CRA Gateway to Open Doors for Consumers Striving Toward Better Credit
Provides Lenders the Simplest and Most Efficient Way to Comply with
CFPB Reporting Requirements
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
The CRA Gateway will also provide for efficient compliance with the CFPB’s
Proposed Rule for lenders that offer certain types of loans1.
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
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.
1 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
Trevelino/Keller Communications Group
Savannah Weeks, 404-214-0722