Credit Technologies launches CTNe.ws
Mortgage News Site
effort to keep our clients better informed, Credit Technologies
has created a news and information site customized for the
mortgage banking industry. This new "blog" style site will
provide more timely content in an easy to read format. All
content is automatically included in our twitter site (http://www.Twitter.com/CreditTech)
enabling the delivery of new information directly to your phone
or hand-held device.
content will include,
- Product or service updates
- Technology issues including any
- Compliance and regulatory updates
- Any other issues or topics of
competitive value to our clients.
You can access our new
News Center at
http://www.CTNe.ws or simply follow us on
IRS 4506T Volume
We have been informed by the IRS tax service center that due to
unprecedented increases in 4506 volume, typical turn-around
times are increasing – and are now approaching 2 business days.
This increase in volume is likely a result of more lenders
requiring tax and W-2 transcripts be executed on every file.
In an effort to provide the fastest turn times under these new
circumstances, we have adjusted our suggested cut off time to
11:00AM Eastern. The IRS is often treating requests received
after 11:00 as having been received the following day.
Please try and submit your 4506T requests no later than 11:00AM.
This earlier transmittal time gives us the best chance of
obtaining your needed tax data within the expected 24 hours time
frame. We will continue to monitor the situation and keep
you advised of any further changes.
For more information on ordering and pricing, please contact
your sales representative or visit
Please call 800.445.4022 Option 4 should have any further
questions or concerns.
Technologies on Twitter
In an effort to get
important communications in the hands of our clients faster, we
have begun using Twitter as a communication forum. In addition
to our existing communication channels, we'll transmit time
sensitive data via twitter including product or
service updates, technology
issues including any service outages, compliance and
regulatory updates and any issues of
competitive value to our clients.
Below are recent Twitter
updates - to Follow Credit Technologies on Twitter, simply click
the below link...
TB&W To Require 4506
Executions on Most Submissions
Taylor, Bean and Whitaker has joined the growing ranks of
lenders requiring executed 4506 transcripts. From their 5/28/09
Requirements – Effective with loans locked on or after 10 June,
2009, TB&W will require lenders to provide Tax Transcripts for
all loans where income is used to determine eligibility (FHA and
VA Streamline refinances are exempt). If the borrower is a W-2
wage earner, the lender must obtain the most recent available
one tax year’s tax return transcript. If the borrower is self
employed or derives income used for qualifying purposes from
commissions, dividends, interest, or other sources besides base
pay, the lender must obtain the most recent available two year’s
tax return transcripts.
Tax return, W-2 and 1099
transcripts are available in about 24 hours - For more
information on ordering and pricing -
please click here.
Update May 1, 2009
- The FTC Grants
Additional Red Flag Enforcement Delay
FTC Will Grant
Three-Month Delay of Enforcement of ‘Red Flags’ Rule Requiring
Creditors and Financial Institutions to Adopt Identity Theft
The Federal Trade Commission will delay enforcement of the new
“Red Flags Rule” until August 1, 2009, to give creditors
and financial institutions more time to develop and implement
written identity theft prevention programs.
For entities that
have a low risk of identity theft, such as businesses that know
their customers personally, the Commission will soon release a
template to help them comply with the law. Today’s announcement
does not affect other federal agencies’ enforcement of the
original November 1, 2008 compliance deadline for institutions
subject to their oversight.
“Given the ongoing debate about whether Congress wrote this
provision too broadly, delaying enforcement of the Red Flags
Rule will allow industries and associations to share guidance
with their members, provide low-risk entities an opportunity to
use the template in developing their programs, and give Congress
time to consider the issue further,” FTC Chairman Jon Leibowitz
The Fair and Accurate Credit Transactions Act of 2003 (FACTA)
directed financial regulatory agencies, including the FTC, to
promulgate rules requiring “creditors” and “financial
institutions” with covered accounts to implement programs to
identify, detect, and respond to patterns, practices, or
specific activities that could indicate identity theft.
FACTA’s definition of “creditor” applies to any entity that
regularly extends or renews credit – or arranges for others to
do so – and includes all entities that regularly permit deferred
payments for goods or services. Accepting credit cards as a form
of payment does not, by itself, make an entity a creditor. Some
examples of creditors are finance companies; automobile dealers
that provide or arrange financing; mortgage brokers; utility
companies; telecommunications companies; non-profit and
government entities that defer payment for goods or services;
and businesses that provide services and bill later, including
many lawyers, doctors, and other professionals. “Financial
institutions” include entities that offer accounts that enable
consumers to write checks or make payments to third parties
through other means, such as other negotiable instruments or
During outreach efforts last year, the FTC staff learned that
some industries and entities within the agency’s jurisdiction
were uncertain about their coverage under the Red Flags Rule.
During this time, FTC staff developed and published materials to
help explain what types of entities are covered, and how they
might develop their identity theft prevention programs. Among
these materials were an alert on the Rule’s requirements,
and a Web site with more resources to help covered entities
design and implement identity theft prevention programs,
The compliance template will be available on this Web site.
The Federal Trade Commission works for consumers to prevent
fraudulent, deceptive, and unfair business practices and to
provide information to help spot, stop, and avoid them. To file
a complaint in English or Spanish, visit the FTC’s online
Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The
FTC enters complaints into Consumer Sentinel, a secure, online
database available to more than 1,500 civil and criminal law
enforcement agencies in the U.S. and abroad. The FTC’s Web site
provides free information on a variety of consumer topics.
FACTA Red Flag and HVCC May 1st Deadlines
If not a "Black Friday" - Friday May 1st, 2009 will certainly be
"Dark-Gray" for most mortgage brokers and lenders. Two pieces of
legislation take affect that will instantly change
Red Flag Requirements
Red Flag requirements take effect May 1, 2009
requiring that more than 2,000,000 entities - virtually all
types of lender including banks, credit unions, mortgage
brokers and lenders, auto and motorcycle dealers, utility
companies and cell phone providers create the required
procedures, detection methods, training and documentation to
detect and prevent identity theft. Credit Technologies provides
a simple, free way to learn how to comply with FACTA section 114
(commonly referred to as the "Red Flag" rules.)
