Anthem Suite of Services

Anthem Suite of Services
ASSISTING NON-TRADITIONAL HOMEBUYERS IN EMERGING MARKETS
Over the next decade, a projected 60% of first-time home purchases in the United States will be made by those
who fall into traditionally underserved markets. Many of these consumers have little or no traditional credit, but
are credit worthy. Now with Anthem, First American CREDCO’s suite of alternative credit services, you can originate
loans using alternative credit data and help more homebuyers fulfill the American dream.
Anthem Suite
Reduce your risk with efficient and reliable tools that exceed secondary market standards.
Expand your business opportunities and satisfy needs of underserved markets.
Alleviate labor-intensive process of gathering and validating non-traditional credit information.
Accepted wherever non-traditional loan programs are honored.
Proactively returns credit data when an ITIN is used in lieu of a Social Security Number.
Build Your Business
The Anthem Suite is an enhanced set of credit-building tools designed to broaden your business opportunities,
reduce the risk of mortgage fraud, and help more Americans become homeowners. And because Anthem is
universally accepted wherever non-traditional loan programs are honored, you can close more non-traditional
loans more conveniently than ever.
OBJECTIVE
SOLUTION
Determine traditional credit-worthiness of applicants
Instant Merge
Fast, bureau-level updates of incorrect credit report information
Rapid ReCheck
Non-traditional credit reporting
Anthem Report
Non-traditional credit scoring
Anthem Score
Notification of applicants who do not have adequate traditional credit
Advisory for Anthem
Segment customers with an ITIN
ITIN Notification
FACT Act Compliance
Anthem CSD
Customizable analysis of non-traditional applicants and loans
Anthem Performance
Applicant assistance understanding their credit reports
Consumer Assistance
Applicant resources for disputing credit report errors
Consumer Disputes
For more information on our Anthem Suite of Services, contact a First American CREDCO sales associate
at (800) 255-0792 or visit us online at www.credco.com.
EMERGING MARKETS
Expanding Markets
Streamlining Business
The Anthem Suite of Services
The Anthem Suite of Services from First American CREDCO
is the only widely accepted alternative credit source that fits
easily into your existing loan processes.
How It Works:
Pull a traditional 3-bureau credit report, just as you do now.
If the report comes back as a “thin” or “no file”, you have
a potential Anthem Report client.
For lenders using our Instant Merge product, an automatic
notification can be generated stating that an Anthem Report
is needed.
Log on to eCREDCO to easily order an Anthem Report.
Our FCRA-certified specialists will research and collect
non-traditional credit data, such as rent and utility payments.
An Anthem Report and Score are generated and returned
to the lender.
Anthem can be
Close the loan and fulfill someone’s American Dream!
used for any loan
Anthem Helps Lenders:
program that
Expands business by tapping into underserved markets.
accepts alternative
Reduces the risk of fraud.
Streamlines processes and reduces costs.
Anthem Helps Consumers Without Traditional Credit:
credit data.
Builds a credit profile.
Allows for better interest rates and lower fees.
Helps qualify for loans and fulfill the dream
of homeownership.
For more information on our Anthem Suite of Services,
contact a First American CREDCO sales associate at
(800) 255-0792 or visit us online at www.credco.com.
12395 First American Way
Poway, California 92064
Phone: 800.255.0792
www.CREDCO.com
EMERGING MARKETS
Partners
in the American Dream
12395 First American Way
Poway, California 92064
Phone: 800.255.0792
www.CREDCO.com
EMERGING MARKETS
Empowering Consumers
The Anthem Suite of Services
Thanks to First American CREDCO’s Anthem Suite of Services, more Americans are enjoying
the rights and privileges of homeownership. Anthem provides the credit tools lenders need to
help traditionally underserved homebuyers qualify for home loans.
This means that consumers with little or no credit history can qualify for loan programs with
better interest rates and lower fees, adding up to a significant cost savings!
Anthem can be used for any loan program that
accepts non-traditional credit data.
$300,000 mortgage loan with
30 year fixed interest terms
Customer with a high Anthem Score
APR
Monthly Payment
6.00%
$1,798.00
Total Cost
$647,514
Customer with no Anthem Score
APR
Monthly Payment
9.00%
$2,414.00
Total Cost
$868,992
Total Savings: $221,478
For more information on our Anthem Suite of Services, contact a First American
CREDCO sales associate at (800) 255-0792 or visit us online at www.credco.com.
12395 First American Way
Poway, California 92064
Phone: 800.255.0792
www.CREDCO.com
EMERGING MARKETS
Anthem Suite FAQs
Frequently Asked Questions
What Is The Anthem Suite?
The Anthem Suite is a comprehensive offering of alternative
credit services that allows lenders to qualify consumers
without traditional credit information. By using supplemental
information from alternative sources, such as rent payments, a
lender can form an accurate risk assessment on first-time home
buyers, recent immigrants, unbanked consumers, international
applicants, and other consumers.
What Data Is Used In The Anthem Suite?
The Anthem process starts with credit data gathered from an
Instant Merge credit report. The information is then supplemented
with alternative forms of credit data, such as rent, utility and
insurance payments. Research shows that alternative payment
histories, such as rent payments, are the most predictive form of
data, and can accurately demonstrate a consumer’s likelihood of
making future mortgage payments.
All non-traditional credit data used to generate an Anthem Report
and Score are verified by First American CREDCO’s dedicated team
of FCRA-certified credit specialists.
Who Accepts Anthem?
Any loan program allowing nontraditional credit data can use the
Anthem Suite. The Anthem Report
and Score were designed with data
and underwriting rules already in use
with GSEs and major lenders across
What Is The Anthem Score?
the country.
