Title X Federal Requirements for Private Loan Disclosure & Self Certification on Schedule for February 2010 Implementation.
Diamond Bar, CA - September 21, 2009 -- V-Tek Systems Corporation, the software development and integration company that manages the AppWorks Student Loan Origination system, announced today that just shy of $8 billion in student federal and private loan disbursements were processed through AppWorks on behalf of 50 lenders nationwide. The total, $7.95 billion, represents the highest volume year since AppWorks was introduced in late 2001, according to Cheri DeBlasio, V-Tek's Chief Operating Officer.
"Reaching such a significant dollar mark is more about the quality of both the system and the lenders who put it to use than it is about loan volume metrics," DeBlasio says. "We're proud of how our client-base has worked so hard with V-Tek's technical and customer service personnel to make AppWorks the system of choice for lenders and schools."
While federal loans have been especially strong for AppWorks, the private loan arena has also shown significant growth as AppWorks client volumes increased by 32% over the previous year. "In conjunction with our clients, we've added a number of specialized private loan programs that give schools the flexibility to function as lenders and we've also extended the system to allow medium and small lenders, including community banks and credit unions, to cost-effectively utilize AppWorks," said Ms. DeBlasio. "There's a huge credit worthy borrower pool that is having trouble finding loans through traditional channels, which creates opportunities for creative thinking," she added.
On a related note, the stringent Title X requirements for disclosure and self certification of private loans have a mandated implementation date of February 14, 2010. "In a unified effort with our clients we've nailed down the general and client-specific design requirements and programming is moving along quite rapidly," says John Gremer, V-Tek Director of Client Technical Support, "we'll have the entire capability out for client acceptance in a December 2009 release." The Title X regulations mandate a series of detailed disclosures at specific event points in the application and disbursement flow of private loans. They also increase borrower involvement in the loan process by requiring acceptance of loan terms, either by paper or electronic means, at the loan approval stage, as well as placing the responsibility on the school for providing the borrower with certain financial aid means data and requiring the borrower to pass such data along to the lenders, again using paper or electronic media. "It's a sea-change in processing workflow and a significant development enterprise," intoned DeBlasio.
V-Tek Systems Corporation, headquartered in Diamond Bar, CA, is a software development and system integration company with extensive expertise in Web-based business applications, Internet communications, .NET web services, Windows Presentation Platform & Smart Client, UNIX & Windows operating systems and Oracle data base software. V-Tek was established in 1995 as a technology provider to a consortium of lenders called ELM Resources developing a product set for ELM that forever changed the way student loan data was managed and delivered. Today, V-Tek provides software solutions and services to many of the nation's largest financial institutions and colleges and universities.
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