- Red Flag Training Made Easy
is a fully interactive webinar-style training course designed to
dramatically simplify FACTA Red Flag compliance - all provided
free of charge to current members. This interactive online
course teaches you how to comply with FACTA Red Flag including:
Covered accounts - How to develop the required detection,
response and mitigation methods
Required procedural and training documents - Implementing
the annual update requirements
Simple online solutions to create the needed documents and
State and Federal enforcement and penalties for
“Every mortgage professional should attend this webinar to gain
an understanding of the requirements and the potential penalties
EasyRedFlag Webinars are held every Tuesday and Thursday and run
about 45 minutes with lots of Q&A time at the conclusion to
address your specific questions and concerns.
Click Here to Register for an Upcoming EasyRedFlag Webinar.
For more information on Red Fag compliance, please visit
The Home Valuation Code of Conduct (HVCC)
HVCC is a
joint agreement between Freddie Mac
and Fannie Mae, the Federal Housing Finance Agency (FHFA), and
the New York State Attorney General to "enhance the independence
and accuracy of the appraisal process, and provide added
protections for homebuyers, mortgage investors and the housing
market." Under this new requirement, most appraisals will be
ordered by the lender through an Appraisal Management Company
(AMC.) This agreement poses many additional challenges to
mortgage professionals including;
Broker contact with an appraiser is now all but eliminated and
comp-checks prohibited, it will be much more difficult to obtain
an estimated valuation prior to determining if a mortgage is
viable for that applicant or property.
The cost concessions demanded by many AMCs and additional work
requirements (form 1004mc - Market Conditions Report) are
forcing many of the most experienced appraisers out of business.
The AMC process rewards those appraisers with the lowest fees
and fastest turn time - neither of which supports higher quality
The appraisal will not be available until AFTER the broker has
submitted the loan package rendering much of the documentation
submitted incomplete or inaccurate. This further complicates
loan processing and decisioning. and will significantly increase
the work load on already over-burdened lenders. Some project 3
times the number of applications being submitted as the broker
cannot effectively weed-out non-viable transactions.
Increased costs and delays for consumers - It will typically take
much longer (weeks) to obtain the property appraisal, which may
significantly alter the lending terms. Should a different lender
be required - there is a high probability that the new lender
may not accept the previous appraisal and require a new
appraisal be ordered at significant cost to the consumer and
resulting in additional delays.
The May 1st implementation of the HVCC makes
access to quality AVMS critical for all originators.
provides online access to the AVM reports used by top mortgage
lenders, appraisers, Realtors® and attorneys nationwide
including Freddie Mac's Home Value Estimator (HVE), First
American CoreLogic HPA, PASS and Fiserv, Inc.'s Case Shiller
Weiss CASA AVMs - All delivered in seconds at a fraction of the
cost of a traditional appraisal.
View a Sample AVM
Click Here to Enable Access to AVMS Though Your
– There are no setup costs, and
you gain instant, online access to the top AVM
appraisals used nationwide.
Not a client yet - no problem.
Click Here to Setup Your Free Account, or to Order a
For more information
on Automated Valuation Models, including samples of each, please
contact your sales rep or call
800.445.4922, Option 1.
Both GSEs provide additional information on HVCC at:
On Sunday 4/26/09 at 11:29AM EST Equifax reported an internal
power incident that resulted in Equifax credit data being
unavailable nationwide through all sales channels. Service was
not restored until Monday at 8:07PM EDT. Any Equifax reports
ordered during this outage returned error message stating the
bureau is unavailable.
To avoid additional charges please Do Not Run an New
Once service is restored, Add the missing Equifax file to any
existing reports by;
1) Login to Credit Technologies, locate the desired file(s)
2) Click the "Add Bureaus" link in the Add On Products section -
This will re-run ONLY the Equifax file and blend the data into
your existing report.
The end cost is the same as if you had pulled a tri merge report
originally (2 bureau report credited – tri merge charged.)
Freddie Mac Update – Removal of Credit Reporting Company “Fidelity
Information Services” (FIS) & Addition of "Equifax Mortgage
Note - These changes apply only to those brokers or correspondent
lenders participating in Freddie Mac Loan Prospector (FMAC LP.)
If you do not currently obtain or reissue credit files through
FMAC LP, please disregard this message.
For the purpose of connectivity to FMAC LP, the vast majority of
credit reporting agencies nationwide, including Credit
Technologies were affiliates of FIS (Fidelity Information
Services, Inc.) On February 29, 2008, Equifax Mortgage Solutions
(EMS), a division of Equifax, acquired (FIS). As a result,
beginning September 14, 2008 the Credit Reporting Company FIS (4)
will no longer appear as an option in Loan Prospector.
Effective September 14, 1008, when acquiring or reissuing a Credit
Technologies report through LP, you will now select the EMS (5)
option in place of FIS (4) in the Credit Reporting Company drop
down box. All other steps and functionality remain the same. These
changes apply only to FMAC LP transactions. For all other GSE
transactions including Fannie Mae DO/DU, you will continue to use
the Credit Technologies (287) drop down option.
The following explains what the user will experience with the
different access methods after FIS is removed:
Direct Entry: FIS will no longer be an option in the Credit
Reporting Company field drop down. For loans previously sent to
Loan Prospector using Credit Technologies via the FIS (4)
option, the Credit Reporting Company field will be blank. If the
user submits the loan prior to selecting EMS (5) as the Credit
Reporting Company a “Correct Errors” message will be returned
and the user will be directed back to the “Request Services”
page in order to select EMS (5) as the Credit Reporting Company.
Browser Import: The Credit Reporting Company code of “4”, which
represents FIS, will be dropped on import. If the user submits
the loan prior to selecting a new Credit Reporting Company a
“Correct Errors” message will be returned and the user will be
directed back to the “Request Services” page in order to select
EMS (5) as the Credit Reporting Company.
You likely have heard about new secondary use contracting
requirements. Equifax (EMS) is requiring that within the next 90
days, any secondary use requester (typically the FMAC lender) be
properly credentialed with the CRA that created the original
mortgage credit report.
All Credit Technologies Members Are Already Compliant With
These New Requirements - No Further Actions Are Required.