The Anthem Score was developed to fit seamlessly into existing
mortgage, underwriter and investor guidelines. It is calibrated to
produce scores that are similar in range and distribution to
traditional credit scores. Used to improve underwriting of loans,
any loan accepting non-traditional credit can be streamlined and
normalized by implementing the Anthem Score.
Score range is 325 to 850.
Lenders with an investor agreement
approving non-traditional data – as
well as those desiring to normalize,
streamline and reduce risk in
loan programs using non-traditional
data – can incorporate the Anthem
Report and Score into their process.
Fully compliant with ECOA, GSE and regulatory
requirements including the ability to make
disclosures and disputes.
Includes explanatory Factor Codes.
12395 First American Way
Poway, California 92064
Phone: 800.255.0792
www.CREDCO.com
EMERGING MARKETS
Anthem Suite FAQs
Frequently Asked Questions
How Is Anthem Implemented?
The Anthem Suite can be delivered to you in a variety of methods. First American CREDCO customers
can receive Anthem through their existing connectivity or online through eCREDCO, or Anthem can be
integrated into an existing LOS.
How Is Anthem Ordered?
Ordering Anthem is simple:
How does Anthem help
consumers?
Pull an Instant Merge Report
If the file comes back as “thin” or “no file”,
upgrade your report to an Anthem Report
FCRA-certified specialists will do the research and
return a report and score to you in a timely manner
To further simplify the process, you can also order Anthem
Advisory, which automatically notifies you when “thin” and
“no file” criteria are met on an Instant Merge Report.
Does Anthem Offer Compliance And Fraud Features?
Yes. The Anthem Suite is fully compliant with all aspects
of the FACT Act, Credit Score Disclosures, and Consumer
Disputes. All data is fully verified by FCRA-certified
specialists to meet lender requirements, which helps detect
and eliminate fraud. Fraud alerts, identity verification,
income and employment verification are all available
through the Anthem Suite of Services.
For more information on the Anthem Suite of
Services, contact a First American CREDCO sales
associate at (800) 255-0792 or visit us online at
www.credco.com.
12395 First American Way
Poway, California 92064
A Score for Every Applicant
The Anthem Suite allows lenders to obtain
a credit report and an underwriting score on
any applicant. Since Anthem’s inception in
2004, we have been able to get credit
information on every applicant who needed
an Anthem Report.
Bi-Lingual Support
First American CREDCO’s bilingual team of
Spanish and English speaking FCRA-certified
credit specialists are available to assist you
and your applicant to re-evaluate credit data,
update as necessary, and re-issue the score.
This Customer and Disputes Resolution
Service is offered FREE to every consumer
whose credit report is provided by First
American CREDCO.
Phone: 800.255.0792
www.CREDCO.com
EMERGING MARKETS
Instant Merge
The First Step in Alternative Credit Reporting
Instant Merge, part of First American CREDCO’s Anthem
Suite of alternative credit services, is the most popular
merged credit report across all industries. It’s an ideal fit for
most lending situations, combining credit data from one, two
or all three national credit bureaus into a single report in a
common format.
It’s also the first step in helping lenders help underserved
consumers achieve the dream of homeownership.
Instant Merge: The First Step
When assisting consumers with potentially little or no credit
history, Instant Merge is the first in a series of short steps to initiate
the loan qualification process:
PRODUCT
Highlights
Start with a traditional credit check – Instant Merge.
Qualify more buyers, expand your business
If incorrect tradeline data is present, our Rapid Recheck
service is available for fast bureau level updates.
Delivers your data in raw or machine
readable formats
If insufficient credit data – thin or no file – then request
an Anthem Report.
Details demographic information, current
and historical tradeline details, and public
records and inquiries
Underwrite a loan that meets or exceeds lender and
investor requirements.
Make fast, bureau-level updates of incorrect
tradeline data with Rapid ReCheck
Convenient. Flexible. FAST.
Instant Merge is delivered in seconds using a variety of methods,
including the Internet, our desktop software, your Loan
Origination System or other customizable connectivity solutions.
For more information on Instant Merge, contact a First
American CREDCO sales associate at (800) 255-0792 or
visit us online at www.credco.com.
Anthem Advisory delivers an automatic
notification whenever an Anthem Report
is needed
All bureau data from an Instant Merge is
included in the Anthem Report
FICO scores, bankruptcy, credit and risk
scores, and identity verification products
also available
Available in a Spanish-language format
12395 First American Way
Poway, California 92064
Phone: 800.255.0792
www.CREDCO.com
EMERGING MARKETS
Anthem Report
Collect, Assess and Verify Non-traditional Credit Information
As part of First American CREDCO’s Anthem Suite of
Services, the Anthem Report offers the most cost-effective
mortgage credit reporting solution for consumers with little
or no credit history. This powerful reporting tool delivers
accurate, verified non-traditional credit data – along with a
unique score – in an easy-to-use format that allows lenders to
qualify and write more loans. The Anthem Report is accepted
wherever alternative credit data is honored.
Capture a broader credit history
When you order an Instant Merge credit report on a borrower
who has a thin or no credit file, the Anthem Report first utilizes
any available bureau data as a baseline. It then supplements
any bureau data with non-traditional credit data, such as rent
payments, utility bills and phone bills. The result is a fully
compliant credit reporting solution that meets or exceeds
mortgage loan underwriting and due diligence requirements,
including HUD, FHA, Fannie Mae and Freddie Mac.
