Credit Report Reissue Recommendation TABLE OF CONTENTS

Transcription

1 T: Credit Reprting Wrkgrup Frm: Mike Bixby (305) Paul Wills (770) Date: February 13, 2007 Re: Credit Reprt Reissue Recmmendatin The MISMO Credit Reprting Wrkgrup agreed tday n recmmendatins regarding use f the MISMO Credit Request standard fr reprting reissues f credit reprts. This dcument cntent is als included as Chapter 9 f the updated MISMO XML Implementatin Guide: Credit Reprting Versin 2, which will be available n the MISMO web site s Implementatin Guide web page at: TABLE OF CONTENTS CREDIT REPORT REISSUE REPORTING RECOMMENDATION... 1 BACKGROUND... 1 Repsitries and Credit Bureaus Defined... 1 Reissue Reprting Overview... 1 MISMO SUPPORT FOR ADDITIONAL END-USERS... 2 Submit Credit Request... 2 Reissue Credit Request... 2 Credentials & Authenticatin... 2 Backward Cmpatibility... 2 Required Infrmatin... 3 KEY Element Using Internal Accunt Identifier... 3 KEY Element Using Lgin Accunt Identifier / Passwrd... 3 REISSUE SCENARIOS... 4 Prvide a Previusly Prepared Credit Reprt t One r Mre Additinal End-Users... 4 Order a New Credit Reprt and Simultaneusly Prvide It t One r Mre Additinal End-Users... 5 REPORTING ADDITIONAL END-USER AUTHENTICATION ERRORS... 7

2 XML Implementatin Guide: Credit Reprting Versin 2 Credit Reprt Reissue Reprting Recmmendatin Credit Reprt Reissue Reprting Recmmendatin Backgrund NOTE: The infrmatin presented here is nt intended as a recmmendatin fr legislative, regulatry r cntractual (e.g. agreements and/r plicies) cmpliance. Cmpliance issues shuld be directed t yur cmpany s management and legal cunsel. Repsitries and Credit Bureaus Defined Befre getting int the details f the credit reprt reissue prcess, it s prbably a gd idea t identify and define tw f the parties invlved in the prcess. Repsitries The credit data Repsitries are the cmpanies that cllect and stre that credit data n individuals. Equifax, Experian and Trans Unin are the three primary Repsitries fr credit files. Credit Bureau The Credit Bureau is the agency that creates the credit reprt fr the lender. They are als smetimes referred t as the Credit Reprting Agency (CRA), r smetimes as the Credit Vendr. Fr cnsistency between this dcument, the MISMO DTD and the MISMO LDD, we will always use the term Credit Bureau. Advantage Credit, Equifax Mrtgage Services, Fiserv CredStar, First American Credc, Krll Factual Data, LandSafe Credit Services, LandAmerica Credit Services and LSI Credit Services are examples f Credit Bureaus. Reissue Reprting Overview New Credit Reprts Typically a lender r mrtgage brker will send the initial request fr a brrwer s credit reprt t a Credit Bureau. The Credit Bureau will then request raw credit files frm ne r mre f the Repsitries (Equifax, Experian and TransUnin), prcess and frmat the raw credit file(s) int a credit reprt, and finally return the credit reprt t the lender r brker. When the Credit Bureau requests the raw credit files frm ne r mre f the Repsitries, it als prvides the Repsitries with the name f the end-user f that credit reprt. Reissues A Reissue ccurs when a Credit Bureau prvides all r any prtin f a credit reprt previusly prepared by that Credit Bureau t an entity ther than the end-user fr which that credit reprt was riginally prepared. The MISMO Credit Reprting Wrkgrup recmmends that each such entity be referred t as an Additinal End-User. Page 1

