The Mortgagee must use a traditional credit report, if available.
Either a Tri-Merged Credit report (TMCR) or a Residential Mortgage Credit report (RMCR) must be obtained from an independent credit reporting agency. The Mortgagee must use the same credit report and credit scores sent to TOTAL Mortgage Scorecard. If a traditional credit report is not available, the Mortgagee must develop a non-traditional credit history for the Borrower.
Credit reports must obtain all information from at least two credit repositories pertaining to credit, residence history, and public records information; be in an easy to read and understandable format; and not require code translations. The credit report may not contain whiteouts, erasures, or alterations. The Mortgagee must retain copies of all credit reports.
The credit report must include:
• name of the lender ordering the report;
• name, address, and telephone number of the consumer-reporting agency;
• name and Social Security Number (SSN) of each Borrower; and
• the primary repository from which any particular information was pulled, for each account listed
A truncated SSN is acceptable provided that the mortgage application captures the full nine-digit SSN.
The credit report must also include:
• all inquiries made within the last 90 days;
• all credit and legal information not considered obsolete under the Fair Credit Reporting Act (FCRA), including information for the last seven years, which consumer reporting agencies have reported as verified and currently accurate, regarding:
o tax liens; and
• For each Borrower debt listed:
o the date the account was opened;
o high credit amount;
o required monthly payment amount;
o unpaid balance; and
o payment history.
The Mortgagee must obtain an updated credit report if the underwriter identifies inconsistencies between any information in the mortgage file and the original credit report.
The Mortgagee must develop credit information separately for any open debt listed on the mortgage application but not referenced in the credit report by using the procedures for independent verification of non-traditional credit history.
For information on developing non-traditional credit history see Handbook 4000.1 II.A.5.a.ii(B).For additional information, see Handbook 4000.1 II.A.5.a.i-ii available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh