The Credit section of the loan application displays the results of the borrower's credit report, including their credit score, liabilities, public record liens, and late payments.
Table of Contents
- Overview
- Run/Reissue a Credit Report
- Review Credit Report Findings
- Add Real Estate or Liabilities
- Remove a Borrower
- Related
Overview
The "Credit" page contains a detailed record of the borrower's credit history. From here, users can review the borrower's liabilities, run or reissue a credit report, or remove a borrower or co-borrower from the loan depending on their credit score.
The results of the borrower's credit report are organized into the following sections (some sections may not appear if there is no relevant data on the credit report):
- Real Estate - this section contains details about the borrower's previous real estate transactions and contains a link to the 'Real Estate Information' window
- Liabilities - this section lists the borrower's other liabilities and debts
- Miscellaneous Expenses - this section displays details about the borrower's other regular expenses
- Expanded Guidelines - this section contains information about the borrower's financial history, including late mortgage payments, bankruptcies, and foreclosures
- Liens and Judgments - this section includes any liens or judgments against the borrower
- Public Records - this section contains any public records concerning the borrower
Click the arrow icon (
) next to any of these headings to expand the corresponding section
Accessing the Credit Section
This page is accessible from the loan menu
Each section of the loan application is represented by a corresponding tab that appears below the stepper navigation bar when the application is opened.
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Run/Reissue a Credit Report
There are several options on this page for obtaining or providing the borrower's credit history:
- Run a new credit report
- Reissue an existing report
- Enter the borrower's credit scores manually from an external report
Run a New Credit Report
Use the following steps to run a new credit report
1. Select Run New Credit Report
2. Use the drop-down menu in the following window to indicate how the borrower(s) provided authorization to run their credit report. Select Accept to proceed.
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Authorization provided through:
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3. In the following window, select a credit provider. The system will automatically populate this field with your last used credit provider.
The findings of the report will then be displayed on the "Credit" page, including the borrower's credit score and any REO records, liabilities, or expenses.
Reissue a Credit Report
After you have run credit on a borrower, you can reissue the credit report on this page.
1. Select the white arrow on the Credit Report button and select Reissue Credit Report
2. Use the drop-down menu in the following window to indicate how the borrower(s) provided authorization to run their credit report. Select Accept to proceed.
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Authorization provided through:
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| By default, credit authorization is valid for 90 days and is required before reissuing a credit report. However, users can configure the system to change the number of days before this authorization expires or to remove the authorization requirement from the reissue workflow altogether. |
3. In the following window, select a credit provider and and enter your credentials and the credit report number. The Account ID field is only needed if the selected provider requires an Internal Account ID.
4. Choose whether you want to simply update the existing credit data with any new information (merge) or to run a new report entirely and replace all existing credit data. Click Proceed to reissue the report.
Enter Credit Scores Manually
If the borrower's credit report is obtained outside the system, their credit score(s) can still be included on their application in order to refine the pricing results. Select Manually Enter Credit Scores to open a separate window that will prompt you to enter information about the external credit report.
| Note: the system must be configured to enable manual entry of credit scores for this button to appear |
Use the following steps to provide the borrower's credit scores manually:
- Select the Credit Ran Externally checkbox to indicate that the credit report was procured externally, and enter the date that the report was obtained.
- Enter the Credit Report number (optional)
- Enter the borrower's credit scores for any or all of the reporting agencies and select Done
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Review Credit Report Findings
After a credit report has been successfully requested, the results of the report will be displayed on the "Credit" page, including:
- the borrower's credit score
- Real Estate Owned (REO) record(s)
- existing liabilities and debts
- miscellaneous expenses
- additional financial history
- borrower's net worth and total liabilities
Credit Scores
The top of the "Credit" page displays each borrower's individual credit score.
Select the information icon (
) to view a breakdown of the borrower's scores per reporting bureau, as well as any reported contributing factors.
Select the document icon (
) to view a full pdf copy of the credit report.
Real Estate Owned (REO)
The Real Estate section of the 'Detailed Credit Information' table displays a record of the borrower's previous real estate transactions.
Each line in this section represents a unique mortgage loan taken out by the borrower and contains the following pieces of information:
- the name of the lender
- the full street address of the subject property
- the estimated value of the property
- the remaining balance on the loan
- the borrower's monthly payment
- the lender's lien position
- the loan's payoff status
The totals for the Estimated Value, Balance, and Monthly Payment across all of the borrower's and co-borrower's mortgages appears in green at the bottom of this section.
Select the 
icon to open a more detailed version of the REO record. You can use this window to provide or edit additional information about the borrower's real estate.
If a liability displayed in this section is not a real estate transaction, use the 
icon to transfer the item from the Real Estate section to the Liabilities section.
