Reputation-based Decision Modeling: CLR Path powered by Lender*VP

A Decision Model Based on What YOU Know About Your Members

Open the introductory flyer
Open the slides and mockup from the CEO Strategic Developers Boot Camp Update (November 2019)

Overview from the Project Spec

This project develops a new in-house decision model (CLR Path is pronounced “clear path” and stands for “Consumer Lending on Reputation”) that takes a look at a member’s status and relationship with the credit union to help determine a loan approval decision.  Criteria like how long the membership has been open, member age, account balances, loan history and ACH/payroll deposits are considered.

Since the service will be 100% free to use, no specific criteria must be met in order to run the model. If a CLR Path Decision Model code is activated for the loan product, the decision model will automatically run when working any loan application.  (Note: Only the primary borrower is evaluated; non-members cannot be run through the CLR Path Decision Model.)

The CLR Path Program Configuration consists of:

  • Option to exclude specific membership designations from automatically running through the model
  • Minimum CLR Path score that qualifies as a “pass” decision
  • The criteria itself, for example previous credit score of between xxx and xxx (see the prototype)
  • Activation flag (on/off indicator to specify if that criterion should be considered)
  • Point value to assign if the primary member meets the criterion

The credit union can configure as many CLR Path Decision Model programs as desired (auto loans, unsecured signature loans, etc.).  Templates created by Lender*VP will be provided to give you a place to start.  Requirements to pass the decision model can be tailored to specific types of loans, and can be adjusted on the fly as you evaluate and test your model settings.

The CLR Path Decision Model will automatically run just before you reach the Summary page of the loan application if a CLR Path Decision Model code is specified on the loan product configuration, but can also be run separately from Tool #53 Process Member Applications.   If the criteria is met, the configured point values are assigned and then totaled to determine a member’s total CLR Path score.

The decision model results will be stored in a separate (new) table that can be viewed on a new CLR Path  Decision Model Results screen.  The results screen can be accessed from either the Summary page of the loan application or will automatically display when the CLR path decision model is run or an existing decision is viewed from Tool #53 Process Member Applications.

Notes:

  • The CLR Path Decision Model can be run as many times as you would like for the member but will not run more than once the same day.
  • At this time, there will not be any automatic approvals.  The CU can evaluate the CLR Path Decision Model results to determine final approval.

Project Status

As of November 18, 2019, project #52292 is awaiting availability of programming resources.

Chef for this recipe:  Pete Winninger

Updated
November 19, 2019

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