In the Marketplace Negative Equity Mortgage Fraud Foreclosures
Regulations Investor Requirements
Slide 3
In the Marketplace Compliance & quality at point of sale as
opposed to forensics at processing, underwriting or pre-closing
Stricter secondary market and investor requirements Enforcement of
buy back provisions Full documentation loans, stated income
products eliminated Agency and FHA loans only Strict adherence to
underwriting guidelines Limited LTV and DTI Pressure for volume
versus quality Demand for improved quality and better data
Slide 4
Evolution of the Consumer Report
Slide 5
Introducing ENCORE
Slide 6
Next Dimension In Risk Review and Analysis Comprehensive 360
view of the consumer and the lending transaction Decision-able data
FCRA consumer report Simple organization of numerous data sources
Easy to review and navigate Single source customer and consumer
support Integrated in to workflow and lending systems
Slide 7
Data Sources
Slide 8
Data from hundreds of sources Consumer Information
Slide 9
CoreLogic Family Property Information Recorder User Submitted/
Other Content Quantity ProprietarySemi PublicPublic Source Coverage
AssessorServicing Securities Physl attributes Tax & Legal info
Parcel maps Aerial maps Flood maps Street maps Deeds Financing
Liens Foreclosures REOs Phys attributes Sales prices Sales dates
Demographics Local Market Analytics Prime/Non- Prime Borrower
Prepay Delinquency activity MBS, Alt-A, Non-Prime Loan-level FICO,
LTV, +75 attributes 3,040+ counties 500M trx 2100+ counties ~80M
records 50+M active loans 21.5M active loans, $2.2T 99%94% 80+%94+%
Mortgage Application Borrower, Broker & Appraiser Performance
50M loans 35% Confidential Credit BureauData Partners Risk Scores
Identity Public Records Tax Lien Payment History Credit Inquiries
Tax Data (IRS) Identity (SSA) Identity OFAC Politically Exposed
Persons 600+M Consumers 80+% 600+M Consumers **estimated
Slide 10
Features
Slide 11
Intelligent Organization and Grouping of Data Remove duplicates
and merge similar data Group similar types of data together Data
Intelligence
Slide 12
Establish associations between different data types Applicant
Real Estate Information: Shows all properties currently-owned, plus
mortgage loan(s) information, associated with the property Data
Intelligence Each property listed displays information on the
property, loans tied to the property, current balance, payment
pattern and months remaining before the balance is paid.
Slide 13
Property Address indicates whether or not its also the Subject
Property Data Intelligence Buyer & Seller Property Sale Price
Current Balance of the Loan Payment Pattern Last Delinquency Other
Loan tied to the property Status Lender, Acct. Number and Loan Type
Original Loan Amount Same or different mailing address Owner
occupancy Associated MERS Record
Slide 14
Data Intelligence Tax Information indicates whether the
applicant is current or delinquent on their taxes.
Slide 15
Data Intelligence Page numbers and trade item numbers are
provided to show where more details are available. When viewed
online HTML or PDF click on it to automatically be taken to the
data DO YOU WANT MORE INFORMATION?
Slide 16
Determines if an applicant is linked to additional addresses
and loans by using MERS data Establishes associations between
credit and MERS data MERS Mortgage Electronic Registration
Systems
Slide 17
Subject Property Information Provides a summary of information
regarding the subject property High, average, median and low prices
Foreclosure information HUD qualification and the last transfer
date Data Intelligence
Slide 18
Severity Levels Each warning message is assigned a severity
level low, medium or high Severity levels are customizable Alerts
and Warning Messages Warning Messages and Recommended Actions
Slide 19
Warning messages programmed with data references and hyperlinks
Takes you to the supporting data that you need to research, verify
and document variations and inconsistencies with the consumer and
loan application Data References & Hyperlinks Hyperlink / Page
Number
Slide 20
Warning messages programmed with data references programmed as
hyperlinks Takes you to the supporting data that you need to
research, verify and document variations and inconsistencies with
the consumer and loan application Data References &
Hyperlinks
Slide 21
A comprehensive consumer risk score that takes into
consideration risk associated with both the Credit and Property
dimensions Delivers reasons or factors to help end-users understand
why a consumer report scored the way they did ENCORE Score
Slide 22
Screen consumers and participants against the following:
Freddie Mac Exclusionary List HUD Limited Denial of Participation
List (LDP) HUD General Services Administration (GSA) Excluded
Parties Mortgage Industry Watchlist Screening
Slide 23
Ease of Integration MISMO; XML; 100+ LOS & Technical
Partners ENCORE Consumer Score Disclosure (CSD) Electronic/Online
and Mailer Generic and Custom ENCORE Adverse Action Letters
Template-driven Data Checklist Shows the end-user the status for
each data requested Also shows the page number that is hyperlinked
to go to the actual page when viewed online Other Features
Slide 24
Presentation
Slide 25
The Six Components of ENCORE
Slide 26
An at-a-glance, streamlined report that highlights critical
consumer or applicant data that may represent risks in your loan
Includes the ENCORE Score and MERS data & any undisclosed debt
Includes applicant credit data, identity red flags, estimated value
of the subject property and a list of all the properties owned by
the applicant, along with the loan and tax information tied to the
property ENCORE: Summary
Slide 27
Helps end-users weigh the credit-worthiness of the applicant
Includes credit data tradelines, public records, inquiries, etc.
