Emerging Markets
CREDIT-BUILDING TOOLS
First American CREDCO, a company of The First American
Corporation, processes millions of credit transactions FOR UNDERSERVED
annually and is the industry’s technology and service
leader. The company proudly serves top U.S. mortgage HOMEBUYERS
lenders through its transactions and a variety of
delivery systems.
The First American Corporation, based in Santa Ana,
California, is the nation’s leading, diversified provider
of business information and related products and
services. The company’s leading-edge solutions are
a result of combining advanced analytics with our
vast data resources that support today’s business
and consumer information needs. The First
American Family of Companies, many of which
command leading market share positions in their
respective industries, operate within seven
primary business segments including: Title
Insurance and Services, Specialty Insurance, Trust
and Other Services, Mortgage Information,
Property Information, Credit Information and
Screening Information.
12395 First American Way Poway, California 92064 Phone: 800.255.0792 www.CREDCO.com www.CREDCO.co m
Anthem Suite of Services
ASSISTING NON-TRADITIONAL HOMEBUYERS IN EMERGING MARKETS
Over the next decade, a projected 60% of first-time home purchases in the United States will be made by those
who fall into traditionally underserved markets. Many of these consumers have little or no traditional credit, but
are credit worthy. Now with Anthem, First American CREDCO’s suite of alternative credit services, you can originate
loans using alternative credit data and help more homebuyers fulfill the American dream.
Anthem Suite
Reduce your risk with efficient and reliable tools that exceed secondary market standards.
Expand your business opportunities and satisfy the needs of underserved markets.
Alleviate labor-intensive process of gathering and validating non-traditional credit information.
Accepted wherever non-traditional loan programs are honored.
Proactively returns credit data when an ITIN is used in lieu of a Social Security Number.
Build Your Business
The Anthem Suite is an enhanced set of credit-building tools designed to broaden your business opportunities,
reduce the risk of mortgage fraud, and help more Americans become homeowners. And because Anthem is
universally accepted wherever non-traditional loan programs are honored, you can close more non-traditional
loans more conveniently than ever.
OBJECTIVE SOLUTION
Determine traditional credit-worthiness of applicants Instant Merge
Fast, bureau-level updates of incorrect credit report information Rapid ReCheck
Non-traditional credit reporting Anthem Report
Non-traditional credit scoring Anthem Score
Notification of applicants who do not have adequate traditional credit Advisory for Anthem
Segment customers with an ITIN ITIN Notification
FACT Act Compliance Anthem CSD
Customizable analysis of non-traditional applicants and loans Anthem Performance
Find new business opportunities Market Opportunity Report
Help applicants understand their credit report Consumer Assistance
Applicant resources for disputing credit report errors Consumer Disputes
For more information on our Anthem Suite of Services, contact a First American CREDCO sales associate
at (800) 255-0792 or visit us online at www.credco.com.
C00410508
EMERGING MARKETS
Expanding Markets
Streamlining Business
The Anthem Suite of Services
The Anthem Suite of Services from First American CREDCO
is the only widely accepted alternative credit source that fits
easily into your existing loan processes.
How It Works:
Pull a traditional 3-bureau credit report, just as you do now.
If the report comes back as a “thin” or “no file”, you have
a potential Anthem Report client.
For lenders using our Instant Merge product, an automatic
notification can be generated stating that an Anthem Report
is needed.
Log on to eCREDCO to easily order an Anthem Report.
Our FCRA-certified specialists will research and collect
non-traditional credit data, such as rent and utility payments.
An Anthem Report and Score are generated and returned
Anthem can be
to the lender.
Close the loan and fulfill someone’s American Dream!
used for any loan
Anthem Helps Lenders:
Expands business by tapping into underserved markets. program that
accepts alternative
Reduces the risk of fraud.
Streamlines processes and reduces costs.
credit data.
Anthem Helps Consumers Without Traditional Credit:
Builds a credit profile.
Allows for better interest rates and lower fees.
Helps qualify for loans and fulfill the dream
of homeownership.
For more information on our Anthem Suite of Services,
contact a First American CREDCO sales associate at
(800) 255-0792 or visit us online at www.credco.com.
12395 First American Way Poway, California 92064 Phone: 800.255.0792 www.CREDCO.com
EMERGING MARKETS
Partners
in the American Dream
12395 First American Way Poway, California 92064 Phone: 800.255.0792 www.CREDCO.com
C00460508
EMERGING MARKETS
Empowering Consumers
The Anthem Suite of Services
Thanks to First American CREDCO’s Anthem Suite of Services, more Americans are enjoying
the rights and privileges of homeownership. Anthem provides the credit tools lenders need to
help traditionally underserved homebuyers qualify for home loans.
This means that consumers with little or no credit history can qualify for loan programs with
better interest rates and lower fees, adding up to a significant cost savings!
Anthem can be used for any loan program that
accepts non-traditional credit data.
$300,000 mortgage loan with
30 year fixed interest terms
Customer with a high Anthem Score
APR Monthly Payment Total Cost
6.00% $1,798.00 $647,514
Customer with no Anthem Score
APR Monthly Payment Total Cost
9.00% $2,414.00 $868,992
Total Savings: $221,478
For more information on our Anthem Suite of Services, contact a First American
CREDCO sales associate at (800) 255-0792 or visit us online at www.credco.com.
12395 First American Way Poway, California 92064 Phone: 800.255.0792 www.CREDCO.com
EMERGING MARKETS
Anthem Suite FAQs
Frequently Asked Questions
What Is The Anthem Suite?
The Anthem Suite is a comprehensive offering of alternative
credit services that allows lenders to qualify consumers
without traditional credit information. By using supplemental
information from alternative sources, such as rent payments, a
lender can form an accurate risk assessment on first-time home
buyers, recent immigrants, unbanked consumers, international
applicants, and other consumers.
What Data Is Used In The Anthem Suite?
