Applications that need further credit investigation conducted after a merged credit report can take advantage of "mini-investigation" credit reports, or in extreme cases fully developed residential mortgage credit reports
William Shea, vice president of Credit Data Services in Springfield, Massachusetts, says, "Our average time and the work we do to complete a Residential Mortgage Credit Report has increased at least 25 percent.
However, there is still value in using the more extensive residential mortgage credit reports, Fannie Mae's Coffay says.
Ordering residential mortgage credit reports on loans with credit issues that need to be individually investigated has become the norm in recent years.
Lenders today have yet another option beyond the traditional residential mortgage credit report and the newer automated processes: alternative documentation provided by borrowers themselves rather than by third parties.
Does an automated three-bureau merged in-file provide information as reliable as that collected manually through the two-bureau residential mortgage credit report (RMCR)?
The issue is whether automated systems can safely streamline the entire mortgage-approval process - or whether full residential mortgage credit reports are needed to ensure better-quality credit decisions.
And in the far corner, costing anywhere from $38 to $85 per credit file, taking anywhere from 24 hours to 20 days to complete and typically containing its share of inaccuracies and incompleteness, stands the residential mortgage credit report, more commonly referred to by practitioners as the RMCR.
Will the residential mortgage credit report become a relic, or, more importantly, is the three-bureau merged in-file report the wave of the future whose time is now?
The big kicker when these standards were released was that producers of the residential mortgage credit reports must use two of the five available repository data bases.