Evergreen, Colo., May 30, 2017 – Advantage Credit, Inc. has partnered with LexisNexis to provide superior public record data and linking technology that maximizes search accuracy. The following Advantage Credit report will identify the presence of liens and judgments:
The Liens & Judgments Report
- An FCRA-compliant report containing detailed lien and judgment records associated with the applicant.
- Receive as an add-on report to your credit reports or ad-hoc access via the Advantage Credit website.
For our mortgage lending clients, Fannie Mae and Freddie Mac are still requiring that lenders perform a search for liens and judgments through a reliable source.
As part of the National Consumer Assistance Plan (http://www.nationalconsumerassistanceplan.com/) that becomes effective July 1, 2017, Equifax, TransUnion and Experian are expected to reduce the amount of tax lien and civil judgment information they report on consumer credit files. They will only report tax lien and civil debt information on consumers when three areas of personally identifiable information (PII) is present including name, social security number, birthdate and address.
A preliminary analysis conducted by Experian shows approximately 96 percent of civil judgment public record data will no longer be included on credit reports; and almost 50 percent of tax lien information will not meet the PII criteria. FICO® has produced a research brief, “FICO Research Brief: Impact of the CRA’s Enhanced Public Records Standards on FICO Scores” which provides additional analysis on how these new standards will impact consumer FICO score models utilized in the mortgage industry.
LexisNexis Risk Solutions has found that approximately 11 percent of U.S. consumers have a tax lien or civil judgment on file. Consumers who have a lien or civil judgment removed from their credit file experience an average increase of 10 points to their credit score. Reports citing FICO data project that 11 million consumers will see an increase of less than 20 points and 700,000 consumers will see their scores rise by at least 40 points. This is acutely relevant data for lenders, who evaluate large numbers of consumers for a wide variety of mortgage types varying in structure and term. Removing this data creates a blind spot for mortgage lenders. LexisNexis Risk Solutions advanced analytics team has observed that borrowers who have a judgment or tax lien are 5 ½ times more likely to end up in pre-foreclosure or foreclosure as compared to borrowers who don’t have judgments and tax liens.
About LexisNexis® Risk Solutions
At LexisNexis Risk Solutions, we believe in the power of data and advanced analytics for better risk management. With over 40 years of expertise, we are the trusted data analytics provider for organizations seeking actionable insights to manage risks and improve results while upholding the highest standards for security and privacy. Headquartered in metro Atlanta, LexisNexis Risk Solutions serves customers in more than 100 countries and is part of RELX Group, a global provider of information and analytics for professional and business customers across industries. For more information, please visit www.lexisnexisrisk.com.
About Advantage Credit, Inc.
Advantage Credit Inc. is a national leading provider of mortgage and banking solutions, background and tenant screening and business credit solutions with corporate offices in Evergreen, Colorado. Advantage Credit Inc. has a proud history of providing superior customer service while leveraging the most advanced credit technologies for leading mortgage companies, banks and credit unions nationwide. For consecutive years, Advantage Credit was honored by being named as one of the top fifty mortgage service providers in the country by Mortgage Executive Magazine. For more information on Advantage Credit Inc., please visit www.advcredit.com.