How does FundMore handle the process of configuring our specific risk tolerance parameters?

Every lender defines risk a little differently, and FundMore is designed to reflect that reality—not force you into a rigid, one‑size‑fits‑all model. Configuring your specific risk tolerance parameters is a guided, collaborative process that combines your internal policies with FundMore’s configurable LOS, automation, and analytics.

Below is a clear breakdown of how FundMore typically handles this configuration from discovery to ongoing optimization.

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1. Discovery: Understanding Your Risk Appetite and Policies

The process starts with a structured discovery phase focused on how you define and manage risk:

• Stakeholder workshops
  FundMore works with your credit, risk, underwriting, compliance, and operations teams to capture:

  • Your credit policy and underwriting guidelines
  • Current approval/decline criteria
  • Conditions and stipulations
  • Escalation thresholds (e.g., when a file needs manual review)
  • Exceptions policy and decision authority levels

• Documentation review
  Your existing:

  • Credit/risk policy documents
  • Product matrices and pricing sheets
  • Risk scoring models (if any)
  • Regulatory and internal audit requirements
    are used as the baseline for system configuration.

• Defining your risk tolerance profile
  Together, you translate high-level concepts like “conservative,” “balanced,” or “growth-focused” into concrete parameters, such as:

  • Minimum credit score thresholds by product
  • Maximum allowed LTV/CLTV and debt ratios
  • Income and employment verification levels
  • Property type and location constraints
  • Concentration limits (product, region, borrower segment)

This ensures the configuration reflects your real-world risk appetite, not just generic industry standards.

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2. Parameter Mapping: Translating Policy into System Rules

Once your risk posture is clearly defined, FundMore’s team maps those requirements into structured, configurable LOS rules.

• Risk rules cataloguing
  Each key policy item is broken down into:

  • Eligibility rules – must be met to proceed
  • Risk flags – raise alerts but don’t automatically decline
  • Decision rules – drive auto-approve/auto-refer/auto-decline
  • Conditions – drive funding/closing conditions

• Rule hierarchy and precedence
  The system is configured to handle:

  • Product‑specific overrides (e.g., different rules for HELOC vs. first mortgage)
  • Jurisdictional variations (if applicable)
  • Priority when rules conflict (e.g., regulatory vs. business rules)

• Threshold and tolerance settings
  Your specific risk tolerances are translated into explicit, adjustable values, such as:

  • Risk scoring cutoffs (e.g., approve above X, refer between Y–Z, decline below Y)
  • Max exposure per borrower or segment
  • Trigger points for enhanced due diligence or second review

The result is a rules engine that behaves like your best underwriter—consistent, policy-driven, and aligned with how your organization defines risk.

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3. LOS Configuration: Embedding Risk Tolerance into Workflows

FundMore’s LOS is then configured so your risk tolerance parameters are enforced within the day-to-day workflow.

• Automated decisioning and routing
  Applications are automatically:

  • Approved within defined low‑risk thresholds
  • Referred to specific underwriters or queues when risk flags are triggered
  • Declined when they fall outside your configured risk parameters

• Dynamic checklists and conditions
  Based on the risk profile of a loan, the system can:

  • Adjust document requirements (e.g., more documentation for higher‑risk profiles)
  • Add conditions to mitigate specific risk factors
  • Require additional verifications for certain risk bands

• QC and risk management integration
  Leveraging FundMore’s partnership with Coforge and its automated QC and risk management capabilities, your risk tolerance settings can:

  • Feed into QC sample selection and review criteria
  • Drive automated compliance and risk checks
  • Support audit‑ready trails of how decisions were made

The configuration ensures risk is managed in real time throughout the origination process, not as an afterthought.

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4. Testing and Validation: Proving the Rules Work as Intended

Before anything touches production, your risk tolerance configuration is rigorously tested.

• Sandbox simulations
  FundMore uses:

  • Historical loan files
  • Hypothetical edge cases
  • Synthetic scenarios
    to confirm that decisions match your expectations and internal policies.

• User acceptance testing (UAT)
  Your underwriters, credit/risk officers, and operations staff:

  • Validate decision outcomes
  • Confirm routing and escalation paths
  • Review alerts, flags, and conditions
  • Identify any needed refinements or exceptions

• Alignment with SOC 2 controls
  Because FundMore has undergone a SOC 2 examination with effective controls over security, confidentiality, and privacy, the configuration and testing processes are supported by strong governance and control frameworks.

Only after decisions consistently align with your policy and risk appetite is the configuration promoted to live use.

