We work with Equifax, Experian, and TransUnion. They are private companies that collect and sell data on consumers’ credit and borrowing habits. This information is compiled into credit reports, which are then used by lenders and other businesses to make decisions about loans, credit cards, insurance, and more.

Here are some key points about these agencies:

• They receive data from “data furnishers” like banks, credit unions, and credit card issuers about your accounts, payment history, and balances.
• The information on your credit reports from the three bureaus can differ because not all creditors report to all three agencies.
• They do not create credit scores themselves; that is done by credit-scoring companies like FICO and VantageScore, which use proprietary models based on the information in your credit reports.
• You are entitled by federal law to a free copy of your credit report from each of the three nationwide bureaus every 12 months. This can be done through the website AnnualCreditReport.com.

Soft Pull Inquiry Code– A credit check that doesn’t harm a person’s credit score. Unlike a “hard inquiry” which happens when a person applies for a loan or new credit and can cause a small, temporary dip in their score, a soft inquiry is a less invasive review of a credit file.

• No Impact on Credit Score: The most significant feature is that a soft inquiry does not affect the borrower’s credit score. This is because it is not tied to a formal application for new credit.
• Purpose: It’s used to get a snapshot of a person’s creditworthiness for informational or review purposes. This could include:
  • Prequalification: A lender may do a soft inquiry to determine if a borrower is a good candidate for a loan and to offer them pre-approved rates.
  • Account Review: A current creditor might use a soft inquiry to monitor an existing account and see if they should offer a credit limit increase or other promotions.
  • Background Checks: Employers, landlords, and insurance companies may also use soft inquiries as part of their screening processes.
• Pre-funding Review: Lender can use a soft inquiry to check a borrower’s credit profile before the loan is closed without negatively impacting their credit score. This is a key tool for a final review, ensuring no new, undisclosed debt has been taken on by the borrower.
• Post-funding Review: Lenders can also use soft inquiries as part of their quality control process after a loan has been funded. This allows them to monitor the performance of loans and identify potential risks without performing a hard inquiry that could be detrimental to the borrower’s credit.

Undisclosed Debt Notifications: This service is designed to monitor a borrower’s credit profile between the time of application and the final loan closing. It acts as an “insurance policy” to proactively identify and address potential issues that could cause delays, complications, or even prevent the loan from closing.

• Key Benefits:
  • Extended Monitoring Period: It can monitor a borrower’s credit for up to 120 days.
  • Proactive Problem Solving: By receiving daily alerts, lenders can deal with any credit issues, such as new debt or late payments, earlier in the process.
  • Smooth Closing: It helps ensure a “surprise-free” and smooth closing by preventing last-minute credit-related problems.
  • Risk Mitigation: The service facilitates compliance, helps prevent loan repurchase (buy-backs), and safeguards against unforeseen changes in the borrower’s financial situation.
  • Improved Consumer Experience: By catching issues early, it helps avoid stressful and costly delays for the buyer.
• Specific Events That Trigger Notifications:
  • Public Record or Tradeline Bankruptcy
  • Major derogatory events
  • 30, 60, or 90 days past due payments
  • Increases in balances or scheduled payments
  • High revolving utilization or being over the credit limit
  • Opening of new trade lines (e.g., new credit cards or loans)
  • New credit inquiries

Re-Score is a service designed to quickly update a borrower’s credit report and potentially improve their FICO® scores in a short amount of time, typically one to three business days. This service is a powerful tool for loan officers to help their borrowers qualify for a better loan package. When update is requested to just one or two bureaus, only those bureaus are re-pulled, allowing the credit score to remain the same on bureaus that were not updated.