The Anthem process starts with credit data gathered from an
Instant Merge credit report. The information is then supplemented
with alternative forms of credit data, such as rent, utility and
insurance payments. Research shows that alternative payment Who Accepts Anthem?
histories, such as rent payments, are the most predictive form of
data, and can accurately demonstrate a consumer’s likelihood of Any loan program allowing non-
making future mortgage payments.
traditional credit data can use the
All non-traditional credit data used to generate an Anthem Report Anthem Suite. The Anthem Report
and Score are verified by First American CREDCO’s dedicated team and Score were designed with data
of FCRA-certified credit specialists. and underwriting rules already in use
with GSEs and major lenders across
What Is The Anthem Score? the country.
The Anthem Score was developed to fit seamlessly into existing
mortgage, underwriter and investor guidelines. It is calibrated to Lenders with an investor agreement
produce scores that are similar in range and distribution to approving non-traditional data – as
traditional credit scores. Used to improve underwriting of loans, well as those desiring to normalize,
any loan accepting non-traditional credit can be streamlined and
streamline and reduce risk in
normalized by implementing the Anthem Score.
loan programs using non-traditional
data – can incorporate the Anthem
Score range is 325 to 850.
Report and Score into their process.
Fully compliant with ECOA, GSE and regulatory
requirements including the ability to make
disclosures and disputes.
Includes explanatory Factor Codes.
12395 First American Way Poway, California 92064 Phone: 800.255.0792 www.CREDCO.com
EMERGING MARKETS
Anthem Suite FAQs
Frequently Asked Questions
How Is Anthem Implemented?
The Anthem Suite can be delivered to you in a variety of methods. First American CREDCO customers
can receive Anthem through their existing connectivity or online through eCREDCO, or Anthem can be
integrated into an existing LOS.
How Is Anthem Ordered?
Ordering Anthem is simple:
How does Anthem help
Pull an Instant Merge Report
consumers?
If the file comes back as “thin” or “no file”,
upgrade your report to an Anthem Report A Score for Every Applicant
The Anthem Suite allows lenders to obtain
FCRA-certified specialists will do the research and
a credit report and an underwriting score on
return a report and score to you in a timely manner
any applicant. Since Anthem’s inception in
To further simplify the process, you can also order Anthem 2004, we have been able to get credit
Advisory, which automatically notifies you when “thin” and information on every applicant who needed
“no file” criteria are met on an Instant Merge Report. an Anthem Report.
Does Anthem Offer Compliance And Fraud Features? Bi-Lingual Support
Yes. The Anthem Suite is fully compliant with all aspects First American CREDCO’s bilingual team of
of the FACT Act, Credit Score Disclosures, and Consumer Spanish and English speaking FCRA-certified
Disputes. All data is fully verified by FCRA-certified credit specialists are available to assist you
specialists to meet lender requirements, which helps detect and your applicant to re-evaluate credit data,
and eliminate fraud. Fraud alerts, identity verification,
update as necessary, and re-issue the score.
income and employment verification are all available
This Customer and Disputes Resolution
through the Anthem Suite of Services.
Service is offered FREE to every consumer
whose credit report is provided by First
For more information on the Anthem Suite of American CREDCO.
Services, contact a First American CREDCO sales
associate at (800) 255-0792 or visit us online at
www.credco.com.
12395 First American Way Poway, California 92064 Phone: 800.255.0792 www.CREDCO.com
EMERGING MARKETS
Instant Merge
The First Step in Alternative Credit Reporting
Instant Merge, part of First American CREDCO’s Anthem
Suite of alternative credit services, is the most popular
merged credit report across all industries. It’s an ideal fit for
most lending situations, combining credit data from one, two
or all three national credit bureaus into a single report in a
common format.
It’s also the first step in helping lenders help underserved
consumers achieve the dream of homeownership.
Instant Merge: The First Step
When assisting consumers with potentially little or no credit
history, Instant Merge is the first in a series of short steps to initiate PRODUCT
the loan qualification process: Highlights
Start with a traditional credit check – Instant Merge. Qualify more buyers, expand your business
If incorrect tradeline data is present, our Rapid Recheck Delivers your data in raw or machine
service is available for fast bureau level updates. readable formats
If insufficient credit data – thin or no file – then request Details demographic information, current
and historical tradeline details, and public
an Anthem Report.
records and inquiries
Underwrite a loan that meets or exceeds lender and
Make fast, bureau-level updates of incorrect
investor requirements. tradeline data with Rapid ReCheck
Anthem Advisory delivers an automatic
Convenient. Flexible. FAST.
notification whenever an Anthem Report
Instant Merge is delivered in seconds using a variety of methods, is needed
including the Internet, our desktop software, your Loan
All bureau data from an Instant Merge is
Origination System or other customizable connectivity solutions. included in the Anthem Report
For more information on Instant Merge, contact a First FICO scores, bankruptcy, credit and risk
American CREDCO sales associate at (800) 255-0792 or scores, and identity verification products
also available
visit us online at www.credco.com.
Available in a Spanish-language format
12395 First American Way Poway, California 92064 Phone: 800.255.0792 www.CREDCO.com
EMERGING MARKETS
Anthem Report
Collect, Assess and Verify Non-traditional Credit Information
As part of First American CREDCO’s Anthem Suite of
Services, the Anthem Report offers the most cost-effective
mortgage credit reporting solution for consumers with little
or no credit history. This powerful reporting tool delivers
accurate, verified non-traditional credit data – along with a
unique score – in an easy-to-use format that allows lenders to
qualify and write more loans. The Anthem Report is accepted
wherever alternative credit data is honored.
