ThirdParty Scorecard®

ThirdParty Scorecard® is the fi rst and only industry-wide solution enabling mortgage originators to grade the risk of loans submitted by an agent. The innovative business tool analyzes an agent’s loan submission history, assigns a risk score to his or her business, then assesses the agent’s cumulative risk by comparing results against industry and market-area risk scores.

Mortgage originators’ profitability ties directly to choosing and forging strong relationships with the right agents. Until ThirdParty Scorecard, originators lacked an automated method that delivers solid information for intelligent, cost-effective agent selection. ThirdParty Scorecard allows originators to quickly and accurately analyze and grade the nature of each agent’s loan quality. By accessing a nationwide database of more than 100,000 brokers and millions of loans, ThirdParty Scorecard equips lenders to make well-informed decisions regarding agents and successfully manage business relationships by evaluating the collateral risk each agent brings to a lending decision.

The agent-quality information contained in ThirdParty Scorecard helps originators increase the base of preferred agents while reducing exposure to potentially higher risk business. Most important, the system enables originators to detect and eliminate
the possibility of being adversely selected. In today’s market, ThirdParty Scorecard provides a critical tool for managing agent relationships and ensuring business profitability.

HOW THE SCORECARD WORKS

ThirdParty Scorecard uses First American CoreLogic’s industry leading risk systems to create a comprehensive agent report. The report includes collateral risk measures (CRM) based on overall industry data and lenders’ internal data. Score comparisons expose
a variety of agent patterns and behaviors  - ranging from adverse selection to high-quality business - vital for guiding decisions and actions. First American CoreLogic CRM modeling also provides weighting for local markets, permitting further comparisons among agents.

SMART AGENT APPROVAL

Before accepting a new agent, originators can gain valuable insight through ThirdParty Scorecard’s cross industry agent summary report. This report presents the agent’s risk score and other vital information to speed the lender decision process and, in turn,
the rate at which business can expand. The system streamlines acceptance of high-quality agents, while selecting out agents exhibiting a higher risk profile for further scrutiny.

KEY BENEFITS

• 
  Accelerates agent approvals
• Provides faster response to developing problems when used pre-funding
• Quickly identifies agents with unattractive risk histories
• Enables proactive broker and loan offi cer management
• Multi-Closing Alert helps identify and protect against multi-closing fraud activity
• Facilitates internal communication for better decision making
• Delivers easy-to-use report summaries via Web-based HTML, XML service, or bulk processing

SMART AGENT MANAGEMENT

ThirdParty Scorecard arms lenders with information to more profitably manage an agent network. Risk measures and comparative data help defi ne terms of agreement, design reward and recognition systems, and enact corrective actions and processes. In addition, ThirdParty Scorecard can be used to grade and evaluate appraisers, loan officers, underwriters, business channels and geographic areas, permitting integrated risk management of key business relationships. ThirdParty Scorecard highlights the right opportunities to pursue—leaving risky decisions to your competition.

FRAUD SCHEME DETECTION

The recently added Multiple-Closing Alert function identifies and proactively delivers notifi cations to the closing agent’s desktop, identifying specifi c institutional exposure to multiple closings on the same property. This function gives lenders the ability to guard against this wide-spread and very costly form of mortgage fraud.