Loan funding
The Arix funding engine allows you the flexibility to control how the loan is funded. You can enter instructions and control the rails, and the order in which to attempt to fund over those rails. You can also elect to fund different parts of the loan over different rails, and supply fallback options if rails fail.
After the loan is approved for funding, Arix initiates funding. The loan passes to the InFunding status and funds are sent using rails.
Any loan update made via a /PUT call is ignored when the loan is InFunding.
There are several rail types you can use. Depending on the rail type, funding results might be immediate or take up to a few days.
Based on how the funding progresses, the loan can be in one of these statuses:
- InFunding leading to Funded
- NotFullyFunded
- Returned
1. After the loan is approved, funding starts automatically. Arix tries the Priority 1 rail first to start funding.
Status: InFunding
2. When all the rails are successfully funded, the status of the loan changes to funded Status: Funded
3. After the loan has funded, the loan seasoning period begins, which typically occurs on business day 2 or 3 from the funding date.
If no amount is specified in the request, the funding engine attempts to fund the full loan amount.
If the loan doesn't fully fund from the first rail (priority 1), the engine looks for the priority 2 rail. A priority 2 rail can be:
- A rail that was originally designated as a priority 2 (to follow a priority 1 rail)
- The next priority 1 rail
The funding engine continues to process rails until there are no rails left to process.
If after all the rails have been processed there is an outstanding loan balance, the loan status is then updated to NotFullyFunded. When NotFullyFunded, you can submit new funding information.
If the loan is fully funded prior to the last rail, any rails that weren't attempted are labeled Skipped.
In most cases the funding goes smoothly and the funds are fully received by the borrower. However, funding requests can fail immediately or succeed, and then be returned later. If a rail fails, is rejected, or returned, Arix reports a detailed error message as part of the railUpdate webhook and in the LoanDetail API.
Arix records all the funding attempts and continuously updates the status as each rail is processed, funded, or failed. If the loan wasn't fully funded and is in the status, NotFullyFunded, you can submit new funding information an unlimited number of times. This is also the process for required multiple disbursements over a period of time for a single loan.
You should use the RailUpdated webhook to follow the funding process.