Highlights
Qualify and write more loans on consumers
with little or no credit history
Accepted wherever alternative credit
data is honored
Serve a broader market
Anthem helps you build business for new homebuyers in a simple
and compliant way, while meeting or exceeding lender loan
requirements. FCRA-certified specialists research and verify all
Anthem Reports, and work closely with you to ensure your level
of understanding of the credit data so you can make sound
lending decisions.
Delivers a 100% hit rate for “thin” or
“no file” applicants
Completed in 24-48 hours. Make lending
decisions faster and more consistently
across all consumer files
Minimize training, cost and time of
internal resources, freeing you for
greater productivity
Rely on industry experts
Outsourcing your non-traditional credit needs with First
American CREDCO means your staff doesn’t have to become
experts in collecting and verifying non-traditional credit data.
Instead, you can rely on knowledgeable, trusted processors for
reliable credit information, which frees you up to focus on
expanding your market and growing your business.
For more information on the Anthem Report,
contact a First American CREDCO sales associate at
(800) 255-0792 or visit us online at www.credco.com.
12395 First American Way
PRODUCT
Poway, California 92064
Protects originator and investor from
fraudulent credit claims
Provides underwriting score for “no score”
files, and risk support for “thin” files
Anthem Credit Score Disclosure (CSD) is
included free of charge with every report
ordered to comply with Section 212 of
the FACT Act
Phone: 800.255.0792
www.CREDCO.com
EMERGING MARKETS
Anthem Score
Industry’s First Non-Traditional Credit Score
As part of First American CREDCO’s Anthem Suite of
Services, Anthem Score is the industry’s first score based
on the same fully verified credit data that comprises our
Anthem Report.
The Anthem Score, which ranges from 325 to 850, represents
a comprehensive and reliable underwriting score for consumers
who have little or no credit history, or have previously been
considered “un-scoreable.” And because Anthem is universally
accepted whenever non-traditional data is indicated, you can
close more non-traditional loans more conveniently than ever.
PRODUCT
A Reliable, Predictive Score
Unlike other non-traditional scoring models, the Anthem Score
is generated from the Anthem Report, thereby exceeding lender
and investor standards for “thin” and “no file” underwriting.
Anthem Score considers the type of credit, the length of credit,
the payment history, and the verification methods used. All of this
comes together to produce a predictive underwriting score for
loan origination.
First American CREDCO utilizes the industry’s strictest standards
to verify credit sources and applicant identity. This commitment
to accuracy, consistency and reliability allows you to make
lending decisions more confidently in a growing market of
traditionally underserved homebuyers.
For more information on the Anthem Score, contact a
First American CREDCO sales associate at (800) 255-0792
or visit us online at www.credco.com.
Poway, California 92064
Delivers an easy-to-use risk assessment
score ranging from 325 to 850
Delivers a 100% hit rate for “thin” or
“no file” applicants
Exceeds lender and investor standards
FREE with every First American CREDCO
Anthem Report
Make Lending Decisions with Confidence
12395 First American Way
Highlights
Expands market penetration in traditionally
underserved sectors
Helps protect originators and investors
from fraud in higher risk markets
Streamlines operations by reducing the
time required to close loans
Anthem Credit Score Disclosure (CSD) is
included free of charge with every report
ordered to comply with Section 212 of
the FACT Act
Phone: 800.255.0792
www.CREDCO.com
Anthem Report Sample
TID: Transaction
Identification – Uniquely
Non-Traditional Credit Report with Anthem Score
identifies every interaction the
customer has with the First
American CREDCO system.
-------------------------------------------------------------------------------------------Anthem Report
-------------------------------------------------------------------------------------------Ref #: PFM-0000-0000-4795
Acct #: 3166785
TID: PFM-0000-4795
Prepared for: BA Test Account
Received: Completed: Revised:
12/10/04 12/10/04
Attention/Additional information:
ALICE /LOAN NUMBER 123
Sources Lists where the
Charges:
Credit and public record sources:
data came from
NOT AVAILABLE
CRD, EFX, XPN, TUC, MAN
for this report.
-----------------------------------------------------------------------------------------Applicant
CREDCO, MICHAEL A
Soc. Sec. No. 000-12-1406
Co-applicant
Soc. Sec. No.
Address
2514 ARTILLERY ST
Marital status
MONTEREY, CA 93942
Dependents
Anthem Score First American’s Non-Traditional
Length
Credit Score is determined with all
-------------------------------------------------------------------------------------------available bureau data and any
Applicant
Co-applicant
verified non-traditional data.
-------------------------------------------------------------------------------------------Considers information such as
Employer
Employer
payment history, types and length
Position
Position
of credit.
Length
Length
Income
Income
Verified
Verified
--------------------------------------------------------------------------------------------
Factors &
Descriptions
Highlights the
Tiers of data
used and the
level of
verification
obtained for
Rent.
Account Name/Number (Sources)
Past due
Last
Open
High
Payment
Balance MOP Status Rptd 30 60 90+ MR Dlq
----------------------------------------------------------------------------------------Updated information on items below will follow on a supplemental report:
---------------------------------------------------------------------1. COLLECTECH/3337517 (EFX-180YC04534*,TUC*)
I 06-03
129
0
129 Y-9 COLL/P&L 12-04 - - 1
Hist: 11-04 9
CLSD
APP
Ctgy: COLLECTION
Term: REV
LACT 11-04
CN: BELL ATLANTI
CREDITOR RATES BY MAIL ONLY
NonTraditional
data –
Data not available
from the bureaus,
such as Tier II and
III data including
insurance and
other regular
payments.
