The Client
A Residential Mortgage Servicer
Business Challenge
- Challenge 1:
- 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
- Challenge 2:
- Borrowers charged late fees greater than the amount permitted by mortgage notes or states rules
Business Impact
- Untimely/ incorrect payment application or no payment application leads to derogatory reporting and delinquent fees being assessed
- Potential Regulatory fines and discipline
Execution
The Copasys® solution
- Challenge 1:
- Pre-define the payment application date using key payment parameters
- Automatically allocate a target payment application date for the payment application
- ‘Compliant’ if payment is accurately applied within timeline.
- Challenge 2:
- Pre-define all applicable late fee thresholds set forth by states
- ‘Compliant’ if payment is accurately applied within timeline.
The Result
- 20x faster QC turnaround time at 50 % lower cost.
- 100% Compliance with regulations.
- Significantly reduces the consumer's risk of derogatory credit reporting, and inaccurate application of delinquency fees, and prevents any inappropriate downstream default activities