Capture a broader credit history
When you order an Instant Merge credit report on a borrower
who has a thin or no credit file, the Anthem Report first utilizes
any available bureau data as a baseline. It then supplements PRODUCT
any bureau data with non-traditional credit data, such as rent
payments, utility bills and phone bills. The result is a fully Highlights
compliant credit reporting solution that meets or exceeds
mortgage loan underwriting and due diligence requirements, Qualify and write more loans on consumers
with little or no credit history
including HUD, FHA, Fannie Mae and Freddie Mac.
Accepted wherever alternative credit
Serve a broader market data is honored
Anthem helps you build business for new homebuyers in a simple Delivers a 100% hit rate for “thin” or
and compliant way, while meeting or exceeding lender loan “no file” applicants
requirements. FCRA-certified specialists research and verify all
Anthem Reports, and work closely with you to ensure your level Completed in 24-48 hours. Make lending
decisions faster and more consistently
of understanding of the credit data so you can make sound
across all consumer files
lending decisions.
Minimize training, cost and time of
Rely on industry experts internal resources, freeing you for
greater productivity
Outsourcing your non-traditional credit needs with First
American CREDCO means your staff doesn’t have to become Protects originator and investor from
experts in collecting and verifying non-traditional credit data. fraudulent credit claims
Instead, you can rely on knowledgeable, trusted processors for
Provides underwriting score for “no score”
reliable credit information, which frees you up to focus on files, and risk support for “thin” files
expanding your market and growing your business.
Anthem Credit Score Disclosure (CSD) is
included free of charge with every report
For more information on the Anthem Report, ordered to comply with Section 212 of
contact a First American CREDCO sales associate at the FACT Act
(800) 255-0792 or visit us online at www.credco.com.
12395 First American Way Poway, California 92064 Phone: 800.255.0792 www.CREDCO.com
EMERGING MARKETS
Anthem Score
Industry’s First Non-Traditional Credit Score
As part of First American CREDCO’s Anthem Suite of
Services, Anthem Score is the industry’s first score based
on the same fully verified credit data that comprises our
Anthem Report.
The Anthem Score, which ranges from 325 to 850, represents
a comprehensive and reliable underwriting score for consumers
who have little or no credit history, or have previously been
considered “un-scoreable.” And because Anthem is universally
accepted whenever non-traditional data is indicated, you can
close more non-traditional loans more conveniently than ever.
A Reliable, Predictive Score PRODUCT
Unlike other non-traditional scoring models, the Anthem Score Highlights
is generated from the Anthem Report, thereby exceeding lender
Delivers an easy-to-use risk assessment
and investor standards for “thin” and “no file” underwriting.
score ranging from 325 to 850
Anthem Score considers the type of credit, the length of credit,
the payment history, and the verification methods used. All of this Delivers a 100% hit rate for “thin” or
“no file” applicants
comes together to produce a predictive underwriting score for
loan origination. Exceeds lender and investor standards
FREE with every First American CREDCO
Make Lending Decisions with Confidence Anthem Report
First American CREDCO utilizes the industry’s strictest standards
Expands market penetration in traditionally
to verify credit sources and applicant identity. This commitment underserved sectors
to accuracy, consistency and reliability allows you to make
Helps protect originators and investors
lending decisions more confidently in a growing market of
from fraud in higher risk markets
traditionally underserved homebuyers.
Streamlines operations by reducing the
time required to close loans
For more information on the Anthem Score, contact a
First American CREDCO sales associate at (800) 255-0792 Anthem Credit Score Disclosure (CSD) is
or visit us online at www.credco.com. included free of charge with every report
ordered to comply with Section 212 of
the FACT Act
12395 First American Way Poway, California 92064 Phone: 800.255.0792 www.CREDCO.com
EMERGING MARKETS
Market Opportunity Report
Uncover potential business growth opportunities
First American CREDCO’s Market Opportunity Report helps
uncover business opportunities you might not find through
traditional underwriting practices. The report, which provides
an analysis on your loan production volume, can help you
identify additional business you could be getting from consum-
ers with little or no credit history (thin-file consumers).
It’s Your Business. Expand it.
Using proven search logic capabilities, we’ll analyze your
customer data to identify applicants that could qualify for Anthem,
First American CREDCO’s suite of alternative credit services.
Anthem lets you originate any non-traditional loan so you can help
more homebuyers fulfill the American dream.
PRODUCT
Determine market opportunities to expand your business Highlights
Identify potential production lift in approved applications
Build a competitive advantage into your process Uncover opportunities not found through
traditional underwriting processes
Consultative Analysis Gain a broader, more thorough
Our personalized, consultative approach helps you understand understanding of your customer base
critical findings and, more importantly, what they mean so you can Get critical insight into mortgage loan
identify and maximize new business opportunities. We’ll also application data
provide critical insight into mortgage loan applicant data – such as
Help more homebuyers fulfill the
consumer behavior, demographics and market trends – to support
American Dream
your loan origination and underwriting objectives.
Provides a competitive advantage for
For more information on the Market Opportunity Report, your business
contact a First American CREDCO sales associate at
Personalized, consultative analysis
(800) 255-0792 or visit us online at www.credco.com.
12395 First American Way Poway, California 92064 Phone: 800.255.0792 www.CREDCO.com
C00480508
Anthem Report Sample
TID: Transaction
Non-Traditional Credit Report with Anthem Score Identification – Uniquely
identifies every interaction the
customer has with the First
American CREDCO system.
--------------------------------------------------------------------------------------------
Anthem Report
--------------------------------------------------------------------------------------------
Ref #: PFM-0000-0000-4795 Acct #: 3166785 TID: PFM-0000-4795
Prepared for: BA Test Account
Received: Completed: Revised: Attention/Additional information:
12/10/04 12/10/04 ALICE /LOAN NUMBER 123 Sources -
Lists where the
Charges: Credit and public record sources: data came from
NOT AVAILABLE CRD, EFX, XPN, TUC, MAN for this report.
------------------------------------------------------------------------------------------
Applicant CREDCO, MICHAEL A Soc. Sec. No. 000-12-1406
Co-applicant Soc. Sec. No.