Mortgage Fraud Report (MFR) enables lenders to quickly Identify discrepancies, track issues, reduce the risk of fraud and comply with their secondary market requirements. The MFR searches billions of public records and returns concise, real-time reports to streamline the verification process. Instantly access billions of public records to detect discrepancies in:

• Borrower ID
• Liens from MERS
• Subject Property
• Employment

OFAC Alerts: OFAC Alerts (Office of Foreign Assets Control) protect your business from the time and cost of manually checking borrower records against the U.S. Treasury’s master list of Specially Designated Nationals and Blocked Persons, which contains thousands of individual names.

MeridianLinks’ Mortgage Credit Link (MCL) is a plug-and-play web-based order fulfillment hub. It simplifies product ordering with an intuitive web interface and integrated tools for order fulfillment. A one-stop solution for institutions that provide verification services, . A comprehensive list of product and service APIs allows for integrations into any application for a seamless experience to eliminate human error and to reduce costs. Take advantage of our growing number of direct integrations into loan origination systems and automated underwriting systems such as Ellie Mae’s Encompass and Fannie Mae’s Desktop Underwriter. Making integration into any application a breeze, simple XML APIs are supported by dedicated integration staff.

SARMA/MeridianLink offers a Three CRA Merge Report Technology (Experian, TU, Equifax) allows you to get an accurate and balanced representation of your borrower’s credit history. We bring you the most up-to-date tradeline information on each report, giving you a more complete picture of your client’s credit history.

SARMA/MeridianLink offers a Smart Select feature that helps you save money by strategically pulling credit reports.

• Smart Select is a tool that integrates with a Loan Origination Software (LOS) to help users save money on credit reports. Instead of automatically ordering an expensive tri-merge report (which combines data from three credit bureaus), it allows users to set parameters that determine whether a full tri-merge report is necessary or if a single bureau report will suffice.
• Key features and parameters of Smart Select include:
  • Customizable Parameters: Users can define, change, add, or remove parameters at any time to suit their specific needs.
  • Upgrade Modes: The system offers different modes for upgrading from a single bureau report to a tri-merge report:
    • 1-3 Upgrade: If the first credit bureau report meets the specified score and guideline requirements, the system will automatically pull a tri-merge report.
    • 1-2-3 Upgrade: This is a sequential process. It pulls one bureau at a time, checking the results against the requirements. If the first meets the criteria, the second is pulled. If the second also meets the criteria, the third and final bureau is ordered to complete the tri-merge.
    • 2-3 Upgrade: This mode pulls two bureaus. If either of them meets the requirements, the third bureau will be ordered.
• Default Bureau and Instant Checks: Users can define a default bureau to be pulled first. The system will immediately check this report against the defined parameters to decide whether to pull the other two bureaus without any delay.
• Specific Credit Problems to Identify: The parameters that can be used to trigger a tri-merge report include:
  • Credit score below a certain threshold.
  • Cumulative collection balance above a certain amount.
  • Bankruptcy filings within the past 23 months.
  • Delinquent child support accounts.
  • Unreleased federal tax liens.
  • Defaulted student loans.
• Employee Access Control: The system allows users to define which employees can access the website to manually add the other two bureaus when needed, giving them control over who can override the automated system.

In essence, Smart Select acts as a cost-saving filter, using pre-defined rules to ensure that a more expensive tri-merge credit report is only ordered when a potential credit problem is identified or when the initial single-bureau report meets the criteria for a full review.

SARMA/MeridianLink offers a SmartPay, a web-based service designed to help loan officers and their referral partners (like realtors) streamline the credit report process. The service allows borrowers to pay for their own credit reports upfront, providing them with immediate feedback and giving the loan officer a qualified lead.

