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.
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:
Notice that below each month is a one-digit description. This number or letter corresponds to the following information:
For a deeper dive into the credit reporting process, see the Report and Transmission (FPSRP184) topic in DocsOnWeb.