History
Section -
Verification and
Fraud Checks -
FAC Anthem Score
(APP)= 743 Factor: 00001, 00021
00001 ALL NT DATA IS FROM TIER I
00021 RENTAL PAYMENT VERIFIED WITH COPIES OF CANCELLED CHECKS OR BANK RECORDS
Accounts under Applicant:
------------------------2. GEICO AUTO INS. /ABC123456 (MAN)
I 12-03
150
0
-0Hist: 12-04 111111111111
W-1 CURRENT
12-04 00 00 00
APP
Term: REV
3. GAS AND ELECTRIC /1234567890 (MAN)
I 12-02
150
150
150 V-1 CURRENT 12-04
Hist: 12-04 111111111111111111111111
Term: REV
4. HOLLY GOLIGHTLY/PREVIOUS LANDLORDXXXX (MAN)
I 12-01
750
0
CLOSED L-1 CURRENT 12-02
Hist: 12-02 1111111111111
CLSD
Term: REV
Indicates
Fraud Verification Information:
month-to-month ------------------------------payment
1. TUC High Risk Fraud Alert (APP)
history pattern.
AVAILABLE AND CLEAR.
Prepared By: First American CREDCO
12935 First American Way
POWAY, CA 92064
00 00 00
APP
24
00 00 00
APP
13
12
All trade lines are
subject to First
American’s strict
verification policies
to validate the data
and check for fraud.
Bureau data Any existing
bureau data is
incorporated into
the report and the
Anthem Score.
Utilities
Information Indicates Tier I data
such as gas, electric
and other utility
payment history data.
Rental Information Rental history is always
sought as part of the
Anthem Report.
Bureau Fraud Checks Fraud alerts appear if any credit bureau
records exist on an applicant. When a fraud
message does appear it will show whom the
message pertains to: APP, CAP or PNA.
****** END OF REPORT ******
This sample report was created to showcase a wide variety of format features. As such, the data content represented here may not be consistent across all
report sections.
Anthem F1 format sample (rev. 4-07)
EXPERT CUSTOMER CARE
Consumer Assistance and
Disputes Resolution
OUR COMMITMENT TO YOU,
AND YOUR CLIENTS
At First American CREDCO, our number one
achieve the dream of homeownership. At First
goal is to help consumers establish or gain
American CREDCO, we create those opportunities
control over their financial health so that they’re
for everyone.
Every American deserves the opportunity to
afforded opportunities to achieve the dream of
homeownership. To help make this possible, we
That’s why we offer educational tools and
offer free Consumer Assistance and Disputes
resources dedicated to providing homeownership
Resolution services to all clients of First American
opportunities for traditionally underserved
CREDCO customers.
consumers. Consumer Assistance and Disputes
Resolution services are available to all consumers
Provides “one-call” dispute resolution
who access their credit report from First American
Helps consumers understand their credit
scores and interpret their credit report
CREDCO or to any loan applicant working with a
First American CREDCO mortgage professional.
Provides education on the importance of
establishing and maintaining good credit,
and monitoring credit profiles
Consumer Services
Consumer Assistance and
Disputes Resolution
Teaches how to build a non-traditional
credit history
Protects against identity theft and
common scams
Bi-lingual support – fluent Spanish-speaking
Customer Care Specialists available
12395 First American Way
Poway, California 92064
Phone: 800.255.0792
www.CREDCO.com
www.CREDCO.com
CONSUMER SERVICES
Consumer Services
Consumer Assistance
Understanding credit and how it affects
consumer choices is critical, particularly
when it comes to home buying. That’s why
we have a team of credit professionals
dedicated to helping consumers
take control of their credit
and improve their overall
credit health.
Our Consumer Assistance
Services is available to all
First American CREDCO
customers to help them better
understand what is in their
credit reports and how it
impacts them. We can even make
recommendations to assist them with
strategies for establishing and improving
their credit history.
Consumer Disputes Resolution
When you order credit information from First
American CREDCO, your clients get free access
to our convenient, toll-free consumer disputes
service. With just one call, our FCRA-certified
specialists will work hand-in-hand with your
clients to resolve any discrepancies with the
national credit bureaus. As a single contact
point, our Consumer Disputes Resolution
service makes the often complicated and
time-consuming credit dispute process
easier for your clients, and you.
“One-call” Dispute Resolution
Home Buyers Credit Education
DISPUTE INVESTIGATIONS
We investigate tradelines by working directly with
the credit bureaus.
First American CREDCO offers a free online
educational site dedicated to helping consumers
understand and build the credit they deserve.
CONSUMER INTERACTION
We actively communicate the results
of our investigative process to the
consumer.
BUREAU COMMUNICATION
Our Consumer Disputes team
works with the bureaus on the
consumer’s behalf to update
incorrect data.
FCRA COMPLIANCE
First American CREDCO strictly adheres to the
guidelines set by the FCRA regarding timeframes,
forms and procedures.
Online Resources
CREDCO.com/CreditEducation:
What is credit?
Home buying guide
Credit challenges
Credit issues to consider
Checking your credit
Questions
Contact First American CREDCO today!
Call: 800.255.0792
Email: [email protected]
Visit: www.Credco.com
“With proper guidance and
education, consumers can
feel empowered to move
ahead in their dream to
achieve homeownership.”
12395 First American Way
Poway, California 92064
Phone: 800.255.0792
www.CREDCO.com
EMERGING MARKETS
Anthem Performance
Alternative Credit Portfolio Analysis and Evaluation
Anthem Performance, part of the Anthem Suite of
Services from First American CREDCO, empowers mortgage
professionals with the information and insight they need to
make sound business decisions.
Powerful Business Insight
Anthem Performance collects the non-traditional credit data
gathered from the Anthem Reports you order and builds a
database for your business. The database provides access to key
intelligence and analysis capabilities so you can minimize risk and
maximize business opportunities.
