The three major credit bureaus have agreed to extend consumer access to free credit reports for another year in response to hardships caused by the ongoing COVID-19 Pandemic.

One of the largest challenges facing loan originators today is how to appeal to the modern loan applicant in the digital age. Demographics are shifting, and the face of homeownership is changing like never before. Thus, it’s essential to promote diversity in your product offering- this entails making your services accessible to borrowers with “limited English proficiency”, or LEP. Today, more than 25 million people in the United States are considered to have limited English proficiency, and this is a growing chunk of the market lenders can’t afford to miss out on.

Let’s face it- a lot can happen between the first credit pull and the closing of the loan. In fact, nearly 14% of all borrowers will apply for new credit during this “quiet period”. Undisclosed debt is a situation applicants are warned about tirelessly, yet it continues to be a recurring problem that can create significant risk within your pipeline. Fortunately, lenders have the power to mitigate these risks and stay compliant with LQI requirements using tools like Credit Check-Up and Undisclosed Debt Monitoring (UDM). While these solutions have a lot in common, there are a few key differences you’ll want to consider when deciding on which to use.

With the spring home buying season now upon us, coupled with the continued refinance demand, the real estate appraisal industry continues to be challenged with high volumes. For well over 18 months now, the heated purchase and refi markets (driven by historically low rates) have stretched the appraiser community thin, causing a sense of “burn out” given the normal winter lull in order volume did not materialize as steeply as it did in years past. While the work is welcome, there are several things clients, borrowers, realtors and AMCs can do to help expedite the appraisal process for the appraiser community. Here are 8 of them:

Contrary to the volume we’ve experienced throughout the past year, the conventional take from industry experts is that the market will finally cool in 2021. Over the next year, The industry is expected to endure a 22% year-over-year decline in volumes- which means there may be a point in the near future where you'll have to dust off the lead-generation playbook. As a refresh, here are some great tactics that can grow your business through referrals.

There are 5 weighted factors that are used in determining your FICO® score, the most common score used by lenders. Make sure you’re covered on all fronts using these quick tips for each factor:

Your credit report is the one true crystal ball that can give you insights into your financial wellness. Produced by each of the three major consumer credit bureaus (Transunion, Experian and Equifax), your credit report can provide explanations for fluctuations in your credit score, as well as the reasoning behind decisions made by your creditors.

Passed in 1970, the Fair Credit Reporting Act gave numerous protections to consumers with regards to how their credit data is shared. Today, this legislation continues to foster the accuracy, privacy and fairness of consumer data by requiring lenders to be transparent with their borrowers about the use of their credit report in lending decisions. One of these requirements is to notify a consumer when adverse action is taken.

Ability to repay, or capacity, is one of the main factors of creditworthiness- These are known as the 5 C’s: capacity, collateral, conditions, capital and character. Employment is an important component of capacity, and all too often we see consumers falsifying this crucial data validation point. Thus, as a lender, you need to keep a watchful eye to make sure your applicant’s employer is legitimate.

Though most of us have grown familiar with performing our work remotely, the threats to consumer data remain high. Complacency is not an option, especially in an industry where personal information is relied on so heavily.