Six Key Fields in Credit Reporting

Cindy Fisher | May 16, 2019

GOLDPoint Systems automatically sends a transmission to the credit repositories each monthend detailing account activity. We can send transmissions to any of the big four consumer reporting companies: Equifax, TransUnion, Experian, and Innovis.

These companies receive the transmission and include it in their Credit Report of consumers. Most people are familiar with how important their credit score is for buying a car, being approved for a loan, or even getting a job or rental property.

As a lender, you are likely very familiar with the credit reporting process. But if you are a newbie to learning about credit reporting, it can be a lot to take in. The following paragraphs describe six key fields used in credit reporting to help you better understand what is involved in the credit reporting process.

1. Account Status

The Account Status field is one of the most important fields used in credit reporting. This field determines if the account is current, delinquent, closed, transferred, and more. You can view how the Account Status was reported for individual accounts using the Loans > Credit Reporting screen in CIM GOLD, but usually this field is only available for supervisors.

The following account statuses are used by all credit reporting companies:

5*    Account transferred to another office

11   Account current

13*   Paid or closed account/zero balance

61   Paid in full—was a voluntary surrender

62   Paid in full—was a collection account

63   Paid in full—was a repossession

64   Paid in full—was a charge off

65* Paid in full—foreclosure was started

71   30 days past due

78   60 days past due

80   90 days past due

82   120 days past due

83   150 days past due

84   180 days or more past due

88*   Claim filed with government for insured portion

89*   Deed in lieu of foreclosure

93   Account assigned to collections

94*   Foreclosure completed

95*   Voluntary surrender

96   Repossession—may have a balance due

97   Charged off. Once a charged-off account is paid off, the status       changes to 64.

DA   Delete account.

* If the status is 5, 13, 65, 88, 89, 94, or 95, then a Payment Rating (see below) must also be reported.

2. Payment Rating

The payment rating identifies whether the account is current or past due at monthend. It must be reported if the Account Status (see above) is 5, 13, 65, 88, 89, 94, or 95.

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3. Date of First Delinquency

The Date of First Delinquency, according to the credit repositories' definition, represents the first date of the delinquency.

If a furnisher reports information concerning a delinquent account placed for collection, charged to profit or loss, or subject to any similar action, the furnisher must, within 90 days after reporting the information, provide the Credit Reporting Agency (CRA) with the month and the year of the commencement of the delinquency that immediately preceded the action, so that the agency will know how long to keep the information in the consumer’s file. —Section 623 (a)(5) in the Fair Credit Reporting Act (FCRA).

This Date of First Delinquency is a key field in determining other fields (such as Payment Rating above). See the Coding of Derogatory Credit Status in DocsOnWeb for more information concerning this field.

4. Compliance Codes

Credit Bureau compliance codes notify the credit repositories of disputes and other factors that better clarify the account being reported. It also allows a way of indicating if the institution required an account to be closed due to a dispute. See the Compliance Codes definition in DocsOnWeb for more information regarding this important field.

5. Special Comments

Special Comments Codes are one more way to further define the account’s status. For example, if an account is delinquent, but the account owner was called to active military duty, you would further flag the account with Special Comment Code “AI – Recalled to active military duty.” The credit bureaus determine which Special Comment Codes can be used. See the Special Comment Codes description in DocsOnWeb for more information.

6. Payment Profile

GOLDPoint Systems loan management system (known as CIM GOLD®) will show or hide screens based on user security. Most users will not be able to view the Credit Reporting screen. However, sometimes a customer will call or come in to an office asking for information on how their account was reported to credit bureaus.

On the Marketing and Collections screen in CIM GOLD is a nice little field that shows a quick at-a-glance description of the account’s payment status. This will give the borrower an idea of how their account is reported month-to-month. See the following example of this field on the Marketing and Collections screen:

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Notice that below each month is a one-digit description. This number or letter corresponds to the following information:

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For a deeper dive into the credit reporting process, see the Report and Transmission (FPSRP184) topic in DocsOnWeb.

Tags: training, client success

Cindy Fisher | May 16, 2019

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