Status and Events in LIXI Back Channel Messages

The electronic lodgement of a credit application is only a small part of the interaction between the various systems that takes place in processing a credit application and in ultimately provisioning a financial product. The various communications that take place after the application has been lodged that provide feedback to brokers and aggregators about how an application is progressing are often referred to as back channel messages.

Back channel messages typically fall into one of four main categories:

  • Application Status Updates
  • Event Notifications
  • Application Error Notifications
  • Submission of Additional Information (for example supporting documents or resubmissions)

The Back Channel Working Group developed the initial standard and the functionality was introduced into the LIXI 2 format in the CAL standard in June 2015.

Application Status Updates

The application status is used to describe the point within a lender workflow that a particular application has reached. An application can have only one status at any point in time and the act of moving to a new status replaces the previous status.

The list of statuses supported by the latest LIXI Credit Application standard (CAL 2.6.4 at the time of writing) includes:

Application Status Updates Description
Application Sent Application successfully transmitted by Broker system.
Application Registered The Lender system ID allocated (Pre Settlement Application Identifier) and, if electronically lodged, application is ready for credit assessment ie. validates against Lender's schema and other business rules.
Preapproved Application conditionally approved subject to final identification of security property.
Conditionally Approved Application has been approved subject to conditions.
Unconditionally Approved All conditions to conditional approval have been met and Application has received formal/final approval.
Application Settled Application has gone to settlement; may or may not have been fully drawn down; accounts may have had a new identifier allocated to them by the Lender (known as Post Settlement Application Number or Facility identifier).
Referred to Assessor Application has been referred for manual assessment.
Reverted to Capture Application has been reverted to the data capture stage to update or correct data.
Cancelled Application Application has been stopped at Lender's initiative. Cannot be resurrected.
Declined Application has been Declined.
Withdrawn Application has been stopped at client's initiative.

 

Technical Note
In a message based on the CAL 2.6.4 standard, a back channel message conveying a status update contains the new status in the attribute "Package.Instructions.ApplicationInstructions.Update.Status.Name". Since none of the elements in this path are repeatable, there can be no more than one status update for each Package element.

Note that the Credit Decisioning standard (CDA 2.0.2) allows for the history of status updates to be conveyed under the repeatable element "Package.Content.History.Status".

Application Event Notification

Back channel notifications of application events are messages that convey the occurrence of one or more events relating to the application. An event may or may not trigger a change in status. For example, the "Credit Check Ordered" event does not change the status of the credit application, whereas the "Cancelled" event would also trigger a change in the application status to "Cancelled".

Technical Note
In a message based on the CAL 2.6.4 standard, a back channel message conveying the occurrence of events contains the event updates in the attribute "Package.Instructions.ApplicationInstructions.Update.Event.Name". Since the "Event" element is repeatable, multiple events can be carried in a single "Package" element.

Note that the Credit Decisioning standard (CDA 2.0.2) allows for the history of status updates to be conveyed under the repeatable element "Package.Content.History.Status".

Application Error Notification

Back channel notifications of application errors are messages that convey the occurrence of one or more errors relating to the application.

Technical Note
In a message based on the CAL 2.6.4 standard, a back channel message conveying the occurrence of an error is detailed in the element "Package.Instructions.ErrorInstructions". Since the "ErrorInstructions" element is repeatable, multiple errors can be carried in a single "Package" element.

Submission of Additional Information

Once an application has been submitted, there are further messages that can be conveyed that relate to that original application that may also be considered as back channel messages. There are a number of types of these messages:

  • Sending of Submission Documents (submission documents are documents generated from the data within application including print forms, checklists, serviceability, and loan summary documents)
  • Sending of Supporting Documents (supporting documents provide supporting evidence of the correctness of data provided by an applicant)
  • Resubmission of an application (the process where an updated application is submitted, either updating or replacing the original application).
Technical Note

In a message based on the CAL 2.6.4 standard, a back channel message conveying submission documents would have the flag "Package.Instructions.ApplicationInstructions.Submit.IsSubmissionDocuments" ="Yes".

In a message based on the CAL 2.6.4 standard, a back channel message conveying supporting documents would have the flag "Package.Instructions.ApplicationInstructions.Submit.IsSupportingDocuments"="Yes".

In a message based on the CAL 2.6.4 standard, a back channel message conveying a resubmission would have the flag "Package.Instructions.ApplicationInstructions.Submit.IsResubmission"="Yes".

Last Updated: 1st September 2017