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INTRODUCTIONS CREDIT BACKGROUND PROBLEMS WITH DATA QUALITY MISMO IMPROVEMENTS TO EASE DATA FLOW

INTRODUCTIONS CREDIT BACKGROUND PROBLEMS WITH DATA QUALITY MISMO IMPROVEMENTS TO EASE DATA FLOW NEXT STEPS. INTRODUCTIONS. Paul Wills – EQUIFAX MORTGAGE SERVICES 18 yrs – Credit Industry Experience MISMO Governance Committee Co-Chair MISMO Credit Workgroup Equifax Mortgage Services

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INTRODUCTIONS CREDIT BACKGROUND PROBLEMS WITH DATA QUALITY MISMO IMPROVEMENTS TO EASE DATA FLOW

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  1. INTRODUCTIONS • CREDIT BACKGROUND • PROBLEMS WITH DATA QUALITY • MISMO IMPROVEMENTS TO EASE DATA FLOW • NEXT STEPS

  2. INTRODUCTIONS • Paul Wills – EQUIFAX MORTGAGE SERVICES • 18 yrs – Credit Industry Experience • MISMO Governance Committee • Co-Chair MISMO Credit Workgroup • Equifax Mortgage Services • Division of Equifax, LLC • Merged Credit Services to Mortgage Industry • Scoring and Analytics

  3. What We do…part 1

  4. What We do…part 2

  5. ISSUES WITH DATA QUALITY • Multiple Mappings create dissonance of data • Mapping from Repository Raw file->Internal Normalized->XML->Attribution • Inappropriately ‘grouped’ fields • Differing definitions of data • Data Digested by multiple sources • Changing Data Content • New Score models • New Repository versions

  6. Examples of Data Dissonance – Mortgage classification • How the Repositories tell a trade is a Mortgage • Equifax • Industry Codes (FM, FZ, FR) • Portfolio/Loan Type Codes (M) • Narrative Codes (AR,AS,BR,CH,DM,DT,EC,GP,HP,HQ,HS, etc) • TransUnion • Account Type • Loan Type (4, 5, 8, 16, 17, 19, 25, 26, 27, 5A, 85 ) • Tradeline Comments • Experian • Account Type • Narrative Code (AS, BR, EF, etc) • Tradeline Comments

  7. What that looks like in MISMO XML 2.3.1 <CREDIT_LIABILITY CreditLiabilityID="TRD0002" BorrowerID="BORW01" CreditFileID="CB01" CreditTradeReferenceID="CTR0002" _AccountIdentifier=“XXXXXXXXXXXXX" _AccountOpenedDate="2005-04" _AccountOwnershipType="Individual" _AccountReportedDate="2005-06" _AccountStatusDate="2005-06" _AccountStatusType="Open" _AccountType="Mortgage" _DerogatoryDataIndicator="Y" _HighBalanceAmount="25000" _HighCreditAmount="25000" _MonthsReviewedCount="2" _UnpaidBalanceAmount="20000“ CreditLoanType="Secured"> <_CREDITOR _Name=“XXX MORTGAGE“/> <_CURRENT_RATING _Code="2" _Type="Late30Days"/> <_LATE_COUNT _30Days="0" _60Days="0" _90Days="0"/> <CREDIT_COMMENT _Code=“DT” _SourceType=“Equifax" _Type="BureauRemarks"> <_Text>AMORTIZED MORTAGE</_Text> </CREDIT_COMMENT> <CREDIT_REPOSITORY _SourceType="Equifax" _SubscriberCode=“XXXFMXXXXX"/>

  8. ATTRIBUTION LEADS TO DATA INCONSISTANCY <CREDIT_LIABILITY CreditLiabilityID="TRD0002" BorrowerID="BORW01" CreditFileID="CB01" CreditTradeReferenceID="CTR0002" _AccountIdentifier=“XXXXXXXXXXXXX" _AccountOpenedDate="2005-04" _AccountOwnershipType="Individual" _AccountReportedDate="2005-06" _AccountStatusDate="2005-06" _AccountStatusType="Open" _AccountType=“INSTALLMENT" _DerogatoryDataIndicator="Y" _HighBalanceAmount="25000" _HighCreditAmount="25000" _MonthsReviewedCount="2" _UnpaidBalanceAmount="20000“ CreditLoanType="Secured"> <_CREDITOR _Name=“XXX MORTGAGE“/> <_CURRENT_RATING _Code="2" _Type="Late30Days"/> <_LATE_COUNT _30Days="0" _60Days="0" _90Days="0"/> <CREDIT_COMMENT _Code=“DM” _SourceType=“Equifax" _Type="BureauRemarks"> <_Text>FORFEITOF DEED IN LIEU OF FORECLOSURE</_Text> </CREDIT_COMMENT> <CREDIT_REPOSITORY _SourceType="Equifax" _SubscriberCode=“XXXFMXXXXX"/>

  9. DATA DISSONANCE LEADS TO PROBLEMS • Incorrect Underwriting Decisions • Approval or Non Approval • Product Selection • Additional Cost to process • FANNIE/FREDDIE Difficulties • Findings report may differ • Repulls of Credit Increase Cost • Portfolio Performance Issues • Customer Retention and Cross-sell losses • Different Data formats present issues (i.e. X12 vs. XML)

  10. There is HOPE – MXCompliance • Web Based Compliance Program • http://mxcompliance.mismo.org • Enables Trading Partners to systemically validate content • Schema Based • Credit • 2.1-2.3.1 • With or without extensions • AUS 2.3.1 • MI • 2.1.1-2.3.1 • With or without extensions • 3 Services • Verification – Verify a previously certified transaction • Import – Verification of services that READ MISMO standards • Export – Verification of services that WRITE MISMO standards

  11. Next Steps • MISMO Schema – Will enable: • Complex data type validations • Field length constraints • Field Type constraints • Deeper Inherent data knowledge (i.e. more accurate enumerations) • Potential – Data Quality standards • Verify content meets approved industry guidelines • Minimum content requirements • Not meant to test ANY proprietary logic (i.e. no Business process validation)

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