What are Loan Prospector's Merged Credit Report Options?
Loan Prospector's Merged Credit Report Options allow you to:
Order merged credit reports from a participating credit reporting company (CRC) or technical affiliate through Loan Prospector before, or simultaneously when submitting a loan for assessment
Access credit reports previously ordered from a participating CRC or technical affiliate using a Reference Number
Submit loans to Loan Prospector using multiple merged credit report Reference Numbers, making it easier for you to assess loans with several borrowers in Loan Prospector
Wholesale lenders may require third party originators (TPOs) to only use merged credit and/or merged credit Reference Numbers. TPOs should check with their wholesale lender for more information.
What is a Merged Credit Reference Number?
In Loan Prospector, the credit report identifier is called a Merged Credit Reference Number (MCRN). Merged credit reports previously ordered outside of Loan Prospector may be reassessed by submitting the MCRN with the initial Loan Prospector transaction. Additionally, users should resend the MCRNs on all resubmissions. If the MCRN or critical borrower data has changed for any given borrower or joint pair of borrowers, Loan Prospector will request new merged credit from the CRC using the MCRN provided. If the MCRN is valid at the CRC, Loan Prospector will display the reissued merged credit report. If the MCRN is invalid at the CRC, then Loan Prospector will display an error message from the CRC.
How do I get setup and prepare to use the merged credit report options?
If you're a new Loan Prospector user there are only a few things you need to do to be able to use Loan Prospector's Merged Credit Options:
After you have received a Loan Prospector TPO number, you will need to establish an agreement with one or more participating CRCs or their technical affiliates. Make sure your agreement allows you to order merged credit through Loan Prospector.
If you are an existing CRC customer, in order to use Loan Prospector's Merged Credit Report Options, you must update your account with your TPO number to access merged credit reports and Reference Numbers through Loan Prospector. To update your account in Loan Prospector, please complete the on-line registration form and provide the following information:
Freddie Mac Seller/Servicer Number or TPO Number
CRC Account Number
Your Institution Name and Contact Information
CRC Account Number
If you are contacted by the credit reporting company, please respond to their inquiry as soon as possible, since this is part of the Loan Prospector registration process. A delayed response may hold up your registration completion.
TPOs, please confirm with your wholesaler(s) the CRC(s) you need to have set up to use Loan Prospector's Merged Credit Report Options. If they require a different company than your existing relationship, you will need to follow the "new CRC customer" path for setting up merged credit in Loan Prospector.
If you are using MCRN(s) make sure you're Loan Origination System (LOS) includes the Reference Number field(s). Contact your LOS vendor today and ask if you're on the most recent version of their software. Or see a list of the vendors that have updated their software.
What does "Existing CRC customer" mean?
If you have an existing relationship with a CRC or technical affiliate, in order to use Loan Prospector's Merged Credit Report Options, you must update your account with your TPO number to access merged credit reports and Reference Numbers through Loan Prospector.
If you are a TPO, please confirm with your wholesaler lender the CRC(s) you need to have set up to use Loan Prospector's Merged Credit Report Options. If they require a different company than your existing relationship, you will need to follow the new CRC customer path for setting up merged credit in Loan Prospector.
What does "New CRC customer" mean?
New CRC customers who don't already have an agreement with a CRC or technical affiliate, will need to contact at least one of Loan Prospector's participating CRCs or their technical affiliates to establish an agreement before using our merged credit report options. To set up an agreement with the CRC(s) or their technical affiliate(s), complete the agreements for the CRC(s) or affiliate(s) of your choice. If PDF agreements are provided, please mail or fax completed agreements directly to the appropriate reporting company or affiliate not to Freddie Mac. Online agreements can be submitted electronically.
Who are the credit service providers?
Loan Prospector has direct connections with seven CRCs to provide merged credit reports from them or over 85 of their technical affiliates. You may establish your own agreements with any of the seven CRCs or their technical affiliates to utilize the merged credit report options in Loan Prospector.
What is a CRC technical affiliate?
