EXCEPTION TRACKING
Comprehensive Exception Monitoring & Tracking Solutions
What Are Exceptions?
For banks and credit unions, exceptions occur anytime documentation or criteria for a loan or a deposit account does not meet the institution’s established policy.
Types Of Exceptions
Document Exception Policy Exception
Document Exceptions Policy Exceptions
Document Exception
Document exceptions occur when a document provided by a customer for the purposes of obtaining or maintaining a loan or opening a deposit account do not meet the criteria set by the institution’s policy. A document exception may occur when a required document is expired or unsigned or does not contain the necessary information that is required.
Policy Exception
Policy exceptions occur when data, not document content, fails to meet the institution’s policy. An example of a policy exception is when an applicant’s credit score is below the policy threshold to qualify for a loan or when the calculated debt service coverage ratio is below the policy threshold. In these examples, the exception is related to a determination and not related to a specific document.
Exceptions During Origination
WhendoExceptions Occur?
Ongoing Exceptions
Exceptions that occur during the process of underwriting and booking a new loan or opening a new deposit account can be wideranging. Problems may exist where specific documents are missing appropriate signatures or dates.
Banks and credit unions perform ongoing risk management tasks for their largest loans, loans within a concentration, or loans that meet other specific criteria set out by their loan policy.