MORTGAGE AND SERVICEPlus CREDIT REPORTS ONE, TWO OR THREE BUREAUS SCORE NOTICE LETTER RISK BASED NOTICES FORM T Income Tax Verification

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1 ! The ONE SOURCE for all your credit reporting needs!! 11 N. 6th Street, Suite A Pekin, IL Ph: 888/ Ph: 309/ Fx: 309/ Peoria: 309/ Lnelson@KewaneeCreditBureau.com MORTGAGE AND SERVICEPlus CREDIT REPORTS ONE, TWO OR THREE BUREAUS SCORE NOTICE LETTER RISK BASED NOTICES FORM T Income Tax Verification CREDIT SCORING FLOOD DETERMINATIONS ADVERSE ACTION NOTICES MORTGAGE AND SERVICEPLUS CREDIT REPORTS

2 Bad checks. Civil judgements. Multiple addresses. It is important to remember that a consumer s credit report does not exist, until it is requested.! Then, the various trade lines, public records, addresses (and personal information), employments, and aliases, are gathered, based on the information provided by the requestor.

3 3 Many people do not realize they do not have a credit report, until one is ordered.! Your data is just 1s and 0s in a computer.! The information from your inquiry is used to gather the data for a credit report.! If you do not give enough or if you give incorrect information then you will get an incomplete or incorrect report.

4 Order of sorting by the three national credit bureaus: EQUIFAX TRANSUNION Experian 1. Last Name 1. Zip Code 1. Last Name 2. First Initial 2. Address 2. First Name 3. Address 3. Last Name 3. SSN 4. S S N 4. First Name 4. Address 5. SSN 5. Generation 6. AKA/Alias Name 6. DOB 4 Each bureau sorts, files and retrieves data in a different manor.! To get a complete report, you must give each credit bureau the information they require.! Also, if you pull a multi-bureau report, you may get a different person from each bureau.

5 There is difference between what is needed to get a report from a credit bureau and what is needed to get a complete credit report!! As we saw from the previous slide, each bureau sorts, files and retrieves files differently.! To get a complete file, you need: Complete - Real Name (real first name, middle name, last name & Generation) Current and Previous address ALL ADDRESS IN THE LAST 5 YEARS! Social Security Number Date of Birth! DL Number, Phone Numbers and Employment help with report enhancements.!

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7 Click on ServicePlus for both consumer and Mortgage log in. <<

8 MORTGAGE & SERVICEPLUS LOG IN PAGE

9 BULLETIN BOARD, ALSO AVAILABLE FROM MAIN SCREEN

10 << << << << << This is the format of the Main Menu for Management and Administrators.! MAIN SCREEN - There are three ways to look up accounts.! Drop down menu on top right! By clicking Credit under Recent Requests! Or choose Find ordered products

11 << This is the screen for users who clicked on Fraud Detection. Click on Order ID Verification for Soc. Sec. Searches and Authentication Level One searches

12 SS search (Exp) request screen

13 << << Choose the product you wish or you can click on the File # drop down menu to search for a previously pulled credit report.

14 Level One (Authentication Sol.) request screen

15 << << Click on Credit Verification to order new credit reports.

16 << << << << By clicking the Loan Type the proper Purpose Code is submitted to the credit bureaus.! Under Credit Order on the right, you can also choose one, two or three bureaus (with or without credit scores) and Fraud shield.!!purpose Codes are determined by the user's log in! The Enter Access Codes link is for requesting frozen credit reports. The Customer must give you their Credit Bureau Password!!Account Review Reports are available for customers with loans currently owed to the lender.!!to order a report, Click on the Order button.

17 << << << << After you order a report, you will see the summary screen with many of the options and other services available.!!to order a new report (for Fannie Mae on closing date) click Order Refresh Report This puts a Soft Inquiry on the report.! Order Refresh Report is available for Mortgage reports. You can order the report with or without scores and Fraud Searches.! The ability to re-pull new reports on the same people may be restricted to only after one, 15, 30 or more days.!!click View to view either the PDF version or a regular screen version of the report!!the scores are listed, after the and SS # of the applicant.

18 The 1st section lists your company and who ordered the report, the date, the bureaus pulled and the fee. The 2nd section give the consumer data you used for the report. The 3rd section gives the scores, if you ordered them.