The CRC technical affiliates provide credit reports and services through one of the seven direct CRCs that offer merged credit reports through Loan Prospector. To establish an agreement with a technical affiliate, contact the technical affiliate company directly. If you already have an existing relationship with one of the technical affiliates, you will still need to contact them to update your account with your TPO number to use merged credit through Loan Prospector.
Who do I contact to sign-up with a CRC or technical affiliate?
The contact information for the Loan Prospector sign up process is as follows:
If you are an existing CRC customer, in order to use Loan Prospector's Merged Credit Report Options, you must update your account with your TPO number to access merged credit reports and Reference Numbers through Loan Prospector.
I contacted my local representative at my credit company and they didn't know how to sign up for Loan Prospector, so who should they call?
I have an existing relationship with a CRC, but my wholesale lender only does business through another company. Do I have to sign up with their CRC?
Yes. Even if you have an existing relationship with a CRC or technical affiliate, in order to use Loan Prospector's Merged Credit Report Options through a wholesale lenders' system or website, you must be setup with that lender's CRC. If you already have an existing relationship with your wholesale lender's CRC, you still need to update your account with your TPO number to access merged credit reports and/or Reference Numbers through Loan Prospector.
What will happen if I'm not signed up with a CRC and I try to score a loan in Loan Prospector?
Loan Prospector will return an invalid status message and the transaction will not process. You must have a relationship with one or more CRCs or their technical affiliates, in order to use Loan Prospector's Merged Credit Report Options. Even if you have an existing relationship with that CRC, you will need to specifically update your account with your TPO number to access merged credit reports and/or Reference Numbers through Loan Prospector.
How do I order merged credit reports in LoanProspector.com?
The process for ordering merged credit with an automated underwriting service (AUS) assessment is the same as it's always been, whether a conventional, FHA or Veterans Affairs (VA) mortgage type:
On the Request Services page select Merged Credit
Select your credit reporting company
Select single or joint report type and enter the relevant application details
If you want to order merged credit without an AUS assessment, follow the steps listed above plus the following:
Deselect Automated Underwriting
Where will the Reference Number(s) appear?
The Reference Number(s) will appear on your Loan Prospector Feedback Certificate in the Credit Report Information section. For Federal Housing Administration (FHA) TOTAL Mortgage Scorecard loans, the Reference Number will appear on the feedback certificate in the Credit Information section.
How do I use the Merged Credit Reference Number?
Following these steps to use the MCRN:
Select Request Services
Select Automated Underwriting
Select Reference Number
Select the Credit Reporting Company
Select Single or Joint report type
Enter Reference Number
We encourage you to send MCRNs on all resubmission.
For FHA loan submissions, the user must select merged credit at the top of the request services page and include the Reference Number.
What happens if the wrong Reference Number(s) is entered?
The CRC will verify the Reference Number entered matches each borrower name and Social Security Number. If there is a problem with the Reference Number entered, Loan Prospector will return an error message, and you may enter the correct number and resubmit.
What happens if I've already ordered merged credit and I select the Merged Credit box again on a re-submission?
On a resubmission, if the Merged Credit box is selected a new report may be ordered, and you may be charged a merged credit report fee when:
No Reference Number(s) is provided or
Critical borrower data has changed or
Add a borrower(s), change in joint merged indicator, or change in borrower order in a joint merged pair or
Change in CRC or
Change in mortgage product (FHA to conventional /VA or vice versa) or
The report has an expired credit expiration (at the borrower level)
Change from Merged Credit to Merged Credit – All
When the Merged Credit box is selected, enter a Reference Number in Loan Prospector, so it can be validated by the CRC to ensure the correct merged credit report is accessed. When you order merged credit from a CRC without an assessment, the Reference Number is returned to you on the Request Services page for your optional possible future use. If the Reference Number is used, you won't incur a CRC merged credit fee, but you may incur a Reference Number fee.
If any of these changes occur, you can either select merged credit again, or use credit infiles from the repositories for conventional or VA loans only.
What is critical borrower data?
