Application expenses using COLA, HPI, HEM or actual expenses.

Application expenses using COLA, HPI, HEM or actual expenses.

During the evaluation of an application the borrower`s income and expenses are taken into account to see if they can service (afford) the repayments on top of their everyday expenses.

The platform caters for 4 options to be used to assist in determining the borrowers expenses for a personal borrower:

  1. Actual expense values supplied by the borrower
  2. COLA (Cost of Living Allowance
  3. HPI    (Henderson Poverty Index)
  4. HEM  (Household Expenditure Measure)
For business borrowers the business has to supply actual expense values.

See the surplus / NDI article for details on how the expenses are applied.

The finance company can define the method to use in the cost of living business rule.



    • Related Articles

    • Henderson poverty index HPI table

      HPI (henderson poverty index) tables contain the values that will be used during application evaluation to calculate the net disposable income of the borrower, if the option to use the henderson poverty index is applied. See the surplus calculation ...

    • Cost of living business rule

      Business rules exist at originator group product level, allowing finance companies to set rules and settings that are specific to each combination of originator group and product. The cost of living business rule contains the the rules for ...

    • Listing and application business rule

      Business rules exist at originator group product level, allowing finance companies to set rules and settings that are specific to each combination of originator group and product. The listing and applications business rule contains the the rules for ...

    • Override an application status

      The application's status is normally set via the results of a decision tree when the application is evaluated. However a finance company may have processes in place where the final approval, or other steps in the process, are completed manually and ...

    • Application document decision tree

      Once it has been identified which documents are to be used by borrowers in the “document to be supplied by borrowers” it is possible to define a decision tree that CAN be used in order to request documents from borrows based on the information they ...