What does the exception process look like?

In this case, as an eligibility requirement, the only way to satisfy the exception would be to override it. As mentioned previously, this is completely at your discretion and, if applicable, override capability is enabled at the Policy Condition level by checking the “Enable Override” checkbox (this allows authorized users to override the Policy Condition’s status). “Enable Override With Approval” can also be checked…this allows authorized users to override the Policy Condition’s status, but it requires an Approval Process to finalize the change (this is how we enable dual controls in exception override scenarios).

Check out what the resulting exception looks like to loan teams in the Q2 Origination UI:

What does the exception process look like?

Since we have already gone through a document-based policy exception workflow previously in this demonstration (when we walked through the KYC/identity verification exception tracking and satisfaction process), I suggest we approach this question with the following demonstration: • Quick review of exception tracking and satisfaction using documentation – in this case, we will use a document to satisfy a business verification/KYB exception. • Review of exception overrides – using the previous “NHM Eligibility Condition – Years in Business” Policy

Condition example as the basis of this demonstration.

Let’s start with bullet #1 – Quick review of exception tracking and satisfaction using documentation. Going back to the application we used in the previous identity verification/KYC example, you can see that we have other exceptions we need to satisfy before we can finalize the loan. Specifically, we will focus on the “Tax Identification Number Verification (KYB)” for purposes of this portion of the demonstration.

Click “Actions” and select the “Documents” option from the resulting menu.

Again, we see a list of documents that we can capture to satisfy the exception (in this case, SoS Registration, Business Tax Returns, etc. – remember that Policy Condition Satisfaction Criteria is configurable by you). For purposes of this brief refresher demonstration of exception tracking and satisfaction using documentation, let’s assume the document has already been captured from the borrower.

Since the document has already been captured, all we need to do is approve the document to satisfy the exception. Select “Approved” from the Status picklist.

Once we have approved the document and closed the modal/window, the status “Tax Identification Number Verification (KYB)” condition is automatically updated to “Satisfied”. In addition, notice that the “Proof of Ownership (KYC)” exception was also satisfied automatically because the document we used to satisfy the “Tax Identification Number Verification (KYB)” condition also satisfied the “Proof of Ownership (KYC)” exception (this is

evidence of our ability to satisfy multiple exceptions at the same time if they share similar Satisfaction Criteria – an example of efficiencies created by Q2 Origination).

Now, let’s move to the second bullet #2 – Review of exception overrides. In scenarios where an exception cannot be satisfied by documentation or data, but the FI is willing to take on the risk associated with the exception, the FI may override the exception. For this demonstration, let’s use the “NHM Eligibility Condition – Years in Business” condition we created earlier and let’s say you’re willing to override this exception for a particular loan (where the business borrower has only been in business for one year) based on other credit factors associated with the loan. In these cases, the Policy Condition must have “Enable Override” set to TRUE (as demonstrated previously); and if overrides are enabled for the Policy Condition, authorized users will see a new option on the Actions menu for the exception – “Override Status”.