3 XML Implementatin Guide: Credit Reprting Versin 2 Credit Reprt Reissue Reprting Recmmendatin The Repsitries mandate that all Credit Bureaus reprt each Additinal End-User. The Repsitries may als charge a fee fr each Additinal End-User. The remainder f this dcument discusses hw the existing MISMO Credit Request Transactin frmat can be used t prvide the infrmatin needed by Credit Bureaus t reprt Additinal End-Users t the Repsitries. MISMO Supprt fr Additinal End-Users Submit Credit Request The standard MISMO Submit Credit Request (CreditRequestActinType="Submit") des nt supprt any Additinal End-Users. In this case, the entity referenced by the REQUEST element s Internal Accunt Identifier and/r Lgin Accunt Identifier/Passwrd is, by definitin, the end-user (as ppsed t the Additinal End- User). These recmmendatins extend the standard Submit Credit Request by adding supprt fr ne r mre Additinal End-Users in a single Submit transactin. Reissue Credit Request In the standard MISMO Reissue Credit Request (CreditRequestActinType="Reissue" and CreditReprtIdentifier is set t the credit reprt number t be reissued), the entity referenced by the REQUEST element s Internal Accunt Identifier and/r Lgin Accunt Identifier/Passwrd may r may nt be an Additinal End-User. (The Credit Bureau is respnsible fr making this determinatin.) These recmmendatins extend the standard Reissue Credit Request by adding supprt fr multiple Additinal End-Users in a single Reissue transactin. Credentials & Authenticatin Backward Cmpatibility Because the Repsitries may charge a fee fr each Additinal End-User, these recmmendatins als prvide the means t include credentials fr each Additinal End- User. This enables Credit Bureaus t: (a) authenticate each Additinal End-User befre they prvide the credit reprt and befre any assciated Repsitry fees fr Additinal End-Users accrue, and (b) charge fees t any Additinal End-User, if desired. In rder t identify Additinal End-Users in a way that will wrk with all existing MISMO versins, the MISMO Credit Reprting Wrkgrup recmmends using the REQUEST element s repeating KEY element structure with a specific _Name attribute frmat. Page 2

4 XML Implementatin Guide: Credit Reprting Versin 2 Credit Reprt Reissue Reprting Recmmendatin Required Infrmatin In rder fr the Credit Bureau t be able t verify that each Additinal End-User is a valid client, the requesting party needs t include either the (a) Additinal End-User s Internal Accunt Identifier, and/r (b) the Additinal End-User s Lgin Accunt Identifier and Lgin Accunt Passwrd. Each Credit Bureau will tell its custmer which data t include. The requesting party als needs t include the Additinal End-User s Name. This is prvided fr cnvenience when viewing the XML (it eliminates the need t decde the Additinal End-User s Internal Accunt Identifier r the Additinal End-User s Lgin Accunt Identifier, as the case may be). KEY Element Using Internal Accunt Identifier When using this methd bth the Additinal End-User s Name and Internal Accunt Identifier must be reprted. Each set f data is identified with a number surrunded by parenthesis. Here are tw sets f KEY elements t shw hw the _Name attribute shuld be frmatted. <KEY _Name="Additinal End-User (1) Name" _Value="Lender, Inc"/> <KEY _Name="Additinal End-User (1) Internal Accunt Identifier" _Value="Lender001"/> <KEY _Name="Additinal End-User (2) Name" _Value="Investr, Inc"/> <KEY _Name="Additinal End-User (2) Internal Accunt Identifier" _Value="Investr001"/> NOTE: T reduce security risks, Credit Bureaus shuld NOT ech back the Additinal End-User (#) Internal Accunt Identifier KEY element(s) in the Credit Respnse. KEY Element Using Lgin Accunt Identifier / Passwrd When using this methd bth the Additinal End-User s Name, Lgin Accunt Identifier and Lgin Accunt Passwrd must be reprted. Each set f data is identified with a number surrunded by parenthesis. Here are tw sets f KEY elements t shw hw the - _Name attribute shuld be frmatted. <KEY _Name="Additinal End-User (1) Name" _Value="Lender, Inc"/> <KEY _Name="Additinal End-User (1) Lgin Accunt Identifier" _Value="Lender1"/> <KEY _Name="Additinal End-User (1) Lgin Accunt Passwrd" _Value="abc123"/> <KEY _Name="Additinal End-User (2) Name" _Value="Investr, Inc"/> <KEY _Name="Additinal End-User (2) Lgin Accunt Identifier" _Value=" Invstr1"/> <KEY _Name="Additinal End-User (2) Lgin Accunt Passwrd" _Value="efg456"/> NOTE: T reduce security risks, Credit Bureaus shuld NOT ech back the Additinal End-User (#) Lgin Accunt Passwrd KEY elements in the Credit Respnse. Page 3