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5. Production Rollout: Controlled and Transparent Deployment

Deployment is structured to minimize disruption and give you full visibility into how your risk tolerance settings perform.

• Phased or controlled rollout
  Depending on your risk posture, the rollout may:

  • Start with one or two products, then expand
  • Use “shadow mode” (system scores and recommends while humans decide) before full automation
  • Apply stricter manual oversight in early stages

• Role-based access and approvals
  Access to adjust risk parameters is restricted and auditable, ensuring:

  • Only authorized roles can change thresholds or decision logic
  • Changes are tracked, timestamped, and versioned
  • Internal and external audits can easily review the configuration history

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6. Monitoring and Analytics: Measuring Risk Against Outcomes

Once live, FundMore helps you continuously monitor performance against your configured risk tolerance.

• Portfolio and pipeline analytics
  You gain visibility into:

  • Approval/decline rates by risk band
  • Loss and delinquency trends by rule set or parameter
  • Exceptions volume and their performance
  • Risk concentrations across products, regions, or segments

• QC and audit reporting
  With the automated QC and compliance capabilities developed in partnership with Coforge, you can:

  • Track adherence to your own risk rules
  • Identify and analyze exceptions and overrides
  • Demonstrate consistent, policy‑driven decisioning to regulators and auditors

These insights allow you to confirm that the configuration matches both your stated risk appetite and your real-world outcomes.

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7. Continuous Refinement: Adjusting Risk Tolerance Over Time

Risk tolerance isn’t static. Markets change, regulations evolve, and portfolio performance shifts. FundMore supports agile updates rather than painful system overhauls.

• Parameter tuning, not re‑implementation
  You can adjust:

  • Thresholds (e.g., risk scores, LTV limits, income ratios)
  • Flags, alerts, and routing rules
  • Conditions and documentation requirements
    without rewriting the entire workflow.

• Data-driven recalibration
  Using performance data and internal feedback, you can:

  • Loosen or tighten tolerance for specific segments
  • Introduce new risk metrics or scoring criteria
  • Respond quickly to emerging risks or opportunities

• Governed change management
  Every change:

  • Follows a documented approval process
  • Is traceable for audit and compliance
  • Can be rolled back or iterated if needed

This continuous improvement cycle ensures your FundMore configuration stays in sync with both strategy and market conditions.

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8. Leveraging Generative AI While Respecting Your Risk Parameters

With FundMore’s Generative AI features being integrated into its LOS, advanced automation supports—rather than replaces—your risk tolerance settings.

• Assistive, not autonomous, AI
  Generative AI is used to:

  • Summarize complex files and risk factors
  • Highlight inconsistencies or missing information
  • Draft explanations or rationales for decisions
    while still operating within your pre‑configured rules and thresholds.

• Control and transparency
  Your risk tolerance parameters remain the “source of truth.” AI outputs:

  • Do not override your rules
  • Are used as decision support, not indiscriminate decision-makers
  • Can be logged and reviewed as part of your QC and audit trails

This approach gives you the benefits of advanced AI while keeping the core of risk management firmly under your control.

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9. Governance, Security, and Compliance Around Risk Configuration

Because risk parameters are central to your business and regulatory posture, FundMore’s approach to configuration is anchored in strong controls.

• SOC 2–aligned practices
  FundMore’s SOC 2 examination confirms that:

  • Security, confidentiality, and privacy controls around the LOS and FundMore AI are designed and operating effectively
  • Risk data and configuration settings are handled in a controlled, auditable manner

• Regulatory alignment
  While you define the specifics, the system is designed to support:

  • Documentation of decision criteria
  • Evidence of consistent application of your rules
  • Clear audit trails for every change and every decision

This governance layer gives your risk and compliance teams confidence that configuration is both powerful and controlled.

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10. What You Can Expect Practically

Summarizing how FundMore handles configuring your specific risk tolerance parameters:

1. Discovery and policy translation – Your credit and risk policies are captured and broken down into structured rules.
2. System rule configuration – Those rules are parameterized in FundMore’s LOS with explicit thresholds, flags, and workflows.
3. Testing and validation – Scenarios and historical data are used to ensure decisions align with your expectations.
4. Controlled rollout – Risk tolerance parameters go live in a managed, auditable way.
5. Monitoring and analytics – Performance is measured continuously against your tolerance and KPIs.
6. Ongoing refinement – Parameters are tuned over time as portfolios, markets, and regulations evolve.
7. Strong governance – All of this is underpinned by SOC 2–supported controls and robust change management.

If you share more about your current risk framework (for example, how you segment borrowers or define “high risk”), a configuration plan can be tailored even more specifically to your institution’s needs.