Steve Grant, President and Greg Holmes, Managing Partner
Mortgage lenders are under enormous pressure in 2018. From rising rates and narrowing margins to difficult regulatory compliance challenges, lenders need to take every opportunity available to automate and reduce costs, while ensuring loan quality and expanding the credit box to close more loans.
Post-financial crisis, lenders are particularly challenged to meet stringent credit standards. Determining the true creditworthiness of a borrower is difficult, despite the availability of more data than ever. That’s where innovators like Credit Plus can step in as an invaluable partner. Credit Plus offers an array of bundled verification services to better equip lenders to maximize both quantity and quality.
“The Credit Plus Collection is a single gallery of verifications, from pre-application to post-close, from which lenders can select one or multiple services. We are well-positioned to effectively guide lenders toward future success in the digital age of mortgage lending,” says Steve Grant, President of Credit Plus, Inc.
In the current environment, lenders have to be more flexible and agile than ever before. The “ala carte” approach at Credit Plus allows its clients to order various features and verifications throughout their workflow, instead of ordering everything up front. For example, some applicants are just starting the home search process and need only a pre-approval as they don’t have a specific home in mind to purchase yet. In that instance, its identity validation attributes would be utilized. Once approved and the application is registered into the client’s system as a loan, its fraud tools allow clients to upgrade, pulling additional attributes into their initial report.
The FraudPlus suite includes three detailed reports: the Borrower Detail Report, the Property Detail Report, and the Mortgage Participant Detail Report.
The Credit Plus Collection
is a single gallery of
verifications from preapplication
to post-close from
which lenders can select one
or multiple services
These reports let lenders quickly determine if applicants might be a risk and can help validate information within the loan file. Since no two loans are identical, Credit Plus’ lender customers are able to customize the various report components to stay focused and on target.
Staying on target also means successfully managing fraud risk. Recently the bureaus removed liens and judgments from consumer credit reports. The updated reports could have the unintended effect of making consumers appear to be more credit-worthy than they really are. For instance, lenders may find consumers that have outstanding debt that they do not claim on their 1003 application. Credit Plus is working to help lenders fill the gap by adding a public record search for liens and judgments to its customizable search options.
Additionally, some important foreclosure-related data is now being left off consumer credit reports, particularly short sale/foreclosure information that is not being reported to the bureaus. If the right tool isn’t utilized, a lender will not know if the applicant has had a foreclosure/short sale within the past seven years. Credit Plus has built a tool to reverse search the addresses of the applicants to provide a transaction history of those borrowers.
As the industry continues to make the transition to the automation-heavy digital mortgage, lenders need a partner that does more than just provide credit reports –they need a true verifications validations provider. Credit Plus offers a gallery of verifications from pre-application to post-close from which lenders can select one or multiple services, adding or subtracting as needed. Bottom line: Credit Plus is well-positioned to effectively guide lenders toward future success in the digital age of mortgage lending. “We are constantly making changes and augmenting our processes to offer a better experience to our customers and will continue to be a source that they turn to as the industry evolves and wrestles with fluctuating markets,” concludes Greg Holmes, Managing Partner of Credit Plus.