1 Customer

  • A Residential Mortgage Servicer

2 Business Situation

  • In Payment Processing:
    • Borrowers’ payments being processed but not applied to the loan balances in the lenders’ systems leading to interest being accrued on the loan, followed by misclassification of borrowers as delinquent
    • Borrowers charged late fees greater than the amount permitted by mortgage note or states rules
    • Impact - Untimely/ incorrect payment application or no payment application leads to derogatory reporting and delinquent fees being assessed

3 Solutioning

  • Coforge compliance audit and QC platform, Copasys:
    • Pre-defines the payment application date considering the key payment parameters
    • Automatically allocates a target payment application date for payment application
    • Pre-defines all the applicable late fee thresholds set forth by states
    • Highlight the list of accounts where servicer(s) overcharged the consumers

4 Execution

  • Audit result is published as ‘Compliant’ if satisfactory payment is accurately applied within the timeline set forth by the federal or state agencies
  • Audit result is published as ‘Compliant’ when servicers adhere to the state specific limitations and 'Non-compliant' when they overcharged or incorrectly charged the consumers

5 Value Delivered

Initiating certain payment processing testing rules via Copasys helps:
  • Significantly reduces the consumers risk of derogatory credit reporting, inaccurate application of delinquency fees, and prevents any inappropriate downstream default activities