Cogent Road Debuts Score Protection with Funding Suite

Automated credit proofreading tools eliminate additional inquiries, preserves existing scores

Cogent Road, a provider of Internet-based applications for the mortgage industry, has launched Score Protection, Funding Suite’s newest technology offering that eliminates additional inquiries by protecting any of the scores in a preexisting credit file provided the original file is less than 30 days old.

Funding Suite’s automated credit proofreading tools help originators detect errors in credit files that work against the applicant by lowering his or her credit score. Once these errors are corrected, a new, often higher score is calculated using the corrected credit file data. In the past, these new scores could only be obtained by reordering an entirely new credit file, which sometimes lowered the unaffected credit scores due to the additional inquiry. This created a source of frustration and disappointment for both the mortgage originator and the applicant, as this process can leave the newly ordered file in a non-qualifying state.

If, for example, credit proofreading tools detect that errors are lowering an applicant’s TransUnion score, Funding Suite can correct those errors at TransUnion within 72 hours. Before ordering the new credit file to receive the resulting higher score from TransUnion, the loan officer may protect the scores previously received from Experian and Equifax. Doing so protects the scores from being reordered, which eliminates the potential downward score drift due to the additional inquiry. Since the original Experian and Equifax scores are less than 30 days old, only the newly ordered TransUnion score and tradeline data are added to create the new tri-merge credit report, which can then be reissued to Fannie Mae, Freddie Mac or various lenders. For GSE and lender compliance, the order date on the new file reflects the same date as the originally ordered file.

Score protection is fully automated and the mortgage originator does not need to record or otherwise remember that a previous file exists. At the moment of ordering, if Funding Suite detects a previously ordered credit file that is less than 30 days old for the borrower, co-borrower or both, Funding Suite will ask if they would like to protect any of the scores. It is entirely optional and the originator may protect any mix of the scores or none at all. Any unprotected credit scores will be ordered and added to the file.

“The mortgage lending industry allows originators to add new bureaus to a previously ordered single bureau file provided the original file is less than 30 days old,” said William DiPaolo, managing partner for Cogent Road. “Score protection uses the 30 day time-limit in a way that protects the borrower from lower scores due to additional inquiries that are absolutely unnecessary. This addition to Funding Suite’s credit proofreading tools furthers our commitment to helping borrowers receive the credit score they rightly deserve.”

About Cogent Road
Cogent Road develops Internet-based applications for the mortgage industry, such as Funding Suite®, the industry’s first, true Credit Management Platform. Currently utilized by more than 30,000 mortgage professionals nationwide, Funding Suite helps clients qualify more applicants with its unique Intelligent Credit Report and protect applicant data via data suppression and computer access restrictions. For mid to large-sized clients, Funding Suite also offers robust user-level access controls and detailed cost accounting. For more information about Cogent Road, visit www.cogentroad.com. For more about Funding Suite visit www.fundingsuite.com.