We use proven data mining and statistical methods to identify and
provide insight into Anthem mortgage loan applicant data – such as
consumer behavior, demographics and market trends – that you can
use to improve your applicant underwriting and risk management.
Portfolio Risk Assessment
PRODUCT
Highlights
Customized portfolio solutions for Anthem
loan applicants
Monitor loan portfolios for trends and
potential fraud-related risk
Validate portfolio value
Gain valuable insight into loan portfolio
value and performance
Mitigate risk
Identify opportunities
Personalized, consultative analysis
Retain customers
Identify business opportunities; maximize
loan portfolio performance
Consultative Analysis
Our personalized, consultative approach helps you understand
critical performance findings and, more importantly, what
they mean so you can be proactive in managing your Anthem
loan portfolios.
For more information on Anthem Performance, contact a
First American CREDCO sales associate at (800) 255-0792
or visit us online at www.credco.com.
12395 First American Way
Poway, California 92064
Phone: 800.255.0792
www.CREDCO.com
FIRST AMERICAN CREDCO: DOING OUR PART
How First American’s Consumer Services Helped One Family Realize Their Dream to Own a Home
“I have bad news,” said Tracy as she hung up the phone and turned to face her husband. “Our
broker just called to say that the lender he deals with can’t approve our home loan at the
current market rate.”
When Tracy and Ketut Sutama set out to buy their first house, they had no idea what
challenges and frustrations lay ahead. It hadn’t taken them long to find the perfect place –
exactly what they’d had in mind for their first home. But two weeks into an uneventful escrow,
Tracy got the call from their broker.
“If what he says is true, they’re going to bump us up to 8.7 percent,” Tracy explained,
sounding tired.
With the financial stress of a young child and a husband who had just recently emigrated from
Indonesia, Tracy wondered how they could afford the thousands of dollars the higher interest
rate would cost them. She realized she had to do something.
Tracy immediately set up a meeting with her broker to discuss ways she might be able to raise
her credit score. After reviewing her credit report, Tracy found several items that seemed outof-date – items that might be negatively affecting her credit score. But with her loan cheduled
to close in just a few weeks, Tracy had no idea how she could correct the problems on her
credit report in time. That's when the broker remembered Rapid ReCheck, a service from First
American that his lender had recently recommended. The broker realized that Rapid ReCheck
might be the key to quickly correcting the inaccuracies on Tracy’s credit report and hopefully
boosting her score.
“I met Gigi, one of First American’s certified representatives, when my broker ordered the
Rapid ReCheck. I can honestly say that working with her was the most positive experience in
the home buying process. Gigi was able to tell me exactly what I needed to do in order to try
and raise my score. She walked me through the process step-by-step.”
Tracy received one-on-one support over a three-week period. She and Gigi were in constant
contact. Gigi helped Tracy figure out which creditors she needed to contact for
documentation and how best to approach them.
“I finally felt like I had an ally — like someone finally cared. Gigi helped give me some control
over the whole situation. From the documentation I gathered, Gigi worked directly with the
national credit bureaus on my behalf to update items on my file.”
Just before closing, Tracy’s credit report was re-pulled. Nobody could believe the result.
Through First American’s support and consumer dispute assistance, Tracy’s credit score had
soared an unheard of 55 points — a full 20 points more than she needed to qualify for a lower
interest rate.
First American CREDCO, 12395 First American Way, Poway, CA 92064
www.credco.com
“We love our new home,” said Tracy with audible happiness in her voice. “I wish there was a
better way we could show Gigi our appreciation, but mortgage payments can be a shock,” she
laughed.
For Gigi, it’s enough to know that she was able to help. And, for First American, it’s just a part
of what we do.
More about Rapid ReCheck…
First American’s Rapid ReCheck is a service that aids lenders and brokers that have pulled a
credit report from First American by updating inaccurate or incomplete data on the
consumer’s files with the national credit bureaus. Once these items have been brought up to
date, the consumer’s report is re-pulled. Because a consumer’s credit score is generated using
the credit information contained in their bureau files, the new report often yields an improved
score.
More about Consumer Services…
First American’s Consumer Assistance program aids consumers in understanding their credit
profiles and can provide strategies for improving their overall credit health. FCRA-certified
specialists are available to work hand-in-hand with the consumer to resolve discrepancies on
their files with the national credit bureaus. These services are available to any loan applicant
working with a lender who utilizes First American’s credit reporting services. By providing both
general Consumer Assistance and Consumer Dispute Resolution, First American helps
empower individuals to take control of their credit profiles.
More about First American CREDCO…
First American CREDCO, a member of First American’s Credit Information Group, processes
millions of credit reports annually across a diverse customer base. The company was the first
to provide merged credit data to the mortgage lending industry, and is the leading provider
to Fannie Mae and Freddie Mac. Today, First American CREDCO provides one of every three
reports used by mortgage professionals. Credit-granting organizations of all types and every
size rely on products from First American CREDCO for credit decisions involving billions of
dollars annually. More information about the company can be found at
www.firstam.com/credit.
Neither First American CREDCO nor Rapid ReCheck or Consumer Services are credit repair agencies or provide credit repair services. Rapid ReCheck
is provided to, and paid for by, the lender or broker who has ordered a credit report from First American CREDCO in connection with a specific loan
transaction. Where the credit report that First American CREDCO has provided contains inaccuracies or outdated information, Rapid ReCheck
expedites the process of correcting the information in the credit files of the national credit bureaus so that an accurate, up-to-date report is available
for the transaction. Consumer Services are provided to the subject of credit reports issued by First American CREDCO in connection with the
consumer dispute resolution process under the Fair Credit Reporting Act. No representation is made that the experience of the consumer in this
testimonial is typical, or that significant improvements to a consumer’s credit files will be made in every case. Rather, individual results will vary
depending on the particular facts and circumstances involved.
