Video Witness Solutions In Lending
Increase Efficiency and Prevent Fraud
Identity protection, borrower fraud, increased regulatory scrutiny and other common risks associated with online lending require a better method of interaction between borrowers and lenders. Contract Cloud helps consumers and lenders increase their communication and prevent fraud. By using video, Contract Cloud is able to capture necessary pieces of this consumer & lender interaction: identity, capacity, understanding and intent.
What risks are present for consumer loan originators?
Consumer loan originators (“Lenders”) all face exposure to fines from regulators as well as litigation from borrowers. Regulatory agencies including the Consumer Financial Protection Bureau (“CFPB”), Securities and Exchange Commission (“SEC”), and Fair Trade Commission (“FTC”) can impose large fines and file lawsuits against Lenders for violation of industry specific rules and federal laws. The costs of these regulatory and borrower actions can reach billions of dollars. Lenders need a better method of protection to defend against regulatory actions and borrower disputes.
What risks are present for borrowers in consumer lending?
Borrowers must be aware of the terms and conditions of their loan. Loans can be very complex and require a high level of sophistication and education surrounding interest rate fluctuations, transfer of loan ownership, repayment options, and other factors. Traditionally, borrowers have relied upon the advice of loan brokers to help recommend suitable loans. Borrowers must use every tool available to understand the terms of their loans. If borrowers are mislead or otherwise defrauded by Lenders, they can seek recourse by filing complaints with the above listed regulators or file a lawsuit or arbitration claim. Borrowers need to ensure the appropriate risks and disclosures are made to them prior to their decision to obtain a loan.
How does Contract Cloud help?
Borrower litigation and regulatory actions can be incredibly damaging to your business. Contract Cloud helps borrowers and Lenders avoid these costly burdens. Contract Cloud is a patent-pending mobile and web based video-recording service that acts as a digital video witness to borrower acknowledgment of loan disclosures, increasing borrower trust. The borrower and Lender communicate more clearly and can ensure the borrower receives the appropriate disclosures and understands the terms of a loan. The borrower is recorded while reading aloud brief customized scripts relating to the loan.
Common examples of Contract Cloud’s uses include:
- Borrower income representations
- Acknowledgment of receipt and/or review of loan materials
- Acknowledgment of receipt and/or review of loan terms
- Attestations surrounding completion of loan education platforms
How do I implement Contract Cloud into my workflow?
For electronic lending platforms and/or e-loans, Contract Cloud’s application program interface (“API”) plugs into the Lender’s (or its vendor’s) workflow at any point where the borrower makes one of the above attestations or other representation to the lender. The scripts displayed to the borrower through the API are curated by the Lender to ensure compliance with regulators and to communicate all adequate terms and disclosures to the borrower.
Contract Cloud can be used as a stand-alone app in circumstances where the borrower’s attestations or acknowledgments are done in traditional paper processes. The Lender simply needs to download Contract Cloud’s app to their representatives’ iPads. The Lender can manage the scripts online through the same web-portal as the API.
The recordings are securely uploaded and stored by Contract Cloud’s patent-pending system in either the API or app use-case. The recordings are managed, sorted and retrievable at anytime.
Demand a better method of contracting, prevent unnecessary disputes, and increase borrower trust. Contract Cloud is beyond a signature; it is your video witness.