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4 posts tagged with "escrow"

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· 5 min read

Highlights

  • Loan collections are an essential element of the lender’s financial health and stability.
  • OCEN 4.0 introduces specialized roles, including collections partners, that can help reduce the burden on lenders.
  • Short-term lending products for marketplaces where Loan Agents also control the income-source for the borrower can use escrow-based-repayments to mitigate the collections risk.

· 6 min read

Highlights

  • OCEN 4.0 introduces auction based model where each loan application will be shared with multiple lenders.
  • Lenders rely heavily on Credit Bureau reports for loan underwriting and the traditional approach of doing a hard-pull by each lender may cause a reduction in borrowers score.
  • A consented soft pull done by the borrower’s agent emerges as the ideal path as it protects borrower’s score, yet keeps the borrower experience and transaction success rates high.
  • As a framework, OCEN 4.0 allows for 4 different ways of consent-based data-flows. Illustrated via the GST example.

· 4 min read

Highlights

  • Loan products can be classified into 4 types of loans - T1, T2, T3 and T4, on dimensions of end-use control and collections control
  • OCEN 4.0 product registry allows any credit product to be configured
  • OCEN 4.0 enables new data sets for underwriting and participant roles that help convert traditional T1 products to T2, T3, T4 products in OCEN

· 4 min read

Highlights

  • Robust dispute resolution mechanisms are essential to the stability of lending operations and to prevent disruptions in the ecosystem.
  • Delays in dispute resolution can undermine trust between parties and disruptions to cash flow may cause significant impacts to the business.
  • OCEN 4.0 includes a dispute resolution process that optimizes for speed, effort minimization and consistency via standardized APIs, dispute file formats and SROs for mediation.