AGORA Data is responding to the need for accurate information involving seasoned vehicle installment contracts.
On Monday, the secondary loan marketplace announced what that company believes is the release of the first-ever loan validation report for seasoned loans. AGORA’s proprietary technology can enable dealer and finance companies to avoid compliance issues with the Truth in Lending Act (Regulation Z), by assessing in real-time any issues with the terms of a loan, either at the portfolio or individual loan level.
AGORA indicated this analysis can include assessment of the contact’s annual percentage rate, finance charges, principal balance, total of payments, unearned interest and gross balance.
AGORA chief executive officer Steve Burke cautioned that violation of Regulation Z can lead to significant penalties and other legal issues.
“Before starting AGORA, I bought as principal, billions of dollars worth of notes from dealers, finance companies, banks and credit unions, and I cannot remember a loan portfolio that did not have problems we identified at the time of purchase,” Burke said.
“When loans are originated and boarded into a servicing system, they are most likely compliant, however, over time, payments get misapplied, side notes are created, late charges are misapplied and many more things that will take what was a compliant loan and make it no longer compliant,” he continued.
The new validation report by AGORA gives you the tools to recognize this real-time,” Burke went on to say.
Before AGORA, Burke insisted that dealers and finance companies would only find out they have a loan level compliance issue if a regulator, buyer or plaintiff attorney identified the problem. By that point, Burke pointed out the dealer or finance company is at risk of losing money, tarnishing their reputation and potentially facing serious legal ramifications.
“By ensuring ongoing compliance with the Truth in Lending Act (Regulation Z), AGORA is keeping you safe,” the company added.
Today AGORA is providing this loan validation tool for free, with no obligation, as well as loan stratifications, data security, data integrity, DMS API integrations, cash flow analysis and much more.
To take advantage of these tools, visit AGORA at www.agoradata.com and sign up for a free account.