Loan funding process

The Arix funding engine allows you the flexibility to control how the loan is funded. You can enter instructions and control the rails and the order in which to attempt to fund over those rails. You can also elect to fund different parts of the loan over different rails and supply fallback options if rails fail.

After the loan is approved for funding, Arix initiates funding. The loan passes to the InFunding status and funds are sent using rails.
Note: Any loan update made via a /PUT call is ignored when the loan is InFunding.

There are several rail types you can use, click here for more information. Depending on the rail type, funding results might be immediate or take up to a few days.

After funding, the loan passes through these stages:

  • The funds are sent and received successfully
  • The loan seasoning period begins
  • The loan is sold

Arix generates webhooks which keep you up to date on the loan status.

Based on how the funding progresses, the loan can be in one of these statuses:

  • InFunding leading to Funded
  • NotFullyFunded
  • Returned

Infunding/Funded

  1. After the loan is approved, funding starts automatically. CRB attempts to process the first rail. Arix tries the Priority 1 rail first to start funding.
    Status: InFunding

    If all the rails are assigned the same priority, Arix works through the loans in the order they were     submitted, such as priority 2, priority 3, and so on. If no amount is specified in the request, the     funding engine attempts to fund the full loan amount.

  1. When all the rails are successfully funded, the status of the loan changes to funded.
    Status: Funded
  2. After the loan has funded, the loan seasoning period begins, which typically occurs on business day 2 or 3 from the funding date.

In most cases the funding goes smoothly and the funds are fully received by the borrower. However, funding requests can fail immediately or succeed, and then be returned later.

NotFullyFunded

If the loan doesn't fully fund from the first rail (priority 1), the engine looks for the priority 2 rail. A priority 2 rail can be:

  • A rail that was originally designated as a priority 2 (to follow a priority 1 rail)
  • The next priority 1 rail

The funding engine continues to process rails until there are no rails left to process.

If after all the rails have been processed there is an outstanding loan balance, the loan status is then updated to NotFullyFunded. When NotFullyFunded, you can submit new funding information.

Skipped rails

If the loan is fully funded prior to the last rail, any rails that weren't attempted are labeled Skipped. A message shows in the LoanDetail API explaining the reason for the skipped rail.

Returned funds

Failed, rejected, or returned rails

If a rail fails, is rejected, or returned, Arix reports a detailed error message as part of the railUpdate webhook and in the LoanDetail API.

Loan funding follow-up

Arix records all the funding attempts and continuously updates the status as each rail is processed, funded, or failed. If the loan wasn't fully funded and is in the status, NotFullyFunded, you can submit new funding information 2 more times. This is also the process for required multiple disbursements over a period of time for a single loan.

You can use the LoanDetail API to follow the progress of the loan. Among the details that are at the bottom of the API:

  • ProcessedRails
    Funding details for the rails.

  • ValidationFail & RequestFailure
    Any error that happened during rail funding. An explanatory message shows in the Message property.

{
    "ResponseStatus":{
        "ErrorCode":"NullReferenceException",
        "Message":"Object reference not set to an instance of an object.",
        "Errors": []
    }
}

Note: If a loan was Funded and you have to make changes to the loan, you can send an Adjustment action via PUT /Loan/{Id}/FundingInfo.


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