Policies and Templates

A Policy in Canopy represents a specific behavior or rule that determines how your lending product operates. Policies define the conditional logic and strategic choices that shape how your lending program behaves throughout the product lifecycle and other portfolio wide events.

Understanding Policies

1. They represent conditional behaviors that result in true/false outcomes
2. They offer a predetermined set of options rather than accepting arbitrary values

Policy Levels

Policies in Canopy are clearly scoped to specific entity levels to ensure clear, predictable behavior. The Entity levels they affect are:

• Accounts
• Lines of Credit
• Installment Loans
• Draws

Policy Enforcement

Each policy exists at exactly one scope level - there are no overrides or duplication across levels. This clear separation ensures predictable behavior and makes it easier to understand how your lending product will operate.

How are policies applied?

A single policy is no loan program and so policies must be grouped together and applied during loan origination. This grouping of policies in Canopy is referred to as templates.

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Templates in Canopy are collections of policies that work together to define how your lending product behaves. They provide a powerful way to standardize and reuse your configurations while maintaining flexibility for different lending scenarios.

Understanding Templates

Think of a template as a blueprint for your lending product. It brings together all the policies needed to create and manage financial products like credit cards, charge cards, lines of credit, or term loans. Instead of configuring individual policies each time you create a new account or loan, you can apply a template that includes all the necessary policies.

Like policies, templates are also scoped to the same entities which includes no overrides and duplication.

Pre-built Templates

Canopy provides several out-of-the-box templates to help you get started quickly:

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A full list of templates available in your sandbox can be found using the get templates API for either Lines of Credit or Installment Loans

Some of which include:

• Interest only operational lines of credit with a balloon payment at maturity
• Commercial and consumer credit cards
• Charge cards
• Term loans

Creating Custom Templates

While our pre-built templates cover common scenarios, you can create custom templates through our API to match your specific lending program needs:

1. Identify required policies at each entity level
2. For the entity use:
   1. Create an account template
   2. Create a line of credit template
   3. Create an installment loan template
3. Apply your template when creating new accounts, lines, or loans in their creation APIs:
   1. Create a new account
   2. Create a line of credit
   3. Creates an installment loan

Template Management

Templates can be:

• Created and updated via API
• Versioned for tracking changes
• Applied to new or existing lending products
• Shared across your organization