Loan Security Code Configuration

This document provides technical guidance on configuring Loan Security Codes within the FLEX system. Loan Security Codes are crucial for managing how loan information is reported to credit bureaus.

1. Overview

• Purpose: Loan Security Codes are assigned to loans during the loan origination process. They directly influence the reporting of loan data to credit bureau(s).
• Location: The Loan Security Code Configuration interface is accessible via the FLEX Main Menu, under System Administration.
  • Navigation Path:
    • System Administration
      • FLEX Vault
        • General Configuration
          • Configuration
            • Managerial
              • Profitability Ratios
                • Loan Security Code Configuration

2. Managing Loan Security Codes

Upon navigating to the Loan Security Code Configuration, a list of all existing loan security codes will be displayed.

• Adding a New Code: Click the Add button to create a new loan security code.
• Editing an Existing Code: Highlight an existing security code and then select the Edit option (implied by the document, though not explicitly stated as a button).
• Deleting an Existing Code: Highlight an existing security code and then select the Delete option (implied by the document, though not explicitly stated as a button).

3. Edit Loan Security Code Interface

When adding or editing a loan security code, the “Edit Loan Security Code” interface is presented, divided into two primary sections: General and Interest Rates.

3.1. General Section

This section contains fundamental settings for the loan security code.

• Security Code:
  • Field Type: Two-digit alphanumeric code.
  • Purpose: Used to uniquely identify and designate the security code within the system.
  • Example: 1A (as shown in the provided example).
• Description Length 4/6/10/16:
  • Field Type: Text fields for descriptions of varying lengths.
  • Purpose: These descriptions are displayed throughout the FLEX system wherever security codes are referenced. Providing descriptions of different lengths ensures appropriate display in various system contexts.
  • Examples:
    • Description Length 4: NAUT
    • Description Length 6: NEWAUT
    • Description Length 10: NEW AUTO
    • Description Length 16: NEW AUTO
• Credit Bureau Account Type:
  • Field Type: Dropdown or selection list.
  • Purpose: Used to select the specific credit bureau account type associated with the loan security being configured.
  • Example: 00 – Auto
• Verify Interest Rates:
  • Field Type: Selection (e.g., radio buttons, dropdown).
  • Purpose: Determines if interest rates for loans using this security code require verification.
  • Options:
    • N (No verification): No interest rate verification is performed.
    • R (Range): Allows the loan’s interest rate to fall within a specified range, typically between Interest Rate #1 and Interest Rate #2 as defined in the Interest Rates section.
    • A (Actual): The loan’s interest rate must be exactly equal to one of the rates configured in the rate table (i.e., one of the Interest Rate #1 through Interest Rate #20 values).
• Active:
  • Field Type: Checkbox or toggle.
  • Purpose: Indicates whether the loan security code is currently active and available for use within the system.

3.2. Interest Rates Section

This section allows for the definition of up to 20 specific interest rates.

• Interest Rate #1 – #20:
  • Field Type: Numeric input, typically formatted as a percentage (e.g., 0.000%).
  • Purpose: Enter specific interest rates as required. These rates are used in conjunction with the “Verify Interest Rates” setting in the General section, particularly for “Range” and “Actual” verification types.
  • Default Value: 0.000% (as shown in the provided example for rates #1 through #10).

4. Saving Changes

• After configuring the General and Interest Rates settings, click the Save button to apply the changes and store the new or updated loan security code.
• Click Cancel to discard any changes and return to the previous screen without saving.