19 We have over 8 million formats.! Here are a few.! CURRENT THEN! DEROGATORY ACCOUNTS

20 Current listed first! Derogatory! Collections

21 MCL test with Open first! Closed then! Derogatory accounts

22 Mortgage first! Installments! Revolving! Other (usually collections)

23 All reports include a Trade Summary, Derogatory Summary, Inquires and Sources of information.! Public Records only appear if there are any.

24 << << << << Fraud Shield results and! Alerts! Consumer Remarks Statement! Instant View Password lets others view the report

25 We have several formats. If you don t like what is offered, let us know or give us an example of the format you would like to have.!

26 Here is a sample file. Notice the XP/TU/EF on the right. Now you can see how each bureau is reporting the file. We offer the ability to Un-Merge a single trade line.! Notice the XP is highlighted. That means that most of the merged information came from that bureau. <<

27 Here you see what each bureau is reporting, including the creditor s subscriber number.! Many times the merged file will take the most negative bureau or the most recently reported file and make it dominate.

28 25 of the 8 million formats of ServicePlus & Mortgage credit reports

29 Use the Request Supplement to order, updates, disputes, trade verifications, employment verifications.! We charge $10.00 for this service <<

30 Request Supplements for Employment verifications, trade line disputes and or updates

31 << ^ Enter any special requests, ie employment information.! Click any trade lines you wish to update or verify.! You can scan supporting documents and send them with the request

32 << << << Under Add-on Products, you can request the Credit Analyzer, a Comparison Report (with previously pulled reports), request a Supplement, Add a Bureau or a Spouse.!!Results of credit request with options (on the right)!!addition Products must be turned on by us.

33 Add Bureaus offer the ability to add one or two bureaus.! No information may be changed when requesting the additional bureaus.! If any information is changed or if the inputed information is different then entered at Fannie or Freddie, you will get a 41 error.

34 Credit Report Comparison Bureau(s): XP/TU/EF Applicant: MARISOL TESTCASE - *****0001 Co-Applicant: Summary File File Order Date 6/3/2010 (same) Tradelines 14 (same) Public Records 0 (same) Inquiries 15 (same) General Information Applicant Co-Applicant File File File File First Name MARISOL (same) (N/A) (N/A) Middle Name (same) (N/A) (N/A) Last Name TESTCASE (same) (N/A) (N/A) Suffix (same) (N/A) (N/A) SSN ********* (same) (N/A) (N/A) File File Current Address Previous Address 220 LOCUST AVENUE ANTHILL, MO (same) (same) Credit Scores Applicant Co-Applicant File File File File Factors Score Factors Score Factors Score Factors Model Score EQUIFAX/FACTA BEACON , 00014, 00008, (same) (same) TRANSUNION/FICO CLASSIC (98) , 012, 008, 030, FA (same) (same) EXPERIAN/FAIR, ISAAC (VER. 2) , 08, 09 (same) (same) Tradelines DATE REPORTED HISTORICAL STATUS COMMENTS CREDITOR NAME ACCOUNT NUMBER DATE LAST ACTIVITY DATE OPENED HIGH CREDIT BALANCE TERMS PAST DUE AMOUNT MOS REV TIMES PAST DUE PRESENT STATUS Account updated USAA FEDERAL SAVINGS B ACCT /10 11/09 09/09 $31206 $ $533 $ AS AGREED XP/TU/EF (same) (same) (same) (same) (same) (same) $28626 (same) (same) (s) (s) (s) (s) (same) (same) Account updated CHASE ACCT /10 06/10 11/09 $4000 $228 MIN $10 $ AS AGREED XP/TU/EF (same) (same) (same) (same) (same) (same) (s) (s) (s) (s) (same) The Comparison Report compares two reports, side by side and line by line.

35 >> Oder screen for ID Verification, flood and Tax Return verification from the credit report screen

36 When you click 'New Order' you get these choices <<

37 When ordering a 4506-T report, you can order up to 4 years and one of several types of Tax Returns

38 Then scan in the signed 4506-T form and submit it with the order.! The Tax Return should be returned in 48 to 72 hours. (2 to 3 business days) <<

39 Click on the Downloads link to print the Authorization form or to down load updates. <<

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41 We need the Authorization form before we can verify information. Many places will not talk to us unless our name is on the Authorization form.