Contacts:
David Woodruff
First American CREDCO
(619) 938-6809
[email protected]
FIRST AMERICAN’S ANTHEM LENDER DIRECTORY OFFERS A CLEAR PATH TO BROKERS
AND LENDERS NOW USING ALTERNATIVE CREDIT SOLUTIONS
—Company Also Announces Key Enhancements to its Alternative Credit Product Suite—
LAS VEGAS, Nov. 3, 2006 —The First American Corporation (NYSE: FAF), America’s largest
provider of business information, today announced the availability of the Anthem Lender
Directory, a growing index of screened and certified mortgage lenders who have incorporated
nontraditional credit scoring solutions into their underwriting processes. More than 200 loan
officers from across the nation are currently listed in the growing directory, which assists real
estate agents, community-based organizations, home counseling service providers and
consumers in identifying lenders who are using the latest credit evaluation techniques to
deliver the best possible loans at the best possible prices.
Introduced at the National Association of Hispanic Real Estate Professionals (NAHREP)
convention in Las Vegas this week, the Anthem Lender Directory is expected to be of great
value within the homebuying segments where a more comprehensive approach to credit is
necessary to better evaluate borrowers without established files at the major credit bureaus.
First American’s credit information subsidiary, First American CREDCO—the largest provider
of credit information to the mortgage industry—estimates that 20 percent of Americans are
“unscorable” using traditional credit bureau data alone, but that many can qualify for primegrade loans when alternative payment history is brought into the evaluation process.
“By helping consumers efficiently identify trusted lenders who are now embracing alternative
credit solutions, First American is continuing to serve as a catalyst in creating homebuying
opportunities within the emerging minority and new immigrant homebuyer segments,” said
Mark F. Catone, senior vice president for First American CREDCO. “Connecting those
homebuyers with committed lenders who have undergone our rigorous compliance screening
process will enable many more deserving families to secure prime-grade mortgage loans.”
1
“On a $300,000, 30-year loan, a family that qualifies for a 6 percent rate will pay $600 less per
month and $220,000 less over the life of that loan than a family with a 9 percent interest rate,”
said Landon V. Taylor, vice president of Market Development at First American. “Often the
only barrier keeping that family from the lower rate is a credit score derived from data that
does not fully reflect the borrower’s willingness and ability to repay the loan. Lenders who use
alternative credit solutions are helping lift this barrier and leveling the playing field for
prospective homebuyers with nontraditional banking, credit and spending patterns.”
In addition to the new Anthem Lender Directory, First American has also announced several
enhancements to its Anthem product suite, a tested and reliable alternative credit solution
that helps mortgage applicants with little or no traditional credit history qualify for primegrade financing. Anthem augments traditional credit bureau data with rent, utilities, insurance
and other types of payment histories to produce a more comprehensive view of a borrower’s
payment behavior. New enhancements include:
•
Spanish language credit reporting and disclosures;
•
International credit data reporting;
•
Automated “thin-file” and “no-file” notification;
•
Automated Individual Tax Identification Number (ITIN) identification; and
•
Integration with EagleCert, an insured valuation product from First American that
offers time and cost savings over a traditional appraisal while not exposing the
lender to any greater risk.
Anthem is the only fully compliant mortgage credit reporting solution that meets mortgage
loan underwriting and due diligence requirements of the U.S. Department of Housing and
Urban Development (HUD), the Federal Housing Administration (FHA), Fannie Mae and
Freddie Mac.
NAHREP Chairman Frances Martinez Myers noted that the current mortgage industry practice
of “lowering credit standards and raising allowable debt-to-income ratios” is a disservice to
borrowers and to businesses over time, and that “broadening the current credit spectrum to
be more inclusive of culturally influenced Hispanic borrower traits” is a healthier, short- and
long-term approach. The enhanced Anthem product suite provides lenders with the tools
necessary to efficiently and profitably make loans based on alternative credit criteria.
2
“We are taking the next step in closing the homeownership gap by building upon our success
with Anthem,” said Taylor. “By meeting the specific compliance and underwriting needs of
mortgage lenders and investors, we are seeing increased adoption of Anthem.”
Last week, First American announced a new partnership with Neighborhood Housing Services
of America (NHSA) that is using Anthem to help qualify “thin-credit/no-credit” borrowers for
prime-grade mortgages. Employing the broader credit information available via Anthem, the
program successfully delivered its first prime-grade loan to a homebuyer in October.
For more information on the Anthem product suite, please visit: www.credco.com/anthem.
Lenders and brokers interested in registering with First American’s Specialty Lender Directory
should visit www.credco.com/crediteducation, or call (800) 255-0792.
About First American
The First American Corporation (NYSE: FAF), a FORTUNE 500® company that traces its history
to 1889, is America’s largest provider of business information. First American combines
advanced analytics with its vast data resources to supply businesses and consumers with
valuable information products to support the major economic events of people’s lives, such as
getting a job, renting an apartment, buying a car or house, securing a mortgage and opening
or buying a business. The First American Family of Companies, many of which command
leading market share positions in their respective industries, operate within five primary
business segments, including: Title Insurance and Services, Specialty Insurance, Mortgage
Information, Property Information, and Risk Mitigation and Business Solutions. With revenues
of $8.1 billion in 2005, First American has approximately 2,100 offices throughout the United
States and abroad. More information about the company and an archive of its press releases
can be found at www.firstam.com.
