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Unformatted text preview: the mortgage broker needs to obtain: 1. 2. 3. Original signed credit authorization, separate form Original signature on a loan application form (1003) Credit report fee statement, indicating who pays if a loan closes or is denied Although the full loan application form has a great deal of data, not all the information is needed to run a credit check. Lenders require the mortgage broker to use at least two of the major credit bureaus as part of the loan package submitted for approval. The following is the minimum information that would be needed to run a credit check: 1. 2. 3. 4. 5. Full name, including first, middle, and last, plus “nickname” and maiden name Date of birth (DOB) Social Security number (SSN) Current address (for the past 2 years) Former address (for the past 5 years) Mortgage loan brokerage firms often subscribe directly to credit bureau services. The clerical staff of the firm inputs the consumer credit information and the report is sent by electronic means directly to the firm and is printed on their equipment. Anyone who knowingly obtains information from a credit bureau under false pretenses may be fined up to $5000 or imprisoned for up to 1 year or both. The same law applies to unauthorized disclosures made by officers or employees of a credit bureau or of a mortgage loan company. Dynasty School (www.dynastySchool.com) 13-33
REAL ESTATE FINANCE FICO CREDIT SCORING
A computerized process credit scoring is an attempt to qualify a potential borrower with a single number. The intent is to aid lenders in determining the likelihood of repayment of a loan. Scoring has been used in other types of consumer lending for more than 40 years but recently has become widely used by the real estate lending community A repository credit risk score is a specific type of credit score that evaluates the information in a consumer's file at that credit repository. Fair, Issac & Co. named their credit score after their firm name, and FICO has become the current industry standard. Another firm, Credit Rep...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10