The Evolution of Consumer Reporting

1. The Evolution of Consumer Reporting

2. In the Marketplace Foreclosures Negative Equity Mortgage Fraud Regulations Investor Requirements

3. In the Marketplace • Compliance & quality at point of sale as opposed to forensics at processing, underwriting or pre-closing • Stricter secondary market and investor requirements • Enforcement of buy back provisions • Full documentation loans, stated income products eliminated • Agency and FHA loans only • Strict adherence to underwriting guidelines • Limited LTV and DTI • Pressure for volume versus quality Demand for improved quality and better data…

4. Evolution of the Consumer Report

5. Introducing ENCORE

6. Next Dimension… …In Risk Review and Analysis • Comprehensive 360° view of the consumer and the lending transaction • Decision-able data – FCRA consumer report • Simple organization of numerous data sources • Easy to review and navigate • Single source customer and consumer support • Integrated in to workflow and lending systems

7. Data Sources

8. Consumer Information • Data from hundreds of sources

9. Property Information • CoreLogic Family Public Semi Public Proprietary Confidential Source User Submitted/ Other Mortgage Application Assessor Recorder Servicing Securities Credit Bureau Data Partners Content • Phys attributes • Sales prices • Sales dates • Demographics • Local Market Analytics • Deeds • Financing • Liens • Foreclosures • REO’s • Phys’l attributes • Tax & Legal info • Parcel maps • Aerial maps • Flood maps • Street maps • Prime/Non-Prime • Borrower Prepay • Delinquency activity • MBS, Alt-A, • Non-Prime • Loan-level • FICO, LTV, • +75 attributes • Borrower, • Broker & • Appraiser • Performance • Risk Scores • Identity • Public Records • Tax Lien • Payment History • Credit Inquiries • Tax Data (IRS) • Identity (SSA) • Identity • OFAC • Politically Exposed Persons Quantity • 21.5M active loans, $2.2T • 500M trx • 2100+ counties • 3,040+ counties • ~80M records • 50M loans • 50+M active loans • 600+M Consumers • 600+M Consumers **estimated Coverage • 80+% • 94+% • 35% • 80+% • 80+% • 99% • 94%

10. Features

11. Data Intelligence • Intelligent Organization and Grouping of Data • Remove duplicates and merge similar data • Group similar types of data together

12. Data Intelligence • Establish “associations” between different data types • Applicant Real Estate Information: Shows all properties currently-owned, plus mortgage loan(s) information, associated with the property Each property listed displays information on the property, loans tied to the property, current balance, payment pattern and months remaining before the balance is paid.

13. Data Intelligence Original Loan Amount Buyer & Seller Lender , Acct. Number and Loan Type Property Sale Price Current Balance of the Loan Payment Pattern Status Last Delinquency Other Loan tied to the property Associated MERS Record Property Address – indicates whether or not it’s also the Subject Property Owner occupancy Same or different mailing address

14. Data Intelligence Tax Information – indicates whether the applicant is current or delinquent on their taxes.

15. Data Intelligence DO YOU WANT MORE INFORMATION? Page numbers and trade item numbers are provided to show where more details are available. When viewed online – HTML or PDF – click on it to automatically be taken to the data

16. MERS – Mortgage Electronic Registration Systems • Determines if an applicant is linked to additional addresses and loans by using MERS data • Establishes associations between credit and MERS data

17. Data Intelligence • Subject Property Information • Provides a summary of information regarding the subject property • High, average, median and low prices • Foreclosure information • HUD qualification and the last transfer date

18. Alerts and Warning Messages • Severity Levels • Each warning message is assigned a severity level – low, medium or high • Severity levels are customizable Warning Messages and Recommended Actions

19. Data References & Hyperlinks • Warning messages programmed with data references and hyperlinks • Takes you to the supporting data that you need to research, verify and document variations and inconsistencies with the consumer and loan application Hyperlink / Page Number

20. Data References & Hyperlinks • Warning messages programmed with data references programmed as hyperlinks • Takes you to the supporting data that you need to research, verify and document variations and inconsistencies with the consumer and loan application Hyperlink / Page Number

21. ENCORE Score • A comprehensive consumer risk score that takes into consideration risk associated with both the Credit and Property dimensions • Delivers reasons or factors to help end-users understand why a consumer report scored the way they did