3
Contacts:
David Schulz
Corporate Communications
The First American Corporation
(714) 800-3298
[email protected]
STATE FARM INVESTS $100 MILLION IN NHSA’S NEW PRIME-GRADE MORTGAGE PROGRAM
CHICAGO, Oct. 24, 2006 – Neighborhood Housing Services of America (NHSA) and State
Farm today announced the creation of a $100 million loan pool that will help thousands of
homebuyers secure mortgage loans at competitive rates. Designed to help under-served
home seekers—often within the minority and new immigrant communities—the NHSA loan
program will employ The First American Corporation’s (NYSE: FAF) “Anthem Report” and
“Anthem Score,” two tested and reliable alternative credit solutions that help lenders assess a
consumer’s creditworthiness using data beyond what is found in traditional credit bureau
reports.
Combining this new method of credit analysis with extensive prepurchase and post-close
homebuyer counseling services from nonprofit home counseling agencies will enable NHSA
and its mortgage lenders to confidently extend prime-grade mortgage loans—backed by the
State Farm-funded loan pool—to consumers with little or no traditional credit history.
“Before now, there hasn’t been an effective, efficient means of moving nonprime borrowers
into prime loans,” said Mary Lee Widener, president and chief executive officer of NHSA.
Speaking at the annual Mortgage Bankers Association Convention & Expo in Chicago,
Widener emphasized industry collaboration, affordability and borrower support as key factors
in assisting those traditionally locked out of prime-grade mortgage financing, and in creating
new market opportunities for lenders.
“By demonstrating that these consumers are not higher risk, and by providing lenders with a
secondary market to sell the loans post-close, our Prime-Grade Mortgage Program directly
addresses the challenge faced by an estimated 50 million U.S. consumers currently locked out
of appropriate mortgage financing by traditional mortgage lending standards,” said Widener.
“We have already begun to make a positive impact through the tremendous support of State
Farm, First American and our counseling service partners, and we hope to further expand this
program through additional partnerships in the years to come.”
Earlier this month, the Prime-Grade Mortgage Program had its first success in helping a
homeowner in Cincinnati qualify for prime-grade financing. In that instance, the homebuyer—
denied appropriate financing using traditional channels—found help in a local
NeighborWorks® counseling center, The Homeownership Center of Greater Cincinnati, which
connected her to the Prime-Grade Mortgage Program. Using the alternative credit data, FifthThird Bank funded the loan, which was simultaneously purchased by NHSA using the State
Farm loan pool.
1
“We’re excited about the hope this program provides and the impact it will have on people,”
said Clayton Adams, vice president – community development at State Farm. “Our partnership
and this investment with NHSA and First American matches our philosophy and strategy to
support community development by empowering individuals to overcome adversity and
eliminate barriers to buying a home for the first time.”
“The rapidly changing market conditions are casting new light on the needs and strong
purchasing power of the fast-growing minority and new immigrant homebuyer segments,”
said Landon V. Taylor, vice president of market development at First American. “We’re
pleased to help deliver innovation that enables the extension of responsible and affordable
mortgage financing to all Americans.”
About Neighborhood Housing Services of America
NHSA is part of the NeighborWorks® System, which also includes (a) NeighborWorks
America, a congressionally chartered public nonprofit corporation that creates opportunities
for people to live in affordable homes, improve their lives and strengthen their communities,
as well as (b) the more than 240 local nonprofit NeighborWorks organizations that share a
mission to revitalize their neighborhoods and communities and to provide affordable housing.
NHSA, together with NHSA-CDFI—its affiliated community development financial institution—
and NHSA’s e-commerce center, plays a critical role in meeting the capital needs of the
NeighborWorks network. Raising private sector capital from socially responsive investors,
NHSA purchases first and second mortgages from local NeighborWorks organizations and
their lending partners. NHSA also develops innovative loan products and services to increase
the capacity of the NeighborWorks network to expand affordable housing opportunities in
their communities. For more information, please visit: www.NHSAonline.org or www.nw.org.
About State Farm
State Farm insures more cars than any other insurer in North America and is the leading U.S.
home insurer. State Farm's 17,000 agents and 68,000 employees serve over 74 million auto,
fire, life and health policies in the United States and Canada, and more than 1.8 million bank
accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm
family of companies. State Farm is ranked No.22 on the FORTUNE 500® list of largest
companies. For more information, please visit statefarm.com or in Canada statefarm.ca.
About First American
The First American Corporation (NYSE: FAF), a FORTUNE 500 company that traces its history
to 1889, is America’s largest provider of business information. First American combines
advanced analytics with its vast data resources to supply businesses and consumers with
valuable information products to support the major economic events of people’s lives, such as
getting a job, renting an apartment, buying a car or house, securing a mortgage and opening
or buying a business. The First American Family of Companies, many of which command
leading market share positions in their respective industries, operate within five primary
business segments, including: Title Insurance and Services, Specialty Insurance, Mortgage
Information, Property Information, and Risk Mitigation and Business Solutions. With revenues
of $8.1 billion in 2005, First American has approximately 2,100 offices throughout the United
States and abroad. More information about the company and an archive of its press releases
can be found at www.firstam.com.
2
The Washington Post
By Kenneth Harney
November 10, 2006
Credit Score Alternatives Can Fatten “Thin” Files
Picture this scenario: You've lived in this
country for the past 15 years, earned a decent
wage, raised a family, always paid your rent,
utilities, cell phone bills and other expenses on
time, month after month. But you made little
or no use of the conventional banking and
credit systems - avoiding bank loans, credit
cards and debts in general.
