Maximizing the Effectiveness of Loan Prospector's Merged Credit Report Options and Property Inspection Alternative
[May 8, 2006]

Loan Prospector's® set of robust features is constantly evolving to provide you with the choices you need to streamline your origination process. We're continually enhancing our competitive features, including our merged credit report options and Property Inspection Alternative (PIA), to meet your business needs and make them even easier for you to use. If you haven't yet fully explored the advantages these features recently, now is a perfect time to take another look.

Take Advantage of Cost-Effective Merged Credit Report Access Options

Our flexible merged credit report options allow you to easily and more cost-effectively order or re-access merged credit reports provided by one of our many participating credit reporting companies (CRCs) or their affiliates through Loan Prospector. You can submit up to five merged credit Reference Numbers, both joint and single, including conventional, Veteran Affairs (VA), and Federal Housing Administration (FHA) loans, to re-access credit data for more of your borrower scenarios, saving you time and ensuring data integrity throughout your origination process. What's more, when you obtain a merged credit report, from a participating CRC through LoanProspector.com, you'll receive a reduced Loan Prospector assessment.

Here are some helpful hints to keep in mind when using Loan Prospector's merged credit report options:

• Make Sure You Have CRC Agreements in Place to Use Merged Credit Reports in Loan Prospector: To start using Loan Prospector's merged credit report options, you'll need to make sure you can order merged credit reports through Loan Prospector from at least two participating credit reporting companies (CRCs) or their affiliates. If you're currently ordering merged credit outside of Loan Prospector, contact your CRC to ensure your agreement allows you to also access it through Loan Prospector. If you don't already have a CRC agreement in place, you'll need to contact one of Loan Prospector's participating CRCs to establish an agreement to begin using our merged credit report options today.
• Verify All Key Borrower Data to Ensure Consistency:  When ordering merged credit, it's important that you submit accurate and complete key borrower data with the original report, including the borrower's name as they intend to hold the title, their current address and Social Security Number.  In addition, when you use this same credit data accessed in the initial stages of the mortgage process, and in the Loan Prospector assessment, you gain greater consistency throughout the process and eliminate possible discrepancies. To ensure consistency and eliminate discrepancies, you'll need to verify that all key borrower data that you enter into Loan Prospector, matches the key borrower data you used to obtain the original merged credit report.
• Use a Reference Number to Eliminate Costs Associated with Ordering Duplicate Credit Reports: There's no longer a need to order a merged credit report from a CRC outside of Loan Prospector, and again when you submit the loan for assessment in Loan Prospector. Use the Reference Number feature to avoid ordering duplicate credit reports from CRCs and incurring unnecessary fees. You can submit up to five merged credit Reference Numbers, both joint and single, to re-access credit data for more of your borrower scenarios. You only have to enter the Reference Number once, even if you resubmit the loan several times. When you use a Reference Number in Loan Prospector, you'll also receive a reduced Loan Prospector assessment fee. Please note, some participating CRCs charge a Reference Number fee.
• Find Merged Credit Details Quickly with a Comprehensive Merged Credit Certificate: If you're using Loan Prospector to obtain merged credit reports before assessing your loan in Loan Prospector, you'll receive a Merged Credit Certificate. The Merged Credit Certificate will help you find the following information in one easy-to-locate spot:
  • Borrower and Loan Identifier Information
  • Merged Credit Status
  • Credit Information (including information for each of the applicable borrowers and if credit has been re-pulled or re-accessed for each of those borrowers)
  • Transaction Information
  • Assignment Information

Streamline Your Valuation and Inspection Needs with the Property Inspection Alternative (PIA) Feature

Loan Prospector's Property Inspection Alternative is a robust model-based automated valuation option for your inspection needs. With PIA, you'll have a cost-effective, point-of-sale option for more of your loans, helping you further streamline your valuation and inspection process. For eligible mortgages, you'll receive relief from representations and warranties regarding value, condition and marketability, for one single $50 delivery fee.

Taking advantage of our PIA option is simple

In particular, you'll want to make sure you are:

1. Entering a Valid Property Address – Be sure to enter a valid property address. If, a valid property address is not entered, Loan Prospector will not review the submission for PIA eligibility.
2. Selecting the Appropriate Loan Processing Stage – Loans submitted to Loan Prospector in the pre-qualification processing stage are not eligible for the PIA option.

If you receive a feedback message indicating that the loan is PIA-eligible, you can choose to obtain a Form 2070 with an exterior-only inspection, or take advantage of the no-appraisal-no inspection option:

• To sell us a loan originated using the no appraisal-no inspection option, use SCC 357 on Form 11 or Form 13SF, as applicable. A $50 delivery fee is required.
• To sell us a loan originated using the Form 2070 option, use SCC 903 on Form 11 or Form 13SF, as applicable. No delivery fee is required.

Get More Information

• Read more about Loan Prospector's Merged Credit Report Options and Property Inspection Alternative
• Check out training materials about Loan Prospector functionality on FreddieMac.com