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