22. Mortgage Industry Watchlist Screening • Screen consumers and participants against the following: • Freddie Mac Exclusionary List • HUD Limited Denial of Participation List (LDP) • HUD General Services Administration (GSA) Excluded Parties

23. Other Features… • Ease of Integration • MISMO; XML; 100+ LOS & Technical Partners • ENCORE Consumer ScoreDisclosure (CSD) • Electronic/Online and Mailer • Generic and Custom • ENCORE Adverse Action Letters • Template-driven • Data Checklist • Shows the end-user the status for each data requested • Also shows the page number that is hyperlinked to go to the actual page when viewed online

24. Presentation

25. The Six Components of ENCORE

26. ENCORE: Summary • An at-a-glance, streamlined report that highlights critical consumer or applicant data that may represent risks in your loan • Includes the ENCORE Score and MERS data & any undisclosed debt • Includes applicant credit data, identity red flags, estimated value of the subject property and a list of all the properties owned by the applicant, along with the loan and tax information tied to the property

27. ENCORE: Credit • Helps end-users weigh the credit-worthiness of the applicant • Includes credit data – tradelines, public records, inquiries, etc. – associated with the consumer(s) for further due diligence • “Are applicants a high credit risk or a low credit risk?”

28. ENCORE: Identity • Helps end-users detect and resolve potential fraud or Red Flags • Includes FACT Act alerts and identity information – name, AKAs, other SSNs, addresses – associated with the consumer • “Are applicants who they say they are?”

29. ENCORE: Income & Employment • Shows the reasonableness of the applicant’s reported income • Includes a visual representation of the neighborhood income levels of the applicant’s past residences in relation to the income provided by the applicant • Verifies the applicant’s employer details; provides additional information, such as employer industry, sales, and employee count • Provides industry salary information from up to four data sources • “Do applicants have the capacity to meet payment obligations?”

30. ENCORE: Property & Market • Provides information on the property and assists end-users determine the risk associated with the subject property • Includes characteristics and historical data on the subject property, owner occupancy analysis, estimated value of the subject property, comparables and valuation on nearby sales and in the market • “Is the subject property or collateral of acceptable risk?”

31. ENCORE: Participants • Screens participants against the HUD LDP and GSA exclusionary lists • Information on third-party individuals – brokers, appraisers, etc. – involved with the loan transaction • Measures the broker’s past origination risk by assessing book of business in relation to the market • “Are participants in the loan transaction of high risk?”

32. Workflow

33. ENCORE Cascade • Set-up or customize your own workflow CASCADE WORKFLOW SET-UPENCORE: Full Doc Refinance If then ENCORE BASE PRODUCT SET-UPENCORE: Full Doc Refinance CSD Online TRV Flood CSD Mailer AVM Verification of Employment

34. VOE & 4506-T Direct ENCORE Report – Credit Component ENCORE Report ENCORE Report – Identity Component Cascade Within ENCORE and Cascade Across GO GO GO R U L E S R U L E S R U L E S If FICO Score ≥ 620, process ENCORE ID component. If FICO Score is < 620, stop Cascade. If ID Alerts < 6, process the rest of ENCORE. If ID Alerts ≥ 6, stop Cascade If ENCORE Alerts < 6, request VOE & 4506-T Direct. If ENCORE Alerts ≥ 6, stop Cascade STOP STOP STOP

35. ENCORE Report Adverse Action Letter 4506-T Direct Consumer Score Disclosure VOE ProScan SSN Cascade Across Products GO R U L E S If FICO Score ≥ 620, process VOE, 4506-T Direct.... If FICO Score is < 620, stop Cascade. STOP

36. ENCORE Cascade • Automated • Cascade workflow executed automatically by the system • Cascade within ENCORE • Go from one ENCORE component to another • Cascade across products • Go from ENCORE to other Credco products • Report/Product Delivery • Report delivered at the completion of the cascade or within multiple sessions

37. Summary • Next dimension in merge technology, consumer data, lending risk review and analysis • Comprehensive 360° view of the consumer and the lending transaction • Organizes and merges data in to intelligent summaries • Easy to review and navigate • Single source customer and consumer support • Decisionable data • Integrated in to workflow and lending systems • Identifies associations from disparate data sources

38. Summary • A new tool for a new era of lending • Enhance business efficiencies • Save time and money • Gather additional data • Enhance the quality and clarity of data • Focus on the “right” loan • Improve overall loan quality

39. Thank You