Critical borrower data includes borrower last name, and Social Security Number.
If merged credit is ordered without an AUS assessment, what will I get?
You'll get a merged credit report that includes your Lender ID, Transaction ID, and Loan Prospector AUS Key Number. You will also be able to access the new Merged Credit Certificate as a feedback option.
If I add a borrower to my loan AUS assessment, can I use the Reference Number from my earlier credit request?
Yes, if you order an AUS assessment with a Reference Number and have multiple borrowers, all borrowers must have a unique Reference Number (single) or the same Reference Number (joint). If all borrowers do not have a Reference Number, you'll first need to request order merged credit, without an assessment, to obtain the Reference Number(s). Once you've done this, you can order an assessment using Reference Numbers for all borrowers.
If I order a merged credit report from a CRC through Loan Prospector without an AUS Assessment, will it count as one of my 15 permissible submissions to Loan Prospector?
No. Ordering merged credit without AUS assessment is not considered a submission to Loan Prospector.
Do I need to re-enter the Reference Number every time I resubmit the loan?
We encourage you to send MCRNs on all resubmission.
Select Request Services
Select Automated Underwriting
Select Reference Number
Select the Credit Reporting Company
Select Single or Joint report type
Enter Reference Number
Do not included the previous MCRN(s) when selecting the Reorder Credit option in Loan Prospector.
What is the difference between instances when the feedback message credit is "reused" vs. "reassessed" vs. "reordered"?
The definitions are as follows:
Re-used: Previously viewed credit is displayed.
Re-accessed: A copy of the same consumer report is re-issued by the CRC to the same requesting entity.
Re-ordered: Credit is re-ordered due to Loan Prospector has re-ordered credit (for example, if critical borrower data has changed or the credit has expired). If credit is re-ordered, an additional merged credit fee may apply, and another inquiry has been made in the borrower's credit report file. The Reorder Credit option can be found on the Request Services page by Loan Prospector browser access method, and is also available by system-to-system access method. The credit format is now available for either credit infiles or merged credit.
Can I use Merged Credit with two closing construction-to-permanent mortgages or construction of mortgaged premises completed after application?
On May 1, 2007, we retired the one closing, two closing and construction completed after application construction to permanent mortgage values in Loan Prospector. You can no longer submit or resubmit a loan using these construction-to-permanent mortgage values in Loan Prospector. If you have a pipeline loan that requires resubmission, and you receive an invalid message, you will need to select from the new values in the Mortgages for Newly Constructed Homes offering upon resubmission and leave the order merged credit option de-selected. The Loan Prospector assessment expiration will be based on 18 months, unless critical borrower data changes, other critical data changes, or change in entity are detected.
Merged credit will be obtained if merged credit is requested with the AUS, or infiles if Reference Numbers are entered to access previously ordered merged credit data. If you need to resubmit, keep the same CRC, critical borrower data, and submitting entity after the first 120 days to maintain the same credit data for 18 months. Loan Prospector may obtain new credit if any of the conditions listed under resubmission occur.
For more information on using Loan Prospector's merged credit options, refer to the resources available on our Freddie Mac Learning Center.
Can I use multiple Reference Numbers in LoanProspector.com?
Yes, you may submit up to five merged credit report Reference Numbers, matching the maximum number of borrowers you can submit to Loan Prospector. The five Reference Numbers can include a combination of joint and individual reports. All individual MCRN's must be unique numbers, whereas a joint merged credit request must be the same for the borrower(s) indicated as jointly requested.
If I use a Reference Number for one borrower, do I need to use it for all borrowers on the submission?
If you order merged credit only, you can have some borrowers with a Reference Number and some without a Reference Number. If you order an AUS assessment with a Reference Number and have multiple borrowers, all borrowers must have a Reference Number (joint or single). If all borrowers do not have a Reference Number, you'll first need to order merged credit to obtain the Reference Numbers. Once you've done this, you can order an assessment with Reference Numbers for all borrowers.
Where can I find details regarding my merged credit report request?