42 << << Products can be ordered from 'Products and Services'!!ID Verifications, Credit Reports, Business Credit Reports and TRVs

43 Other Reports are 10 reports available at no additional costs.

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45 You can choose a different score notice!!you can also request a signature line be added to the form. <<

46 Page 1 of 2 Your Credit Score Your credit score Understanding Your Credit Score What you should know about credit scores How we use your credit score The range of scores How your score compares to the scores of other consumers Key factors that adversely affected your credit score Checking Your Credit Report What if there are mistakes in your credit report? 700 Model: EXPERIAN/FAIR, ISAAC (VER. 2) Source: EXPERIAN Date: 03/30/02 Your credit score is a number that reflects the information in your credit report. Your credit report is a record of your credit history. It includes information about whether you pay your bills on time and how much you owe to creditors. Your credit score can change, depending on how your credit history changes. Your credit score can affect whether you can get a loan and how much you will have to pay for that loan. Scores range from a low of 320 to a high of 844. Generally, the higher your score, the more likely you are to be offered better credit terms. Your credit score ranks higher than 44 percent of U.S. consumers. SERIOUS DELINQUENCY, DEROGATORY PUBLIC RECORD, OR COLLECTION FILED TIME SINCE DELINQUENCY IS TOO RECENT OR UNKNOWN NUMBER OF ACCOUNTS WITH DELINQUENCY AMOUNT OWED ON DELINQUENT ACCOUNTS You have a right to dispute any inaccurate information in your credit report. If you find mistakes on your credit report, contact the consumer reporting agency. It is a good idea to check your credit report to make sure the information it contains is accurate. Under federal law, you have the right to obtain a free copy of your credit report from each of the nationwide consumer reporting agencies once a year. To order your free annual credit report: How can you obtain a copy of your credit report? How can you get more information? By Call toll-free: telephone: On the Visit web: Mail your completed Annual Credit Report Request Form (which you can obtain from the Federal Trade Commission's web site at to: By mail: Annual Credit Report Request Service P.O. Box Atlanta, GA For more information about credit reports and your rights under federal law, visit the Federal Reserve Board's web site at or the Federal Trade Commission's web site at Notice to the Home Loan Applicant In connection with your application for a home loan, the lender must disclose to you the score that a consumer reporting agency distributed to users and the lender used in connection with your home loan, and the key factors affecting your credit scores. The credit score is a computer generated summary calculated at the time of the request and based on information that a consumer reporting agency or lender has on file. The scores are based on data about your credit history and payment patterns. Credit scores are important because they are used to assist the lender in determining whether you will obtain a loan. They may also be used to determine what interest rate you may be offered on the mortgage. Credit scores can change over time, depending on your conduct, how your credit history and payment patterns change, and how credit scoring technologies change. Because the score is based on information in your credit history, it is very important that you review the credit-related information that is being furnished to make sure it is accurate. Credit records may vary from one company to another. If you have questions about your credit score or the credit information that is furnished to you, contact the consumer reporting agency at the address and telephone number provided with this notice, or contact the lender, if the lender developed or generated the credit score. The consumer reporting agency plays no part in the decision to take any action on the loan application and is unable to provide you with specific reasons for the decision on a loan application. Your credit scores were provided by the following credit reporting agency: EXPERIAN PO BOX 949 ALLEN, TX If you have questions concerning the terms of the loan, contact the lender. Risked Based Score Notice to borrower.