Address 2514 ARTILLERY ST Marital status
MONTEREY, CA 93942 Dependents Anthem Score -
Length First American’s Non-Traditional
Credit Score
-------------------------------------------------------------------------------------------- is determined with all
Applicant Co-applicant available bureau data and any
verified non-traditional data.
--------------------------------------------------------------------------------------------
Employer Employer Considers information such as
Position Position payment history, types and length
Length Length of credit.
Income Income
Verified Verified
--------------------------------------------------------------------------------------------
FAC Anthem Score (APP)= 743 Factor: 00001, 00021 Verification and
Fraud Checks -
00001 ALL NT DATA IS FROM TIER I
Factors & All trade lines are
00021 RENTAL PAYMENT VERIFIED WITH COPIES OF CANCELLED CHECKS OR BANK RECORDS subject to First
Descriptions
Highlights the American’s strict
Tiers of data verification policies
used and the Account Name/Number (Sources) Past due Last to validate the data
level of Open High Payment Balance MOP Status Rptd 30 60 90+ MR Dlq and check for fraud.
verification -----------------------------------------------------------------------------------------
obtained for Updated information on items below will follow on a supplemental report:
Rent. ----------------------------------------------------------------------
1. COLLECTECH/3337517 (EFX-180YC04534*,TUC*)
I 06-03 129 0 129 Y-9 COLL/P&L 12-04 - - - 1 Bureau data -
Hist: 11-04 9 CLSD APP Any existing
Ctgy: COLLECTION Term: REV bureau data is
LACT 11-04 incorporated into
CN: BELL ATLANTI the report and the
CREDITOR RATES BY MAIL ONLY Anthem Score.
Non- Accounts under Applicant:
-------------------------
Traditional
2. GEICO AUTO INS. /ABC123456 (MAN)
data – Utilities
I 12-03 150 0 -0- W-1 CURRENT 12-04 00 00 00 12
Data not available Information -
from the bureaus, Hist: 12-04 111111111111 APP Indicates Tier I data
such as Tier II and Term: REV such as gas, electric
III data including 3. GAS AND ELECTRIC /1234567890 (MAN) and other utility
insurance and I 12-02 150 150 150 V-1 CURRENT 12-04 00 00 00 24 payment history data.
other regular Hist: 12-04 111111111111111111111111 APP
payments. Term: REV
4. HOLLY GOLIGHTLY/PREVIOUS LANDLORDXXXX (MAN)
I 12-01 750 0 CLOSED L-1 CURRENT 12-02 00 00 00 13 Rental Information -
Hist: 12-02 1111111111111 CLSD APP Rental history is always
Term: REV sought as part of the
History Anthem Report.
Section -
Indicates Fraud Verification Information:
month-to-month ------------------------------- Bureau Fraud Checks -
payment 1. TUC High Risk Fraud Alert (APP) Fraud alerts appear if any credit bureau
history pattern. AVAILABLE AND CLEAR. records exist on an applicant. When a fraud
message does appear it will show whom the
Prepared By: First American CREDCO message pertains to: APP, CAP or PNA.
12935 First American Way
POWAY, CA 92064
****** END OF REPORT ******
This sample report was created to showcase a wide variety of format features. As such, the data content represented here may not be consistent across all
report sections. Anthem F1 format sample (rev. 4-07)
EXPERT CUSTOMER CARE OUR COMMITMENT TO YOU,
Consumer Assistance and AND YOUR CLIENTS
Disputes Resolution
Every American deserves the opportunity to
At First American CREDCO, our number one achieve the dream of homeownership. At First
goal is to help consumers establish or gain American CREDCO, we create those opportunities
control over their financial health so that they’re for everyone.
afforded opportunities to achieve the dream of
homeownership. To help make this possible, we That’s why we offer educational tools and
offer free Consumer Assistance and Disputes resources dedicated to providing homeownership
Resolution services to all clients of First American opportunities for traditionally underserved
CREDCO customers. consumers. Consumer Assistance and Disputes
Resolution services are available to all consumers
Provides “one-call” dispute resolution who access their credit report from First American
Helps consumers understand their credit
scores and interpret their credit report
CREDCO or to any loan applicant working with a
Consumer Services
First American CREDCO mortgage professional.
Consumer Assistance and
Provides education on the importance of Disputes Resolution
establishing and maintaining good credit,
and monitoring credit profiles
Teaches how to build a non-traditional
credit history
Protects against identity theft and
common scams
Bi-lingual support – fluent Spanish-speaking
Customer Care Specialists available
12395 First American Way
Poway, California 92064
Phone: 800.255.0792
www.CREDCO.com
www.CREDCO.com
CONSUMER SERVICES
Consumer Services
Consumer Assistance “One-call” Dispute Resolution Home Buyers Credit Education
Understanding credit and how it affects DISPUTE INVESTIGATIONS First American CREDCO offers a free online
consumer choices is critical, particularly We investigate tradelines by working directly with educational site dedicated to helping consumers
when it comes to home buying. That’s why the credit bureaus. understand and build the credit they deserve.
we have a team of credit professionals
dedicated to helping consumers
CONSUMER INTERACTION Online Resources
take control of their credit
and improve their overall We actively communicate the results CREDCO.com/CreditEducation:
credit health. of our investigative process to the
consumer. What is credit?
Our Consumer Assistance Home buying guide
Services is available to all BUREAU COMMUNICATION Credit challenges
First American CREDCO Our Consumer Disputes team Credit issues to consider
customers to help them better works with the bureaus on the
understand what is in their Checking your credit
consumer’s behalf to update
credit reports and how it incorrect data.
impacts them. We can even make Questions
recommendations to assist them with FCRA COMPLIANCE Contact First American CREDCO today!
strategies for establishing and improving
First American CREDCO strictly adheres to the
their credit history. Call: 800.255.0792
guidelines set by the FCRA regarding timeframes,
Email: ConsumerInquiry@FirstAm.com
forms and procedures.
