Challenge Dec-2016 “Loan Approval”

challengeyourselfWe’ve just published a new Dec-2016 Challenge “Loan Approval”.  It deals with a complex loan approval process when new facts about borrowers are being dynamically discovered in real-time. Hope soon we will see interesting solutions from business rules and decision management vendors and consultants.

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4 Responses to Challenge Dec-2016 “Loan Approval”

  1. This challenge needs a bit more information on how the computations are made.
    What I do not understand is how you compute that Peter Johnston has a personal equity in the first step. He has a monthly income of 4000 and monthly debt of 2500. I somehow have to combine this to get to an equity of 25200 according to the OpenRules video. How is this calculation done?
    Another question is how you get to an accumulated remaining of 48800 in step 3. With a new debt of 200k and equity of 52k I would expect a change of 52k – 200k = -148k. However, 125200-148k = -22800 which is not 48800 as mentioned.

  2. jacobfeldman says:

    Maarten,
    I plan to provide a solution for this challenge using our latest DMN implementation as time permits. Meanwhile, you may see how it was done years ago with basic Rules tables at http://openrules.com/loan_dynamics.htm. I believe it includes the calculation logic as well.
    Jacob

    • Yes, that documentation answers my first question. For calculating the Borrower equity you take (Monthly Income * 0.8 – Monthly Debt) * Loan Term = 25200. Without this essential information it is not possible to make a good start.

      It does not answer my second question though. The code shown there indeed indicates that for calculating the value you indeed take all the equities minus the debts and the loan amount. In step 3, I would expect a change of 52k – 200k = -148k. However, 125200-148k = -22800 which is not 48800 as mentioned.

  3. jacobfeldman says:

    Maarten,
    Today I created a decision model in OpenRules that describes all calculations in details.Hopefully, if I didn’t make mistakes, it will clarify your concerns – see https://goo.gl/Pfqr1L. Looking forward to seeing your solution,
    Jacob

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