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Special Reports
Credit Restoration
Growing Community Using Mortgage Action Plan
By Alton Gary Simpson
There is a growing community of dedicated users of the Mortgage Action Plan credit
analysis tool, the flagship product of Market Kinetix, according to the company's president, Ron Litt. The Mortgage
Action Plan is a scientific analysis tool that provides loan originators with a customized plan of action for how
borrowers may achieve a target credit score in the shortest time possible.
Market Kinetix recently said that Credit Communications Inc., a nationwide credit
reporting firm for the mortgage industry, has joined the community of Mortgage Action Plan users to offer mortgage
originators a way to help their borrowers secure loans. "Brokers are always at the mercy of lender guidelines
and especially with the tightening underwriting standards we're seeing, they're looking for usable solutions that
empower them to take greater control of the approval process," said Marty Flynn, president and CEO of CCI.
"We elected to implement Mortgage Action Plan because it gives brokers a simple, easy way to secure borrowers
loans, even with today's difficult credit guidelines. It cuts through all of the complex choices and provides actionable
steps for improving a borrower's credit score, all in a simple, straightforward way. The system's direct recommendations
mean that there are fewer questions from brokers and borrowers on how to proceed to improve a credit score."
After the mortgage originator gets a borrower's credit report, he or she simply
clicks on the Mortgage Action Plan option from within CCI's website to get information on the fastest method for
achieving a target credit score. Mortgage Action Plan then identifies how to achieve the desired credit score with
a plan that's broken down into clearly defined immediate, short-term and long-term actions. It provides a preview
of how much each borrower's credit score can be raised, a three-tier list of the specific actions a borrower can
take to proactively raise his or her score, as well as definitive information on the point increase each action
will bring.
Noting that today's credit standards are much higher than they were in the past,
Mr. Litt said that the greatest challenge comes from getting mortgage originators to change the way they originate
loans. Pointing out that traditionally loan officers collect a borrower's information, pulls their credit report
and then searches for a lender whose criteria the borrower meets, he stated that Mortgage Action Plan was a game
changer by simplifying the credit restoration process for originators. By allowing loan originators to help borrowers
raise their credit scores, those borrowers are in turn eligible to meet the underwriting criteria of more lenders.
"Mortgage Action Plan's creators really understand the mortgage market," Mr. Flynn noted. "Lenders
and brokers are very focused on cut-to-the-chase, no-nonsense answers. Mortgage Action Plan sifts through the complexities
and provides just that. We're anticipating a great response that positively impacts both customer satisfaction
and client retention."
According to Mr. Litt, the credit analysis tool has been well received. "It's
actually doing quite well considering that we're in a down market, we are one of the few companies with a growing
revenue stream," he said. He added that in January the product's ease of use by originators and availability
was increased as it is now interfaced with Ellie Mae's Encompass loan origination software.
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