Copasys automation for 20x quicker review of payments at 50% lower cost in mortgage servicing

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
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