Policy Rule

Configure policy rules to control third-party loan payouts in Embarc.

Find these settings in the Policy Rule section when you edit a strategy form. Use the six available configurations to define when a payout rule applies.

Embarc validates contradictory rules before you save the strategy form. Review each configuration option below to understand what it controls and which values you can choose.

Configurations

Use the following six configurations to define how Embarc handles third-party payouts for a strategy form.

Source

Select the loan event that triggers the policy rule.

Option	Description
Borrower payment	Applies the rule when a payment is made toward the loan.
Funding settlement	Applies the rule when the loan amount is disbursed from the loan account.

Transaction Type

Select the type of loan transaction the rule applies to.

Option	Description
Repayment	Treats the payment toward the loan as a repayment.
Down payment	Treats the payment toward the loan as a down payment.
Disbursement	Treats the loan funding as a disbursement from the loan.

Payment Action

Select whether Embarc moves money or records the transaction only.

Option	Description
Initiate	Processes the transaction as a real money movement.
Record	Logs the transaction in the ledger without moving money through Embarc.
All applicable	Applies the rule to both initiated and recorded transactions.

Payout Treatment

Select whether Embarc creates a third-party payout record.

Option	Description
Create payout	Creates an entry in the third-party payout table.
Skip payout	Does not create an entry in the third-party payout table.

Fee Treatment

Select how Embarc handles tenant fees for the payout.

Option	Description
Deduct tenant fee	Deducts the tenant fee from the payout sent to the third party.
Exempt tenant fee	Exempts the payout from the tenant fee.

Payout Transaction Mode

Select how Embarc records the third-party payout transaction.

Option	Description
Place initiate	Moves real money to the third party.
Place settled	Logs the payout to the third party for ledger purposes only.