Here’s a breakdown of SmartPay’s features and benefits:

• Core Functionality:
  • Borrower-Paid Credit Reports: The service’s main purpose is to have the borrower pay for their credit report upfront. This reduces the loan officer’s initial transaction costs.
  • Web-Based Service: SmartPay is a web service, so there is no software to download or install. It integrates with existing account information.
  • Referral Partner Integration: It connects services with referral partners, allowing them to offer credit report access on their own websites, expanding the loan officer’s marketing reach.
• Benefits for the Loan Officer/Business:
  • Reduced Upfront Costs: Eliminates the initial cost of pulling a credit report.
  • Qualified Leads: The loan officer receives a credit report upfront, allowing them to focus on applicants who are more likely to be qualified.
  • Expanded Marketing Reach: By integrating with referral partners’ websites, the business can generate leads from multiple sources.
  • Increased Borrower Loyalty: Since the borrower has paid for the report and received value (understanding their credit), they are more likely to stay with the loan officer.
  • Immediate Notification: The loan officer receives an email with the credit report file number, borrower’s details (name, address, phone, email), and the referral partner’s information as soon as the report is ordered.
  • Reusable Report: The credit report received can be reissued through an automated underwriting system.
  • Relationship Building: The service provides easy-to-understand explanations of the applicant’s credit standing and the factors affecting it, helping the loan officer communicate more effectively with clients.
• Benefits for the Borrower:
  • Transparency and Security: Borrowers can get immediate insight into their credit standing (Excellent, Good, Fair, or Poor).
  • Easy to Use: Borrowers can order the report with a single click.
  • Peace of Mind: Borrowers and their realtors can have a better understanding of their credit before they begin looking at houses.
• Setup Options & Features:
  • Customization:
    • • The customer can configure their own web pages.
      • A custom logo can be added to the web page.
      • Multiple email addresses can be set up for notifications.
      • The Authorization Agreement and Confirmation page can be customized.
• Consumer-Facing Features:
  • Consumers can view their FICO® Scores.
  • Payment via credit card is required.
• Consumer Report Options:
  • Credit Disclosures: Included.

Sarma is an Experian Business Reports Partner, run a credit check on a business in seconds.

Verification of Employment/Income (VOE/VOI): The Verification of Employment product will allow you to order a report that will verify the customer’s employer and their status at the company. Employers listed in The Work Number database can be instantly verified. If an applicant is not on the Work Number database, will manually verify employment and income for you.

Verification of Assets (VOA): Asset verification is the process financial services use to confirm the existence, ownership, value, and authenticity of a person’s or entity’s assets. This is done for various financial activities, such as loan applications, wealth management, and regulatory compliance, to manage risk and prevent fraud.

• Key benefits and tips for lenders using SARMA:
  • Integration with GSEs: It integrates with Fannie Mae’s Desktop Underwriter® and Freddie Mac’s Loan Product Advisor® to provide lenders with income, employment, and asset data, which can help get rep and warrant relief.
  • Faster and more successful processing: Using the service can lead to faster loan closings and fewer paperwork errors.

Re-Score: Is a service designed to quickly update a borrower’s credit report and potentially improve their FICO® scores in a short amount of time, typically one to three business days. This service is a powerful tool for loan officers to help their borrowers qualify for a better loan package. When update is requested to just one or two bureaus, only those bureaus are re-pulled, allowing the credit score to remain the same on bureaus that were not updated.

• Key Functionality:
  • Specialist Consultation: The service includes an individual consultation with a “Rescore Specialist” who provides advice to both the loan officer and the borrower to determine the best course of action.
  • Online Tracking: The progress of the request can be tracked online.
• Rescore Turnaround Times:
  • Standard Rescore: The turnaround time is typically 3-5 business days, not including weekends or holidays.
  • Rush Rescore: The turnaround time for a rush request is 1-2 business days, not including weekends or holidays. 
• Rescore Process and Updates
  • This service is used to update specific items on a credit file. The following can be included in a rescore request: 
    • Balance updates 
    • Removal of late dates or disputes 
    • Updates to past due amounts 
    • Deletion of accounts 

Note: Rescores do not include bankruptcy or child support updates. 

