1/20/2022

Verification Services for Mortgage Lending

 

Martin Johnson Heade Apple Blossoms










Verification Services for Mortgage Lending

 

Or a letter to “Sam” to deeper understand my use of acronyms and silly lingo that did not clarify. Complete with list of vendors

 

Mortgage Lenders us Residential Mortgage Credit Reports (RMCR) also called a Tri-Merged report which is more detailed and different than a consumer credit report. A RMCR report often will have lower FICO scores than a consumer report. A RMCR is a long form many pages history of payments, balances, name variations, inquiries, and other details. The RMCR report is collected from sources and sold to mortgage lenders via what I call aggregators. These credit aggregators pull the data from the main three credit cops: Equifax, Experian, and TransUnion plus they add more information. These main three credit cops also sell RMCR’s.

 

Here is a list of commonly used and integrated by secure API to lenders Loan Operating Systems (LOS software):

 

Accurate Financial Services 
ACRAnet, Inc. 
Advantage Credit, Inc. 
Advantage Credit Bureau 
Advantage Plus Credit Reporting, Inc. 
American Reporting Company, LLC 
Avantus 
Birchwood Credit Services, Inc. 
CBA 
CBC Innovis, Inc. 
Certified Credit Reporting, Inc.
CIC Mortgage Credit, Inc. 
Cisco Credit 
CIS Info Services 

CoreLogic Credco

Credit Associates 
Credit Data Solutions

CIC
Credit Information Systems 
Credit Link, LLC 
Credit Plus, Inc. 

CRS
Credit Quick Services 
Credit Technology, Inc. (CIT) 
Credit Technologies, Inc. 
Cred Star 
Data Facts, Inc. 
EGS Global Solutions, Inc. 
Equifax Mortgage Solutions 
Factual Data aka: MACS 
Funding Suite 
Information Searching Company 
Informative Research 

KCB Credit, LLC 
Kroll Factual Data 
Merchants Credit Bureau aka: MCB 
MFI Credit Solutions 
Midwest Mortgage Credit Services, Inc. 
NCO / EGS / Alorica Credit Services, Inc. 
Online Information Services, Inc. 
Partners Credit and Verification Solutions 
Premium Credit Bureau 
SARMA 
Settlement One 
Sharper Lending, LLC 
Strategic Information Resources, Inc. 
The Credit Network KFD 
United One, Inc. 
Universal Credit Services, Inc. 

Some of these credit aggregators are patched in directly into mortgage lender software for other systems to read the bits of data such as monthly payment due, balance, and averaged middle FICO score. Monthly payments and balances owing are pieces of information needed for Underwriting approval to discern the debt-to-income ratio. The middle FICO score is used in LOS in pricing engines and Underwriting software to determine rate and fees available with these hurdles or attributes. Also, as a deciding factor to fit the ins and outs of a mortgage loan product at a given moment in time.

Other plug-in bits of integration information are:

Appraisal

Flood certificate

4506T from the IRS

SSA-89 also from mine government

Mortgage Insurance (many providers MGIC, Genworth…)

The Work Number (and a hundred other Verification of Employment apps or manual order)

New bank statement reading apps

MERS

Compliance apps

And so forth

All these vendor pieces are integrated into a lender’s Loan Operating System (there are many of these, most commonly Encompass (Ellie Mae bought by Intercontinental Exchange ICE) Empower owned by Black Knight, Blend, Lending QB, Turnkey, Lending Pad, Calyx Point, Open Point, Meridian, Power Lender, Net Oxygen…

 

To sell a loan to Fannie Mae (DU system) or Freddie Mac (LP system) the puzzle pieces, as in all these parts, must be 1. A provider the end company accepts or certifies 2. Be in format that flows into now MISMO 3.4 and XML directly into the end approver’s website.

To sell a loan to a Non-QM lender they have a different list of acceptable pieces and companies they require.

To sell to FHA and USDA again other triangular shaped pieces must fit their square box.

What I was illustrating is that the originator/ salesperson who is skilled must know their client’s dark secret story and desires to know before ordering credit, appraisal and certain pieces of the mortgage application from day one. By ordering a KFD credit report I cannot sell to Fannie, Freddie, or Non-QM I will need to order a second report perhaps later in the progress and the FICO middle score will be lower if I wait more than thirty days to order the second more fitting appropriate type.

 

I hope this explanation of the bones of software, not really the difference in SaaS or Cloud based or the many varieties of methods to review a home loan.

When I started in mortgage a pencil, paper, HP, and the borrower was what I needed. Today I can still outperform all these digital tools when the borrower is self-employed, the property not cookie cutter, and risk is an issue. Fintech has not put my brain to pasture, yet.


(949) 784-9699

C G 

Caroline Gerardo Barbeau

NMLS 324982

Sun West Mortgage LLC  NMLS 3277