First American CREDCO’S Anthem Compliant With Freddie Mac’s Guidelines For Non-Traditional Credit
— Anthem RMCR Exceeds Guidelines for Single Family Seller/Servicer Guide —
November 27, 2007, SANTA ANA, Calif.
First American CREDCO, the leading provider of specialty credit reports to the mortgage and consumer finance industries and part of First Advantage Corporation (NASDAQ: FADV), today announced that its Anthem™ RMCR product – also known as the Anthem Report – meets or exceeds Freddie Mac’s updated guidelines for non-traditional credit. Part of the Anthem Suite™ of Services, Anthem RMCR is a fully accepted solution for verifying Noncredit Payment References (NCPRs) and documenting those references on a Residential Mortgage Credit Report (RMCR), as noted in Freddie Mac’s recent news release clarifying portions of their Single-Family Seller/Servicer Guide.
Available to mortgage professionals since 2005, the Anthem RMCR is a specialized Residential Mortgage Credit Report offering a cost-effective credit reporting solution for underserved consumers. Designed to help lenders qualify more borrowers who lack credit, it is fully compliant with mortgage loan underwriting and due diligence requirements for Government Sponsored Entities, including Freddie Mac.
“Anthem RMCR helps lenders serve a broader market immediately, which builds their business and allows more consumers into homes.” said Mark Catone, senior vice president for First American CREDCO. “Anthem RMCR provides a solution specifically for mortgage lenders looking to serve borrowers who lack sufficient traditional credit history, while ensuring that lender underwriting, GSE and investor requirements are met instantly. Most of the market has been focusing on scoring without considering whether the underlying data meets specific financial product underwriting standards. While we also deliver a score, which we believe will gain in adoption over time, Anthem RMCR delivers an origination management solution out-of-the-box”.
NCPRs, also referred to as “non-traditional credit” or “alternative documentation”, are continuing financial obligations, such as rent, utilities and insurance, which requires periodic payments at least quarterly. They are critical in order to serve first-time homebuyers in emerging and underserved markets, particularly U.S. renters. According to the 2000 U.S. Census, there are approximately 35 million renters, representing a primary source of first time homebuyers, and those that are likely to have “thin files” (limited or no credit history with no credit score).
Mortgage professionals using Anthem RMCR to help assess a borrower’s credit reputation can:
- Create opportunities for first-time homebuyers. This includes low and moderate-income borrowers and other potential borrowers who might be unnecessarily subjected to subprime mortgage rates or be rejected altogether for financing due to little or no credit history.
- Anthem RMCR provides a solution that helps mortgage professionals tap emerging markets and help borrowers with little or no credit histories. Noncredit Payment References may be used with many mortgage products, including Freddie Macs’ Home Possible ® Mortgages with LTV rations up to 100%.
- Achieve greater administrative efficiency. Using an Anthem RMCR to verify and report Noncredit Payment References, minimizes the time and expense of documenting and verifying NCPRs. In addition, you can be assured that the Freddie Mac Seller and Servicer Guide standards for RMCRs are met, and risk better managed throughout the documentation and verification process.
For more information on the Anthem Suite of Services from First American CREDCO, visit www.credco.com or call (800) 255-0792.
About First American CREDCO
First American CREDCO, a division of First Advantage CREDCO, LLC, a wholly owned subsidiary of First Advantage Corporation, processes millions of credit transactions annually and is the industry’s technology and service leader. First American CREDCO is the leading provider of merged credit reports to the mortgage and consumer finance industries. The division proudly serves a broad range of lending and retail markets with a variety of business information products and services. More information about First American CREDCO can be found at www.credco.com.
About First Advantage Corporation
First Advantage Corporation (NASDAQ: FADV) combines industry expertise with information to create products and services that organizations worldwide use to make smarter business decisions. First Advantage is a leading provider of consumer credit information in the mortgage, automotive, payday lending and specialty finance industries; business credit information in the transportation industry; lead generation services; motor vehicle record reports; supply chain security consulting; employment background verifications; occupational health services; applicant tracking systems; recruiting solutions; skills and behavioral assessments; business tax consulting services; insurance fraud, corporate and litigation investigations; surveillance; computer forensics; electronic discovery; data recovery; due diligence reporting; resident screening; property management software; renters insurance and consumer location services. First Advantage ranks among the top companies in all of its major business lines. First Advantage is headquartered in St. Petersburg, Fla., and has more than 4,700 employees in offices throughout the United States and abroad. More information about First Advantage can be found at www.FADV.com.
First Advantage is a majority-owned subsidiary of The First American Corporation (NYSE: FAF), a FORTUNE 500® company that traces its history to 1889. First American is America’s largest provider of business information, supplying businesses and consumers with valuable information products to support the major economic events of people’s lives. Additional information about the First American Family of Companies can be found at www.firstam.com.