5 XML Implementatin Guide: Credit Reprting Versin 2 Credit Reprt Reissue Reprting Recmmendatin Reissue Scenaris There are a variety f Reissue scenaris that can ccur in the mrtgage industry. They can be divided int the tw fllwing basic scenaris: Prvide a previusly prepared credit reprt t ne r mre Additinal End-Users. Order a new credit reprt and simultaneusly prvide it t ne r mre Additinal End-Users. Fllwing are examples f these tw basic scenaris. The MISMO Credit Request is shwn where applicable. Prvide a Previusly Prepared Credit Reprt t One r Mre Additinal End- Users In the fllwing example, a new credit reprt is requested frm a Credit Bureau by a Mrtgage Brker. A Lender subsequently rders a Reissue f that previusly prepared credit reprt fr its use, as well as fr the use f its Mrtgage Insurer. It is assumed that the Credit Bureau has a direct client relatinship with the Mrtgage Brker, Lender and Mrtgage Insurer.. NOTE: This example is nly intended t illustrate the use f the KEY elements as dcumented in these guidelines. The illustrated parties, rles and actins are nt intended as a recmmendatin fr legislative, regulatry r cntractual (e.g. agreements and/r plicies) cmpliance. Cmpliance issues shuld be directed t yur cmpany s management and legal cunsel. 1. Brrwer ges t a Mrtgage Brker and fills ut a lan applicatin. 2. Mrtgage Brker sends a standard Submit Credit Request t a Credit Bureau using the Mrtgage Brker s Internal Accunt Identifier and/r Lgin Accunt Identifier/Passwrd. Sample Submit Credit Request (Simplified) <REQUEST_GROUP MISMOVersinID="2.1"> <REQUESTING_PARTY _Name="Mrtgage Brker"/> <RECEIVING_PARTY _Name="Credit Bureau"/> <REQUEST InternalAccuntIdentifier="MtgBrkr001"> <REQUEST_DATA> <CREDIT_REQUEST> <CREDIT_REQUEST_DATA CreditRequestActinType="Submit"/> </CREDIT_REQUEST>... LOAN_APPLICATION DATA GOES HERE... </REQUEST_DATA> </REQUEST> </REQUEST_GROUP> 3. Credit Bureau validates the Mrtgage Brker s Internal Accunt Identifier and/r Lgin Accunt Identifier/Passwrd. 4. Credit Bureau requests raw credit files frm the Repsitries, prcesses the raw credit files and returns a credit reprt alng with the Credit Reprt Identifier. 5. Mrtgage Brker wants a Lender t fund the lan and ntifies a Lender f the credit reprt s Credit Reprt Identifier. Page 4

6 XML Implementatin Guide: Credit Reprting Versin 2 Credit Reprt Reissue Reprting Recmmendatin 6. Lender sends a Reissue Credit Request, including the Credit Reprt Identifier, t the Credit Bureau using the Lender s Internal Accunt Identifier and/r Lgin Accunt Identifier/Passwrd. This identifies the Lender as an Additinal End-User. The Lender als uses KEY elements t identify its Mrtgage Insurer as an Additinal End-User. Sample Reissue Credit Request (Simplified) <REQUEST_GROUP MISMOVersinID="2.1"> <REQUESTING_PARTY _Name=" Lender"/> <RECEIVING_PARTY _Name="Credit Bureau"/> <REQUEST InternalAccuntIdentifier="Lndr001"> <KEY _Name="Additinal End-User (1) Name" _Value="Mrtgage Insurer"/> <KEY _Name="Additinal End-User (1) Internal Accunt Identifier" _Value="MtgIns001"/> <REQUEST_DATA> <CREDIT_REQUEST> <CREDIT_REQUEST_DATA CreditRequestActinType="Reissue" CreditReprtIdentifier=" "/> </CREDIT_REQUEST>... LOAN_APPLICATION DATA GOES HERE... </REQUEST_DATA> </REQUEST> </REQUEST_GROUP> Credit Bureau validates: Lender s Internal Accunt Identifier and/r Lgin Accunt Identifier/Passwrd. Mrtgage Insurer s Additinal End-User (1) Internal Accunt Identifier. Credit Bureau prvides the Reissue f the credit reprt referenced by the Credit Reprt Identifier t the Lender. Credit Bureau psts reissue transactins t the apprpriate repsitries, fr the: Lender Mrtgage Insurer Lender prvides the credit reprt t the Mrtgage Insurer, evaluates the credit reprt and issues a lan decisin. Order a New Credit Reprt and Simultaneusly Prvide It t One r Mre Additinal End-Users In the fllwing example, a new credit reprt is requested frm a Credit Bureau by a Mrtgage Brker thrugh a Lender s web prtal. In additin t the Lender using the credit reprt, the Lender will prvide the credit reprt t its Mrtgage Insurer fr its use. It is assumed that the Credit Bureau has a direct client relatinship with the Mrtgage Brker, Lender and Mrtgage Insurer. NOTE: This example is nly intended t illustrate the use f the KEY elements as dcumented in these guidelines. The illustrated parties, rles and actins are nt intended as a recmmendatin fr legislative, regulatry r cntractual (e.g. Page 5