If you're using Loan Prospector to order merged credit reports before assessing your loan in Loan Prospector, you'll find the following information on the Merged Credit Certificate:
Borrower and Loan Identifier Information
Merged Credit Status
Credit Information (including information for each of the applicable borrowers and if credit has been reordered or reassessed for each of those borrowers)
Transaction Information
Assignment Information
Look for the Merged Credit Certificate in the Results section of Loan Prospector. You'll only see the Merged Credit Certificate if you have requested merged credit only and your Merged Credit status = Complete. If you request merged credit only and the status = Incomplete or Invalid, the Merged Credit Certificate will only display the applicable errors. You will not find the full merged credit report on this certificate. The full merged credit reports can be found in the Results section of the Loan Prospector Feedback Certificate.
When do I need to order a new merged credit vs. when can I use an existing Reference Number?
You may receive, a CRC Merged Credit Error (ME) when using an existing Reference Number and may need to order new merged credit, if you:
Change a merged credit specification upon resubmission from Joint to Single (or vice versa)
Start with one (married) borrower and try to use a Reference Number previously issued as Joint, but have only one borrower on the Loan Prospector AUS assessment.
Submit Borrower 1 and Borrower 2 as Joint (married), but resubmit them as individual (single/engaged)
Make changes to erroneous data at credit repositories and want an updated merged credit report to be re-assessed in Loan Prospector.
Change a CRC
Note: If you make a data change and reorder new merged credit, and do not like the updated credit data returned, Loan Prospector will not allow you to reaccess credit using the prior MCRN. Loan Prospector will only use credit data from the most recent complete transaction.
If I receive a "Borrower Co-Borrower Mismatch" ME error message from a CRC what does this mean?
This occurs when the identifying information submitted, including the Reference Number, CRC name, merged credit (joint/single) indicator and borrower last name(s) and Social Security Number data do not match the original record. To correct, you'll need to review the data entered to ensure the information submitted with the Reference Number matches the original merged credit request. Changes to certain data fields may invalidate the use of the previous Reference Number. For example, if a middle name is provided, it will be used and returned in the top portion of the Loan Prospector Full Feedback Certificate.
How do I add a borrower to a loan and resubmit with the Reference Number?
If you are resubmitting to add a borrower with a Reference Number, select the Automated Underwriting and Reference Number services boxes. Then include the Reference Number(s) for the added borrower(s). When you select this option, you will receive credit infiles in the feedback section. If you need or prefer to view/print the original merged credit report, resubmit as order merged credit with Reference Number and automated underwriting service.
Where can I find the Reference Number displayed in Loan Prospector?
The Reference Number(s) can be found in Loan Processing Remarks section of the Loan Prospector Full Feedback Certificate.
Are there any additional costs to use the merged credit options?
Merged Credit and Merged Credit Reference Number fees are charged to you directly from the CRC(s). If you have questions or issues about your merged credit charges, you'll need to contact the billing contact at your selected CRC directly.
How will I be billed for merged credit reports and Reference Number fees?
All merged credit report option fees ordered in Loan Prospector will be billed to you directly from your selected CRC.
You will receive your monthly merged credit fees ordered through Loan Prospector, including Reference Number fees and your current CRC fees, in one bill directly from the CRC. This will also include any secondary use fees, when and where applicable. These fees may vary, according to the CRC used, number of borrowers, and whether single or joint merge is indicated.
What is secondary use?
Secondary use submissions are requests for previously viewed credit data for the same loan application by secondary parties.
Do all the CRCs charge a Reference Number fee?
Merged Credit and Merged Credit Reference Number fees are charged to you directly from the CRC(s). If you have questions or issues about your merged credit charges, you'll need to contact the billing contact at your selected CRC directly.
Will I be charged a fee if I use multiple Reference Numbers?
If your CRC charges a fee to use a Reference Number in Loan Prospector, you will be charged that fee for each Reference Number you submit. For example, if you use three different Reference Numbers on the same transaction (based on the number of borrowers), and your CRC charges a $1 Reference Number fee, your total fee will be $3 for that submission.