Consumer Disputes Resolution Visit: www.Credco.com
When you order credit information from First
American CREDCO, your clients get free access
to our convenient, toll-free consumer disputes “With proper guidance and
service. With just one call, our FCRA-certified
specialists will work hand-in-hand with your education, consumers can
clients to resolve any discrepancies with the
national credit bureaus. As a single contact
feel empowered to move
point, our Consumer Disputes Resolution ahead in their dream to
service makes the often complicated and
time-consuming credit dispute process achieve homeownership.”
easier for your clients, and you.
12395 First American Way Poway, California 92064 Phone: 800.255.0792 www.CREDCO.com
EMERGING MARKETS
Anthem Performance
Alternative Credit Portfolio Analysis and Evaluation
Anthem Performance, part of the Anthem Suite of
Services from First American CREDCO, empowers mortgage
professionals with the information and insight they need to
make sound business decisions.
Powerful Business Insight
Anthem Performance collects the non-traditional credit data
gathered from the Anthem Reports you order and builds a
database for your business. The database provides access to key
intelligence and analysis capabilities so you can minimize risk and
maximize business opportunities.
We use proven data mining and statistical methods to identify and PRODUCT
provide insight into Anthem mortgage loan applicant data – such as Highlights
consumer behavior, demographics and market trends – that you can
use to improve your applicant underwriting and risk management. Customized portfolio solutions for Anthem
loan applicants
Portfolio Risk Assessment
Monitor loan portfolios for trends and
potential fraud-related risk
Validate portfolio value
Mitigate risk Gain valuable insight into loan portfolio
value and performance
Identify opportunities
Retain customers Personalized, consultative analysis
Consultative Analysis Identify business opportunities; maximize
loan portfolio performance
Our personalized, consultative approach helps you understand
critical performance findings and, more importantly, what
they mean so you can be proactive in managing your Anthem
loan portfolios.
For more information on Anthem Performance, contact a
First American CREDCO sales associate at (800) 255-0792
or visit us online at www.credco.com.
12395 First American Way Poway, California 92064 Phone: 800.255.0792 www.CREDCO.com
FIRST AMERICAN CREDCO: DOING OUR PART
How First American’s Consumer Services Helped One Family Realize Their Dream to Own a Home
“I have bad news,” said Tracy as she hung up the phone and turned to face her husband. “Our
broker just called to say that the lender he deals with can’t approve our home loan at the
current market rate.”
When Tracy and Ketut Sutama set out to buy their first house, they had no idea what
challenges and frustrations lay ahead. It hadn’t taken them long to find the perfect place –
exactly what they’d had in mind for their first home. But two weeks into an uneventful escrow,
Tracy got the call from their broker.
“If what he says is true, they’re going to bump us up to 8.7 percent,” Tracy explained,
sounding tired.
With the financial stress of a young child and a husband who had just recently emigrated from
Indonesia, Tracy wondered how they could afford the thousands of dollars the higher interest
rate would cost them. She realized she had to do something.
Tracy immediately set up a meeting with her broker to discuss ways she might be able to raise
her credit score. After reviewing her credit report, Tracy found several items that seemed out-
of-date – items that might be negatively affecting her credit score. But with her loan cheduled
to close in just a few weeks, Tracy had no idea how she could correct the problems on her
credit report in time. That's when the broker remembered Rapid ReCheck, a service from First
American that his lender had recently recommended. The broker realized that Rapid ReCheck
might be the key to quickly correcting the inaccuracies on Tracy’s credit report and hopefully
boosting her score.
“I met Gigi, one of First American’s certified representatives, when my broker ordered the
Rapid ReCheck. I can honestly say that working with her was the most positive experience in
the home buying process. Gigi was able to tell me exactly what I needed to do in order to try
and raise my score. She walked me through the process step-by-step.”
Tracy received one-on-one support over a three-week period. She and Gigi were in constant
contact. Gigi helped Tracy figure out which creditors she needed to contact for
documentation and how best to approach them.
“I finally felt like I had an ally — like someone finally cared. Gigi helped give me some control
over the whole situation. From the documentation I gathered, Gigi worked directly with the
national credit bureaus on my behalf to update items on my file.”
Just before closing, Tracy’s credit report was re-pulled. Nobody could believe the result.
Through First American’s support and consumer dispute assistance, Tracy’s credit score had
soared an unheard of 55 points — a full 20 points more than she needed to qualify for a lower
interest rate.
First American CREDCO, 12395 First American Way, Poway, CA 92064
www.credco.com
“We love our new home,” said Tracy with audible happiness in her voice. “I wish there was a
better way we could show Gigi our appreciation, but mortgage payments can be a shock,” she
laughed.
For Gigi, it’s enough to know that she was able to help. And, for First American, it’s just a part
of what we do.
More about Rapid ReCheck…
First American’s Rapid ReCheck is a service that aids lenders and brokers that have pulled a
credit report from First American by updating inaccurate or incomplete data on the
consumer’s files with the national credit bureaus. Once these items have been brought up to
date, the consumer’s report is re-pulled. Because a consumer’s credit score is generated using
the credit information contained in their bureau files, the new report often yields an improved
score.
More about Consumer Services…
First American’s Consumer Assistance program aids consumers in understanding their credit
profiles and can provide strategies for improving their overall credit health. FCRA-certified
specialists are available to work hand-in-hand with the consumer to resolve discrepancies on
their files with the national credit bureaus. These services are available to any loan applicant
working with a lender who utilizes First American’s credit reporting services. By providing both
general Consumer Assistance and Consumer Dispute Resolution, First American helps
empower individuals to take control of their credit profiles.