We continue to work with all lenders participating with FMAC LP to
comply with these new requirements and anticipate this being
completed within the 90 day time period.
Please feel free to contact our technical support department if
you have any questions regarding this or any other issue. They can
be reached via email at TechSupport@CreditTechnologies.com or via
phone at 248.313.1000, Option 3.
Thank you for choosing Credit Technologies. We look forward to
helping you close more loans.
New Secondary Use Requirements
repositories have made significant changes in the due diligence
requirements regarding secondary use access to consumer credit
(also referred to as "global reissue.")
Effective December 14, 2008, a Secondary Use agreement is
required by the repositories (Experian, Trans Union and Equifax)
prior to allowing any entity with permissible purpose access to
consumer credit data as a secondary user. This specifically
applies to any lenders accessing consumer credit reports
originally acquired by a separate broker or lender and includes
files obtained through any automated underwriting system such as
Fannie Mae’s Desktop Originator®, Desktop Underwriter®
and Freddie Mac Loan Prospector®. More information on
secondary Use requirements including the required agreement is
Fannie Mae Hits Hard Below 680
On November 6, 2007, Fannie Mae announced new loan pricing
policies that factor “representative”1 credit scores
and LTVs into a LLPA (Loan Level Price Adjustment). Beginning
with loans delivered on or after March 1, 2008, borrowers with
scores below 680 are subject to price adjustments ranging from
.75% for the 660-679 range to 2% for borrowers with sub-620
scores. While these policies exclude terms of fifteen (15) years
or less or loans delivered as Expanded Approval or EA/TPR, all
other single loan types are included and all existing pricing
With regard to loans with subordinate financing, the magic number
appears to be 720+ as all borrowers with sub-720 scores are hit
.25% to price for non interest-only and .5% for interest-only.
720+ borrowers are only hit for interest-only to the tune of .25%.
These changes prove that more than ever
before the ability to quickly and permanently improve your
client’s credit score is critical both in terms of affordability
to your client and to your bottom-line. Credit Technologies, Inc.
pioneered the process of credit rescoring and today our Score ExpressTM
process is the quickest and most cost-effective way to improve the
quality of your client’s credit profile. Contact us today to
learn how Credit Technologies, Inc. can help you create a
Credit Technologies began incurring these new higher costs as of
March 1, 2007. We delayed implementation of these higher fees as
long as possible with the hopes an alternative would be found.
Effective April 9, 2007 - We are now forced to pass along the actual
Facts about Secondary Reissue - Updated 4/2/07
When - Effective
4/1/07, Repository mandated secondary reissue charges apply each
time an existing report is reissued through any automated
Secondary reissue fees are levied by each repository and effect
every tri merge credit report used for mortgage purposes
regardless of which credit reporting agency you obtained the
Inquiries – With each
secondary use of a credit report (reissue), a new secondary use
inquiry will be placed on the consumers credit report, this
inquiry will not affect the FICO score.
FICO score – While Fair
Isaac has not announced plans to charge for secondary use of FICO
scores, Experian and Trans Union secondary use fees include the
cost of the FICO score.
Credit Technologies is
working in concert with the
educate all parties involved about the serious impact this new
policy and fee structure could have, especially on first time, non
prime and minority home buyers (Read
the NAMB position paper on secondary use.)
Technologies Launches CreditXpert Credit Assure™
Credit Assure™, is an automated process that
pre-scans every credit report and identifies opportunities to raise
credit scores. Based on CreditXpert technology, Credit Assure does
all the work for you automatically. You instantly know if
opportunities exist to improve your borrower's credit scores
Learn More about
Credit Assure. "We're excited
about the launch of the Credit Assure product, it dramatically
simplifies the process of identifying opportunities to improve
borrowers credit scores. Our goal has always been to provide our
clients a competitive advantage - Now on every CTI credit report,
you instantly know if your borrowers credit score can be raised
without taking the time to complete a manual analysis " said Credit
Technologies President Thomas Conwell.
The Credit Assure product is provided to all
Credit Technologies clients free of charge through he end of 2006.
For more information visit the Credit Assure page at
http://www.credittechnologies.com/Credit_Assure.asp or call
800.445.4922 Option 4.
Lovejoy Joins The Staff of Credit Technologies
Technologies is honored to welcome Barbara Lovejoy to our staff of
mortgage credit reporting professionals. Barbara, a 20+ year veteran
of the credit reporting industry assumes the position of Executive
Vice President – National Sales. “I am truly thrilled to welcome
Barbara to the Credit Technologies family. Her vast experience and
unparalleled commitment to her clients place her among the very
elite within the credit reporting industry” said founder and
President Thomas Conwell.
is the past president of US Credit, Inc. and most recently served as
Regional Vice President for Credit Plus, Inc. Making her home in the
suburbs of Atlanta Georgia with her husband Michael – Barbara can
be reached directly at 404.597.1206, through the national customer
service center at 800.445.4922 or via email at BLovejoy@CreditTechnologies.com.
1990, Credit Technologies is a national credit reporting agency
specializing in advanced credit reporting, re-scoring and training
for the mortgage lending community. Having processed more than 7
million credit transactions, Credit Technologies pioneered the field
of credit re-scoring. For
more information call 800.445.4922 or visit www.CreditTechnologies.com.
Repositories Introduce VantageScore™ Credit Scoring Model
new credit scoring model developed jointly by the three national
credit reporting companies was introduced today. The
Vantage Score models initially appears to be a replacement for the
current repository direct-consumer score models, often referred to
as Plus™ scores. These scores are sold to consumers through
various sales channels including freecreditreport.com. They are not
currently used in any capacity within the mortgage industry, nor
have we seen any press release indicating FICO is simply going away.
Replacing FICO scores in all venues would require the systemic
adoption of this new scoring model by FNMA, FMAC and most lenders
and their AUS’s – seemingly a huge undertaking. Below are
Replies received from both FNMA and FMAC indicate no immediate
intention to utilize VantageScore
MAE: At this time, we have no plans to switch to this new score
for our credit evaluation purposes. The credit
repositories are just beginning to talk with us and other
industry participants about the new credit score, so it is too
early to speculate about what we may do. However, we will
work with the repositories and our industry partners to test the
effectiveness and predictive ability of the score.
