Pulling Credit

16 Replies

Hello, 

I am wondering if anyone out there knows of a service that will pull credit on my borrower. I am working on my first note deal and would like to pull credit on them.  As the second liendholder, I believe I do not need them to sign anything to pull their credit.  The only service I know that does this is called Universal Credit Service, however, they require that I have my own office space, and that I do volume with them.  Does anyone know where I can pull credit on a one off?  Any resources would be much appreciated!

Why don't you just use a regular tenant screening service? Those pull criminal, eviction, and credit. Normally for about 35.00 or so. 

My understanding is that those services require the borrower to sign off on pulling their credit.  In this case, the borrower has not been cooperative to get me any paperwork I've sent him.

Originally posted by @Ryan Dossey :

Why don't you just use a regular tenant screening service? Those pull criminal, eviction, and credit. Normally for about 35.00 or so. 

 typically those services don't provide a full credit report. If you have one that does, let us know!

@Alberto Stein Rios  

If they are not willing to sign off that form in order to pull their credit... well, look for another tenant. That one may be hiding something.

We use Trans union smart move. 

If they are wanting money and not wanting to give basic consent.... see ya. Don't waste your time. 

@javier marchena   These aren't tenants or applicants, these are already established borrowers of the loan.

Just out of curiosity and for my education, if the loan has already been made, why would you need to check their credit?  Are you buying the note and want to know if they are a good risk?

Cringing under my desk.

Stop.  

Pulling credit on a Mortgagor is just as protected as pulling credit on a tenant or applicant. Just because there is a Borrower and a Mortgage loan does not mean you can just pull their credit.  

You will generally not be given an account to pull credit without an office and often times proper protections in place to ensure that data is kept secure.  This includes locked offices or filing cabinets and proper paper destruction services.  

In the purchase process, you are not 'yet' the Mortgagee, so you actually have no right to pull the Borrower's credit.  They are not 'your' Borrower.  You are simply an interested investor.  Your best bet is to ask the Seller to pull credit or to have a specific disclosure executed granting you permission from the Borrower to pull credit.  

I will admit, the post made it first sound like you are trying to buy the loans and in the later post it sounded like you might already own the loan.  Generally, you do not get to send the Borrower paperwork unless you own the loan.  

Can I ask just what you sent out and expected to be returned?  
Who drafted the documents that were sent?  
(I have a sneaky suspicion this is not proper)

Can I also ask, why do you want the credit report?  What information do you expect to garner from said report?  

@Dion DePaoli Please excuse my delayed response on this.  To answer your question, yes I do own the loan, so I am not simply an interested investor.  Initially I was wanting to get a snapshot of their finances to see how likely it would be to work out something with the borrower.  Now, I am in the process of selling this note, and the indicative buyer is requesting a copy, probably for the same reason.  Would you be able to give me any suggestions?  Perhaps another company that pulls credit other than Universal Credit Services?  Any information or thoughts you could provide would be only helpful!

As frustrating as it is, you just can't. They're all going to require virtually the same thing. They don't even allow home offices.

Your best bet is to request that your servicer pull it for you. I'm not sure if FCI does it since I've never asked them for one, but other servicers have pulled them for me and the price was something like $17.50 for a one-off.

Edit: just read Dion's ridiculous response above. Love all the assumptions and condescending tone. Keep it up buddy.

@Patrick Desjardins Thanks for your input.   I've already checked with FCI, and they will not do it, since I don't have a copy of the original application. For future reference, do you know of anyone other than Universal Credit Services who can pull credit?

Originally posted by @Alberto Stein Rios :

@Patrick Desjardins Thanks for your input.   I've already checked with FCI, and they will not do it, since I don't have a copy of the original application. For future reference, do you know of anyone other than Universal Credit Services who can pull credit?

Another very popular one is Corelogic Credco but they enforce the same rules as far as requiring an office etc.

Hmm, that sucks that FCI won't help you with this. It's not easy selling a 2nd without a somewhat up to date credit report. At the risk of not looking like a professional seller, you could explain the situation to the buyer and get a payoff statement from the senior mortgage with updated payment info from the automated line. 

If it's the loan we were talking about, it's already in FC so only thing the buyer would get from a recent credit report is senior lien status and how much is owed - and providing them a payoff statement is even better (imo).

Wish I could help more but it's one of those obstacles we all face.

Alberto Stein Rios

Unless you are looking for a hard inquiry, I had my tenants to submit the credit screening on Cozy.co. It takes the consent form out of the equation and they make the purchase and it is sent right to you.

@Alberto Stein Rios

You are not likely going to find a credit vendor who will allow you to pull any type of credit without brick and mortar along with policies to protect the reports including storage and destruction.  That is all standard stuff as I mentioned before.  

It is not likely you could even get an account setup with any other credit vendor in a timely manner.  They take a little bit as usually a site visit is required before approving your account to pull so they can investigate your use, storage and disposal procedures.  

If you resolve the location issue you can inquire with Credco as mentioned above or Kroll Factual Data and Equifax Mortgage Solutions as potential vendors.  

At this stage as mentioned if you can obtain and deliver a senior payoff to ease the diligence of your buyer that is likely your best bet.  There is also something to be said about a buyer doing their OWN due diligence, but I digress. 

A word of caution to any Seller, you must protect credit data.  This is a form of counter-party risk.  If you have a portal or on line file with credit data in it you need to make sure you stay in control of it and it doesn't get sent all over the web.   Restricted access and password protected data will be required by your vendor.  

@Dion DePaoli Thanks again for your feedback- very helpful!  I will let the buyer of the note know this as well.  

You can set up an account on mrlandlord.com then apply for an office audit. An auditor will show up on your door steps (can be your home) checking for password protected PC, locked file cabinets etc. the audit was a joke. It happens only once (not yearly) and you are able to pull credits. You will see evictions/criminal/credit...everything. all you need is a consent from the applicant. I use it for screening tenants. I would definitely have the seller provide credit report data before I purchase the note (or pull it myself). I would like to establish if the note has a chance to become an un-performing note any time soon…based on the credit information. ..common sense rather

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