47 Adverse Action (Denial) Letter

48 You can choose the compliance agency for you institution

49 8/9/2011 BETTER BANKS 5600 SW ADAMS BARTONVILLE, IL Applicant: John and Cindy Consumer 123 Any Rd MAPLETON, IL STATEMENT OF DENIAL, TERMINATION, OR CHANGE Description of Account, Transaction or Requested Credit ( ) Application for a Consumer Loan (x) Application for a Mortgage Loan ( ) Application for a Credit Card ( ) Request for an Increase of Credit ( ) Other Description of Action Taken ( ) We regret we can not approve your application at this time ( ) We regret that we can not increase your credit limit at this time ( ) It was necessary to modify it: Amount: $ Terms: ( ) Other Principal Reasons For Adverse Action Concerning This Credit ( ) Credit Application Incomplete ( ) No Credit File ( ) Garnishments, Foreclosure, or Repossession ( ) Insufficient Credit References ( ) Insufficient Credit File ( ) Charge-offs ( ) Unable to Verify Credit ( ) Slow or Delinquent Payments ( ) Inadequate Collateral ( ) Temporary Employment ( ) Too Short of Residence ( ) Temporary Residence ( ) Unable to Verify Employment ( ) Unable to Verify Residence ( ) Bankruptcy ( ) Insufficient Length of Employment ( ) Insufficient Income ( ) Collections ( ) Excessive Obligations ( ) Unable to Verify Income ( ) Poor Credit Performance with us ( ) We do not grant credit for terms asked for ( ) Excessive Inquiries ( ) Other Disclosure of Use of Information Obtained from an Outside Source ( ) Our credit decision was based in whole or in part on information obtained in a report from the consumer reporting agency marked below. You have a right under the Fair Credit Reporting Act to know the information contained in your credit file at the consumer reporting agency. The reporting agency did not make the decision to take the adverse action and is unable to provide you with specific reasons why the adverse action was taken. You have a right to obtain a free copy of your credit report within 60 days from your receipt of this notice from the consumer reporting agency listed below. You also have a right to dispute the accuracy or completeness of any information in your consumer report. Credit Bureau Name (x) TransUnion (x) Equifax (x) Experian (x) KCB INFORMATION SERVICES Address PO BOX 1000 PO BOX PO BOX N SIXTH STREET, SUITE A CHESTER, PA DALLAS, TX ALLEN, TX PEKIN, IL Phone Website transunion.com/myoptions We also obtained your credit score from this consumer reporting agency and used it in making our credit decision. Your credit score is a number that reflects the information in your consumer report. Your credit score can change, depending on how the information in your consumer report changes. If you have any questions regarding your credit score, you should contact the consumer reporting agency using the contact information above. Page 1 of 2 Denial Letter with scores, page 1

50 8/9/2011 T & C BANK MORTGAGE SERVICES PO BOX SPRINGFIELD, IL Page 1 of 1 Applicant: JONATHAN Q CONSUMER BIRCH BURBANK, CA STATEMENT OF DENIAL, TERMINATION, OR CHANGE Description of Account, Transaction or Requested Credit ( ) Application for a Consumer Loan ( ) Application for a Mortgage Loan ( ) Application for a Credit Card ( ) Request for an Increase of Credit ( ) Other Description of Action Taken ( ) We regret we can not approve your application at this time ( ) We regret that we can not increase your credit limit at this time ( ) It was necessary to modify it: Amount: $ Terms: ( ) Other Principal Reasons For Adverse Action Concerning This Credit ( ) Credit Application Incomplete ( ) No Credit File ( ) Garnishments, Foreclosure, or Repossession ( ) Insufficient Credit References ( ) Insufficient Credit File ( ) Charge-offs ( ) Unable to Verify Credit ( ) Slow or Delinquent Payments ( ) Inadequate Collateral ( ) Temporary Employment ( ) Too Short of Residence ( ) Temporary Residence ( ) Unable to Verify Employment ( ) Unable to Verify Residence ( ) Bankruptcy ( ) Insufficient Length of Employment ( ) Insufficient Income ( ) Collections ( ) Excessive Obligations ( ) Unable to Verify Income ( ) Poor Credit Performance with us ( ) We do not grant credit for terms asked for ( ) Excessive Inquiries ( ) Other Disclosure of Use of Information Obtained from an Outside Source ( ) Our credit decision was based in whole or in part on information obtained in a report from the consumer reporting agency marked below. You have a right under the Fair Credit Reporting Act to know the information contained in your credit file at the consumer reporting agency. The reporting agency did not make the decision to take the adverse action and is unable to provide you with specific reasons why the adverse action was taken. You have a right to obtain a free copy of your credit report within 60 days from your receipt of this notice from the consumer reporting agency listed below. You also have a right to dispute the accuracy or completeness of any information in your consumer report. Credit Bureau Name ( ) TransUnion ( ) Equifax ( ) Experian (x) KCB INFORMATION SERVICES Address PO BOX 1000 PO BOX PO BOX N SIXTH STREET, SUITE A CHESTER, PA ATLANTA, GA ALLEN, TX PEKIN, IL Phone Website transunion.com/myoptions ( ) Our credit decision was based in whole or in part on information obtained from an outside source other than a consumer reporting agency. Under the Fair Credit Reporting Act, you have a right to write to us at the address listed at the top of this page, no later than 60 days after you receive this notice, for disclosure of the nature of this information. If you have any questions, contact us at Authorized Signature: Notice: The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, nation origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant's income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is: Comptroller of the Currency, Customer Assistance Unit, 1301 McKinney Avenue Suite 3450, Houston, TX Denial Letter with out scores

