Banking & Finance Update for Solutions Engineers
As an SE, you have to be knowledgeable in many different use cases. Once per month, we at LASER Credit Access will highlight a couple of areas that could be helpful when talking with financial institutions.
There are lenders for all types of transactions. They each follow a similar pattern as to what kind of credit information they use and how they use it…
Starting with one of the most prevalent lenders: Residential Mortgage
This is a highly regulated business, as you likely know, and is one of the last industries that still require a “Tri-merge” credit report.
A Tri-merge credit report takes the credit information from all three bureaus and merges it into one detailed report. This eliminates seeing the same car payment or credit card from all three bureaus.
This can also create one credit report for the borrower and co-borrower, and merge their data as well.
Find out why is this important as well as How best to use the credit information in salesforce.
Lenders want to know specifically how much the monthly expenses are for the borrower and/or Co-borrower*.
What should you ask in this situation as it relates to using salesforce and their operations?
Which Credit Reporting Agency (CRA) do you use? There are around 50 CRAs in the US. LASER Credit Access works with most of them out of the box.
How best to use the credit information in salesforce.
This is a very important point to understand as it is not very well understood by most mortgage companies and salesforce implementation partners.
Most mortgage lenders are used to pulling credit reports from their LOS. When going to salesforce, they do not think that will change.
If this is continued, the process is interrupted and the user often has to go back and forth from salesforce to the LOS.
The loan officer (LO) gets a lead in Salesforce.
They reach out to the lead to initiate the discovery process and start to build a relationship. One of the most important factors in a residential mortgage transaction is the credit score as well as the other items on the credit report.
As their relationship gets to qualifying, there are two paths to take:
- Leave salesforce login to the LOS and run a credit report. The thought on this is that the credit report needs to be a part of the record in the LOS. Which is true.
- From Salesforce, using LASER Credit Access, run a single bureau report to see if it looks like they would qualify. If they do, the user can upgrade that report to a Tri-merge. If they do not, they can decline the transaction and spend ⅓ of the cost on the credit report.
Ok, what about the permanent record in the LOS in case of audits?
The LO can access that credit report in LOS by simply entering in the Credit Report ID, or as we call it the File number.
The credit report that was pulled in Salesforce, is now in the LOS—imported as it would be if they ran that credit report from the LOS.
Also, as you know, this can be automated as well.
Now the LO has a borrower with a good credit file. The process continues in salesforce, either FSC or Sales cloud.
The credit data flows with the transaction, in FSC populating the field is necessary to complete the transaction and documentation.
Most importantly, to the LO once they do send the transaction to the LOS. They have a complete record of the transaction.
The LOS should then be updating the loan or opportunity so that the LO has the information and reporting needed to update the borrower as well as track the year-to-date or month-to-date pipeline.
We hope that this information was helpful and adds some value. Let us know if we can assist you with a transaction.