Overview

The AFS Exception Management system automates and controls the identification, tracking, and reporting of exceptions throughout the lending process, from origination through payoff or asset disposition. AFS Exception Management provides real-time information for proactive management of exceptions to bank policy and process, including credit policy, approval processes, collateral, covenant tracking, and documentation.

AFS' customized systems' implementation and deployment, including replication of client policies and processes, coupled with AFS' unique straight-through processing (STP) capabilities and rules-based workflow management, ensure the imposition of bank policy at all organizational levels and at each step of the lending process. With this capability, management is empowered to respond in real-time to prevent, escalate, and/or defer exceptions for later follow up. Applied to ongoing servicing of the portfolio, the AFS Exception Management System is used to manage over-lines, billing issues, and other servicing exceptions. An historical database of exception conditions and bank staff responsible for their occurrence can be maintained for any bank-specified period of time to enable review and remediation.

The System's consolidated database is accessed via the Web by lenders, loan administration staff, credit managers, operations, and risk managers. It can function as a standalone system or and can be integrated with the AFS Level III™ Loan Accounting, Commercial Loan Origination, and Loan Administration Systems.

Benefits

	Reduces credit and reputational risk through consistent application of bank credit policy throughout the enterprise
	Reduces operational risk by monitoring and reporting process exceptions
	Provides the opportunity to remediate exception conditions before they have adverse financial consequences
	Escalates problems to appropriate management
	Provides an objective basis for reviewing, revising, and enforcing credit and operational policies
	Provides transparency for managerial and regulatory review

Features

	Identifies and reports exception conditions as defined by the bank
	Maintains an exception database with associated information
	Identifies exceptions by type and parameters associated with: Entities Notes/loans Collateral Guarantees Credit policy Covenants
	Provides covenant follow-up/ticklers
	Offers online queries
	Provides reporting
	Integrated with AFS Level III, additionally identifies exceptions related to: Billing Paid note reactivation Closed obligations reopened Charge-offs Over-lines
	Provides reporting Origination workflow exceptions (including policy and covenants) Documentation exceptions Credit policy exceptions
	Integrated with AFS Loan Administration, additionally provides: Exception information by customer