51 DenialLetter_htm 8/9/11 1:07 PM JULIE HAYNES Your credit score DARREN HAYNES 803 (Source: EXPERIAN) Your credit score 813 (Source: EXPERIAN) Date 08/08/2011 Date 08/08/2011 Range of scores Key factors that adversely affected your credit score Scores range from a low of 320 to a high of 844. TOO MANY ACCOUNTS WITH BALANCES PROPORTION OF BALANCE TO HIGH CREDIT ON BANK REVOLVING OR ALL REVOLVING ACCOUNTS TOO MANY ACCOUNTS RECENTLY OPENED Range of scores Key factors that adversely affected your credit score Scores range from a low of 320 to a high of 844. TOO MANY INQUIRIES LAST 12 MONTHS TOO MANY ACCOUNTS RECENTLY OPENED LENGTH OF TIME ACCOUNTS HAVE BEEN ESTABLISHED Your credit score 796 (Source: EQUIFAX) Your credit score 806 (Source: EQUIFAX) Date 08/08/2011 Date 08/08/2011 Range of scores Key factors that adversely affected your credit score Scores range from a low of 334 to a high of 818. TIME SINCE MOST RECENT ACCOUNT OPENING IS TOO SHORT TOO MANY ACCOUNTS WITH BALANCES NUMBER OF BANK OR NATIONAL REVOLVING ACCOUNTS WITH BALANCES Range of scores Key factors that adversely affected your credit score Scores range from a low of 334 to a high of 818. TIME SINCE MOST RECENT ACCOUNT OPENING IS TOO SHORT TOO MANY ACCOUNTS WITH BALANCES NUMBER OF BANK OR NATIONAL REVOLVING ACCOUNTS WITH BALANCES LENGTH OF TIME ACCOUNTS HAVE BEEN ESTABLISHED Your credit score 793 (Source: TRANSUNION) Your credit score 798 (Source: TRANSUNION) Date 08/08/2011 Date 08/08/2011 Range of scores Key factors that adversely affected your credit score Scores range from a low of 309 to a high of 839. TIME SINCE MOST RECENT ACCOUNT OPENING IS TOO SHORT PROPORTION OF LOAN BALANCES TO LOAN AMOUNTS IS TOO HIGH TOO MANY ACCOUNTS WITH BALANCES PROPORTION OF BALANCES TO CREDIT LIMITS IS TOO HIGH ON BANK REVOLVING OR OTHER REVOLVING ACCOUNTS INQUIRIES IMPACTED THE CREDIT SCORE Range of scores Key factors that adversely affected your credit score Scores range from a low of 309 to a high of 839. TIME SINCE MOST RECENT ACCOUNT OPENING IS TOO SHORT PROPORTION OF LOAN BALANCES TO LOAN AMOUNTS IS TOO HIGH TOO MANY INQUIRIES LAST 12 MONTHS PROPORTION OF BALANCES TO CREDIT LIMITS IS TOO HIGH ON BANK REVOLVING OR OTHER REVOLVING ACCOUNTS INQUIRIES IMPACTED THE CREDIT SCORE ( ) Our credit decision was based in whole or in part on information obtained from an outside source other than a consumer reporting agency. Under the Fair Credit Reporting Act, you have a right to write to us at the address listed at the top of this page, no later than 60 days after you receive this notice, for disclosure of the nature of this information. If you have any questions, contact us at Authorized Signature: Notice: The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, nation origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant's income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is: Comptroller of the Currency, Customer Assistance Unit, 1301 McKinney Avenue Suite 3450, Houston, TX Page 2 of 2 Denial Letter, page 2 with scores

52 Unmerged Report allow you to remove a borrower or one or two credit bureaus from the print out.! You can also create a new unmerged file. <<

53 >> << Unmerged Report allow you to remove a borrower or one or two credit bureaus from the print out.! You can also create a new unmerged file.

54 CreditXpert show you and your customer how to increase their scores. <<

55 Scores Are Not Enough What do scores mean? What makes credit good or bad? How do I explain what applicants qualify for? How can my applicant improve their credit rating? How can I get my client the rates they want?!55 By using CreditXpert - Credit Analyzer - you are able to help your customers increase their credit scores.

56 Why and When Differentiate Yourself Close more loans Improve Customer Relationships Improve Your Bottom Line!56 Your customers will tell their friends and neighbors when they find out how much you can help them.! They will also let others know the you know what you are doing!!

