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
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