PRBC Reportssm

Effective as of December 8, 2006:

Fannie Mae accepts PRBC Reports.

PRBC Reports^sm are consumer credit reports comprised of trade line accounts and payment history that have been reported from three possible sources:

Self-reported by a consumer and verified by a trusted third party using verification procedures and quality standards that meet and exceed those required by Fannie Mae, Freddie Mac, and the FHA;
Reported directly to PRBC by a consumer's bill payment service such as their bank, credit union, or specialty bill payment processor
Reported directly to PRBC by a creditor or service provider as would be reported to a major credit bureau.

PRBC Reports may contain positive on-time trade line payment data on rent, mortgage, utility, telecom, insurance, child care, and other recurring bill payments that are not commonly reported to the traditional credit bureaus. A PRBC Report may be used as a Non-Traditional Mortgage Credit Report (NTMCR), as defined by the GSEs and the FHA, on a standalone basis or in conjunction with a traditional MMCR.

PRBC Reports may be Merged, Tri-Merged, or Multi-Merged Credit Reports (MMCRs) containing in-file credit report information from Experian, Equifax, and TransUnion, along with trade lines reported to PRBC.

PRBC Reports are delivered electronically and can be used in automated underwriting systems with underwriter-defined approval criteria applied to specific loan products or programs. For example, a lender requesting a PRBC Report may be alerted if the applicant qualifies for Fannie Mae's MyCommunity Mortgage, Freddie Mac's Home Possible, or an FHA loan product.

PRBC produces a Bill Payment Score^sm (BPS^sm) ranging between 100 - 1000 that is a time-series bill payment history using a weighted scorecard. PRBC's BPS may be used to supplement a traditional credit score to obtain a more complete and accurate risk assessment of an applicant for housing, credit, insurance, and employment. The BPS may also be used for automated underwriting. Click here to learn more about the PRBC BPS.

PRBC Expands Reach in Underserved Markets.

The Underserved: There are between 35 and 50 million adults in the US who either do not appear with traditional credit accounts in the big three credit bureaus' files, or do not have sufficient credit history to generate a FICO score. These "thin file" or "no file" consumers appear in 8 percent of mortgage applications and an even larger percentage (and growing) of auto loan and credit card applications. PRBC bill payment data extends lenders ability to reach these underserved consumers by providing an alternative measure of risk.

There are tens of millions of additional consumers who do have established bureau files and FICO scores, but whose apparent creditworthiness is understated because their files and scores represent past problems with credit accounts that may no longer be active. For lender's, PRBC's bill payment history may represent an alternative means of assessing these consumers willingness and ability to meet recurring payment obligations.

Streamlining the use of "alternative" credit data. In the mortgage industry, where there are guidelines for use of "alternative" credit data that have been established by Fannie Mae, Freddie Mac, the FHA, and state housing authorities for underwriting loans, PRBC increases the likelihood they will be used by automating and streamlining its delivery.

PRBC Reports serve as Non-Traditional Mortgage Credit Reports (NTMCRs) that can be delivered electronically and instantaneously. For consumer-submitted bill payment data, PRBC's rapid and high quality verification procedures assure that what is contained in the Reports is accurate and complete, removing uncertainty for the underwriter and removing the burden of verification from the originator.

Along with the PRBC Bill Payment Score, PRBC Reports can be delivered along with alerts to origination offices that the consumer meets particular lender-defined criteria that qualify him or her for a particular loan program. In development is an alerts service accompanying the reports that will identify loan programs for which the consumer qualifies.

Alternative to "No": In the markets for auto loans, credit cards, non-secured credit lines and some types of insurance, absence of a traditional credit score often disqualifies applicants. But these lenders can also provide an alternative, positive response by referring these "thin file" consumers to PRBC where they can build a verified bill payment history that can be used as the basis for obtaining a loan or insurance policy discount.

PRBC Permits ECOA Compliance

Under the Equal Credit Opportunity Act (ECOA), when using credit reports to assess an applicant's credit worthiness, lenders must consider all trade line accounts for which the applicant is responsible, when requested by the applicant. While bill payment histories have long been considered in making loans, they have largely been difficult to obtain and assess. By giving consumers the option to proactively submit and verify such information, and by enabling lenders to obtain it electronically, PRBC provides a new tool for ECOA compliance. Click here for more information about PRBC and ECOA compliance.

PRBC Data Reliability, Security, and Quality

PRBC's consumer database and all data interfaces were designed and built by IBM to assure maximum scalability, security, and data integrity. To assure data security, quality, reliability, and to mitigate cost, PRBC accepts billing and payment data uploads directly from bill payment service providers, billers, and lenders using an XML format and a Secure Socket Layer Internet connection with 128 bit encryption.

PRBC is the only credit bureau that allows consumers to submit trade line and payment information directly to become part of their permanent credit file. PRBC assures the validity of consumer-submitted data by using FCRA-certified specialists to verify the consumer's identity (i.e. SSN, ITIN, EIN) current address, historical lease, mortgage, utility, phone, cable, and other recurring bill payments, along with judgments and collection accounts. PRBC's verification procedures meet and exceed the requirements of the FTC, HUD, FHA, VA, Fannie Mae, Freddie Mac, and secondary markets for both consumer and business credit. All data source and verification information is archived electronically to allow for auditability and dispute resolution to FCRA and FACTA standards.

PRBC Reportssm

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