"The First Choice in Credit & Screening"

18. October 2012 19:32
by mthomas

Consumer dispute credit facts

18. October 2012 19:32 by mthomas | 0 Comments

There’s been quite some confusion as of late regarding the differences in dispute verbiage and what we can and cannot remove and what documents are required. The Following are the different types of dispute verbiages that can appear on a credit report and what is required to remove them through the rescore process.


·         CONSUMER DISPUTES THIS ACCOUNT INFORMATION – This is a standard consumer dispute and can (almost always) be removed with just the completed/signed consumer letter we provide to the client.  If it’s a joint account, they must have the attached letter completed and signed by both consumers.  Equifax will not accept a letter signed by two consumers unless it has the plural wording “I/We”.


·         ACCOUNT PREVIOUSLY IN DISPUTE-NOW RESOLVED-REPORTED BY SUBSCRIBERANY dispute that makes reference to “CONSUMER DISAGREES”, “REPORTED BY SUBSCRIBER” or “REPORTED UNDER FCRA” requires a letter from the consumer AND a letter from the creditor stating that the account is no longer in a dispute status.


·         CONSUMER DISPUTES - REINVESTIGATION IN PROGRESSThis is a consumer initiated dispute and is actively being investigated by Equifax.  A rescore request to remove the dispute verbiage cannot be processed.  The consumer has two choices: 


1.         Wait until the investigation is complete and they receive the results. 


2.        Contact Equifax Consumer Affairs (800-203-7843) and request that the investigation be stopped and the dispute verbiage removed. 


 If they choose to call Equifax to have it stopped, they should ask them how long it will take for the dispute to be removed from their report and a new report will need to be pulled after that date.  If CIC submits a request through rescore to have this type of dispute removed, it will go into investigation until the current investigation is complete.  No exceptions.


20. September 2012 01:39
by mthomas

CIC Accurate Appraisal Management

20. September 2012 01:39 by mthomas | 0 Comments

Accurate Appraisal Management

CIC Accurate Appraisal management (AAM) is a full service appraisal management company. AAM manages the process of high-quality appraisals for banks and lenders nationwide, from inception to completion. AAM keeps our clients updated throughout the entire appraisal process.


CIC Accurate Appraisal management helps your organization stay compliant with all the current guidelines. Instituting new appraisal compliance guidelines can be costly and time-consuming for lenders. AAM makes compliance easy. CIC Accurate Appraisal management is UAD (Uniform Appraisal Dataset) compliant and prepared for Fannie Mae/Freddie Mac Uniform Collateral Data Portal (UCDP) required as of March 2012.


CIC Accurate Appraisal management combines the latest technology and superior customer service to best serve our clients. AAM provides the highest quality appraisals and ensures, trusted certified appraisers are completing and delivering your appraisals. AAM helps maintain your cost structure, turn around times and quality of work.



CIC Accurate Appraisal management's technical benefits:


· Reports can be ordered, tracked and received 24 hours a day, 7 days week

· Fannie Mae : UCDP -Uniform Collateral Data Portal Technology

· UAD Compliance

· Communication/E-mail log tracking on every order

· LOS Integration

· Manual and Automated Quality Control Review

· Appraisal e-mail delivery options - to lender and borrower upon completion


please contact Mike Thomas or your local account executive for more information about this exciting new service

29. September 2011 01:27
by mthomas

Inquiry policy change

29. September 2011 01:27 by mthomas | 0 Comments

Inquiry verification policy and procedures


Inquiry policy as effective immediately is as follows


CIC will require the borrowers’ authorization for all requests made on any verification services.


Any request being made on an inquiry that is a Credit Reporting Agency will be completed as refused to verify i.e. Kroll, Factual Data, Equifax Mortgage, CBC, Innovis, etc.  the below comment will be placed on all CRA related inquiries – Refused to verify – credit reporting agency inquiry–no new credit


On all request regardless of age, CIC will request the LOX to assist and guide us in the verification process when placing calls to creditors, i.e. account number, contact names, or reason for credit inquiry to name a few.


Any other inquiry that is less than 45 days old will be called to verify, CIC will request the LOX to expedite the verification(s).


Any other inquiry over 45 days old will be verified using our new methodology


  1. CIC will request a LOX to expedite the verification(s) to get consumer explanation.
  2. CIC will review the refresh report if it exists to verify any new tradeline from inquiry(s)
  3. CIC will use bureaus portals to glance at any new tradelines
  4. IF creditor refuses to verify CIC will conduct a conference call with the borrower and creditor, this will delay turn-times when coordinating with the borrowers schedule.