Finally, please note that Desktop Underwriter's credit
assessment is based on a proprietary Fannie Mae model, not on
MAC: At this time, Freddie Mac has no immediate comment on the
use of the VantageScore credit scoring methodology. As we
learn more details from the repositories, we’ll determine our
next steps, as appropriate. We presently do not have any
plans to use VantageScore in Loan Prospector or anticipate any
changes to Loan Prospector based upon the availability of
More information is available in the VantageScore
Press Release and VantageScore
We will continue to monitor the VantageScore program and provide
updates as changes occur, including any use within the mortgage
January 27, 2006 - Credit
Technologies Launches National Mortgage Referral Network
Each month more than 50,000 consumers visit
CreditTechnologies.com. many of whom are in the process of selecting
a mortgage professional, or are looking for a second opinion on an existing
mortgage offering. Credit Technologies new free
mortgage referral program matches mortgage applicants with
brokers and lenders in their area that are able to provide its
advanced credit rescoring solutions.
"We're excited to be able to provide
consumers direct referrals to our network of rescoring enabled
brokers and lenders. Our mortgage professionals have the
training and rescoring expertise that typically enable them to
provide lower costs and interest rates than traditional mortgage
companies. Our free referral program creates a win-win scenario for
both the mortgage applicant and the broker/lender. This
referral program is unlike any other in existence, as it provides
total privacy protection for the consumer by eliminating any chance
of their contact information being sold as a mortgage lead. From the
broker/lender perspective, there is no cost involved and they are
not dealing with a lead that has been sold to dozens of other
mortgage brokers." stated Thomas Conwell, President of Credit Technologies.
Brokers and lenders wishing to learn more
about the CTI referral program, should visit http://www.credittechnologies.com/Mortgage_Referrals.asp
or call 800.445.4922 option 4.
Consumers looking for assistance with a
current mortgage application, or help choosing a mortgage
professional should visit http://www.credittechnologies.com/Consumer_Rescoring.asp
About Credit Technologies: Founded in 1990,
Credit Technologies is a credit reporting agency serving top
mortgage lenders and brokers nationwide. In 1997, Credit
Technologies introduced ScoreExpress, the first credit rescoring
system designed to process updates to consumer credit reports in
less than 72 hours. Today ScoreExpress is the most powerful credit
report analysis and rescoring system available and can be accessed
exclusively through a network of certified mortgage brokers and
lenders. For more information on any Credit Technologies product or
service, please call 800.445.4922 option 4.
November 8, 2005 - The
Mortgage Credit Arsenal™ Published
The first issue of the Mortgage Credit
Arsenal was released today. The Arsenal is
the first publication specifically designed to teach mortgage
professionals how to use credit scoring and rescoring to create a
competitive advantage. "It's unlike any other mortgage credit
publication. We've taken 15 years of credit reporting and rescoring
expertise and put it in a format that will benefit every
reader" said Thomas Conwell, President of Credit Technologies.
Each issue of the Arsenal covers subjects including,
- Credit reporting & rescoring tools,
and training to maximize your results
- The Secrets of FICO Scoring - rescoring
tactics for every lending niche
- Legislative changes and new requirements
Including OFAC, FACTA, RESPA...
- Trends in mortgage technology--What
works, and what doesn't
- Q & A - Answering your credit
and scoring questions
Issue one includes,
* How to Give Yourself an Unfair Advantage
in Every Lending Niche.
* The Secret to Higher FICO Scores
* FICO Rescoring Strategies that Really Work
* FACTA--Are You Out of Compliance?
* Pre-Employment Screening--What Every Mortgage Broker Should Know
* Ask The Arsenal - What do when missing one or more FICO scores?
The Arsenal is designed exclusively for
mortgage loan professionals and is provided free of charge to
qualified readers. You may cancel at any time and you have our
commitment that we will NEVER sell your email address or information
to any third party. Subscribe
to the Arsenal Today.
For more information on the Arsenal, or any
Credit Technologies product or service, please contact us toll-free
at 800.445.4922, option 4.
October 21, 2005 - Credit Technologies Launches
Credit Technologies today released its new
web-based credit rescoring program "Mortgage Alchemy". This proprietary education program, available
exclusively to Credit Technologies clients, provides invaluable
insight into specifics on how credit scoring functions and how to
apply these concepts to create a competitive edge in virtually every
lending niche. Participants are able to apply the newly learned
tactics on live credit files and see the results in real time.
"The key to credit rescoring is
education and the first step in improving an applicants FICO score
is understanding why they have the score they have. This new program
teaches our clients how credit scoring works, how to develop
effective rescoring solutions and how to apply these strategies on various
lending niches from sub-prime to super-jumbo. Our ultimate goal is
to remove the mystery and mis-information that prevails about credit
scoring and provide Credit Technologies lender and broker clients a competitive
advantage." Said Thomas Conwell, President of Credit
Founded in 1990, Credit Technologies is a national credit
reporting agency specializing in advanced credit reporting and re-scoring
solutions for the mortgage industry. Credit Technologies pioneered the
field of credit re-scoring in 1997 with the release of the Score
Express rescoring engine and has processed more
than 7 million credit transactions,
more information call 800.445.4922 option 4, or visit
August 18, 2005 - Credit
Dynatek MORvision Integration
Technologies is pleased to announce an agreement to integrate Credit
Technologies Data within the Dynatek MORvision™ loan origination
system. Dynatek users now have the ability to access Credit
Technologies credit reporting services from within MORvision,
or import existing credit data and liabilities without having to
manually enter credit data.
IndyMac Bank and Credit Technologies are pleased
to announce a new enhancement that allows approved IndyMac Bank
customers to access Credit Technologies services using QuickPricer®
and e-MITS®, IndyMac's® online loan prequalification, pricing and
decisioning technology. With QuickPricer and e-MITS you'll get up to
25 loan scenarios in less than a minute and access to a comprehensive
product menu that includes Alt A, NonPrime, ARMs, HELOC and Jumbo.
