Quote from Jordan Maffuccio on February 19, 2025, 12:00 amI read the very helpful post under the FixNotes course named "Vendors - Orders" under the section "Due-diligence". Are there any restrictions or upfront requirements before an investor can make their initial credit report pulls. I know borrower data is usually pretty protected, so I'd definitely want to stay in compliance. If there are any restrictions / requirements covered in the course that I've missed which lesson would that be under? Thanks!
I read the very helpful post under the FixNotes course named "Vendors - Orders" under the section "Due-diligence". Are there any restrictions or upfront requirements before an investor can make their initial credit report pulls. I know borrower data is usually pretty protected, so I'd definitely want to stay in compliance. If there are any restrictions / requirements covered in the course that I've missed which lesson would that be under? Thanks!
Quote from Bill on February 19, 2025, 11:39 am@jordan
Yes. Every Vendor has their process and requirements before an investor can make their initial credit report pulls. Most Note Sellers will supply their Note Buyers with Credit Reports. You should never pull a Credit Report if you don't own the mortgage note. Only if you own the Mortgage Note. These Vendors have their own process and requirements, because like you said they need to stay compliant. Every Vendor is different. It's up to the investor to reach out to Vendors, and see what those processes and requirements are. Like I said, most Note Sellers will supply their Note Buyers with Credit Reports.
Yes. Every Vendor has their process and requirements before an investor can make their initial credit report pulls. Most Note Sellers will supply their Note Buyers with Credit Reports. You should never pull a Credit Report if you don't own the mortgage note. Only if you own the Mortgage Note. These Vendors have their own process and requirements, because like you said they need to stay compliant. Every Vendor is different. It's up to the investor to reach out to Vendors, and see what those processes and requirements are. Like I said, most Note Sellers will supply their Note Buyers with Credit Reports.
Quote from Jordan Maffuccio on February 24, 2025, 11:09 amThanks for your reply Bill.
Thanks for your reply Bill.
Quote from Derek Louden on May 2, 2025, 10:31 amHey guys, following on to this thread I have been on the lookout for some kind of a solution that will give me this information to assess the credit risk in the same way that vendors like FNAC can pull credit.
While I realize that they're a financial institution and have likely struck their own agreements with the credit bureaus, I've seen TLO referenced as a particular potential way of these pulling reports.
Is that something that somebody with an individual LLC can do if they're looking to acquire debt? I acquire and vet a fair number of owner-financed notes and am looking for this as a solution to fill a gap in my due diligence.
The feedback I've gotten from vendors like Xactus and Experian is that you actually need to own the mortgage note, and they do not have a permissible purpose for providing this information for somebody that is simply going through due diligence to acquire the debt.
Any perspective or guidance would be helpful.
Hey guys, following on to this thread I have been on the lookout for some kind of a solution that will give me this information to assess the credit risk in the same way that vendors like FNAC can pull credit.
While I realize that they're a financial institution and have likely struck their own agreements with the credit bureaus, I've seen TLO referenced as a particular potential way of these pulling reports.
Is that something that somebody with an individual LLC can do if they're looking to acquire debt? I acquire and vet a fair number of owner-financed notes and am looking for this as a solution to fill a gap in my due diligence.
The feedback I've gotten from vendors like Xactus and Experian is that you actually need to own the mortgage note, and they do not have a permissible purpose for providing this information for somebody that is simply going through due diligence to acquire the debt.
Any perspective or guidance would be helpful.
Quote from Bill on May 2, 2025, 12:12 pm@dlouden
You can pull title reports, property reports, borrower reports, etc. without owning the actual mortgage note. But you shouldn't pull credit reports when you don't own the mortgage note.
As I mentioned above; Every Vendor has their process and requirements before an investor can make their initial credit report pulls. Most Note Sellers will supply their Note Buyers with Credit Reports. You should never pull a Credit Report if you don't own the mortgage note. Only if you own the Mortgage Note. These Vendors have their own process and requirements, because like you said they need to stay compliant. Every Vendor is different. It's up to the investor to reach out to Vendors, and see what those processes and requirements are. Like I said, most Note Sellers will supply their Note Buyers with Credit Reports.
Hope this helps.
You can pull title reports, property reports, borrower reports, etc. without owning the actual mortgage note. But you shouldn't pull credit reports when you don't own the mortgage note.
As I mentioned above; Every Vendor has their process and requirements before an investor can make their initial credit report pulls. Most Note Sellers will supply their Note Buyers with Credit Reports. You should never pull a Credit Report if you don't own the mortgage note. Only if you own the Mortgage Note. These Vendors have their own process and requirements, because like you said they need to stay compliant. Every Vendor is different. It's up to the investor to reach out to Vendors, and see what those processes and requirements are. Like I said, most Note Sellers will supply their Note Buyers with Credit Reports.
Hope this helps.
Quote from Derek Louden on May 13, 2025, 12:20 pmThanks Bill; can you be more specific around what you're referring to when you mention 'borrower reports' above?
How is FNAC able to perform soft credit pulls in their initial due diligence?
What are some specific vendors / tactics that are most useful to get a sense of the borrower in the absence of a formal credit report? The information I'd be looking for would be if the borrower is currently behind on any of their tradelines?
Thanks!
Thanks Bill; can you be more specific around what you're referring to when you mention 'borrower reports' above?
How is FNAC able to perform soft credit pulls in their initial due diligence?
What are some specific vendors / tactics that are most useful to get a sense of the borrower in the absence of a formal credit report? The information I'd be looking for would be if the borrower is currently behind on any of their tradelines?
Thanks!