Thank You,


CIC Management

2. December 2010 16:22
by mthomas

Risk based pricing & fulfillment services

2. December 2010 16:22 by mthomas | 0 Comments

The rule, adopted by the Federal Reserve Board and Federal Trade Commission, requires lenders that extend credit based on a person’s credit report to provide risk-based pricing notices if credit terms are “materially less favorable” than terms that would be offered to “a substantial proportion” of consumers.

Generally, disclosures are required if an interest rate is higher based on the person’s credit score.

The final rule provides a choice of three methods a lender can use to determine if terms are materially less favorable. It also provides a special test for credit card offers: If an individual receives a rate that is higher than the lowest one advertised on a multiple-rate offer, the notice is required. Notice must be given after the terms are set but before the consumer is contractually obligated on a transaction.

The rule implements provisions of the Fair and Accurate Credit Transactions Act.  CIC Credit will offer the disclosures to all clients starting Jan 1st 2011. In addition to the disclosure that can be amended to the credit report CIC also offers a fulfillment services to keep you in compliance with this new regulation. Please call your local CIC representative or call 800-352-5882, you may also email sales@ciccredit.com for more information on complying with the new Risk Based pricing ruling by the FTC.

5. November 2010 01:36
by mthomas

Extra Credit - 2nd edition

5. November 2010 01:36 by mthomas | 0 Comments


Because Mortgage Professionals Deserve a Little Extra Credit

Understanding Credit

The three credit reporting agencies in the United States, Equifax, Experian, and TransUnion, collect data about consumers used to compile credit reports. The credit agencies use FICO (Fair Isaac Company) software to generate FICO scores, which are sold to lenders. Each individual has three credit scores, one with each Bureau, as the three credit agencies have their own databases, which they do not share with each other.  They each gather reports from different creditors, and receive information from creditors at different times.

A resident of the US is permitted by law to view their credit report once a year at no charge by visiting the website AnnualCreditReport.com. The individual’s “credit score” information is available for an additional fee from each of the three credit reporting agencies. This consumer credit score model provided to consumers may differ from the mortgage credit score model and the auto score model.  This is because each industry’s score model has different factors that are weighed differently in each score model.

A FICO score is between 350 and 850, exhibiting a left-skewed distribution with 60% of scores near the right between 650 and 799.

Once credit has been established and maintained, credit scores are based on five factors to varying degrees: payment history (35%), total amounts owed (30%), length of time (15%), type of credit (10%) and new credit (10%).

The largest impact on credit scores is payment history and amount owed, which is why it is important to pay bills on time and keep balances low.

Debt should be kept to a minimum and funds should be moved around as little as possible. It may be beneficial to leave all accounts open, even if they have a $0 balance.

Different types of credit (i.e., a mix of credit cards, installment loans and fixed payments) can also be beneficial to a credit score.




Key Factors That Impact Your Score:

1. Payment History (35%)

It is essential to pay your credit bills on time. Every 30 days late, collection, judgment, or Bankruptcy significantly drops your score.

2. Amount You Owe Compared to Balances (30%)

Your available credit compared to the amount owed. It’s a good rule-of-thumb to be at 40% or less of the available balances

3. Length of Credit History (15%)

Easy rule-of-thumb: the longer your accounts are open, the more positive impact it will have on your overall credit score.  In fact, if you happen to have a card that is over 10 years old with even a little activity, it would probably be a bad idea to close that card.

4. Mix of Credit (10%)

Generally speaking, if you have loans, such as a car loan, as well as open credit cards, it helps prove to creditors that you have experience borrowing money.

5. New Credit Applications (10%)There is a model that compensates for people shopping rates on home and car loans, but it can hurt your credit score to have multiple reports pulled in a short amount of time.




Factors That DO NOT Impact Credit:

  • Age
  • Race
  • Sex
  • Employment History
  • Income
  • Marital Status
  • If you’ve been turned down for credit

    Length of time at current address
  • Whether you own a home or rent
  • Information not contained in your credit report

Establishing New Credit:

Credit may be initially established through a bank, as a Secured line of credit, in which a credit card is linked to a specific amount of money deposited in the bank, typically $300-$500.  If the credit card is not kept in good standing, the bank can then take the secured funds for payment. 

This Secured line of credit will report to the Bureau, but won’t help the score very much until the bank decides to change it to an Unsecured line of credit. Then it will begin helping the credit score increase.

Initial credit may also be established with a department store credit card (for example), but borrowers should beware of the high interest rates associated with these cards and pay off the balances in full.

Several factors can be used to establish credit initially, though not on a credit report can include bank accounts, employment history, residence history and utility bills.

Although they are not reported directly to credit bureaus, bank account history may be important to lenders for first time loans and should be kept in good standing.

While they are also not reported to credit bureaus, utility bills (such as electric, telephone, cable and water) can, at times, also show a lender the risk associated with a new borrower.