To facilitate quicker processing, you can have your company's e-MITS
administrator set up Credit Technologies as your default credit vendor
in the 'Default Credit Provider Information' section of the e-MITS
Administration page. When entering a loan in e-MITS, you will see the
'Assign Borrowers to Applications' screen. Your default credit
provider will be selected and you can either pull a new report or
reissue an existing one with your loan submission. Please keep your
Credit Technologies account number and password accessible for
If you would like to learn more about becoming an approved IndyMac
customer, please call 1-888-IndyMac or visit the Web site at www.indymacb2b.com. If you have questions regarding Credit Technologies, please feel free
to contact us at your convenience at 800.445.4922, or visit us on the
web at www.CreditTechnologies.com
25, 2005 - Lee Lovejoy joins The Staff Of Credit Technologies
Technologies welcomes Lee Lovejoy
our staff of
mortgage credit reporting professionals. Lee, a veteran of 15 years
“hands on” processing, production, and sales support experience,
assumes the role of Regional
markets. “I have
had the privilege of knowing and working with Lee for several years
and am excited to welcome her to the Credit Technologies family”
said founder and President
In addition to Lee’s wealth of
experience, she has also just completed extensive and advanced
training on proprietary credit re-scoring tools and solutions
available exclusively to Credit Technologies clients. Making her home
in Aptos, California
– Lee is an active
CAMB member and an officer in the GMBA chapter. Lee can be reached
directly at 831.612.1863, through the national customer service center
at 800.445.4922 or via email at
Founded in 1990, Credit Technologies is a national credit
reporting agency specializing in advanced credit reporting, re-scoring
and training for the mortgage lending community. Having processed more
than 6 million credit transactions, Credit Technologies pioneered the
field of credit re-scoring. For
more information call 800.445.4922 or visit
December 1, 2004 - FACT ACT Having
Immediate Impact on
December 1st, 2004
a series of regulations were enacted
placing additional restrictions and requirements on the use of credit
and credit scores. This includes a new requirement that every consumer
receive a Credit Score Disclosure each and every time a credit report
containing a credit score is obtained for mortgage purposes.
This means that effective
December 1, 2004
credit report obtained for mortgage purposes containing a credit score
must include a scoring disclosure issued directly to the applicant.
This places an additional burden on brokers and lenders as many
initial contacts and subsequent credit reports are generated by phone
conversations where there is no actual face-to-face meeting with the
potential applicant. In this scenario, the law still requires the
consumer to be provided with the credit score disclosure within a
"reasonable period of time" (typically interpreted as
within 72 hours by US mail.)
Technologies has automated the consumer score disclosure process so it
can be generated with each credit report for the broker or lender to
issue to the consumer(s). We can also handle the compliance completely
by providing the required disclosure directly to each consumer via US
Mail on the behalf of the broker or lender including the issuance of
an ongoing compliance certification.
is just one of many new requirements contained in the 92 page FACT ACT
that directly impact mortgage lenders. For an overview of what you
need to know about your requirements under the FACTA - read our FACTA
It is important that all
mortgage lenders and brokers understand the requirements of FACTA.
This act is especially trying in terms of compliance as it was rushed
through congress in 7 months. Many sections of the act still contain
unfinished guidelines and there are currently more than 12 outstanding
studies yet to be completed. As a result, some sections are not yet
enforceable. There are also significant changes in identity theft,
medical privacy issues and record retention rules that will also
directly affect the day-to-day operations of mortgage lenders and
Credit Technologies can
conduct a brief review to determine the current level of compliance
with not only the FACTA, but also OFAC regulations. The review process
begins with a brief questionnaire on the lender or brokers operations,
we then provide a customized compliance report designed specifically
for each business. The compliance review is provided free of charge.
In addition, Credit Technologies has released it's
"Impact of FACT ACT on the Mortgage Industry" This paper
condenses the 92+ pages of the FACT ACT into 20 pages containing the
sections specifically pertaining to the mortgage industry along with
commentary. It is imperative that all mortgage brokers
and lenders familiarize themselves with the FACT ACT as many of
the requirements are already in affect.
Current clients can access the document
through the secure bulletin board feature when logged into
CreditTechnologies.com. Non-clients may request a free copy by
calling 800.445.4922, Option 4 - or by emailing your request
with your name, company name and email address you wish the report
sent to CustSvc@CreditTechnologies.com
have provided an overview of the pertinent sections below. In summary, the areas that will affect mortgage brokers and lenders
- A credit score disclosure
be provided by the mortgage broker or lender to each applicant that
details the consumer’s actual credit score, the source of the credit
score and required notice text as defined by the FACT ACT. (Credit
Technologies has automated this disclosure (Sample
Scoring Disclosure ) – it is currently available from the credit
file section of any credit report by selecting Other Reports>Score
Disclosure.) Credit Technologies can also handle the creation and
mailing of the required disclosure directly to your applicants
(additional fee required.)
Rules On Credit Data Furnishers
- Prohibit creditors from furnishing information
to consumer reporting agencies which the creditor knows or has
reasonable cause to know is inaccurate. It requires information
furnishers to have in place reasonable procedures to respond to
notices of identity theft and to block information.
It also requires furnishers of credit data to notify the consumer with a disclosure (to be written by the Federal
Reserve Board) within thirty days after reporting negative information.
The section also requires the federal agencies to write
regulations relating to the circumstances in which information
furnishers should be required to reinvestigate disputes made directly
to them by consumers. The regulations will also establish accuracy
guidelines for the furnishing of information to consumer reporting
– New and complex rules for creditors and mortgage lenders to
provide a notice to consumers when such creditors grant credit on
terms materially less favorable than those available by the creditor
to a substantial portion of consumers. These rules will be created by
FTC and the Federal Reserve.
and Active Military Duty Statements
– Additional requirements when a credit report
contains either a consumer initiated fraud statement or an Active
Military Duty statement to verify the identity of the applicant.
Theft Disclosures -
Any business entity must provide copies of documents regarding any
business transaction to both the victim and law enforcement within 30
days of the request.
