We’ve updated our Funding Suite application to help mortgage originators easily comply with Fannie Mae’s new loan quality initiative. The basic idea was that Fannie Mae wants originators to check that the loan applicant has acquired any new debt obligations prior to funding. If so, the new debt to income ratio could trigger a provision forcing the lender to buy back the loan at Fannie’s discretion. Not good.
To assist we first received approval from all three credit bureaus to offer “soft inquiry” credit reports for the purpose of reviewing the credit profile for changes prior to funding. This new report “called a Credit Refresh” can be ordered with or without credit scores – and is automatically audited by the software to reveal:
- any new tradelines (new debt obligations) not previously reported
- any changes in debt balances for existing accounts
- any new credit inquiries (which we will verify as to whether was a result of a new credit application)
- any new public records or tax liens
If the lender wants a more detailed review, a new “side by side” viewer displays both the original credit report used for qualification purposes along side the new Credit Refresh report. All in all a very slick, easy to use solution.
Here is a two minute video of our Credit Refresh tools in action.
