Servicing Director Reported a Loan to the Credit Bureaus As a 'Deferred Loan'

Servicing Director Reported a Loan to the Credit Bureaus As a 'Deferred Loan'

What causes Servicing Director to report a Loan to the Credit Bureaus as a 'Deferred Loan'?

Workaround:

In order for any loan in Servicing Director to be reported as a 'Deferred Loan', it has to have a Repayment Plan set up.

If the loan has an active, broken or delinquent repayment plan and the sum of all payments is $0.00 (not including the deposit payment), then the loan is considered 'deferred' for  credit reporting.

 

The Credit Reporting information sent from Servicing Director to the Bureaus for the deferred loans is as follows: 

  • Terms Duration = blank
  • Terms Frequency = 'D'
  • Scheduled monthly payment = 0.00
  • Account Status = 11 (current) - (which means that the Date of First Delinquency must be blank unless there is a bankruptcy)
  • Payment History Profile = 'D'
  • Amount past due = 0.00
  • and the K4 segment will be populated

ArticleNumber:

000066510