• Document Guidelines:
  • Rescores with Documentation: Proper documentation from the borrower that proves the correction is needed (e.g., a paid-off balance, an error that needs to be removed). Providing supporting documents will help in expediting the rescore process.
  • Rescores without Documentation (No Doc): The bureaus will need to contact the creditor directly to verify and update the account information. This can be done via an automated system or a live representative.
  • Important: Please be aware that if the bureaus are unable to verify the information with the creditor for a “No Doc” rescore, the account may be placed under a 30-day investigation. 

• Document Requirements:
  • For a rescore with documentation, all documents submitted as proof are subject to review and/or validation by the credit bureaus. They must meet these minimum requirements to avoid a 30-day investigation: 
    1. Content: The document must have the company name and letterhead, the account number, the consumer’s name, and the most current account information.
    2. Date: The date generated on the document cannot be older than 5-7 days.
    3. Format: The document must be in PDF format only.
    4. Source: The letter must come from the creditor listed on the credit report.
• Please Note: The bureaus will not accept screenshots from a phone or computer, payment receipts, wire receipts, payoff letters, bank statements, closing disclosures, or emails. The best documents for a rescore are a balance letter or a current monthly statement showing the required balance. 

• Important Considerations:
  • Bureaus Don’t Always Sync: Experian (EXP), Equifax (EFX), and TransUnion (TU) may not verify account information on the same day. This means a different balance could be verified on a different day by each bureau.
  • During Rescore Processing: It is critical that your borrower does not use their credit card accounts during the rescore process, as new activity can impact the rescore results.
  • Conference Calls: Experian will complete conference calls with a consumer to verify information, but Equifax and TransUnion do not.

• Benefits for Loan Officers and Borrowers:
  • Close Better Loans Faster: By improving a borrower’s credit score, they may qualify for a better interest rate and a more favorable loan program, leading to a faster and smoother closing process.
  • Save Loans: This service can save a loan that might otherwise be lost due to a low credit score.
  • Improved Customer Relationship: The consultative approach helps build a long-term relationship with the borrower by actively helping them get into a better financial position.
  • Enhanced Loyalty: Providing this service and helping the borrower achieve a better loan package enhances customer loyalty.
  • FICO® Score Improvement: While not a guarantee, correcting inaccurate information or updating recent payments has the potential to raise a borrower’s FICO® scores.

Reissue Report:  as part of the Fannie Mae and Freddie Mac loan process, this is a service that reissues the original standard tri-merge credit report into the Fannie Mae Desktop Underwriter (DU) system and Freddie Mac’s Loan Product Advisor (LP) system. The purpose is to avoid pulling a new credit report, which prevents changes to the credit score or other surprises.

SSN Validate (SSA-89): Through our platform, we can verify your borrower’s name, Social Security Number and date of birth directly from the Social Security Administration.

Tax Return Verification (4506-C): Verification through the IRS allows us to report income information from your applicant and business federal tax returns within 24-72 hours.

• Purpose of IRS Transcripts:
  • IRS Transcripts are used to verify the income a borrower has reported by cross-referencing it with the tax returns filed with the IRS.
  • They serve as a fraud prevention tool and a quality control measure for funded loans.
  • They are a convenient way to verify income information when a borrower’s documentation has been misplaced or is unavailable.

Liens & Judgments Report: A Liens & Judgments Report is a specialized public record report that provides information on civil court filings, such as liens and judgments, against an individual. This type of report is particularly useful for lenders and other businesses because, since 2017, the major credit bureaus have largely removed this data from standard consumer credit reports as part of the National Consumer Assistance Plan.

• Key Providers:
  • LexisNexis®: Known for its LexID® linking technology, which is said to have high precision in connecting identities with records.
  • PitchPoint: Its Civil Court Search provides data from municipal, county, state, and federal courts to help detect unpaid and historical consumer debts.

Flood Zone Determination: Sarma provides customers with timely flood zone determination and other reports based on the most comprehensive and up-to-date FEMA data.

Property Valuations : The Automated Valuation Model report is a statistical product designed to simulate the traditional appraisal process and provide property valuations in 30 seconds. Great for home equity lending, collateral verification, quality control, etc.