57 Analysis Instantly determine potential Simple, guided process Provide relative quality as context 8 CreditXpert explains each trade line and lets the consumer know exactly what they need to do to increase their score.

58 Optimization Cost feasibility Personalized objectives Specific actions and results!58 It tells you what and why and how.

59 Analysis Streamlined Personalized, detailed explanations Top negative & positive factors Order of importance!59 We provide up to 3 positive and 3 negative factors.! We only provide significant factors, so a given consumer may receive 3 positive and only 1 negative factor.! This avoids providing insignificant or misleading information.

60 The Prequal Analyzer helps you evaluate the credit file. <<

61 >> >> >> << << << Just enter the income, show accounts paid, enter the loan amount, property value, Tax rate, costs and interest rate.

62 Another no charge feature allows you to look at Credit History Summary

63 << << The Source of Information show the Header Data returned by each credit bureau.! Incorrect or wrong data should be questioned or disputed.!!experian Fraud Shield checks for possible fraud or inconsistent information with the SS#, address, inquiries, phone # and DOB.

64 I D Risk Review is returned when the Fraud Shield is ordered.

65 We include three useful calculators.

66 You can change your password and security questions. <<

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68 The Download page lists various interfaces and the Borrowers Authorization form.

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71 Instant View allows another person to view a file without logging into the MCL system ^

72 The Report Number is the number assigned to the report.! The Password can be found near the end of the credit report.!

73 Here is an explanation of the ECOA and other terms.

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76 LEVEL ONE - Authentication Services! 8 data bases can be searched, depending on what you enter Level One - Authentication Services

77 Validating and verifying information Element Validation Verification Address Deliverable! Standardized Residential or business! Match to full name/surname Phone number Social security Format! number Issued - includes state and years of issuance! Deceased Drivers license Area code/format! Prefix to zip! Cell phone or pager Format correct for state Residential or business! Match to full name/surname and/or address Match to full name/surname and/or address! Based on full SSN or last four! Match to full name/surname and/or address Date of birth Full DOB or year only Experian All rights reserved. Confidential and proprietary. Match to input! Comparison to SSN (if provided) Level One provides both validation and verification of each input element. All elements are first evaluated for validity. If valid, that element will be verified as well. If invalid, the result will indicate what is incorrect (such as SSN not issued or house number not on street).! Addresses are checked for deliverability and standardized before being identified as residential or business and verified to the consumer or household.! Phone numbers are checked for valid area codes, matched to the address and classified as cell phones, pagers, residential or business numbers. They are then verified to the consumer.! Social security numbers are checked for format, deceased status and issued status. Using the full SSN or just last 4, valid and issued SSN s will be verified as belonging to the consumer or not.! Driver s license information is checked to ensure the format is correct for the state (in all 50 states). Where available, valid DL numbers will be matched to the consumer.! Date of birth information will be matched to the consumer s onfile DOB and compared with the SSN issue year.

78 Address verification Deliverable address! Address/ city/ state/ zip consistency! Residential or business! Address match to name! High risk address! Dwelling type Experian All rights reserved. Confidential and proprietary.

79 Social Security verification Validation! Format! Confirm issuance! Deceased! Death benefits applied for! Provides state and years of issuance! Match to name and/or address! Ability to validate on full SSN or last 4 digits! SSN prior to DOB! If both supplied Experian All rights reserved. Confidential and proprietary.

80 SSN Finder Available on request! Returns SSN if not provided on input! Provides best SSN on file if SSN did not match! Available only under Level 1 Experian All rights reserved. Confidential and proprietary.

81 Telephone verification Area code validity! Prefix match to ZIP code! Residential or business phone! Probable cell phone or pager! Match to name and / or address! High risk number Experian All rights reserved. Confidential and proprietary. Note to speaker: Slides are optional slides to provide additional detail, but can be summarized in slide 16.

82 Additional verification Driver s License! Validate number format for state! Match to name and / or address! Date of birth! Match to file! Change of address! OFAC SDN database screen Experian All rights reserved. Confidential and proprietary. Illinois does not supply Experian with Driver license records. However, Experian does store DL Records that are entered on credit inquiries. Experian does check to see if the format is correct.

83 OFAC government list All transactions processed through OFAC database of specially designated nationals! Provides one of fourteen match codes! No match! Match to full name only! Match to Social Security number only! Match to name and date of birth! Match to Social Security number and date of birth! Provides full database record for any matched fields Experian All rights reserved. Confidential and proprietary.

