Dynamic Loan Evaluation Solutions
Nowadays it’s not enough for decision making applications to simply execute a complex rules-based transaction, forget about it, and wait for the next one. They should be able to learn from already executed transactions and evaluate new facts as they become available. As many BR&DM vendors advance their products to support such stateful, perpetually running applications, we bring back the old Challenge that mainly remains unresolved. So, how would you support the following loan evaluation scenario today?
To be approved, an accumulated borrower’s equity with respect of all known “securities” should be larger than an accumulated debt plus the loan amount ($50K). You may assume Peter’s monthly income is $4,000 while his monthly debt is $2,500. The requested loan term is 36 months. The total borrower’s equity can be calculated as Monthly Income * 0.8 * Loan Term. Each security contributes its (equity – debt) to the global evaluation of the loan status.