Lending
Loan process
7 min
cross river's lending platform consists of several interconnected modules oversight for policies and rules preapproval for applications arix origination for issuing loans manual review for working the exception queue detected by mpllifecycle arix funding for making payments selling for purchasing loans contracts for viewing configuration hooks for listening to events on a typical loan, the entire process takes around 10 seconds from origination to funding and another 5 minutes for seasoning to kick off 1\ partner submits loan application for preapproval the application can be submitted regardless of its approval status if the status changes, the mpl can resubmit to provide its latest decision this process aligns with fair lending laws, ensuring all applications are reviewed uniformly the marketplace lending partner (mpl) submits a loan application to the application decisioning api to provide the bank with its final decision for each application 2\ partner submits loan payload to arix this step initiates the loan creation process within arix arix assigns a unique guid to the loan and sets its initial status to received upon approval, the mpl sends the complete loan payload to arix using the create and update a loan for consumer and business loans secured and unsecured term loans or revolving lines of credit 3\ partner uploads required loan documents arix automatically reviews the submitted documents to ensure completeness once all required documents are received, the loan status updates to docs complete the mpl uploads all necessary loan documents to arix using the add loan documents call 4\ mpllifecycle performs compliance checks mpllifecycle automatically conducts compliance checks based on predefined rules from oversight this step is where cross river ensures the loan details are complete and accurate if the loan passes all compliance rules, the status updates to passed compliance if any rule fails, the status changes to compliancefailed , and detailed reasons are provided via the get loan details by id the mpl must address these issues before proceeding towards that end, the mpl would use the manual review module to communicate with cross river teams, upload additional documents or correct the loan details 5\ mpllifecycle approves the loan after successful compliance checks, the loan status updates to approved indicating readiness for funding 6\ arix initiates loan funding the loan status changes to infunding during this process arix supports various funding rails, including ach, same day ach, rtp®, fednow®, rpps, check, internal transfer, wire and push to card the platform allows setting fallback options if a chosen rail fails once funds are successfully sent and received, the loan status updates to funded arix manages the full lifecycle of funding, including rejects, returns, pulling funds back and cancellations loan funding 7\ selling kicks off loan seasoning period after funding, the loan enters a seasoning period that is configured to your capital markets and/or investors needs loan seasoning, sale or retention 8\ loan sale or retention decision post seasoning, you or your investor will purchase the loans using selling typical seasoning is for 3 business days, but cross river offers warehousing from 30 120 days which you will manage self service cross river and you may choose to have cross river retain loans on the bank's balance sheet loan seasoning, sale or retention 9\ servicing data submission and reconciliation mpl submits servicing data on a daily basis this is used to monitor loans on cross river's books loan data exchange