The Client
Our client is a direct lender that has funded billions in purchase and refinance loans.
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 note or states rules.
Untimely/ incorrect payment application or no payment application leads to derogatory reporting and delinquent fees being assessed.
Coforge Approach
Coforge implemented Copasys® is an enterprise-wide platform developed by Coforge for Automating Quality Control, Risk Management and Regulatory Compliance.
The Copasys® solution – Challenge 1:
Pre-defines the payment application date considering the key payment parameters.
Automatically allocates a target payment application date for payment application.
Audit result is published as ‘Compliant.’ if satisfactory payment is accurately applied within the timeline set forth by the federal or state agencies.
The Copasys® Solution – Challenge 2:
Pre-defines all the applicable late fee thresholds set forth by states.
Audit result is published as ‘Compliant’ if satisfactory payment is accurately applied within the timeline set forth by the federal or state agencies.
The Result
Significantly reduces the consumers’ risk of derogatory credit reporting, inaccurate application of delinquency fees, and prevents any inappropriate downstream default activities.
