Credit Reporting |
  
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Credit Reporting |
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The Fair Credit Reporting Act and the Equal Credit Opportunity Act require that each provider of credit information takes prudent steps to ensure that complete and accurate information be provided to credit repositories. In an effort to accomplish that, the credit repositories have agreed upon a standard for reporting called the METRO 2 format. This format establishes uniform codes that allow for better compliance with these regulations.
Credit repositories are limited in the amount of time that derogatory credit information can be shown on credit reports. The "date of first delinquency" gives the beginning point to the repositories. The regulations also require notification by the provider of credit information if the customer is disputing the credit information.
The Equal Credit Opportunity Act (ECOA) requires that a borrower’s relationship to an account be disclosed for the purposes of establishing equal credit for all involved. FPS GOLD will report the ECOA for all borrowers based on the borrowers’ account relationship, which is set up in the CIS system. This allows the relationship of each borrower to be reported to the credit repositories.
The FPS GOLD Credit Reporting system is designed to provide your institution, plus the credit repository (CR), with the information necessary for completing standard credit reports.
The Loans > Account Information > Credit Reporting screen is the primary source of information reported to the credit repositories. During the month as payments are posted, reversed, etc., the account adjusts. At monthend, the Credit Reporting screen is updated and reflects the actual condition of the loan at that time. This is the information that will be reported. File maintenance can be done to this screen prior to the creation of the transmission. However, once the transmission is sent to the repositories, any changes made to the screen will have no effect for that reporting cycle. To make the changes permanent, you need to change the fields on their regular Loan system screens, not on the Credit Reporting screen. (For example, change the hold code on the Loans > Account Information > Account Detail screen, Letters & Actions tab rather than on the Credit Reporting screen, Descriptors tab.)
A credit report record (screen) is established for every loan, regardless of the reporting option. Note that some codes will have to be updated manually through file maintenance on the Credit Reporting screen for accurate and complete reporting.
NOTE
In instances where more detail is required or additional handling by the credit repositories is needed, you may need to manually update the following fields: Payment Rating, Compliance Code, Specialized Payment Indicator, Special Comments, and/or Consumer Information. All fields that are file maintained by your institution on this screen are written to Loan History. Be aware that file maintenance to these fields does not change the actual fields on other loan screens. |
This document guides you through the Credit Reporting timeline and processes.
See the following sections for more information:
Credit Bureau Type (Account Type)
Credit Bureau Status (Account Status)
Coding of Derogatory Credit Status
Reporting an Account in Bankruptcy
Reporting an Account in Foreclosure
Reporting an Account as a Charge-off