Quote from Bill on May 13, 2025, 3:35 pm@dlouden
"Thanks Bill; can you be more specific around what you're referring to when you mention 'borrower reports' above?"
Yes, TLO has Borrower Reports. A Borrower Report will give you the Borrower's Name(s), Addresses associated with the Borrower, Borrower contact Information, Borrower's Relatives Information, Bankruptcy Information, Judgment Information, Vehicles they own, etc.
"How is FNAC able to perform soft credit pulls in their initial due diligence?"
Like I said, These Vendors have their own process and requirements. Every Vendor is different. It's up to the investor to reach out to Vendors, and see what those processes and requirements are. Like I said, most Note Sellers will supply their Note Buyers with Credit Reports. You can pull Credit Reports if you can get an account setup with a Vendor, that will allow you. I just feel that it's in my best interest to not pull a Credit Report if I don't own the mortgage note. I just don't want to upset a Borrower, if I don't own the Mortgage Note, just in case.
"What are some specific vendors / tactics that are most useful to get a sense of the borrower in the absence of a formal credit report? The information I'd be looking for would be if the borrower is currently behind on any of their tradelines?"
Most Note Sellers supply the Buyer the File's Collateral Documents, Accounting Statements, Loan Data Spreadsheet & a Credit Report to review before they make the purchase. Some Note Sellers will supply a Property Title Report, showing the Lien's Position & if it's Secured. Some Note Sellers will supply a BPO Report, showing the Property's Value. Not all Note Sellers supply Title Reports or BPO Reports. I never bought a Note were the Note Seller didn't supply me with a Credit Report. No Credit Report, No Purchase.
The reports that I need to review before I purchase a loan, are the Credit Report, Borrower Report & Property Title Report to see what's truly going on. I also just google the Borrower's Name & the Property's Address to see if I see any red flags. I purchase a lot of 2nd Mortgages / Jr. Liens, I just use about 5 free Property Value Sites to get an idea of the Value of the Property. If I purchased a lot of 1st Mortgages / Sr. Liens, I would order a BPO, to get a more accurate Value of the Property. Reviewing a Borrower Report gives me an idea of the Borrower, but it's just information. A Property Title Report, will show me my Lien's Position & if it's Secured. A Property Title Report will also show you if there's an active foreclosure with another lien on the Property, Owed Property Taxes & Owed Judgements.
I also check PACER (on-line Bankruptcy Court Information), for the Borrower's Bankruptcy Status. If a Borrower has ever filed Bankruptcy, you can access the BK Case and get information on the Borrower & other Lien Holder's on the Property.
- Title Reports - it’s an important document that provides a detailed overview of a property’s legal status. (ProTitleUSA – Protitleusa.com)
- Property Tax Info - County Tax Assessment Office in that specific County (Netronline – Publicrecords.netronline.com)
- O & E Reports - Ownership and Encumbrance Reports (ProTitleUSA – Protitleusa.com)
- TLO Reports - Asset (Address), Borrower, Credit, Foreclosure & Property Reports (Transunion TLO - www. tlo.com)
- Data Tree Reports - Property Data Reports (First American Data & Analytics – www. dna.firstam.com)
- Plenty of Other Services out there, that have Investigation Software and Batch Skip Tracing.
"Thanks Bill; can you be more specific around what you're referring to when you mention 'borrower reports' above?"
Yes, TLO has Borrower Reports. A Borrower Report will give you the Borrower's Name(s), Addresses associated with the Borrower, Borrower contact Information, Borrower's Relatives Information, Bankruptcy Information, Judgment Information, Vehicles they own, etc.
"How is FNAC able to perform soft credit pulls in their initial due diligence?"
Like I said, These Vendors have their own process and requirements. Every Vendor is different. It's up to the investor to reach out to Vendors, and see what those processes and requirements are. Like I said, most Note Sellers will supply their Note Buyers with Credit Reports. You can pull Credit Reports if you can get an account setup with a Vendor, that will allow you. I just feel that it's in my best interest to not pull a Credit Report if I don't own the mortgage note. I just don't want to upset a Borrower, if I don't own the Mortgage Note, just in case.
"What are some specific vendors / tactics that are most useful to get a sense of the borrower in the absence of a formal credit report? The information I'd be looking for would be if the borrower is currently behind on any of their tradelines?"
Most Note Sellers supply the Buyer the File's Collateral Documents, Accounting Statements, Loan Data Spreadsheet & a Credit Report to review before they make the purchase. Some Note Sellers will supply a Property Title Report, showing the Lien's Position & if it's Secured. Some Note Sellers will supply a BPO Report, showing the Property's Value. Not all Note Sellers supply Title Reports or BPO Reports. I never bought a Note were the Note Seller didn't supply me with a Credit Report. No Credit Report, No Purchase.
The reports that I need to review before I purchase a loan, are the Credit Report, Borrower Report & Property Title Report to see what's truly going on. I also just google the Borrower's Name & the Property's Address to see if I see any red flags. I purchase a lot of 2nd Mortgages / Jr. Liens, I just use about 5 free Property Value Sites to get an idea of the Value of the Property. If I purchased a lot of 1st Mortgages / Sr. Liens, I would order a BPO, to get a more accurate Value of the Property. Reviewing a Borrower Report gives me an idea of the Borrower, but it's just information. A Property Title Report, will show me my Lien's Position & if it's Secured. A Property Title Report will also show you if there's an active foreclosure with another lien on the Property, Owed Property Taxes & Owed Judgements.
I also check PACER (on-line Bankruptcy Court Information), for the Borrower's Bankruptcy Status. If a Borrower has ever filed Bankruptcy, you can access the BK Case and get information on the Borrower & other Lien Holder's on the Property.