Collateral Management
Overview
Collateral management in timveroOS provides comprehensive functionality for defining, tracking, and monitoring secured assets throughout the loan lifecycle. The system enables configuration of various collateral types, automated valuation processes, and risk-based monitoring to ensure adequate loan security.
Business Context
timveroOS offers a complete solution for collateral management, allowing financial institutions to:
Add collateral requirements to products and additives
Track collateral throughout the loan lifecycle
Monitor values and coverage ratios
Automate documentation requirements
Ensure regulatory compliance
Asset Configuration
Asset Types
Similar to participant customization, assets (collateral) can be configured in the SDK to match institutional requirements. Once configured, these assets become available for:
Product configuration
Additive requirements
Workflow integration
Document association
Standard Asset Categories
Common collateral types include:
Real Estate: Residential, commercial, land
Vehicles: Automobiles, commercial vehicles, equipment
Financial Assets: Deposits, securities, receivables
Other Assets: Inventory, equipment, other tangible assets
Technical Implementation Note
Assets (collateral types) are configured in the SDK similarly to Participants:
Extend base entity classes with appropriate annotations
Implement required interfaces for document support
Define custom fields for asset-specific data
Create form classes for data entry validation
The SDK enables creation of any asset type with custom attributes, validation rules, and business logic.
Note: Asset customization requires SDK development. Contact your implementation team for specific collateral type requirements.
Collateral Requirements
Product-Level Configuration
Collateral requirements can be set at the additive level, allowing for:
Risk-based security requirements
Product-specific collateral types
Flexible loan-to-value ratios
Conditional collateral needs
Dynamic Requirements
The system supports conditional collateral requirements based on:
Borrower credit profile
Loan amount thresholds
Product risk characteristics
Regulatory requirements
Collateral Provider Role
Role Configuration
The Collateral Provider role can be:
A standalone role for third-party providers
Combined with existing roles (e.g., Borrower who provides collateral)
Associated with specific documentation requirements
Linked to workflow processes
Documentation
Collateral-related documents can be associated with:
The collateral asset itself
The Collateral Provider role
Specific workflow stages
Compliance requirements
Integration with Additives
Additive Configuration
When configuring additives, collateral settings include:
Collateral Requirements: Required/optional designation
Acceptable Types: Specific asset categories allowed
Coverage Ratios: Minimum LTV or coverage requirements
Valuation Rules: How assets are valued
Conditional Offers
The system handles scenarios where:
Borrowers qualify for products but lack required collateral
Offers are generated but remain unselectable until collateral is added
Dynamic recalculation occurs when collateral is provided
Multiple collateral options are available
Valuation Management
Valuation Methods
Configure how collateral values are determined:
Manual appraisal entry
Automated valuation integration
Reference value tables
Depreciation schedules
Value Monitoring
Set up monitoring parameters:
Revaluation frequency
Value change thresholds
Alert triggers
Update business flows
Workflow Integration
Collateral in Decision Workflows
Collateral impacts automated decisions through:
LTV calculations in underwriting
Conditional approval paths
Documentation requirements
Risk assessment modifications
Status-Based Actions
Configure actions based on collateral status:
Missing collateral notifications
Valuation update requests
Insurance verification
Lien position confirmation
Documentation Requirements
Collateral Documents
Standard documentation includes:
Ownership documents (titles, deeds)
Valuation reports (appraisals)
Insurance policies
Lien searches
Registration documents
Automated Generation
The system can automatically generate:
Security agreements
UCC filings
Collateral receipts
Release documents
Risk Management
Concentration Monitoring
Track portfolio concentrations by:
Collateral type
Geographic location
Value ranges
Asset age/condition
Coverage Analysis
Monitor security coverage through:
Portfolio LTV tracking
Cross-collateralization review
Margin monitoring
Exception reporting
Servicing Integration
Ongoing Management
During loan servicing, collateral management includes:
Insurance tracking
Property tax monitoring
Value updates
Maintenance requirements
Release Procedures
Configure collateral release workflows:
Automatic release triggers
Partial release options
Documentation requirements
Notification processes
Configuration Process
Initial Setup
Define Asset Types
Configure in SDK
Set attribute requirements
Establish validation rules
Link to Products
Add to additive configurations
Set requirement conditions
Define coverage parameters
Configure Workflows
Add collateral evaluation steps
Set up verification processes
Define approval impacts
Establish Documentation
Link document templates
Set generation triggers
Configure storage rules
Testing and Validation
Test collateral workflows with sample applications
Verify calculation accuracy
Validate document generation
Confirm system integrations
Best Practices
Configuration Guidelines
Start with common collateral types
Use clear naming conventions
Document business rules
Test edge cases thoroughly
Operational Considerations
Regular valuation updates
Consistent documentation standards
Clear release procedures
Comprehensive audit trails
Risk Management
Set appropriate coverage ratios
Monitor concentration levels
Track insurance compliance
Maintain valuation accuracy
Integration Points
System Components
Collateral management integrates with:
Product Configuration: Requirements and terms
Workflow Engine: Decision logic and routing
Document Management: Automated documentation
Pricing Engine: Risk-based pricing adjustments
Reporting System: Portfolio analytics
External Systems
Valuation services integration
Insurance verification systems
Government registries
Title/lien services
Common Use Cases
Auto Lending
Vehicle identification and valuation
Insurance tracking
Registration monitoring
Depreciation handling
Real Estate Lending
Property appraisals
Title verification
Insurance requirements
Tax monitoring
Asset-Based Lending
Inventory tracking
Receivables monitoring
Blanket liens
Borrowing base calculations
Next Steps
With collateral management configured, proceed to:
Workflow Management - Build automated processes
Loan Servicing - Configure ongoing management
Covenants - Set up compliance monitoring
For additional collateral management support, consult your implementation team or system documentation.
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