Lender Process Flow Chart

In a typical lender flow processing scheme, the school generates CommonLine application send file and submits it to the lender. The lender then submits loan information to the guarantor for approval. OR the school may send paper school certification forms to the lender for data entry and submission to the guarantor.

In some lender flow schemes, this may also be performed by a servicer on behalf of the lender. Some lenders use the CommonLine application send file to create a preliminary loan record on its loan origination system. When the application response file is returned by the guarantor the loan's status is then updated on the lender's system, thus making the loan eligible for disbursement. In most lender flow processes, promissory note printing is performed by the lender; however this may not always be the case. When the lender does perform this task, the lender must change the application processing code in the CommonLine files prior to submittal for guarantee to prevent duplicate promissory note printing by the guarantor (if the guarantor also performs this service for its schools). Upon approval, the loan response files may be returned to the school from the lender or through data service providers such as ELM. Schools that send paper certifications to the lender for processing usually do not require a response file.