Flag Restrictions -
Additional restrictions on the sale of any accounts where identity
theft has been alleged (referred to as “Red Flagged Accounts”) -
Primarily designed to prevent the repeated sale or transfer of
collection accounts originated through identity theft, but may have
implications on the sale of mortgage loans as well – we are unsure
as the actual guidelines have not yet been published.
rules regarding the disposal of records
- Requires Federal enforcement agencies to issue
regulations respecting the disposal of consumer information.
of the other changes you will see on every credit report effective
– Each of the repositories are required to report Active Duty,
Initial, and Extended Fraud Alerts. These messages will be passed
through on the completed credit report and notated with an appropriate
– Each of the repositories are required to report any significant
difference between the address that the lender used in the inquiry and
what they have on file. These messages will be passed through on the
completed credit report and notated with an appropriate FACTA Message.
Inquiry Key Factor Code – This Factor Code is commonly referred to as the “5th credit
score factor”. Each repository is now required to send an indicator
for any report where the number of inquiries was a factor in the score
result. This additional factor will be passed through on the completed
credit report in the appropriate repository score section.
indicated, some of these new requirements have not yet had the actual
guidelines written, and some are still pending the outcome of required
studies. Those specific requirements will not be enforced until such
time as the FTC completes the unfinished sections however -
credit scoring disclosure
questions regarding any credit reporting issue, please contact us
directly at 248.473.7400, or via email at CustSvc@CreditTechnologies.com.
you for considering Credit Technologies.
information is an overview of the FACT ACT and is provided as a
courtesy only. This does not contain the complete text of the act, nor
can it construed in any way as legal advice. There is no guarantee
written or implied as to the accuracy or completeness of the
information contained in this document. Credit Technologies cannot
provide legal advice on this, or any other matter. Please consult your
compliance or legal department to insure your compliance with the FACT
October 25, 2004 - Credit Technologies published Credit Scoring
Credit Technologies today published
"Introduction To Credit Scoring" This article provides
consumers and lenders an overview of credit scoring and re-scoring,
specifically detailing how credit scores are developed, how they
perform, and how they impact the average consumer. Using data
developed by Credit Technologies and Fair Isaac & Co., this
article will help readers gain a basic understanding on how credit
scoring works and details the options available when credit re-scoring
To obtain a free copy of "Introduction
to Credit Scoring, please call us toll free at 800.445.4922 Option 4,
or send your request via email to CustSvc@CreditTechnologies.com.
Be sure to include your name, your company name and return email
address your wish the article sent to.
September 6, 2004 - Fair
Credit Reporting Act - Fair and Accurate Credit Reporting Update
(FACT) to impact mortgage brokers and lenders.
Provisions of the FACT update will
require changes in the way mortgage lenders and brokers do business.
Credit Technologies strongly recommends you review the changes and
additions with your compliance and/or legal departments as soon as
possible. Some components of the act are already in force, with many
more becoming mandatory December 1, 2004.
To assist you in determining how best to
comply with the FACT update, we have provided a copy of the entire act
complete with red-lining detailing the changes and additions. The FACT
update is available at
April 14, 2004 - Credit
Technologies Score Express Establishes New Credit Re-Scoring Record.
"Few credit reporting agencies will even touch a mixed file, in
72 hours, Credit Technologies was able to take a consumer from a
credit score of 442, to 679 - a 237 point credit score
increase. We were able to remove 17 trade lines and 32
inquiries." says Thomas Conwell, President of Credit
Credit re-scoring has become an integral part of mortgage
origination, and not only for sub-prime lending. "We are
processing many Score Express
updates on borrowers with 680+ credit scores. The impact can be
especially significant on jumbo loans where even a small credit score
increase can have significant cost savings for the borrower according
to Mr. Conwell.
Credit Technologies invented Credit Re-Scoring in May of 1997 with
the introduction of Score Express, now with the added capabilities of CreditXpert,
mortgage lenders have the ability to make changes to any borrowers
credit report and see the corresponding point score changes in real
To learn more about how Credit Technologies can help you improve
your borrowers credit scores, call toll free 800.445.4922, option 4.
We'll walk you through the Score Express process and teach you how to
turn hard-to-qualify borrowers into your satisfied clients.
April 9, 2004 - Credit Technologies and Score
Express In The News.
Re-Scoring Can Increase Production
Credit agency raises scores hundreds of points
"Credit scores are the cornerstone of most mortgage loan
approvals. And while many loan originators prefer to service
borrowers whose credit scores qualify them for a conforming
loan, a good deal of applicants with nonconforming credit can
immediately increase their scores by using rescoring services.
A consumer's credit profile can contain inaccurate or
outdated derogatory items -- such as collections, judgments,
high balances -- that have been satisfied but not reflected on
the files of the "Big 3" national credit repositories.
Missing updates can result in lower than deserved credit scores.
But dismissing these potential borrowers can result in a loss
of production. Some credit reporting agencies that say their
rescoring tools and solutions can erase errors on credit files
and increase scores by hundreds of points.
When a loan is pending, brokers can help more borrowers qualify for
a loan and better terms, and at the same time boost their business, by
using rapid rescoring services offered by authorized credit reporting
agencies. The services can expedite correction on consumer credit
files at each of the repositories almost overnight once specific
documentation proving the errors is submitted to them.
However, deciphering which borrowers are good candidates for
rescoring can be a tricky process, as sometimes corrections can result
in lower scores, Tom Conwell, the president of Credit Technologies
Inc. told MortgageDaily.com. For this reason, through its
rescoring service, the Michigan-based credit reporting agency provides
brokers with a complimentary analysis of the credit report to
determine if it has potential to be re-scored up to the lender's
expectations. If the potential is there, the service can have files
updated within the same day to 72 hours after the documentation is
submitted to the national repositories.
Conwell pointed out that his company has made over six million
credit transactions since its founding in 1990, and the company also
pioneered credit rescoring in 1997. The average score increase the
credit files the company rescores is 30.2 points. The record increase
-- 237 points -- happened to a man who had a merged credit report in
an Experian file. The individual happened to have a similar name as
another family member.
While low credit scores tend to be associated to consumers with
nonconforming credit, even high-income homeowners who have never been
delinquent on any of their accounts can have their credit score
severely affected for a variety of reasons, Conwell added. Anything
from having a name similar as another person to the number and types
of open credit lines, loan balances and the age of credit lines can
trigger a low score outcome.