More about First American CREDCO…
First American CREDCO, a member of First American’s Credit Information Group, processes
millions of credit reports annually across a diverse customer base. The company was the first
to provide merged credit data to the mortgage lending industry, and is the leading provider
to Fannie Mae and Freddie Mac. Today, First American CREDCO provides one of every three
reports used by mortgage professionals. Credit-granting organizations of all types and every
size rely on products from First American CREDCO for credit decisions involving billions of
dollars annually. More information about the company can be found at
www.firstam.com/credit.
Neither First American CREDCO nor Rapid ReCheck or Consumer Services are credit repair agencies or provide credit repair services. Rapid ReCheck
is provided to, and paid for by, the lender or broker who has ordered a credit report from First American CREDCO in connection with a specific loan
transaction. Where the credit report that First American CREDCO has provided contains inaccuracies or outdated information, Rapid ReCheck
expedites the process of correcting the information in the credit files of the national credit bureaus so that an accurate, up-to-date report is available
for the transaction. Consumer Services are provided to the subject of credit reports issued by First American CREDCO in connection with the
consumer dispute resolution process under the Fair Credit Reporting Act. No representation is made that the experience of the consumer in this
testimonial is typical, or that significant improvements to a consumer’s credit files will be made in every case. Rather, individual results will vary
depending on the particular facts and circumstances involved.
Contacts:
David Woodruff
First American CREDCO
(619) 938-6809
drwoodruff@firstam.com
FIRST AMERICAN’S ANTHEM LENDER DIRECTORY OFFERS A CLEAR PATH TO BROKERS
AND LENDERS NOW USING ALTERNATIVE CREDIT SOLUTIONS
—Company Also Announces Key Enhancements to its Alternative Credit Product Suite—
LAS VEGAS, Nov. 3, 2006 —The First American Corporation (NYSE: FAF), America’s largest
provider of business information, today announced the availability of the Anthem Lender
Directory, a growing index of screened and certified mortgage lenders who have incorporated
nontraditional credit scoring solutions into their underwriting processes. More than 200 loan
officers from across the nation are currently listed in the growing directory, which assists real
estate agents, community-based organizations, home counseling service providers and
consumers in identifying lenders who are using the latest credit evaluation techniques to
deliver the best possible loans at the best possible prices.
Introduced at the National Association of Hispanic Real Estate Professionals (NAHREP)
convention in Las Vegas this week, the Anthem Lender Directory is expected to be of great
value within the homebuying segments where a more comprehensive approach to credit is
necessary to better evaluate borrowers without established files at the major credit bureaus.
First American’s credit information subsidiary, First American CREDCO—the largest provider
of credit information to the mortgage industry—estimates that 20 percent of Americans are
“unscorable” using traditional credit bureau data alone, but that many can qualify for prime-
grade loans when alternative payment history is brought into the evaluation process.
“By helping consumers efficiently identify trusted lenders who are now embracing alternative
credit solutions, First American is continuing to serve as a catalyst in creating homebuying
opportunities within the emerging minority and new immigrant homebuyer segments,” said
Mark F. Catone, senior vice president for First American CREDCO. “Connecting those
homebuyers with committed lenders who have undergone our rigorous compliance screening
process will enable many more deserving families to secure prime-grade mortgage loans.”
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“On a $300,000, 30-year loan, a family that qualifies for a 6 percent rate will pay $600 less per
month and $220,000 less over the life of that loan than a family with a 9 percent interest rate,”
said Landon V. Taylor, vice president of Market Development at First American. “Often the
only barrier keeping that family from the lower rate is a credit score derived from data that
does not fully reflect the borrower’s willingness and ability to repay the loan. Lenders who use
alternative credit solutions are helping lift this barrier and leveling the playing field for
prospective homebuyers with nontraditional banking, credit and spending patterns.”
In addition to the new Anthem Lender Directory, First American has also announced several
enhancements to its Anthem product suite, a tested and reliable alternative credit solution
that helps mortgage applicants with little or no traditional credit history qualify for prime-
grade financing. Anthem augments traditional credit bureau data with rent, utilities, insurance
and other types of payment histories to produce a more comprehensive view of a borrower’s
payment behavior. New enhancements include:
• Spanish language credit reporting and disclosures;
• International credit data reporting;
• Automated “thin-file” and “no-file” notification;
• Automated Individual Tax Identification Number (ITIN) identification; and
• Integration with EagleCert, an insured valuation product from First American that
offers time and cost savings over a traditional appraisal while not exposing the
lender to any greater risk.
Anthem is the only fully compliant mortgage credit reporting solution that meets mortgage
loan underwriting and due diligence requirements of the U.S. Department of Housing and
Urban Development (HUD), the Federal Housing Administration (FHA), Fannie Mae and
Freddie Mac.
NAHREP Chairman Frances Martinez Myers noted that the current mortgage industry practice
of “lowering credit standards and raising allowable debt-to-income ratios” is a disservice to
borrowers and to businesses over time, and that “broadening the current credit spectrum to
be more inclusive of culturally influenced Hispanic borrower traits” is a healthier, short- and
long-term approach. The enhanced Anthem product suite provides lenders with the tools
necessary to efficiently and profitably make loans based on alternative credit criteria.
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“We are taking the next step in closing the homeownership gap by building upon our success
with Anthem,” said Taylor. “By meeting the specific compliance and underwriting needs of
mortgage lenders and investors, we are seeing increased adoption of Anthem.”
Last week, First American announced a new partnership with Neighborhood Housing Services
of America (NHSA) that is using Anthem to help qualify “thin-credit/no-credit” borrowers for
prime-grade mortgages. Employing the broader credit information available via Anthem, the
program successfully delivered its first prime-grade loan to a homebuyer in October.
For more information on the Anthem product suite, please visit: www.credco.com/anthem.
Lenders and brokers interested in registering with First American’s Specialty Lender Directory
should visit www.credco.com/crediteducation, or call (800) 255-0792.
