FactorTrust Announces Launch of Ground-Breaking CRA Gateway to Actively Support Underbanked Community
- Posted by FactorTrust
- On September 8, 2016
- alternative data, CFPB, CRA, credit reporting, FICO
CRA Gateway to Open Doors for Consumers Striving Toward Better Credit Scores
Provides Lenders the Simplest and Most Efficient Way to Comply with CFPB Reporting Requirements
ATLANTA (Sept. 8, 2016) – FactorTrust, The Alternative Credit Bureau, announces the launch of its CRA Gateway, a ground-breaking platform that enables lenders to securely report, store and share alternative credit data on underbanked consumers. Assessing creditworthiness and ability to repay is dependent on high quality data reporting. With the new CRA Gateway, FactorTrust customers will be able to report their data once and share it with multiple credit reporting agencies (CRAs) as they become partners with FactorTrust.
More data reported helps consumers climb the credit ladder. Historically, lenders serving the underbanked have not had the resources needed to report to multiple bureaus due to the complexities of strict data formatting requirements or processing requirements, such as real-time or daily reporting. This has impacted a broad range of underbanked consumers negatively, as their data has not been easily shared with all the bureaus. Now these consumers will have more opportunity to improve their scores as lenders report and share more data. Additionally, more financial providers will ultimately have access to a larger universe of consumers to make more well-balanced lending decisions.
The CRA Gateway will also provide for efficient compliance with the CFPB’s Proposed Rule for lenders that offer certain types of loans. The CFPB’s Proposed Rule suggests a registered information system (RIS) environment that requires lenders to “pull from one RIS and report to all.” The requirement creates a complex and resource-intensive process, as a common data reporting format does not exist today among alternative bureaus. The CRA Gateway, however, streamlines that process by facilitating credit reporting in a single format among lenders and RISs, as well as the standard reporting format required by the Big 3 bureaus (Metro-2) should any of the Big 3 become an RIS. The new platform will also process consumer disputes and error reporting to ensure the data remains accurate and complete.
The ability to more efficiently report credit information via FactorTrust’s CRA Gateway ultimately helps lenders grow their business. At the same time, the solution aids the previously underserved Credit Climbers, consumers of all types with FICO credit scores below 700, but who are determined to improve their credit score in order to reach a certain lifestyle and access more credit options.
“The CRA Gateway solves a big problem for this segment of the industry: easy, efficient and cost-effective alternative credit data reporting. However, it’s the consumers who should ultimately benefit,” says FactorTrust CEO Greg Rable. “The vast majority of these consumers have been untracked by traditional credit markets. We’ve seen firsthand how these consumers improve their credit – at almost every scoring level – by having alternative loan performance data available. Our goal is to ensure more lenders have the opportunity to efficiently share their data, so that each time a consumer makes a smart financial choice, they have the opportunity to improve their credit score.”
More details on the CRA Gateway, and how it helps lenders of covered loans to comply with the CFPB Proposed Rule, will be shared at FiSCA’s 28th Annual Conference & Expo at the Gaylord National Resort & Convention Center Oct. 20-23, 2016 and also at Lend360 and Money20/20.
FactorTrust, The Alternative Credit Bureau, is relentlessly dedicated to proven analytics and clean credit information that provides lenders opportunities to grow more revenue, meet compliance regulations and serve more consumers with more credit options. At the core of FactorTrust is alternative credit data not available from the Big 3 bureaus and analytics and risk scoring information lenders need to make informed decisions about the consumers they want. FactorTrust Alternative Credit Data and Analytics accurately predicts risk and ability to repay of near and non-prime consumer loans in real-time and enables financial service companies an opportunity to uncover creditworthy prospects that are not surfacing via traditional credit sources. 113 million U.S. adults have FICO credit scores below 700. Headquartered in Atlanta, the experienced FactorTrust team of predictive analytics specialists, statisticians and financial industry experts has delivered unique data and valuable insight to lenders throughout the U.S. for 10 years. For more information on the quarterly FactorTrust Underbanked Index or the company itself, visit www.FactorTrust.com.
 The proposal generally would cover two categories of loans. First, the proposal generally would cover loans with a term of 45 days or less. Second, the proposal generally would cover loans with a term greater than 45 days, provided that they (1) have an all-in annual percentage rate greater than 36 percent; and (2) either are repaid directly from the consumer’s account or income or are secured by the consumer’s vehicle.