associated with the consumer(s) for further due diligence Are
applicants a high credit risk or a low credit risk? ENCORE:
Credit
Slide 28
Helps end-users detect and resolve potential fraud or Red Flags
Includes FACT Act alerts and identity information name, AKAs, other
SSNs, addresses associated with the consumer Are applicants who
they say they are? ENCORE: Identity
Slide 29
Shows the reasonableness of the applicants reported income
Includes a visual representation of the neighborhood income levels
of the applicants past residences in relation to the income
provided by the applicant Verifies the applicants employer details;
provides additional information, such as employer industry, sales,
and employee count Provides industry salary information from up to
four data sources Do applicants have the capacity to meet payment
obligations? ENCORE: Income & Employment
Slide 30
Provides information on the property and assists end-users
determine the risk associated with the subject property Includes
characteristics and historical data on the subject property, owner
occupancy analysis, estimated value of the subject property,
comparables and valuation on nearby sales and in the market Is the
subject property or collateral of acceptable risk? ENCORE: Property
& Market
Slide 31
Screens participants against the HUD LDP and GSA exclusionary
lists Information on third-party individuals brokers, appraisers,
etc. involved with the loan transaction Measures the brokers past
origination risk by assessing book of business in relation to the
market Are participants in the loan transaction of high risk?
ENCORE: Participants
Slide 32
Workflow
Slide 33
Set-up or customize your own workflow ENCORE Cascade Ifthen
CASCADE WORKFLOW SET-UP ENCORE: Full Doc Refinance ENCORE BASE
PRODUCT SET-UP ENCORE: Full Doc Refinance CSD Online TRV CSD Mailer
Verification of Employment Flood AVM
Slide 34
Cascade Within ENCORE and Cascade Across ENCORE Report Credit
Component RULESRULES STOP GO If FICO Score 620, process ENCORE ID
component. If FICO Score is < 620, stop Cascade. ENCORE Report
Identity Component RULESRULES STOP GO If ID Alerts < 6, process
the rest of ENCORE. If ID Alerts 6, stop Cascade ENCORE Report
RULESRULES STOP GO If ENCORE Alerts < 6, request VOE &
4506-T Direct. If ENCORE Alerts 6, stop Cascade VOE & 4506-T
Direct
Slide 35
Cascade Across Products ENCORE Report RULESRULES STOP GO If
FICO Score 620, process VOE, 4506-T Direct.... If FICO Score is
< 620, stop Cascade. Adverse Action Letter 4506-T Direct
Consumer Score Disclosure VOEProScan SSN
Slide 36
Automated Cascade workflow executed automatically by the system
Cascade within ENCORE Go from one ENCORE component to another
Cascade across products Go from ENCORE to other Credco products
Report/Product Delivery Report delivered at the completion of the
cascade or within multiple sessions ENCORE Cascade
Slide 37
Next dimension in merge technology, consumer data, lending risk
review and analysis Comprehensive 360 view of the consumer and the
lending transaction Organizes and merges data in to intelligent
summaries Easy to review and navigate Single source customer and
consumer support Decisionable data Integrated in to workflow and
lending systems Identifies associations from disparate data sources
Summary
Slide 38
A new tool for a new era of lending Enhance business
efficiencies Save time and money Gather additional data Enhance the
quality and clarity of data Focus on the right loan Improve overall
loan quality Summary
