Amortization Deep Dive: The Rule of 78s
As we talked about previously, there are many reasons why understanding amortization methods is helpful for financial professionals. Today, we’re...
2 min read
Cindy Fisher : October 22, 2020
Some things just go together like peas and carrots.
It’s no secret that investors are looking more and more at finance companies as a great option for investing their money. They bring their funds to reputable finance companies who they can trust to allocate to individuals and businesses who will pay back their loans with interest.
But like any good investor, they want to see the state of their investments. How are the loans performing? How is the lender handling the loans? Are borrowers paying back the loans? What is the interest rate of the loans? GOLDPoint Systems offers a web-based Investor Portal that allows investors to see all the details of their loans directly from a website. They don’t need to hop on a plane and travel to a lending institution to be able to see loans. They can check on their progress morning and night from anywhere with Internet access.
However, investors also have the need of owning original documents. In this age of e-signatures and paperless copies of documents, having the ability to own the documents is slightly tricky.
Government regulations laid out in the Uniform Commercial Code (UCC) requires source documents to not be augmented except by specific personnel given security access. Source documents would be anything from loan applications to final loan signatures.
The question becomes about who has “control” of the electronic documents. Investors are usually the ones who have “control” of the documents, so they can view original copies. But lending institutions also need to view loan documents, but their version of the documents needs to be identified as “copies.”
The control of who sees which version of the documents is best maintained by a third party. Why? If anyone in a lending institution has control over who owns the original and who owns the copy, then they can alter or change the control at any time. And same goes for the investor.
So who can bring the two parties under compliance of UCC? That would be GOLDPoint Systems. Our software enables us to assign the “copy” or “original” watermarks based on investors.
Therefore, it was clear that Investor Portal needed File Services Plus, GPS’ file storage program. We are intermingling the ability for investors to view all loan documents from directly within Investor Portal. The marriage is currently released to beta but will be going into production by January 2021.
Documents can be added using File Services Plus from our loan origination software or loan servicing software. The lending institution’s employees can add the documents, and the system will automatically assign the “copy” or “original” watermark depending on the investor backing the loan. We can adjust the watermark however needed, such as “Owned by 1st Bank of Investors.”
Here’s a quick glimpse of what investors will see in Investor Portal:
If your investors want access to their portfolio using our Investor Portal, contact us today on how we can help you get started with this valuable tool.
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