About First American
The First American Corporation (NYSE: FAF), a FORTUNE 500® company that traces its history
to 1889, is America’s largest provider of business information. First American combines
advanced analytics with its vast data resources to supply businesses and consumers with
valuable information products to support the major economic events of people’s lives, such as
getting a job, renting an apartment, buying a car or house, securing a mortgage and opening
or buying a business. The First American Family of Companies, many of which command
leading market share positions in their respective industries, operate within five primary
business segments, including: Title Insurance and Services, Specialty Insurance, Mortgage
Information, Property Information, and Risk Mitigation and Business Solutions. With revenues
of $8.1 billion in 2005, First American has approximately 2,100 offices throughout the United
States and abroad. More information about the company and an archive of its press releases
can be found at www.firstam.com.
3
Contacts:
David Schulz
Corporate Communications
The First American Corporation
(714) 800-3298
dschulz@firstam.com
STATE FARM INVESTS $100 MILLION IN NHSA’S NEW PRIME-GRADE MORTGAGE PROGRAM
CHICAGO, Oct. 24, 2006 – Neighborhood Housing Services of America (NHSA) and State
Farm today announced the creation of a $100 million loan pool that will help thousands of
homebuyers secure mortgage loans at competitive rates. Designed to help under-served
home seekers—often within the minority and new immigrant communities—the NHSA loan
program will employ The First American Corporation’s (NYSE: FAF) “Anthem Report” and
“Anthem Score,” two tested and reliable alternative credit solutions that help lenders assess a
consumer’s creditworthiness using data beyond what is found in traditional credit bureau
reports.
Combining this new method of credit analysis with extensive prepurchase and post-close
homebuyer counseling services from nonprofit home counseling agencies will enable NHSA
and its mortgage lenders to confidently extend prime-grade mortgage loans—backed by the
State Farm-funded loan pool—to consumers with little or no traditional credit history.
“Before now, there hasn’t been an effective, efficient means of moving nonprime borrowers
into prime loans,” said Mary Lee Widener, president and chief executive officer of NHSA.
Speaking at the annual Mortgage Bankers Association Convention & Expo in Chicago,
Widener emphasized industry collaboration, affordability and borrower support as key factors
in assisting those traditionally locked out of prime-grade mortgage financing, and in creating
new market opportunities for lenders.
“By demonstrating that these consumers are not higher risk, and by providing lenders with a
secondary market to sell the loans post-close, our Prime-Grade Mortgage Program directly
addresses the challenge faced by an estimated 50 million U.S. consumers currently locked out
of appropriate mortgage financing by traditional mortgage lending standards,” said Widener.
“We have already begun to make a positive impact through the tremendous support of State
Farm, First American and our counseling service partners, and we hope to further expand this
program through additional partnerships in the years to come.”
Earlier this month, the Prime-Grade Mortgage Program had its first success in helping a
homeowner in Cincinnati qualify for prime-grade financing. In that instance, the homebuyer—
denied appropriate financing using traditional channels—found help in a local
NeighborWorks® counseling center, The Homeownership Center of Greater Cincinnati, which
connected her to the Prime-Grade Mortgage Program. Using the alternative credit data, Fifth-
Third Bank funded the loan, which was simultaneously purchased by NHSA using the State
Farm loan pool.
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“We’re excited about the hope this program provides and the impact it will have on people,”
said Clayton Adams, vice president – community development at State Farm. “Our partnership
and this investment with NHSA and First American matches our philosophy and strategy to
support community development by empowering individuals to overcome adversity and
eliminate barriers to buying a home for the first time.”
“The rapidly changing market conditions are casting new light on the needs and strong
purchasing power of the fast-growing minority and new immigrant homebuyer segments,”
said Landon V. Taylor, vice president of market development at First American. “We’re
pleased to help deliver innovation that enables the extension of responsible and affordable
mortgage financing to all Americans.”
About Neighborhood Housing Services of America
NHSA is part of the NeighborWorks® System, which also includes (a) NeighborWorks
America, a congressionally chartered public nonprofit corporation that creates opportunities
for people to live in affordable homes, improve their lives and strengthen their communities,
as well as (b) the more than 240 local nonprofit NeighborWorks organizations that share a
mission to revitalize their neighborhoods and communities and to provide affordable housing.
NHSA, together with NHSA-CDFI—its affiliated community development financial institution—
and NHSA’s e-commerce center, plays a critical role in meeting the capital needs of the
NeighborWorks network. Raising private sector capital from socially responsive investors,
NHSA purchases first and second mortgages from local NeighborWorks organizations and
their lending partners. NHSA also develops innovative loan products and services to increase
the capacity of the NeighborWorks network to expand affordable housing opportunities in
their communities. For more information, please visit: www.NHSAonline.org or www.nw.org.
About State Farm
State Farm insures more cars than any other insurer in North America and is the leading U.S.
home insurer. State Farm's 17,000 agents and 68,000 employees serve over 74 million auto,
fire, life and health policies in the United States and Canada, and more than 1.8 million bank
accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm
family of companies. State Farm is ranked No.22 on the FORTUNE 500® list of largest
companies. For more information, please visit statefarm.com or in Canada statefarm.ca.
About First American
The First American Corporation (NYSE: FAF), a FORTUNE 500 company that traces its history
to 1889, is America’s largest provider of business information. First American combines
advanced analytics with its vast data resources to supply businesses and consumers with
valuable information products to support the major economic events of people’s lives, such as
getting a job, renting an apartment, buying a car or house, securing a mortgage and opening
or buying a business. The First American Family of Companies, many of which command
leading market share positions in their respective industries, operate within five primary
business segments, including: Title Insurance and Services, Specialty Insurance, Mortgage
Information, Property Information, and Risk Mitigation and Business Solutions. With revenues
of $8.1 billion in 2005, First American has approximately 2,100 offices throughout the United
States and abroad. More information about the company and an archive of its press releases
can be found at www.firstam.com.