Select 
to remove an item from this section
Liabilities
The Liabilities section displays other liabilities contained in the borrower's credit report.
Each line in this section contains the following information:
- the name of the creditor
- the type of debt
- the borrower's account number with their creditor
- the number of months remaining on the borrower's debt
- the remaining balance
- the borrower's monthly payment
- the borrower's disposition towards the debt
- whether the debt should be excluded from consideration in the borrower's loan
Each of these pieces of information can be edited by typing directly into the corresponding field
Contact information for each creditor or other joint participants can be found by clicking on the blue information icon (
)
You may see the following additional icons in the borrower's liabilities:
- 'J' Icon - this icon indicates that the corresponding liability is part of a joint account. Payments for these liabilities are calculated only for the primary borrower.
- Mortarboard Hat - this icon indicates that the corresponding debt represents student loans. If there is no payment amount listed on the credit report, the borrower's payments are automatically calculated at 1% of the outstanding balance.
Select the 
icon to transfer the item to the list of the borrower's real estate transactions.
Miscellaneous Expenses
The Miscellaneous Expenses section contains information about other regular expenses that the borrower is obligated to pay.
Each line in this section contains the following pieces of information:
- the borrower's name
- the type of expense
- the number of months that the borrower will continue to make the payment
- the dollar amount of the borrower's monthly payments
- the name of the payee (select the blue Info icon (
) to provide the payee's contact information)
The months, amount, and payee info can be edited by typing directly into the corresponding field.
Expanded Guidelines
The Expanded Guidelines sections contains the following additional information about the borrower's financial history:
- Mortgage Lates - this area displays the number of times the borrower has made a late payment on a mortgage within the previous two years. This information is organized into 30 day late increments.
- Bankruptcy Event - this area contains information about any bankruptcies filed by the borrower
- Bankruptcy Chapter - Chapter 7,11, or 13
- Disposition - indicates the status of the bankruptcy (Pending, Discharged, or Dismissed)
- Bankruptcy Seasoning - indicates when the bankruptcy occurred
- Housing Event - this area contains information about any foreclosures or other housing-related financial events
- Housing Type - indicates the type of housing event (Deed in Lieu, Foreclosure, Modification, Short Sell)
- Housing Seasoning - indicates when the housing event occurred
- Other - this area indicates whether the borrower owns a unique property
Net Worth and Liability Totals
The totals at the bottom of the "Credit" page provides a summary of the borrower's financial situation, including their Net Worth, Total Liabilities, and Total Payments. These figures are calculated automatically based on the information contained in the borrower's credit report.
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Add Liabilities Manually
If the information included on the credit report is incomplete, you can add the following items manually:
- Real Estate Owned (REO)
- Liabilities
- Miscellaneous Expenses
Add Real Estate
If you need to add an REO record to the table, select Add Real Estate, which opens the "Real Estate Information" window
The fields in this window can be used to provide information about the borrower's real estate liability, including their lender, the size of their monthly payments, and their re-payment history.
Use the Existing Address drop-down menu to indicate which property the mortgage is for. If the address is different from the borrower's current address, select Not listed - add a property
If you are adding a property, complete the following 'Property Address & Info' fields about the property:
- Street Address
- Unit #
- City
- State
- ZIP Code
- Property Type
- Estimated Value
- Occupancy Type
Use the Comment drop-down menu to indicate the loan's payoff status. This information will then appear in the Disposition field on the main "Credit" page:
- Do not payoff - select this option if the borrower does not plan to pay off the loan before closing
- Paid Off/Free & Clear - select this option if the borrower has completely paid off the loan
- Payoff at Close - select this option if the borrower plans to pay off this loan at the time of closing
- Payoff at closing and close account - select this option if the borrower plans to pay off this loan at the time of closing, at which point their account with the lender should be closed
- Payoff at closing and don't close account - select this option if the borrower plans to pay off this loan at the time of closing, but their account with the lender should remain open
- Pending Sale - select this option if the loan is for a sale that is currently pending
Use the following fields to provide information about the borrower's existing real estate loan (required fields are marked with a red asterisk*):
- Borrower - use the drop-down menu to select which borrower the loan belongs to
- Lender Information
- Lender Name* - enter the name of the lender for the borrower's existing real estate loan
- Lender Street - enter the lender's street address
- City - enter the name of the city where the lender is located
- State - use the drop-down menu to select the two-digit abbreviation for the state where the lender is located
- Zip - enter the 5-digit ZIP Code where the lender is located
- Attn - enter the name of the primary contact person for the lender
- Phone - enter the lender's contact phone number
- Fax - enter the lender's fax number
- Email - enter the contact's email address
- Loan Information