Now you go to apply for a mortgage to buy
your first home and get smacked with this
sobering news: Sorry, but there is not enough
information in your national credit bureau files
to score your credit. We've got to either charge
you an interest rate well above prevailing rates
- 9 percent or 10 percent in a 6 1/2 percent
market - or reject you altogether.
That scenario is precisely what large numbers
of Latino families now face, according to a new
survey. The 14,000-member National Association of Hispanic Real Estate Professionals Latino and non-Latino realty agents, builders,
mortgage bankers and lenders, attorneys and
credit counselors - polled 500 of its members
and found that:
Nearly one-third said their clients end up
paying "subprime" rates on mortgages
because limited credit histories make them
appear high-risk when lenders use traditional
FICO scores, the dominant credit evaluation
method in the mortgage underwriting
process.
Nearly 80 percent said that for every Latino
household they help put into a home of their
own, they're forced to turn away two
prospects solely because they can't pass
muster under traditional score-based
computer underwriting programs.
The chairperson of the Hispanic realty
association, Frances Martinez Myers, estimates
that if mortgage lenders used alternative
credit scoring models that factored in rent,
utilities and other types of payments that are
not reported to the national credit bureaus, an
additional $200 billion in new home loans
could be extended to Latino purchasers.
Felix DeHerrera, incoming chair of the
association, said that under current underwriting approaches, Latinos often get "penalized
for being debt-averse, rather than being
rewarded for their consistency in meeting
financial commitments, even if it is in cash."
But the credit scoring inadequacy problem
extends far beyond Latinos. Fair Isaac Corp.,
developer of the FICO score, estimates that as
many as 50 million Americans - of all ethnic
backgrounds, ages and incomes - can't be
scored or are difficult to score because they
have minimal information on file at the three
national bureaus.
In effect, the credit deck is stacked against
them. They often are forced to pay higher fees
and interest rates than they deserve. But there
is good news for many of these consumers:
Growing numbers of lenders and mortgage
brokers understand the "thin file" issue and
have begun offering at least one of several
alternatives to traditional credit scores.
At the annual convention of the National
Association of Hispanic Real Estate Professionals this month, a new guide was released
listing hundreds of brokers and lenders
around the country who use the Anthem
system of nontraditional credit reports and
scores as supplements to FICOs.
Anthem, developed by First American CREDCO,
the credit data subsidiary of First American
Corp. of Santa Ana, Calif., evaluates whatever
information on an applicant may exist in the
files of the national bureaus - Equifax, Experian
and TransUnion.
Then, it mixes in information collected by
CREDCO from other sources. These include
regular child-care payments, telephone,
electricity and other utilities payments, current
and former rent payments, plus personal credit
data from businesses that do not report to the
bureaus - small local retailers that extend
credit, payday lenders, rent-to-own companies
and the like.
This produces an alternative credit file that can
then be scored. First American CREDCO says
their scores accurately predict borrowers' risk
of future default.
Better yet, alternative scoring allows lenders to
cut mortgage rates, down payments and fees
for people with solid - albeit nontraditional credit backgrounds.
The goal, according to Mark F. Catone,
CREDCO's senior vice president, is to help
"deserving families to secure prime-grade
mortgage loans," in spite of the fact they score
poorly using traditional FICOs.
The Anthem system is just one of several
alternatives that are now available to help
applicants with "thin files." Fair Isaac itself
offers an alternative-data counterpart to its
traditional FICO score known as the Expansion
score.
Another company is functioning as a national
repository for nontraditional credit data.
PRBC.com of Annapolis specializes in helping
consumers build their own alternative credit
databases by supplying verifiable rent, utilities
and other periodic payment information
directly to the firm.
Bottom line here: Just because there's not a lot
on file about you in the big three credit
bureaus no longer means that you can't obtain
a home mortgage on favorable terms. You just
need to ask about - or demand - scoring
alternatives from lenders.
12395 First American Way
Poway, CA 92064
Tel: 800.255.0792 • www.credco.com/CreditEducation
Why Top Mortgage Lenders Rely On
First American CREDCO
Performance. Leadership. Vision.
9 out of 10 top lenders agree: First American CREDCO
delivers innovative solutions that keep pace with today’s dynamic
business climate.
Performance has made First American CREDCO a leader in
consumer information solutions for more than four decades.
Leveraging the latest technology and our vast data resources, we
continue to set the industry standard – and value benchmark – for
reliable products, fast delivery and technical innovation.
Leadership is why top mortgage lenders trust First American CREDCO.
We were the first to provide credit data to the mortgage industry, and
today we are the industry’s primary source for fast, reliable consumer
information products. We provide innovative credit reporting tools,
comprehensive identity verification solutions, portfolio analysis and
consulting services, as well as non-traditional credit information products
that offer new business opportunities. First American CREDCO is the
#1 choice of secondary market investors, including Fannie Mae and
Freddie Mac.
Vision is the foundation for First American CREDCO’s expanding line of
innovative products and services. Our consumer information solutions
have enabled top lenders to make sound business decisions for more
than 40 years. Today, we continue to identify new ways, and create new
products, to help our customers make smarter business decisions across
an ever-changing marketplace.
Setting the Pace
Top national mortgage lenders depend on First American CREDCO to
set the pace for leading products, customized consumer information
solutions, quality customer care and reliable technical support.
Focusing on solutions that support our customers
throughout the lending process.
99.8% proven
systems uptime
Consumer information
delivered in seconds
High-volume capacity
National field presence
and processing centers
Dedicated customer
care and technical
support
Only redundant hot
backup and disaster
recovery site in the
industry
Customized delivery
methods, media and
channels