Cogent Road Launches Padded Credit Score Detection Tool

SAN DIEGO--(BUSINESS WIRE)--Cogent Road, a provider of Internet-based applications for the mortgage industry, announced the launch of an automated tool for detecting if a credit score has been artificially inflated due to questionable or untrustworthy “authorized user” accounts within the borrower’s profile. This process is known as “piggybacking,” because the borrower’s credit score “piggybacks” on the seasoning and payment history of the actual card holder. The tool is available free of charge to Cogent Road’s existing Funding Suite clients.

The solution examines credit reports to detect the probability that a borrower’s credit score is being artificially manipulated based on a different individual’s payment history. Using a complex series of comparative algorithms, this detection tool analyzes the borrower’s credit profile as a whole to detect whether or not authorized user tradelines are consistent with his or her historical payment pattern. This tool can also differentiate the bona fide authorized user relations that occur in joint credit applications, however it does identify if the spouse’s credit score is influenced by authorized user accounts.

This information enables lenders to receive a more thorough snapshot of a potential borrower’s credit worthiness than the credit score alone provides. The tool has a defined rating system in order to alert underwriters to files they may want to further investigate before funding.

The padded score detection tool is available to users of Funding Suite, Cogent Road’s flagship product, and other large mortgage lenders. The MISMO-compliant application can be installed on-site or can be accessed through an ASP model. For a small transaction fee per file, the padded credit score detection tool screens every credit report and sends the rating directly to the lender’s loan management systems.

“This fraud detection tool is designed to further enhance lenders’ credit screening capabilities,” said Alan Baia, managing partner of Cogent Road. “Purchasing seasoned tradelines through credit repair companies enables borrowers to artificially increase their credit scores to conceal credit weaknesses from lenders. By detecting intentional attempts to manipulate credit scores, lenders are able to reduce fraudulent loan activity.”

Funding Suite enables mortgage originators to control operating costs, more successfully qualify borrowers for loans and better protect themselves from the potential liability of data breaches.

About Cogent Road

San Diego-based Cogent Road provides enterprise-wide, Web-based software applications for the mortgage industry. Solutions such as Funding Suite® Credit Report Management, AVSpectrum® Automated Valuation Management and AVAIL Prequalifying Services Management are used by more than 30,000 mortgage originators and lenders nationwide. For more information about Cogent Road, visit www.cogentroad.com.