- Lien Position* - use the drop-down menu to select the lender's lien priority
- Loan Type - use the drop-down menu to select the loan type (Mortgage or Home Equity Line of Credit [HELOC])
- Acct # - enter the borrower's account #
- High Limit - if the loan type is HELOC, enter the borrower's credit limit
- Unpaid Balance - enter the remaining unpaid principal balance on the loan
- Balance from Credit - the borrower's credit balance is calculated automatically from their credit report
- Monthly Payment - enter the borrower's monthly payment on their loan
- Payment from Credit - the borrower's credit payment is calculated automatically from their credit report
- Total Payment (PITIA) - represents the borrower's total monthly payment on their loan. This figure is calculated automatically (principal + interest + property tax + insurance + association dues)
- Loan Origination Date - enter the date on which the loan was originated (mm/dd/yyyy)
- Interest Rate - enter the interest rate for the borrower's loan
- Original Loan Term - enter the planned loan duration (in years)
- Remaining Loan Term - enter the number of months that the borrower has remaining on their loan
- Original Loan Amount - enter the full loan amount
- Loan Payoff Amount - enter the amount that the borrower needs to pay in order to pay off their loan
- Mortgage Type - use the drop-down menu to select the mortgage type (conventional or government loan)
- Amortization Type - use the drop-down menu to select the amortization type on the borrower's loan (fixed or adjustable)
- Negative Amortization Feature - use the drop-down menu to indicate whether there is negative amortization on the borrower's loan
- Prepayment Penalty - use the drop-down menu to indicate whether there is a prepayment penalty on the borrower's loan
- Prepayment Percentage - enter the percentage value of the prepayment penalty
- Open Date - enter the date that the loan was opened (mm/dd/yyyy)
- Late Payment History - select the 'H' icon to view the borrower's history of late payments (if applicable)
Use the fields at the bottom of the page to enter the borrower's monthly property expenses, including
- Homeowner's Insurance*
- Flood Insurance
- Property Tax*
- Mortgage Insurance
- HOA Dues
Use the 'Period' drop-down menu to indicate whether the entered amount is paid on a monthly or yearly basis. Use the Included in Payments checkboxes to indicate whether the cost of each expense is included in the borrower's monthly mortgage payments. The total of these monthly expenses appears at the bottom of this section.
Add a Liability
If you need to add another liability to the table, select Add Liability and choose the name of the borrower it should be added for.
Use the following fields to add a liability for the borrower:
- Creditor - enter the name of the party or institution to which the borrower is in debt
- Type - enter the type of debt owed to the creditor
- Account # - enter the borrower's account number (if applicable)
- Months - enter the number of months remaining on the borrower's debt
- Balance - enter the remaining balance of the borrower's debt
- Payment - enter the amount that is paid every month on the debt
- Disposition - use the drop-down menu to indicate the borrower's disposition towards their debt
- Acct not mine - select this option if the account that appears on the borrower's credit report has been mistakenly attributed to them
- Agree - select this option if the borrower acknowledges the debt
- Disagree - select this option if the borrower does not acknowledge the reported debt
- Duplicate - select this option if the debt is a duplicate of another debt on the list
- Not my loan - select this option if the corresponding debt belongs to another person
- Paid Off - select this option if the debt in question has been paid off in full
- Payoff at Close - select this option if the debt will be paid off by the time of closing
- Someone Else Pays - select this option if this debt is paid by someone else
Select the 
icon to transfer the item to the list of the borrower's real estate transactions
If you want to remove an item, select the red icon ()
Add a Miscellaneous Expense
If you need to add another miscellaneous expense to the table, select Add Expense and use the following fields to enter information about the expense:
- Borrower - select which borrower the expense should be added for
- Type - select the expense type
- Months Left - enter the number of months that the borrower will make this payment
- Monthly Amount - enter the monthly payment amount
- Payee - enter the name of the person/institution that the borrower makes payments to (select the blue info icon () to enter the payee's contact information)
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Remove a Borrower
In some cases, you may want to remove a borrower or co-borrower from the loan application after receiving the results of their credit report. You can do this directly on the "Credit" page by opening the credit report contextual menu and selecting the name of the borrower that you would like to remove.
In the following window, you will be asked to indicate whether you would like to run a new credit report without the removed borrower or if you want to communicate with the credit vendor to remove them from the initial report. Which of these options you will have available is dependent upon user privilege and vendor configurations; not all vendors allow the automatic update option.
Instead of removing a borrower entirely, you can convert them to a non-borrowing spouse (NBS). This will allow their credit information to be included for certain government loan products that require a record of a NBS's liabilities. Select the checkbox at the bottom of this window to keep the borrower's personal information as an NBS.
Select Proceed to remove the borrower from the loan application. You can now review the borrower's updated information in the Personal section of the loan application.
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