Loan seasoning, sale or retention

loan seasoning after funding docid\ bab0inlug2tagyrllkjnm , every loan enters a seasoning period selling manages this period cross river provides a range of warehousing facilities, with customized pricing to fit your needs loan sale or retention at loan origination docid\ xc9wsry x6scsfkqz1sz6 you decide either to purchase the loan back at the end of the seasoning period or have cross river retain the loan on its books the following options are available purchase the mpl repurchases the loan from cross river this process is managed by you via the lending selling solution, which offers a user friendly interface and api integration for efficient loan buyback transactions and investor management retention alternatively, cross river retains the loan, adding it to its portfolio loan purchase the loan purchase process loans follow a multi stage journey through different systems before they are ready for investor purchase origination in arix loans are initially created and originated in the arix system, which handles the borrower application, underwriting, approval, and funding processes arix creates the loan and disburses it to the borrower transfer to selling once arix successfully funds a loan, it is transferred to the selling system (the system documented here) the selling system serves as the transaction and accounting hub that manages the loan sale process from the lending partner to the investor purchase process within the selling system, loans progress through various statuses (pending → in seasoning → ready for purchase) until they meet all criteria for investor purchase the purchase process, which this documentation describes, is the final step where ownership and financial settlement occur system context the purchase process operates entirely within the selling system by the time a loan reaches this stage, it has already been originated and funded in arix synced to the selling system with all relevant loan details validated for completeness and accuracy assigned to an investor per the applicable contract terms allowed to complete any required seasoning period (if applicable) the selling system maintains its own loan records synchronized with arix, but operates independently for the sale transaction this separation lets the origination and sale processes to function in parallel without dependencies how it works selling processes loan purchases in batches, not individually a batch groups multiple loans that share characteristics like issuing bank, loan type, and purchase date this batch based approach provides several key benefits efficiency the system processes multiple loans simultaneously, reducing overall processing time consistency the system evaluates all loans in a batch against the same business rules and validation criteria traceability each batch receives a unique identifier that allows all stakeholders to track the purchase from initiation through completion transaction safety if issues arise during processing, the batch framework ensures loans can be retried without duplicate financial transactions financial transfers involved when you purchase a loan, the system orchestrates multiple financial transfers between accounts this compensates the lending partner and records the transaction in the investor's books these transfers typically include principal transfer the system transfers the outstanding principal balance from the partner's account to the investor's loan asset account interest transfer the system collects any accrued interest up to the purchase date from the partner fee transfers the system processes applicable fees like volume fees or origination fees according to contract terms the exact combination and amounts of these transfers depend on the loan type (hfs, lthfs, ret), the specific contract terms between the partner and investor, and the loan's current state double entry accounting principles all financial transfers in the purchase process adhere to double entry accounting principles, meaning every transaction involves both a debit and a credit to maintain balanced books debit accounts represent where funds are coming from (typically partner accounts or the investor's purchase account) for example, when purchasing the principal of a loan the partner's principal account (or the investor's designated purchase account) is debited for the loan amount the investor's loan source account is credited with the same amount, recording the new asset this dual sided approach ensures complete financial transparency and enables both parties to reconcile their records independently the system requires both accounts to be properly configured before a purchase can proceed, preventing incomplete or unbalanced transactions process validation and safety before any funds are transferred, the system performs comprehensive validations date validation purchases can only occur on federal business days account verification all required accounts must be properly configured and accessible balance confirmation the system verifies sufficient funds are available in the debit accounts (though this can be configured per business needs) loan eligibility loans must be in an eligible status (typically "ready for purchase" or "purchase requested") these safeguards protect both partners and investors from erroneous transactions and ensure regulatory compliance monitoring and transparency throughout the purchase process, selling provides real time visibility into batch status pending loans queued for purchase in progress transfers being executed completed successfully purchased loans failed loans requiring attention due to validation or processing errors both partners and investors can monitor batch progress through the api or user interface, with detailed reporting available at both batch and individual loan levels post purchase receipts and reports provide a complete audit trail for accounting and compliance purposes system integration points while the purchase process operates within the selling system, it interacts with several other systems arix source of loan origination data (read only during purchase) core banking system (cos) executes the actual fund transfers between accounts accounting services provides account balance information and manages account configurations contract management supplies the business rules governing which loans can be purchased and under what terms next step servicing data submission and reconciliation docid\ sj6yahwlyzkedlo6oijf3