Conwell said that another "very slick" tool Credit
Technologies provides brokers with is a two-component software
solution; the first component analyzes a credit file and checks
whether there are dollars available to improve the relationship
between the balance and the credit limit. Paying off an account,
paying it down, and even establishing a new account can help raise a
credit score. The automated analysis provides brokers with
step-by-step recipe to generate the most positive score change based
upon the amount of dollars that are available.
The second component is the What-if Simulator, which does thousands
of calculations in real time to let lenders know exactly by how much a
credit score can improve if a certain derogatory or incorrect item is
removed from a credit file, according to Conwell.
"Credit scores were initially described as being an additional
aid in underwriting a loan," Conwell said. But what has happened
is they have become a "go, no-go tool;" most of the automated
underwriting programs all have some target scores, and if a consumer's
score is higher, its approved, and if not -- it can be turned down.
The executive said that in many cases, lenders aren't reading the
entire report but looking at the score and the decision's made purely
based upon the score."
Excerpted from an article written by Coco Salazar and published
April 9th, 2004 in the Mortgage Daily (www.MortgageDaily.com )
January 14, 2004 - Credit Technologies Processes it's 6,000,000th
Credit Technologies today reached a milestone in
it's 14 year history by processing it's six millionth transaction.
December 16, 2003 Credit Technologies now
offers Basis100 AVM products
Basis 100 services the top 20 commercial banks in the nation today
including Washington Mutual, IndyMac Bank, and Country Wide. PASS and
HPA cover over 1300 counties in 45 states. An
AVM, or Automated Valuation Model is a computer generated residential
property appraisal report. Created instantly, an AVM report is
accepted by most lenders in lieu of a physical appraisal for second
mortgages and HELOCs. AVM's can significantly reduce the time
it takes to obtain an estimate of value and reduce the costs
associated with the traditional property appraisal process. Credit
Technologies has teamed up with two of the nations leading Automated
Valuation providers. http://www.credittechnologies.com/Automated_Valuation_Models_AVM.asp
December 10, 2003 Credit Technologies integrates
Credit Technologies has created an
interface between its Mortgage Credit Link credit reporting system and
the easyLENDER ®
family of loan origination and processing
software solutions from Fiserv Lending Solutions (a business unit of
global financial software leader Fiserv, Inc.). The new interface
software users to gain instant, online access to borrower credit data
through Credit Technologies Online.
October 20, 2003 - CASA® Automated Valuation Model
Credit Technologies in partnership with FISERV CSW,
Inc. is pleased to announce the CASA Automated Valuation Model
(Automated Appraisal) is now available through Credit Technologies
CASA® is the market-leading automated valuation model (AVM) for
accurate, fast value estimates and predictive collateral scores for
residential properties across the U.S.
Eight of the top ten lenders trust CASA for applications that include
automated underwriting and origination, collateral scoring, appraisal
QC, loss mitigation, portfolio valuations, marketing programs and
Within seconds, automated appraisals complete with comp valuations are
delivered to your desktop.
To learn more about CASA and to view a sample report, please visit;
October 1, 2003 - OFAC compliance Requirements
Effective Oct 1, 2003 most every financial
institution (including mortgage brokers) are required to comply with
the US Department of the Treasury OFAC (Office of Foreign Assets
Control) rules that require most any applicant be screened against the
OFAC list of SDN's (Specially Designated Nationals.)
Credit Technologies can automate most of the OFAC compliance process,
an OFAC search can be added to any credit report, alerting you to any
potential name match with little or no additional work on your part.
If a match occurs, you are required to notify The Treasury Department
using a special 800 phone number. Depending on the outcome at that
phone call, OFAC may require the transaction be frozen or denied.
More information on OFAC, requirements is available at the US
Department of the Treasury's OFAC web site at http://www.treas.gov/offices/eotffc/ofac/sdn/index.html
To activate OFAC monitoring on your account or to learn more about
OFAC solutions - just give us a call toll free at 800.445.4922, Option
4. We can have an OFAC compliance solution in place for you in as
little as 24 hours of your request.
April 29, 2003 CreditXpert
report added to Credit Technologies Online
April 01, 2003 Standard
1003 loan form added to Credit Technologies Online
Customers that are not using an LOS but require a Uniform Residential
Loan Application (URLA) can instantly create a 1003 form from their
Mortgage Credit Link credit file and print it. This 1003 form will
include borrower information and all liabilities associated with their
credit report and can be edited to include other information required
for document submission.
March 10, 2003
Spanish and Chinese versions of the Consumer Copy Report available
Help your customers save time and enhance their ability to reach out
to different communities. Credit Technologies now offers the Consumer
Copy of the credit report in two languages, Spanish and Chinese! These
new products add tremendous value to your services and ensures that
borrowers who are not fluent in English understand their credit rights
as consumers, saving your customers time and money.
March 1, 2003 Credit Technologies announces
support for Next Generation Credit Scoring
Credit Technologies online now supports all Next
Generation credit scoring models including Experian Advanced Risk
Isaac 2), Trans Union Precision
and Equifax Pinnacle.
January 3, 2003 - PowerPak LOS interface now
Credit Technologies has released it's interface for the
PowerPak Loan Origination Software. Information on using this as
well as all other LOS interfaces is available in the Docs section of
the Credit Technologies Online Desktop. this release brings the total
number of LOS interfaces to 18 including;
Systems Development's LoanVision
- Delphi Discovery
- Eastern Empower!
- Integra Destiny
- Interlinq's MortgageWare
December 15, 2002 Credit
Technologies unveils "Agent X"
Agent X allows Calyx Point users to generate new
‘Point’ files and export them from Credit Technologies website
saving the time and hassle of first creating a borrower within Point
prior to importing credit data.
November 1, 2002 Microsoft Excel Export capabilities
added to Credit Technologies Online
Credit Technologies Online users now have the
ability to export all accounting functions as Microsoft Excel files.
