configuring the Max Standard Increment Percentage
How the System Handles Increments Above the Max Standard Percentage
Introduction
Increments are percentage-based adjustments applied to interest rates within loan applications. These adjustments allow lenders to account for various factors such as risk-based pricing, market conditions, or special promotions. By managing increments effectively, lenders can offer more competitive and customized loan products while ensuring profitability and compliance with internal policies.
At the application level, managing increments is permission-based and linked to the following permissions:
This guide provides an overview of how to manage increments, including how to adjust amounts to ensure that all increments are properly configured for loan applications.
Increments is a tenant setting meaning it is only available in your environment if you request to enable this functionality. To do so, please contact the Client Success Team.
Increments Configuration
Increments are managed within the Increments section of the Manager Portal, by admin-level users with the appropriate permissions. To ensure efficient management of increments, it is essential to configure roles correctly for users responsible for this function.
To locate the increments management section, follow these steps:
- Navigate to the Manager Portal.
- Click on the Increments option within the left-hand navigation.
There are restrictions with managing increments. Lenders have the ability to edit the Amount (%) of each increment. All other fields, such as Type, Category, and Term, are configured and maintained by FundMore. The ability to add or delete increments is also restricted to FundMore, ensuring consistency and accuracy in the system. If you need increments added, edited, or deleted please contact the Client Success Team.
Increments 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 increments. All increments matching the search criteria will appear in a list view.
Sort the Increments List - You can sort the increments 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.
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Column List Headers
Type - Refers to the classification of the increment, such as risk-based pricing adjustments, promotional rates, or market-driven increases. This field is configured by the development team.
Category - Specifies the group or classification the increment falls under, such as loan types or borrower profiles. This field is also configured by the development team.
Term - Indicates the duration or loan term to which the increment applies. It must be configured by the development team.
Amount (%) - The percentage value of the increment, which directly affects the interest rate calculation on a loan application. This is the only field that lenders can edit.
Items Per Page - Depending on the size of your list, you may have more than one page of increments. Use the Items per page navigation at the bottom right corner of your screen to manage how many items are displayed per page. Options are available for viewing in groups of 10, 15, 25, 50, or 100 items per page. Navigate through the pages using the forward and backward controls as needed.
Editing an Increment
There are limitations to editing an increment. You can modify the Amount (%) field for an increment directly within the Manager Portal. All other fields—Type, Category, and Term—must be updated by the development team. To edit these fields, please contact the Client Success Team. They will assist with initiating the process to ensure the necessary changes are made by the development team.
To edit the Amount (%) of an increment:
- Navigate to the Increments section of the Manager Portal.
- Locate the increment you wish to edit.
- Click on the Amount (%) field and update the value as needed.
The system will automatically save your changes.
Adding or Deleting an Increment
To add or delete an increment, please contact the Client Success Team. They will assist with initiating the process to ensure the necessary changes are made by the development team.
Selecting Increments by Category
Increments can be organized into categories to streamline selection based on lending criteria. However, please note the following default behavior:
- When increments are broken down by Category, the system allows only one increment per category to be selected. This ensures that only a single adjustment is applied within each category for any given loan application.
- If your lending strategy requires the flexibility to select multiple increments without category limits, increments should be organized into a single category only. This configuration removes the cap on selection, allowing for broader application of increments across the loan.
- Client-specific Configuration: For certain clients, a tenant setting may be applied to remove increment categories, enabling multi-selection with a maximum cap of 99%. If you require unrestricted multi-selection of increments, please contact the Client Success Team to discuss available configurations for your tenant settings.
This setup enables lenders to tailor their increments configuration based on their specific requirements for flexibility and control.
Setting the Max Standard Increment Percentage
The Max Standard Increment Percentage feature allows admin users to define the maximum allowable percentage for standard increments within the Manager Portal. This setting ensures that increments applied to loan applications remain within predefined limits, helping to maintain consistency and manage risk effectively.
Configuring the Max Standard Increment Percentage
- Navigate to the Manager Portal and select the Settings tab.
- Locate the Max Standard Increments (%) field and enter the desired maximum percentage. For example, you might set this to 10%.
This configuration sets the upper limit for standard increments that can be applied to deals, ensuring that no increments exceed this percentage unless explicitly permitted.
How the System Handles Increments Above the Max Standard Percentage
Once the Max Standard Increment percentage is configured, the system actively monitors increments applied to loan applications. If a user attempts to apply an increment that exceeds the configured Max Standard Increment percentage, the system automatically adjusts the increment to align with the maximum allowable percentage.
Example Scenario:
- An admin configures the Max Standard Increment percentage to 10%.
- The admin then navigates to the Increments tab to review the standard increments available. Some of these increments may be above the 10% threshold.
- When a user selects an increment higher than the configured maximum (e.g., 15%) during the deal process, the system recognizes this and applies the Max Standard Increment of 10% instead.
This automated adjustment ensures that increments remain within the set limits, providing a safeguard against unauthorized changes that could impact loan risk profiles and compliance.
Demonstration
For a visual walkthrough of this functionality, please refer to the video demonstration linked below:
Video: Use max standard increment percentage in calculations
In the video, you'll see how an admin configures the Max Standard Increment percentage and how the system applies these settings during the deal process, ensuring that all increments conform to the configured standards.
To understand how the Increments configuration in the Manager Portal carries through to the application level, refer to the Increments and Decrements section of the Loan Details Widget PFG.