Any recommendations for first lien monitoring service?

Question

Our Notable Capital fund has acquired mostly 2nd position NPLs with performing firsts and we are looking for a 3rd party service/resource with which we can engage to monitor the first position debt for default over 60 or 90 days. Currently we would have to run quarterly credit reports for each borrower which is cumbersome when the portfolio gets into the hundreds of loans.

Does anyone know of a service that could provide quarterly monitoring and reporting for the status of the first position debt on the property? Perhaps @Bill McCafferty any thoughts?

Thanks

Does anyone know of a service that could provide quarterly monitoring and reporting for the status of the first position debt on the property? Perhaps @Bill McCafferty any thoughts?

Thanks

Stanley Nguyen · Answer

I certainly will but I don't think they will grant me access.  I submitted a trial request to two providers last night but I haven't heard from them.  You need to prove that you're a legitimate business entity that is allowed to get these sensitive data for business purpose.  For example, from Experian, they ask "Does your business include credit/background screening?"  I said YES of course but I kind of already know the outcome :)

Gil Ganz · Answer

From what I see when you want credit score on someone you file a request then they approve it and then you get the access. Not sure how this works in this specific area and if it does work if those systems have such an API. Please update if you find this doable, very interesting.

Gil Ganz · Answer

From what I see when you want credit score on someone you file a request then they approve it and then you get the access. Not sure how this works in this specific area and if it does work if those systems have such an API. Please update if you find this doable.

Stanley Nguyen · Answer

Hi Gil,

Since I don't have access to their API(they need to vet and require subscription), I can't tell you much.  However, I think what Bob describes is typical - You have a list of owners with PII which can be fed to their API to pull records, hopefully including delinquency info.  This is pretty much the same as when you apply for something online, and the store needs to check your credit worth.  The only difference now is you do it in batch...

Stanley

Gil Ganz · Answer

Using API calls to get the data is great but how can you get access to information on assets you do not have an affiliation to?

Stanley Nguyen · Answer

Hi @Bob Malecki,

This potentially could be solved with technology.  I haven't spent that much time but the idea is to invoke an API call to any third party providers.  I googled and there are a number of providers that we can integrate, just to name a few...I'm pretty sure there are more.

https://www.universalcredit.com/credit-report-api/.

https://www.experian.com/connect/api/experian-api.....

I might be able to sign up for a trial and play with it.  I'll let you how it goes

Stanley

Bill McCafferty · Answer

@Bob Malecki

I don't know of any services that would do that.  Calling the 1st Mortgage Servicer's automated system per loan or checking the Credit Report are really the only two methods.