TECHNOLOGY FOR THE MORTGAGE INDUSTRY

Credit bureaus collect information regarding your credit history.   Every time you apply for a loan or credit card,  neglect bill payments,  claim bankruptcy etc it is recorded by a credit bureau and that information is available to organizations that are members of the credit bureau.  

In Canada we have two primary credit bureaus:   Equifax and  Trans Union.   When you apply for a mortgage through a mortgage broker,  or at your local bank branch,  the  mortgage origination system connects with Equifax or Trans Union and collects your BEACON or FICO score.    This score is used as a part of your risk profile when a lender is determining what rate to offer or if a mortgage should be offered at all.

The Credit Score Guide  explains BEACON and FICO scores.  Other Credit Risk Models and their descriptions can be found  here.

Fair Isaac Corporation has developed these scores using statistical analysis and provides these scoring tools and engines to the credit bureau.  This same data can be used not only to determine your credit-worthiness but also can be used to target sales and can be leveraged in CRM tools to provide a more complete customer profile.  For more information about Fair Isaac click here.

Many credit bureaus are also offering fraud assessments.  These can be done by monitoring the number of credit inquiries or amount of credit requested and how frequently and cross-referencing with address and social insurance number databases.  A detailed list of credit fraud models can be found  here.

Credit history,  credit scores,  and credit risk assessments are used by mortgage brokers,  lenders and insurers as part of a mortgage application assessment.

The "Technologies for the Mortgage Industry" site was created by Adriana Ieraci, a graduate student at the University of Toronto (Canada).  This site was developed for a graduate course - JCI1503 - Advanced Topics in Computing and Information Systems - as a term project requirement.  Much of the content material and web links presented on this website have been collected from existing sources.  You should not assume that any of this is error-free or that it will be suitable for any particular purpose you may have in mind when using it.  The site is meant to be solely a project in an educational context - and has no other purpose.  The author,  the University of Toronto or any of its divisions, including the course instructors, unequivocally declare that they do not endorse any of the companies or products mentioned or statements made in or referenced on this site.

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