CREDIT REPORTING FAQs
For Community and Property Managers
How does the reporting process work?
Sperlonga’s credit reporting solution is automated. We are integrated with most major management software providers to provide connectivity to our API (application program interface). The management company’s software communicates with our assessment payment reporting application by using our API to provide account and payment information, which is then formatted and transmitted to the credit bureaus. This connection only allows Sperlonga to retrieve data. Sperlonga never alters data in a management company's software platform.
Does Sperlonga need SSN's, dates of birth, or bank account information?
No, we do not need that information from you, the Data Furnisher, in order to produce credit reports files. Our API will not have access to that kind of information in a management company’s software system. The credit bureaus already have the owner information and accounts are connected via the property address and title information.
Does the association need to notify homeowners of the pending assessment payment reporting to a credit bureau?
Legally no, only financial institutions have to notify consumers. But we encourage notification. It is critical for the service to work optimally. If owners don’t know the reporting has begun, they won’t know to change their payment behavior. We also recommend regular notification attached to all collection correspondence. We can provide templates with this language.
To which credit reporting agencies will data be reported?
Sperlonga is currently approved to report to Equifax, Transunion, and Dun & Bradstreet with efforts to begin reporting data to other credit agencies in development.
When is a homeowner reported delinquent to the credit bureau?
The board of directors for the association determines when the assessment is due. Based on the data submitted by the management company, the Sperlonga technology does calculations to determine if the account has a "reportable" past due amount and by how many days the balance is past due for each reporting month. The Credit Reporting Agencies report delinquencies in 30 day "buckets". So if an assessment is 30 days overdue, it will report in the 30-59 day "bucket". If it is 60 days past due, it will report in the 60-89 day "bucket" and so on. The following is a list of common Credit Reporting Agency codes:
11 – Current Account
13 – Paid or closed account/zero balance.
71 – Account 30 – 59 days past the due date.
78 – Account 60 – 89 days past the due date.
80 – Account 90 – 119 days past the due date.
82 – Account 120 – 149 days past the due date.
83 – Account 150 – 179 days past the due date.
84 – Account 180 days or more past the due date.
93 – Account seriously past due and/or assigned to internal or external collections.
DA – Deletes entire account.
What if our association does not have delinquencies?
Our service is being used by many associations who currently don’t have delinquencies and wish to stay in this position. The service rewards homeowners who pay on time by increasing their credit scores. By raising the priority of the assessment to the level of a mortgage payment, our service disincentives late payments. This is a proactive solution to protect property values and maintain the financial health of the association.
What is "reportable" according to the Credit Reporting Agencies?
Assessments, special assessments, late fees and late interest are reportable transactions which can make up a "reportable" balance to the Credit Reporting Agencies. Fines, services, etc are not included in the reportable balance.
Is there a minimum number of doors per association in order to sign up for Sperlonga's credit reporting service?
No, there is no minimum number of doors required. We report on any association whether they have 5 or 5,000 homes.
Is it legal to report homeowner assessments to the credit bureaus?
Yes, it is legal and is provided by the Fair Credit Reporting Act (FCRA), which allows for this type of information to be reported.
How quickly can associations get started with credit reporting?
Depending on the management company's software and our current backlog of association applications, we can begin reporting as soon as the data integration process is completed. On average, it takes two months from the time a partnership agreement is signed and to the time the first report is ready.
What information is available for associations once reporting starts?
The management company is provided with a monthly summary of the accounts that were reported along with the account status that was reported.
What is the method of file transmission?
This is dependent on the software provider method used for data extraction. In all current cases, extraction uses secure file transport mechanisms such as HTTPS (for web-based extraction such as SOAP or JSON) or SFTP (for file-based extraction). Transmission to the credit bureaus is always performed using SFTP.
How long will Sperlonga keep our files?
The retention policy for consumer data is 4 years.
Will the file transmission be encrypted?
Both transmission methods for file extraction (HTTPS and SFTP) are inherently encrypted using SSL and SSH. If the software provider supports another level of encryption, SDA will work to support that method. The transmission to the credit bureau uses PGP encryption.
What security measures are taken by Sperlonga to protect private consumer information stored on its servers?
All file extractions, generated Metro2 report files, and supporting account documentation (such as for disputes) are stored encrypted at-rest. The operating data is stored on a Microsoft Azure cloud platform which offers (among others) SOC1-3 compliance levels (more details please visit Microsoft's website at https://www.microsoft.com/en-us/trustcenter/Compliance). Operator access is strictly limited through IP address based-access rules. Further, all logins require username/password and the use of two-factor authentication. Account login failure lockouts and operator inactivity lockouts are also implemented.
What if account information is reported incorrectly?
If a Data Furnisher identifies a needed correction, Sperlonga will submit an update to the credit bureaus and correct any error. This will generally be reflected on a credit report within 24 hours.
What is the average length of time Sperlonga takes to facilitate a homeowner credit dispute?
The average Sperlonga dispute resolution is completed in 3 business days. We only need one person from the management company, or a single point of contact from the HOA, to verify account information. Sperlonga takes care of at least 95% of the customer communication and effort required to resolve a dispute. Under FCRA regulations, disputes/investigations must be completed within 30 calendar days.
Why doesn’t the balance on my credit report match my HOA records?
Only certain fees are reported to the credit bureaus, which may be a sub-set of your total balance. As a result, your full balance may not match what appears on the credit report.
Why is my account reporting as an ‘Open’/‘Secured’ loan type?
This is how HOA accounts are reported by the Credit Bureaus. The industry, based on Equifax’s recommendations, has decided that these account type descriptions are best suited for reporting HOA information at this time.
Why is my account showing a monthly frequency on my credit report?
Although you may pay your assessments annually or quarterly, we report monthly to the Credit Bureaus, therefore the frequency shows as monthly.
What happens if the management company does not correct my account information?
If the investigation does not resolve the dispute to your satisfaction, you may want to contact the credit bureau directly and file a brief “consumer statement”, setting forth the nature of the dispute and disputing the accuracy and/or completeness of the disputed information.