This greatly simplifies the month end accounting functionality,
allowing all billing details including individual report data to be
imported into any accounting package that supports the Microsoft Excel
September 30, 2002 Credit
Technologies Online interfaces with Calyx’s POINT new embedded
July 25, 2002 - New Quick Start guide available
Credit Technologies has just released it's new Quick
Start Guide, a simple reference card to allow new users to quickly
learn how to take advantage of the many options available to Credit
Technologies members. To download a copy of the Quick Start Guide
July 23, 2002 - Create Custom Invoices Instantly
Credit Technologies clients now have the ability to
create a custom invoice for each separate user allowing branches to
track and easily invoice individual loan officers.
June 24, 2002 Credit
Technologies Online now interfaces with Criterion Systems
April 30, 2002 - Access Credit Technologies
Credit Technologies is pleased to announce an
agreement with eMAGIC allowing
all lenders accessing Desktop Originator or Desktop Underwriter using
the eMAGIC system to access credit reporting services through Credit
Technologies. A sample
screen shot is available showing the credit report order screen.
April 18, 2002 - Dynatek Interface Released
Lenders using the Dynatek
MorVision LOS now have the ability to order and import credit
reporting data directly into the 1003. The Morvision users guide
is available in our Document
March 7, 2002 - Instant View Implemented
Users of Credit Technologies Online systems now
have the ability to allow lenders and correspondents to view any
credit report online in seconds. Instant view eliminates the hassle of
printing then faxing or mailing credit reports to other parties
involved in the lending process. To use Instant View, simple
click on the Instant View link on the login
page, then enter the file number and password listed on the bottom
of the credit report to view the report in a secure environment.
December 12, 2001 Credit
Technologies Online now interfaces with FICS loan origination system
November 6, 2001 - Credit Technologies Processes
it's 5,000,000th Credit Report
Credit Technologies today reached a milestone in
it's eleven year history by producing Credit report number five
July 12, 2001 - Automated Consumer Derogatory
Letter and Credit Scoring Notice
Today, Credit Technologies released it's automated
letter generator allowing for the creation of customized derogatory
explanation letters in seconds from any existing credit report. Click here
for a sample Derogatory Letter
Also available is the ability to create a credit scoring disclosure
letter. This letter complies with the California state law requiring
disclosure of credit scoring information to all borrowers, To view a
sample Credit Scoring
Notice, click here.
Both services are available in seconds via the Internet and are
provided at no cost to Credit Technologies Members.
July 2, 2001 - Delphi Interface Released
Credit Technologies Online now supports direct
interface with Delphi Applidocs and Discovery platforms. Delphi users
can now order credit reports from within Delphi and import
the credit report data directly into the 1003. In
addition, users can pull credit reports in seconds directly from
CreditTechnologies.com and then later import the credit report data
into Delphi. For additional information, More information on the
Delphi platforms is available at http://www.delphicorp.com/
June 22, 2001 - Byte / TQS Interface Released
Now Credit Technologies members using Byte loan
origination system can order credit reports from with Byte and import
the credit report data directly into the 1003 within Byte. In
addition, you can pull credit reports in seconds directly from
CreditTechnologies.com and then later import the credit report data
into Byte. For additional information, please refer to the Byte
May 24, 2001 - Instant "Mortgage Rating
As a new enhancement to our Un-Merge technology,
Credit Technologies Members now have the ability to create Mortgage
Rating Only (MRO) reports instantly from any existing infile or merged
infile. Selecting the Mortgage Rating Only option from the credit
report summary screen instantly creates a new credit report containing
only the mortgage references(s) - now the reports you need for
streamline refi's are a single mouse click away, and best of all, the
MRO option is FREE.
May 11, 2001 - Credit Technologies announces
acquisition of *RealNames Keyword CTI
Navigating to the Credit Technologies website is
now as simple as typing CTI into your Internet Explorer browser.
Effective today, Credit Technologies has acquired the rights to the
RealNames Keyword CTI. To reach Credit Technologies on the web, simply
type CTI into the address bar in any Microsoft Internet
Explorer, no http:// or www needed.
*RealNames, the RealNames logo and the Keywords
by RealNames logo are service marks of RealNames Corporation.
May 2, 2001 - Credit Technologies Partners with
Ellie Mae / ePASS
Credit Technologies in partnership with Ellie Mae
today announced the availability of Credit Technologies credit
reporting services through the Ellie Mae ePASS system. This allows the
estimated 30,000 nationwide lenders participating in the ePASS
platform seamless access to a full suite of credit reporting services
provided by Credit Technologies. More...
April 16, 2001 - Fannie Mae Desktop Originator
and Desktop Underwriter Interface Released
Credit Technologies in partnership with Fannie Mae
has released an automated interface with DO/DU. All users of the
Fannie Mae MORNETPlus system now have full access to the comprehensive
suite of credit reporting services provided by Credit Technologies.
Credit technologies appears on the Fannie Mae Desktop Originator
/ MORNETPlus drop down menu as Credit Technologies, Inc. (181).
April 11, 2001 - Contour Loan Handler Interface
Today, Credit Technologies, Inc. announced the
release of it's automated interface with the Contour Mortgage Banker /
Loan Handler loan origination software platform. Contour users now
have the ability to order and receive a wide variety of credit
reporting services, seamlessly from within the Contour software
application. For more information on Contour and The Loan Handler
visit their web site at http://www.contoursoft.com/
February 7, 2001 - Credit Technologies
unveils CTI Un-Merge™ technology
Credit Technologies, Inc. today launched CTI
Un-Merge, an automated utility allowing members to un-merge any merged
credit report in seconds. This exciting tool provides lenders the
ability to run all three credit bureaus in a single file, then un-merge
any of the bureaus to obtain the combination desired for any specific
lending program. In seconds any lender can determine the contents on all
three credit repositories, then select and print only the combination of
bureaus desired at no additional charge. For more information on CTI
Un-Merge, visit the merged infile
February 1, 2001 - Credit Technologies
NetPay™ Rapid Debt Payoff System
CTI NetPay provides lenders and borrowers the
ability to pay off items appearing on any Credit Technologies credit
report by FAX and have
the report updated and delivered in a matter of minutes. No more
over-nighting money orders or waiting days for personal checks to
clear. CTI NetPay, powered by Credit Technologies Network, helps lenders close loans faster
less work required. Visit the CTI
NetPay website for more information.