April 12, 2012
An Update on Soft Credit Reports
Reflecting United Guaranty's solid commitment to the safety and soundness of mortgage lending and mortgage insurance, our underwriting process includes pulling a "soft" credit report when we receive full-file submission for loans with mortgage insurance.
Why Does United Guaranty Do This?
It's simple: as an insurer, we check for any additional debt (or credit) activity that could affect the borrower's ability to meet monthly mortgage payments. By identifying any data inconsistencies up front, we're able to reduce the likelihood of coverage issues arising when a claim is filed. This step means added protection for you, your borrower and your investors!
Inquiry Only—No Credit Score Impact
United Guaranty isn't a lending institution, so when we order a borrower credit report, it's classified only as a "soft pull" and won't affect the borrower's credit score. Please be aware that this action will be reflected as an inquiry on the borrower's credit report. If borrowers contact United Guaranty or CBCInnovis (the credit service that appears on the inquiry), they'll be directed to United Guaranty's Customer Service at 877.642.4642, option 1, where they can receive support weekdays from 8 a.m. to 8 p.m. Eastern Time.
Ultimately, United Guaranty will expand this process to all submissions. This will include submissions received through our RAP® program, which allows lender to make the MI decision on behalf of United Guaranty.
We'll keep you informed about this and all other credit policy and underwriting enhancements.