Section outline

  • 1. Credit Score Explained

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    • Students must
      Mark as done
      🗓️ Recorded: 2/8/2021
      ⏱️ Est. Time: 11 mins
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      Credit Scores Explained

      Credit scores explained in a simple, easy-to-understand way. Whether you're new to credit scores, and maybe you just got your first credit card, or you're just looking to enhance your knowledge and learn how to improve your credit score.

      What this session covers:

       
      Purpose of Credit Scores A credit score acts as a statistical predictor of loan performance by evaluating a borrower's risk factors based on their financial history.
       
      Credit Repositories Data is gathered by three main agencies—Equifax (EFX), Experian (XPN), and TransUnion (TUC)—each using proprietary scoring models.
       
      Scoring Ranges Both standard FICO and VantageScore models generally range from 300 to 850, where a higher score indicates a lower risk to the lender.
       
      Defining "Good" Credit While scores vary, the majority of consumers fall between 600 and 800; a "good" grade is typically categorized in the 740–799 range.
       
      Impact of Adverse Events Significant derogatory events like bankruptcy or foreclosure require specific waiting periods and the re-establishment of credit before a borrower can qualify for new loans.

  • 2. Understanding Credit Reports and Credit Scores

    • Credit Report Analysis Strategy
      🗓️ Recorded: 9/2/2022
      ⏱️ Est. Time: 56 mins
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      Understanding Credit Reports and Credit Scores

      Discover how credit data is collected, what really drives a FICO® score, and how to spot the details that matter for mortgage lending. Whether you’re helping clients or building your own financial know-how, you’ll learn to analyze credit reports, interpret scoring models, and guide borrowers toward better credit outcomes. *For Non-Traditional Credit or Credit Trends, please reference Desktop Underwriter Training. 

      What this session covers:

       
      Explain the structure and purpose of credit reports, including key categories and tradeline details.
       
      Identify the major credit bureaus and understand their roles in credit reporting. 
       
      Review and analyze credit reports for accuracy, completeness, and compliance. 
       
      Understand the basics of credit scoring (including FICO® and VantageScore models) and what does and doesn't impact it.
       

  • 3. What Loan Officers look for on a Credit Report

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      Credit Report vs. Monitoring Tools
      🗓️ Recorded: 4/27/2020
      ⏱️ Est. Time: 18 mins
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      Credit Reports: What an LO sees?

      Discusses why lenders must pull an official credit report, emphasizing that consumer-facing monitoring tools are often inaccurate and lack the granular detail required for mortgage underwriting.

      What this session covers:

       
      The Inaccuracy of Consumer Tools Most people rely on monitoring systems like Credit Karma, which can be off by as much as 150 points compared to an official lender pull.
       
      Credit Impact of a Pull Concerns about credit score "hits" are often exaggerated; a mortgage credit pull typically results in only a minor, temporary reduction of three to five points.
       
      The Debt-to-Income (DTI) Factor Credit reports pull in actual minimum monthly payments, which directly affect DTI ratios, often surprising borrowers who only know their total debt amount.
       
      Authorized User Risk Borrowers are often unaware that being an "authorized user" on someone else's account can negatively impact their own score if that account has late payments or high utilization.
       
      Medical Collection Management Medical collections are unique because they do not affect DTI, and many collection companies will agree to "pay for deletion," effectively removing the derogatory mark entirely.
       
      The "Shotgun Blast" of Inquiries Applying for financing through auto dealerships often leads to dozens of inquiries at once, which can significantly damage a credit score.

  • 4. Advantage Credit Training

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      🗓️ Recorded: 10/17/2025
      ⏱️ Est. Time: 60 mins
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      Advantage Credit System Training

      The video provides training on how to use the Advantage Credit system for managing and updating credit reports, primarily focusing on tools and procedures for credit rescoring and verification of employment (VOE) ordering. Participants will gain insights into:

      Key Insights:

       
      Adding/Swapping Applicants Learn the process for adding a co-borrower/spouse and swapping the primary and co-borrower roles on a credit report.
       
      Splitting Joint Reports Review the steps to unmerge a joint credit report to create separate reports for each borrower.
       
      Swapping Applicants (Web View) See the required steps to change the primary and co-borrower order using the "swap applicants" button in the web view.
       
      VOE Ordering Learn how to request Verification of Employment (VOE) through Equifax, Experian, or a manual process.
       
      Supplement Ordering Review the two methods for ordering a supplement (cosmetic fix) for one or multiple trade lines on a credit report.
       
      FICO Score Mortgage Simulator Understand how to order and use the FICO simulator to see the potential score impact of changes like paying down balances.
       
      Score Navigator Learn how to order and utilize the Money and Target simulators to receive specific recommendations for credit improvement.
       
      Smart Score Simulator See a demonstration of the Smart Score simulator, which allows manual scenario testing for score impact.
       
      Rescore Express Ordering Learn the final process for requesting a rescore to formally update credit information at the bureau level.
       
      Rescore Documentation & Guidelines Receive critical information on what documentation is required, what cannot be used, and general rescore policies.