2
The Washington Post By Kenneth Harney
November 10, 2006
Credit Score Alternatives Can Fatten “Thin” Files
Picture this scenario: You've lived in this
country for the past 15 years, earned a decent Felix DeHerrera, incoming chair of the
wage, raised a family, always paid your rent, association, said that under current underwrit-
utilities, cell phone bills and other expenses on ing approaches, Latinos often get "penalized
time, month after month. But you made little for being debt-averse, rather than being
or no use of the conventional banking and rewarded for their consistency in meeting
credit systems - avoiding bank loans, credit financial commitments, even if it is in cash."
cards and debts in general.
But the credit scoring inadequacy problem
Now you go to apply for a mortgage to buy extends far beyond Latinos. Fair Isaac Corp.,
your first home and get smacked with this developer of the FICO score, estimates that as
sobering news: Sorry, but there is not enough many as 50 million Americans - of all ethnic
information in your national credit bureau files backgrounds, ages and incomes - can't be This produces an alternative credit file that can
to score your credit. We've got to either charge scored or are difficult to score because they then be scored. First American CREDCO says
you an interest rate well above prevailing rates have minimal information on file at the three their scores accurately predict borrowers' risk
- 9 percent or 10 percent in a 6 1/2 percent national bureaus. of future default.
market - or reject you altogether.
In effect, the credit deck is stacked against Better yet, alternative scoring allows lenders to
That scenario is precisely what large numbers them. They often are forced to pay higher fees cut mortgage rates, down payments and fees
of Latino families now face, according to a new and interest rates than they deserve. But there for people with solid - albeit nontraditional -
survey. The 14,000-member National Associa- is good news for many of these consumers: credit backgrounds.
tion of Hispanic Real Estate Professionals - Growing numbers of lenders and mortgage
Latino and non-Latino realty agents, builders, brokers understand the "thin file" issue and The goal, according to Mark F. Catone,
mortgage bankers and lenders, attorneys and have begun offering at least one of several CREDCO's senior vice president, is to help
credit counselors - polled 500 of its members alternatives to traditional credit scores. "deserving families to secure prime-grade
and found that: mortgage loans," in spite of the fact they score
At the annual convention of the National poorly using traditional FICOs.
Nearly one-third said their clients end up Association of Hispanic Real Estate Profession-
paying "subprime" rates on mortgages als this month, a new guide was released The Anthem system is just one of several
because limited credit histories make them listing hundreds of brokers and lenders alternatives that are now available to help
appear high-risk when lenders use traditional around the country who use the Anthem applicants with "thin files." Fair Isaac itself
FICO scores, the dominant credit evaluation system of nontraditional credit reports and offers an alternative-data counterpart to its
method in the mortgage underwriting scores as supplements to FICOs. traditional FICO score known as the Expansion
process. score.
Anthem, developed by First American CREDCO,
Nearly 80 percent said that for every Latino the credit data subsidiary of First American Another company is functioning as a national
household they help put into a home of their Corp. of Santa Ana, Calif., evaluates whatever repository for nontraditional credit data.
own, they're forced to turn away two information on an applicant may exist in the PRBC.com of Annapolis specializes in helping
prospects solely because they can't pass files of the national bureaus - Equifax, Experian consumers build their own alternative credit
muster under traditional score-based and TransUnion. databases by supplying verifiable rent, utilities
computer underwriting programs. and other periodic payment information
Then, it mixes in information collected by directly to the firm.
The chairperson of the Hispanic realty CREDCO from other sources. These include
association, Frances Martinez Myers, estimates regular child-care payments, telephone, Bottom line here: Just because there's not a lot
that if mortgage lenders used alternative electricity and other utilities payments, current on file about you in the big three credit
credit scoring models that factored in rent, and former rent payments, plus personal credit bureaus no longer means that you can't obtain
utilities and other types of payments that are data from businesses that do not report to the a home mortgage on favorable terms. You just
not reported to the national credit bureaus, an bureaus - small local retailers that extend need to ask about - or demand - scoring
additional $200 billion in new home loans credit, payday lenders, rent-to-own companies alternatives from lenders.
could be extended to Latino purchasers. and the like.
12395 First American Way
Poway, CA 92064
Tel: 800.255.0792 • www.credco.com/CreditEducation
Why Top Mortgage Lenders Rely On
First American CREDCO
Performance. Leadership. Vision.
9 out of 10 top lenders agree: First American CREDCO
delivers innovative solutions that keep pace with today’s dynamic
business climate.
Performance has made First American CREDCO a leader in
consumer information solutions for more than four decades.
99.8% proven
Leveraging the latest technology and our vast data resources, we
systems uptime
continue to set the industry standard – and value benchmark – for
reliable products, fast delivery and technical innovation.
Consumer information
Leadership is why top mortgage lenders trust First American CREDCO. delivered in seconds
We were the first to provide credit data to the mortgage industry, and
today we are the industry’s primary source for fast, reliable consumer High-volume capacity
information products. We provide innovative credit reporting tools,
comprehensive identity verification solutions, portfolio analysis and National field presence
consulting services, as well as non-traditional credit information products and processing centers
that offer new business opportunities. First American CREDCO is the
#1 choice of secondary market investors, including Fannie Mae and Dedicated customer
Freddie Mac. care and technical
support
Vision is the foundation for First American CREDCO’s expanding line of
innovative products and services. Our consumer information solutions
Only redundant hot
have enabled top lenders to make sound business decisions for more
backup and disaster
than 40 years. Today, we continue to identify new ways, and create new
recovery site in the
products, to help our customers make smarter business decisions across
an ever-changing marketplace.
industry
Setting the Pace Customized delivery
Top national mortgage lenders depend on First American CREDCO to methods, media and
set the pace for leading products, customized consumer information channels
solutions, quality customer care and reliable technical support.
Focusing on solutions that support our customers
throughout the lending process.