Metro 2 is the industry standard format for credit reporting, as defined by the Consumer Data Industry Association (CDIA) guidelines. LoanPro’s Metro 2 credit reporting solution  makes it easy to create Metro 2 files, ensuring your credit reporting is both accurate and compliant.

Getting started

Prerequisites

Before creating a Metro 2 file, you must provide the following information to LoanPro:

• Data and time for monthly delivery
• If you elect not to use Report File Hub—LoanPro's native, encrypted file upload solution—provide your SFTP site and encryption details
• Bureau identification number
• Program identifiers for Equifax, Experian, TransUnion, and Innovis
• Reporter’s name, address, and phone number
   

Metro 2 generation process

LoanPro’s role and responsibilities

To facilitate the generation of Metro 2 files, LoanPro handles several key responsibilities:

• Data gathering and conversion: LoanPro manages the entire generation process, from collecting the necessary data (exactly as it appears in LoanPro) to converting it into the Metro 2 format. This includes triggering the generation of the files. Note that files can also be generated manually by visiting Tools > Credit Reporting > Credit Report History. 
• File delivery to client: LoanPro delivers the Metro 2 files to the Report File Hub or to the client’s designated SFTP site, Dropbox, or OneDrive. These files are transferred securely and are ready for client review upon arrival. 

Client’s role and responsibilities

In order to maintain compliance and ensure the accuracy of credit reporting, clients have several responsibilities:

• Credentialing: It is the client’s responsibility to obtain appropriate credentials from the credit bureaus. While being credentialed with all three major bureaus is not required, it is necessary to be credentialed with at least one.
• Data validation: It’s the client’s responsibility to validate the data against the generated file to ensure accuracy before submission to the respective credit bureaus. This step is crucial for preventing errors in the reporting process. 
  • Recommended tools for validation:
    • Credit Manager 5 (TSB Software): Runs through a series of detailed compliance validations and allows for the manipulation of all data points.
    • BridgeForce: Allows for detailed data validation. 
• Notifying bureaus of method change: If previously reporting via an alternative method, it is best practice to notify the bureau(s) of the change in reporting method. This helps ensure that the bureaus are aware of the new reporting format and can adjust their systems or expectations accordingly.

File format and operational processes

File format

LoanPro’s Metro 2 file is created using a character format as per CDIA guidelines.

Here’s a sample file (text file):

File components

Each Metro 2 file is structured into distinct segments, each designed to capture specific types of information critical for credit reporting. Here are the reporting segments we support:

• Header record: Identifies the reporter and the reporting period.
• Base segment: Contains account information for all consumers associated with the account. This segment includes general account details and identifies the primary consumer in joint accounts. Information such as account status, balance, and payment history are typical entries.
• J1 segment - associated consumer (same address): Reports details for any consumer associated with the primary account holder living at the same address. Mirrors the account information reported in the Base Segment for consistency in consumer reporting at the same address.
• J2 segment - associated consumer (different address): Captures credit information for consumers associated with the primary account but residing at different addresses. Similar to the J1 Segment, this includes all account details pertinent to the associated consumer, adjusted for the separate address.
• Trailer record: Summarizes the reported information. Includes total counts and summary information of the data included within the file, ensuring completeness and accuracy of the report.
• K1–K4 segment, L1 segment, and N1 segment: These non-essential segments are not supported by LoanPro and are left blank.

Setting up operational processes for precise reporting

To ensure accurate reporting, it’s crucial that the expected values populate in the correct fields for these segments. This requires precise data mapping and well-defined operational processes. Whether through automation or manual updates, make sure your processes are set up to update the right data fields with the correct values.

For detailed documentation on the LoanPro field values, how they map to each segment of the Metro 2 file, and the logic applied to each value, please visit Metro 2 data mapping. 

Validating data

Before submitting the file to the credit bureau(s), it is highly recommended that you validate the data against the generated file to ensure accuracy. This step is crucial for preventing errors in the reporting process. LoanPro’s recommended tools for validation are TSB Software/Credit Manager 5 and BridgeForce. 

Delivery procedure

Before delivering the Metro 2 file, remember to double-check that the expected values are correctly populating the required fields and validate the data to ensure overall accuracy.

For successful file delivery, you will need to provide:

• Credit bureau program identifier
• PGP public key for encryption
• Delivery location (aligned with DOD standards)
• Date and time for monthly delivery

LoanPro will transfer the Metro 2 file to your designated delivery location. It is your responsibility to validate the file and send it to your chosen credit bureau(s). 

Activation review and process

Bureau review and feedback timeline

After submitting your Metro 2 file to the credit bureaus, the bureaus typically take 3-5 weeks to review the file and provide feedback. Post-review, the bureaus will provide an access code. This access code is essential for entering the e-OSCAR system, which facilitates the resolution of consumer credit disputes and marks the final step before moving your reporting program in full to production.

Moving to production

Receiving the access code signifies that your Metro 2 reporting setup has passed the necessary checks and is ready to activate in production. Ensure you integrate any feedback from the bureaus to avoid delays in this final step. Before moving your reporting program to production, LoanPro will send you a test file for your review and approval. 

Reporting timeframe for finalized accounts

When a loan or line of credit reaches a final state, it is crucial to manage how long this information is reported to credit bureaus. Consistent with best practices, LoanPro advises that loans and LOCs not be reported beyond 90 days or three reporting periods. This practice helps ensure that the data on credit reports remains relevant and timely, preventing outdated information from affecting credit assessments. 

Archival process

LoanPro’s standard account archive process automatically manages the transition of finalized loan accounts out of active reporting. This process is designed to automate compliance and reduce manual oversight.

Custom rule implementation

For clients whose archive processes might extend beyond the typical 90 days, LoanPro provides a mechanism to enforce this best practice. A specific clojure rule can be implemented to automatically stop reporting accounts after their final status has been recorded:

(and (not(empty? settings-account-closed-date)) (>= (v/date-compare current-date settings-account-closed-date) 35) (-> settings-custom-fields-array :id109 :value (not="true")))

Use this Clojure rule in conjunction with a custom field titled “Do not report due to final state” to ensure that accounts are not reported once they are deemed inactive. 

Need help?

For more detailed data, segment, and custom field creation mapping, contact the LoanPro support team.