84 Verification Score Empirically derived model! Based on Level One result codes! Range: 1-999! Lower score indicates higher likelihood of fraud! Can be combined with specific result codes for decisioning Experian All rights reserved. Confidential and proprietary. 765 to 999 is Acceptable.! 614 to 764 is Refer.! 1 to 613 is decline.! 9001 to 9999 is Refer - not enough data to score.

85 Input/Output Requirements Required Input! Last Name! First Name! Complete Address Optional Input! Middle Name! Social Security Number! Year of Birth! Telephone Number! Drivers License Number! Previous Address! Address! IP Address! Customer Reference Number! Experian All rights reserved. Confidential and proprietary.

86 Level One - Authentication Services verifies up to 8 data bases.! Can be included on each report or ordered separately (IDV)

87 USING DEFAULT DECISIONING LEVEL 1 DEFAULT TEMPLATE (for reference): Default Score Decision: From To Decision R A A A R R R R R D A = Accept R = Refer D = Decline n = not used Default Policy Decision: Rule Number Policy Value(s) Decision 1 Address verification result Y YM S SM A 2 Address unit mismatch result n 3 Address type result n 4 Address high risk result n 5 Change of address result n 6 Telephone verification result Y YM F FM H HM A 7 Telephone high risk result n 8 Consumer ID verification result SA YA YB FF FY A 9 SSN format result n 10 SSN issue result n 11 SSN deceased result Y D 12 Date of birth result n 13 Driver's license validation result n 14 Driver's license verification result n 15 OFAC validation result R Experian All rights reserved. Confidential and proprietary. While this gives you and Accept, Refer or Decline rating, we recommend you never Decline a person based on this.! Often the Decline rating is because there was not enough information on the internet.

88 Address Verification Result Codes Code Definition Explanation Match Summary 00 Unknown message code Contact the help desk Has never been returned A Address ambiguous Necessary elements missing from address. Multiple address matches found but input address is not specific enough to obtain single match. B Match to business name residential address BB Match to business name business address BM E H Match to business name mixed use address Matching records exceed maximum defined on profile House number not found on street Used on business searches only. Business found at address from residential file. Used on business searches only. Business found at the supplied address. Used on business searches only. Business found in both business and residential files. Code not utilized. Street number invalid for this street. Not a deliverable address. Experian All rights reserved. Confidential and proprietary. N/A Validation failed, match not performed Match Match Match N/A Validation failed, match not performed I Incomplete or blank address Address not complete Validation failed, match not performed N No match to name - Residential address Address confirmed residential. Database record indicates different consumer name at this address. NA Data not available Code not utilized. N/A NB NM No match to name - Business address No match to name - Mixed-use address NP Test not in profile Not returned NS Standardization database has expired contact Help Desk Address found on business file. Consumer name not associated with address. Address found in both business and residential files. Consumer name not associated with address. R Road name City/Zip mismatch Failed address standardization due to street name not existing in city or zipcode. S SB SM SX Match to surname - Residential address Match to surname - Business address Match to surname - Mixed-use address Standardization database has expired contact Help Desk Address confirmed residential. Input last name matches (household-level match). Address on business file. Input last name matches (household-level match). Address found in both business and residential files. Input last name matches (household-level match). Code not utilized. No match No match No match Validation failed, match not performed Match Match Match n/a This is a sample of some of the property results.! More information is on our web page under Credit Products.

89 ! In August 2007 we surveyed 35 banks and credit unions not pulling reports from us.! NONE OF THEM were using the correct purpose code on any of their non-mortage credit inquiries!! Most of them were not inputing any purpose code for any inquiry! 2 In a 2007 survey, not one of the 35 banks and credit unions called, were correctly pulling credit reports!!

90 In that same survey we asked if anyone in the organization had been to a seminar on credit scoring.! Only two people from two different credit unions said they had ever been to a credit scoring seminar. 3 In the same survey, not one bank and only two CUs had sent their employees to a class or seminar explaining credit scores.

91 ! There are a few questions you need to ask yourselves.!!!! FIRST: "When you pull a credit report, do you tell the credit bureau the purpose or reason for the inquiry?"! Any answer other then YES and you are probably hurting your customers credit score!!! Fair Isaac (FICO) says that 10% of your score is based on inquiries.! FICO looks at the number of inquiries and the purpose of the inquiries.! If you are not telling the credit bureau why you are applying, FICO can not score your credit file correctly! 4!Two people who came to us for help actually lost their home because incorrect inquiries reduced their credit scores. They were pre-approved for a home loan and when a new report was pulled on closing their score was lowered and they lost their home loan!

