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Request Loan Approval

Overview​

This feature allows loan originators to submit completed loan applications for review and authorization by appropriate approval authorities, initiating the formal approval workflow process.

What It Does​

The Request Loan Approval feature enables loan originators to submit completed loan applications into structured approval workflows that route applications to appropriate authorities based on loan size, risk characteristics, and institutional delegation policies. The submission process verifies that applications include all required information and documentation before routing them for approval review.

When originators submit loans for approval, the system validates application completeness by checking that all required data fields are populated, necessary documentation is attached, credit reports have been ordered and received, collateral valuations are current and adequate, income verification is complete and documented, and underwriting analysis has been performed and documented. This validation ensures that approvers receive complete packages for review rather than incomplete applications that waste approval capacity.

The feature automatically determines the appropriate approval routing based on configurable business rules that consider loan amount, loan type, credit risk rating, policy exceptions present, borrower relationship status, and geographic location. Small, routine loans may route directly to individual loan officers with appropriate authority, while larger or more complex loans route through multiple approval levels including senior credit officers, credit committees, or board-level review.

Throughout the approval process, the system provides real-time status visibility to loan originators, applicants, and management, showing where each application is in the workflow, which approval levels have been completed, which authorities are currently reviewing the application, and estimated time to final decision. This transparency improves customer service by enabling accurate status updates and supports portfolio management by providing visibility into application pipeline status.

Business Value​

This feature delivers significant value by automating approval routing and ensuring that loan applications reach appropriate authorities efficiently without manual intervention or workflow delays. Automated routing based on objective criteria reduces processing time while maintaining appropriate controls and review standards for different loan types and sizes.

By validating application completeness before submission to approval review, the feature protects approval capacity from being wasted on incomplete applications that cannot be properly evaluated. This efficiency improvement allows approvers to focus on substantive credit analysis rather than chasing missing information or documentation.

The structured approval workflow provides clear accountability for credit decisions by documenting who reviewed each application, at what approval level, with what outcome, and with what rationale. This audit trail supports regulatory compliance, quality control, and performance management by providing complete visibility into approval processes and decision-making.

Who Uses This Feature​

Loan officers and loan processors use this feature daily as they complete loan applications and prepare them for approval review. They verify that applications are complete, accurate, and properly documented before submitting them into approval workflows, ensuring efficient processing and timely decisions.

Branch managers and assistant branch managers access this feature to submit loan applications within their origination area, monitoring application status through the approval process and following up when additional information or approvals are needed to move applications forward.

Centralized loan processing centers use this feature to manage high volumes of loan applications, submitting completed applications in batches and monitoring overall pipeline status to ensure that applications are moving through approval workflows on schedule and meeting service level commitments to applicants and referral sources.

Key Capabilities​

The Request Loan Approval feature provides comprehensive application completeness validation that checks dozens of data elements and documentation requirements before allowing submission to approval review. The validation rules are configurable by loan type, allowing different requirements for different products while ensuring consistency within each product category.

The system provides flexible approval routing that can accommodate complex organizational structures and delegation arrangements. Routing rules can consider multiple factors simultaneously, such as routing large loans with policy exceptions to credit committees while routing similar-sized loans without exceptions to senior credit officers, ensuring that workflow complexity matches credit complexity and risk.

Real-time status tracking and notifications keep all stakeholders informed about application progress through approval workflows. Originators receive alerts when applications are approved, denied, or require additional information. Approvers receive notifications when new applications arrive in their queues. Applicants can check application status through customer portals, improving transparency and customer satisfaction.

How to Use​

To request loan approval, originators navigate to the completed loan application and select the submit-for-approval action. The system performs comprehensive validation of application completeness, displaying any missing required information or documentation that must be provided before submission. Originators address any validation errors or warnings before proceeding with submission.

If the application includes any policy exceptions or unusual features, the system prompts originators to document the exception justification and provide any additional supporting information that approvers will need to evaluate the exception. This upfront documentation streamlines the approval review process by ensuring approvers have necessary context and justification.

After validation passes, originators confirm the submission and the system routes the application to the first required approval level based on approval routing rules. The originator receives confirmation of successful submission including information about the approval workflow path and estimated timeframe for decision. The application appears in the appropriate approvers' review queues immediately, enabling prompt review and decision.

Common Use Cases​

Financial institutions use this feature in standard loan production workflows where originators complete applications and submit them for approval as the natural next step in the lending process. The seamless transition from application completion to approval review supports efficient loan processing and minimizes cycle time from application to funding.

In mortgage lending operations, loan processors use this feature to submit completed residential mortgage applications to underwriters for approval review. The feature ensures that underwriters receive complete files that meet secondary market or portfolio lending requirements, reducing the incidence of loans being suspended for additional documentation.

Commercial lending teams use the feature to submit business loan applications for credit committee review, ensuring that committee members receive complete credit packages in advance of committee meetings. The system can automatically schedule applications for specific committee meetings based on application completion dates and committee calendars.

Important Considerations​

When submitting applications for approval, originators must verify that all information is accurate and properly documented, not just that required fields are populated. Submitting applications with questionable information that passes technical validation but fails substantive review wastes approval capacity and delays processing while issues are resolved.

The timing of approval submissions can impact processing efficiency and customer satisfaction. Submitting incomplete applications that will be rejected during validation creates unnecessary work and delays. However, holding completed applications without prompt submission to approval review creates different delays that disappoint customers and potentially lose business to competitors with faster processing.

Originators should communicate realistic expectations to applicants about approval timeframes based on the approval workflow path that each application will follow. Large loans requiring multiple approval levels or credit committee review will take longer than small loans approved by individual loan officers, and setting appropriate applicant expectations supports customer satisfaction even when processing takes longer.

Important Considerations (continued)​

Documentation of policy exceptions and unusual loan features should be thorough and persuasive, anticipating approver questions and concerns. Applications with significant exceptions are more likely to be approved if the originator has proactively addressed potential concerns and provided strong justification for approving despite deviations from standard policies.

Integration with Other Processes​

The Request Loan Approval feature integrates closely with loan origination systems, automatically pulling application data and documentation from origination files and packaging it for approval review. This integration eliminates duplicate data entry and ensures that approvers review current, accurate information from authoritative sources.

Integration with document management systems ensures that all required documentation is attached to applications when they are submitted for approval. The system validates that documents are present, properly categorized, and current before allowing submission, preventing approval delays due to missing documentation.

The feature connects with workflow management and task tracking systems, creating approval tasks for appropriate approvers and monitoring completion of those tasks. This integration supports workload balancing across approvers and enables escalation when applications are not reviewed within expected timeframes.

The Approve Loan and Reject Loan features work directly with this feature, providing approvers with the capabilities to make credit decisions on submitted applications. Together, these features form a complete approval workflow from submission through final decision.

The Undo Loan Approval feature allows reversal of approval actions when necessary, working in conjunction with the approval request process to support correction of approval errors or changed circumstances after initial approval. This capability provides flexibility while maintaining appropriate controls.

The Loan Application and Loan Modification features feed into this approval request feature, with completed applications and modification requests being submitted through this feature for approval authorization. The consistent approval workflow ensures that all credit decisions receive appropriate review regardless of whether they involve new loans or modifications to existing loans.