Lending Software Solution Spotlight: Exception Tracking

Lending Software Solution Spotlight: Exception Tracking

From origination through payoff, every loan requires some level of due diligence comprising of documents and forms to be collected, reviewed and/or monitored that is typically tracked in a lending software solution. This information often must pass through many different departments, which can be difficult to manage while bottlenecking processes, putting the financial institution at risk and frustrating clients. Exception Tracking within Baker Hill NextGen® is a powerful lending software solution to assist in the management of all you may need to track starting from the initial loan request, following through to payoff and collateral release.

Tracking Families, Types and Statuses

Baker Hill NextGen® Exception Tracking provides the capability for a financial institution’s many different requirements to be organized into families within the lending software solution. This provides flexibility to managing processes for different tracking types, as what needs to be done and who is responsible for will be vastly different for a financial statement vs a policy exception vs an appraisal. Within each of those families holds the many different types of documents to be accounted for, which is crucial since financial statements have many different types such as tax returns, both business and personal; personal financial statements; balance sheets; P&Ls; monthly, quarterly and annual requirements to name a few. Statuses provide a workflow for each of the tracking families within the lending software solution. An appraisal, for instance, has a complex workflow from requesting bids to waiting for the appraisal to be returned, until finally reviewed and cleared, vs a policy exception will be a simpler workflow of collecting, reviewing, and clearing.


Some of the most common things I hear when speaking to financial institutions about lending software solutions is the struggle and confusion around due diligence. Who is working on that? What do I need for this loan? Did the credit analyst get my email with the tax return? When is this requirement due? Is my appraisal back yet? What items came in that need to be reviewed? Without the right reporting inside your lending software solution, getting the answers to these can be frustrating and time consuming. Baker Hill NextGen® Exception Tracking’s query functionality gives each team member visibility into their own workload with updates happening in real time directly inside the lending software solution. A lender needs to see and access this information differently from a loan operations role. The tracking families, types and statuses give the controls needed for that user security as well as being able to filter data into the right areas of focus.

Client communication

Another frustration I hear about lending software solutions is looking for an easier way to get what is needed from their clients. The exception tracking module comes with standard letter templates that will pull the client’s info and requirements into the lending software solution to eliminate additional data entry and prevent risk. While it is an add on to this module, we are seeing more and more financial institutions using the Baker Hill NextGen® Client Portal for collection of tracking items, taking the letter capability one step further and communicating needs directly to clients and receiving the items needed back – all without having to leave their lending software solution.

Tracking Ties

One of the most powerful but often overlooked features of the exception tracking lending software solution is the ability to create ties on the individual tracking items. With customers often having multiple entities, guarantors, loans etc., tracking everything required to prevent the financial institution being at risk is complex and can be difficult to keep track of. Ties allow you to have one tracking item related at client, collateral, product, and opportunity levels within your lending software solution. So, if John Smith is a guarantor on ABC Corp and XYZ LLC, both entities having loans that require John’s personal tax return annually, tracking ties will allow you to relate the one tracking item to all levels needed. This will eliminate duplicated requests to your client, saving and updating multiple times and preventing missed clearings that would cause an unnecessary out of compliance.


Electronic checklists built into your lending software solution provide an additional layer to streamline more complex needs.Financial institutions typically need the same items for the same types of loans, collateral and client types, and there are multiple items needed for each. The checklist capability within Baker Hill’s lending software solutionallows for grouping together tracking items based on the different scenarios, for easier creation of many at once. I need very different requirements satisfied for a construction loan vs an equipment purchase, or business vs an individual.

Managing due diligence during the life of a loan is cumbersome. The lending software solution tools I talked about within the Baker Hill NextGen®’s exception management module can assist with eliminating your pain points and errors, while also giving your customer a positive experience. Paired with additional features within Baker Hill NextGen®, our powerful lending software solution can help you gain efficiency, reduce risk, and drive growth at your financial institution.

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Feature Sheet: Baker Hill NextGen® Exception Tracking

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