7 XML Implementatin Guide: Credit Reprting Versin 2 Credit Reprt Reissue Reprting Recmmendatin agreements and/r plicies) cmpliance. Cmpliance issues shuld be directed t yur cmpany s management and legal cunsel. 1. Brrwer ges t a Mrtgage Brker and fills ut a lan applicatin. 2. Mrtgage Brker wants a Lender t fund the lan, s the Mrtgage Brker rders a new credit reprt thrugh a Lender s web prtal. 3. Lender sends a Submit Credit Request t a Credit Bureau using the Mrtgage Brker s Internal Accunt Identifier and/r Lgin Accunt Identifier/Passwrd. The Lender als uses KEY elements t identify ITSELF and its Mrtgage Insurer as Additinal End-Users. Sample Submit Credit Request with Additinal End-Users (Simplified) <REQUEST_GROUP MISMOVersinID="2.1"> <REQUESTING_PARTY _Name=" Mrtgage Brker"/> <RECEIVING_PARTY _Name="Credit Bureau"/> <REQUEST InternalAccuntIdentifier=" MtgBrkr001"> <KEY _Name="Additinal End-User (1) Name" _Value="Lender"/> <KEY _Name="Additinal End-User (1) Internal Accunt Identifier" _Value=" Lndr001"/> <KEY _Name="Additinal End-User (2) Name" _Value="Mrtgage Insurer"/> <KEY _Name="Additinal End-User (2) Internal Accunt Identifier" _Value="MtgIns001"/> <REQUEST_DATA> <CREDIT_REQUEST> <CREDIT_REQUEST_DATA CreditRequestActinType="Submit"/> </CREDIT_REQUEST>... LOAN_APPLICATION DATA GOES HERE... </REQUEST_DATA> </REQUEST> </REQUEST_GROUP> Credit Bureau validates: Mrtgage Brker s Internal Accunt Identifier and/r Lgin Accunt Identifier/Passwrd. Lender s Additinal End-User (1) Internal Accunt Identifier. Mrtgage Insurer s Additinal End-User (2) Internal Accunt Identifier. Credit Bureau requests raw credit files frm Repsitries, prcesses the raw credit files and returns a credit reprt. Credit Bureau psts reissue transactins t the apprpriate repsitries fr the: Lender Mrtgage Insurer NOTE: In this example, the Mrtgage Brker is the end-user, nt an Additinal End-User. Therefre, the Credit Bureau des NOT pst reissue transactins t the Repsitries fr the Mrtgage Brker. Lender prvides the credit reprt t the Mrtgage Brker and the Mrtgage Insurer, evaluates the credit reprt and issues a lan decisin. Page 6

8 XML Implementatin Guide: Credit Reprting Versin 2 Credit Reprt Reissue Reprting Recmmendatin Reprting Additinal End-User Authenticatin Errrs When the credit bureau receives a credit request that cntains the Additinal End-User credentials (either Internal Accunt Identifier r the Lgin Accunt Identifier/Passwrd), the credit bureau then verifies that these credentials are valid. When invalid credentials are detected a MISMO Credit Errr Respnse transactin shuld be generated by the credit bureau and returned t the requesting party. There are existing MISMO errr cdes fr invalid credentials shwn in the table belw. The cmplete list f MISMO errr cdes is available in Chapter 4 f the MISMO XML Implementatin Guide: Credit Reprting Versin 2. MISMO Errr Cdes and Descriptins Related t Authenticatin Errr Cde E036 E037 E046 Errr Descriptin Invalid Client Accunt Identifier Invalid Passwrd Invalid Lgin ID Select the apprpriate cde and identify which Additinal End-User set cntained the invalid infrmatin. The example belw shws the Credit Respnse sectin f an errr respnse transactin with an invalid Client Accunt Identifier n the secnd Additinal End-User Internal Accunt Identifier. Sample Authenticatin Errr Reprt <CREDIT_RESPONSE MISMOVersinID="2.1" CreditRespnseID="CreRpt0771" CreditReprtType="Errr"> <CREDIT_BUREAU _Name="ABC Credit Services"/> <CREDIT_ERROR_MESSAGE _Cde="E036" _SurceType="CreditBureau"> <_Text>Invalid Client Accunt Identifier</_Text> <_Text>Additinal End-User (2) Internal Accunt Identifier</_Text> </CREDIT_ERROR_MESSAGE> </CREDIT_RESPONSE> Page 7