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94 REFRESH MORTGAGE CREDIT REPORTS and ACCOUNT REVIEW CREDIT REPORTS! A Refresh Mortgage Credit Report inquiry does not count against the consumer s credit score. Multiple Mortgage Credit Reports inquiries in the last 30 days count as one inquiry.! If you use an Account Review Credit Report, the inquiry will not count against the consumer s credit score. This report is not used for new credit, but to review a current customer s credit to see if you will continue granting credit.! There are two types of Account Review Reports. The first returns only a FICO score, The second returns a full credit report. The reports will show as an inquiry, but will not count against the FICO Score.! Also Multiple inquiries for Auto Loans in the last 30 days count as one inquiry.! In all the above cases, FICO looks for the Purpose Code. You must indicate the correct purpose code for FICO to correctly score the report. Only, inquiries initiated by the consumer for credit, count against the score.! Inquiries for Account Review, Refresh Mortgage Reports, Employment, Multiple inquiries for Mortgage and Auto loans, and inquiries to do not count against the credit scores. 1 0

95 SECOND: "Do you report your installments and mortgage loan accounts to the credit bureaus?"! There are three national repositories, Experian, TransUnion and Equifax. Most local banks and credit unions in Central Illinois report their accounts to Experian! Some things to consider if you are not reporting your accounts to at least one bureau:! 1st. By reporting, you are rewarding your good paying customers. 2nd. By reporting your bad accounts, you are also punishing your bad paying customers. 3rd. More and more lenders are making loans based on debt to income ratios. If you are not reporting, you are encouraging your customers to get over extended. 4th. Most consumers believe all banks report. 5th. By not reporting your good customers, you are actually hurting their credit scores. If you do not report your good payments, 40 to 60 points are not being added to your score. (FICO says that 75% of the credit score is based on how you pay, what you owe and types of credit you have.) 6th. Conversely, by not reporting you bad accounts, you are rewarding those customers by giving them 40 to 60 more points on their scores.

96 While this is usually done by larger institutions, your customers will appreciate your pointing out this problem. THIRD: "On your revolving accounts, do you report the Line of Credit or Credit Limit or the High Balance, to the credit bureaus?"! Many large banks and some credit unions purposely do not report the Line of Credit.! They do not want others to know how good they think the customer is.!! The problem is that FICO compares the Balance on the account to the Line or Credit Limit.! If the creditor substitutes the Highest Balance for the Credit Line or Credit Limit, FICO then uses the lower figure for the calculation of the usage to line percentage.! If, over 40% of the Line of Credit is used, FICO deducts more points from the score, so; if the high balance is lower then the Line of credit, the consumers s score will be have more deductions.! Example: $10,000 line with a $3,000 balance = 30% usage. but if the high balance of $5,000 is used FICO is seeing 60% usage!!

97 FOURTH: "Have your employees ever attended a class or seminar explaining credit scores?"! Really, do you want a loan officer who doesn't understand credit scores, making decisions on your loans, based on a credit score?! Also, what differentiates you from those big nation wide banks that have loan processors and not loan officers?! It doesn t matter if they attend one of ours, or a seminar or class put on by another credit bureau or by Fair Isaacs. Your people need to know the correct information.! Almost half of the people who come to us, asking for help to improve their score, have already done something, someone else told them to do. It was wrong and their scores went down! There is much mis-information and many out right lies about credit and scores. Classes and seminars conducted by a credit bureau or a Fair Isaacs rep. will help your employees understand how credit scores are calculated.

98 FIFTH: "Do you get your reports locally or do you get them from a credit bureau, out of state?"! Another way to ask the question is: Does your credit provider help you and your customers, if there is a problem? or Can you or your customers talk to a real person about the credit report?! The FCRA requires Resellers of credit reports, (KCB, Kroll Factual Data, Synergistics and others) to assist the consumer in correcting reports. In actuality, most do not help at all.! But, you will more often get more assistance from a reseller then from the three credit bureaus.! Many consumer s reports would improve, if they knew some of the simple rules.! If your employees know those rules, very often you can help your customers to improve their scores and that helps them get better rates on their loans, and they will feel happier that their bank knows what is going on.! Another result of better scores can be lower deposits, lower rent, better apartments, and lower insurance premiums, all because your loan officers took the time to explain and help them.

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