San Diego, CA (PRWEB) January 29, 2005
In early December, 2004 the Fair and Accurate Credit Transactions (FACT) Act went into effect nationwide to better protect the rights of individuals when applying for mortgages or other lines of credit. While the FACT Act encompasses broad process changes for a variety of business entities, one new requirement is the prompt and accurate disclosure of credit scores to all mortgage applicants, including the four primary factors contributing to the score.
ÂThe New FACT Act produced significant new compliance challenges for most of our clientsÂ, commented Alan Baia, Cogent RoadÂs president and CEO. ÂWhile mailing a score disclosure may at first appear a simple process, there is a host of surrounding details that makes compliance auditing extremely burdensome.Â
A FACT Act compliant score disclosure must contain a variety of details unique to each credit report such as the specific credit bureaus accessed, the company that accessed them, the credit scores provided by the bureaus and the four primary factors contributing to the credit score. Further, the disclosure must be delivered to the prospective borrower within three to five days of accessing the applicantÂs credit file. Once the disclosure is mailed, the company must then document the date the credit was accessed and the date the letter was delivered or mailed to ensure FACT Act compliance.
Anticipating the compliance burden for its clients, Cogent Road developed a solution that provides its clients with 100% compliance on all FACT Act regulations. Further, a complete audit trail for every credit transaction is available through a special compliance module within the Funding Suite application. ÂThe entire solution happens in the backgroundÂ, Baia stated. ÂOur clients simply do business as usual and 100% compliance happens automatically. The client literally does nothing.Â
ÂWe have more than 100 branches throughout the countryÂ, said Mark Collins, President and CEO of AmericaÂs Mortgage Broker, Âand itÂs imperative that every one of my brokers remains in compliance with the new FACT Act laws. From the day we instituted Funding SuiteÂs automated solution every broker was in compliance without a single act on their part. Not only are the disclosure letters delivered via first class mail the day after each credit pull, I also have a complete audit trail covering the entire organizationÂ.
Cogent Road charges its Funding Suite clients one dollar per individual to create, print, mail and record the FACT Act disclosure transaction, which is added to the price of its credit reports. It then provides the auditing software and all data backups at no cost. Why doesnÂt Cogent Road charge for its compliance software? Baia answers the question this way. ÂWe obviously had to make a significant investment in our software and service methodology to deliver automated FACT Act compliance. If you add up the transactional costs of a first class stamp, paper, printing, mailing, data transfer and backup you can quickly deduce itÂs not a giant money maker. Yet, we had the data necessary to address the new compliance issues more effectively than our clients. Making the investment was a unique way to proactively support and serve our customers.
About Cogent Road
Headquarted in San Diego, CA, Cogent Road offers e-business solutions for the mortgage banking industry. The Company currently develops, sells and supports two enterprise software platforms. Funding SuiteÂ is an integrated e-settlement platform used daily by more than one thousand mortgage originators across the country. AVSpectrumÂ, Cogent Road's latest software product, facilitates AVM (automated valuation model) procurement and cost accounting with seamless integration of AVMs into the automated underwriting processes of mid to large size lenders.
For more on Cogent Road, please visit http://www.cogentroad.com.
For more on Funding Suite, please visit http://www.fundingsuite.com.