Archive for the ‘Business’ Category

CoreLogic SVP on Spurring Mortgage Lending

Posted by Joel pate in Business. Tagged: , , , , , , , , ,

By Sara Bovat of National Mortgage News.

CoreLogic and FICO this week released the FICO Mortgage Score Powered by CoreLogic. This new offering evaluates the traditional credit data from the national credit data repositories and the supplemental consumer credit data in the CoreLogic CoreScore.

This is aimed at increasing the number of mortgage loans that lenders make by improving the quality of their credit decisions on loan applications.

In a question-and-answer session with Asset Securitization Report, Tim Grace, senior vice president of product management at CoreLogic, spoke about why the product can potentially drive the number of the country’s mortgage originations higher.

ASR: A recent FICO quarterly survey showed that bankers lack confidence in the housing finance market. What attributes of this new product can help bring this back?

GRACE: The CoreScore credit report incorporates credit history-related data about potential borrowers and existing customers that was extracted from CoreLogic proprietary databases. The databases represent the largest and most complete collection of real estate and public records in the nation, covering 99.9% of the U.S. population. Rental information and nontraditional lender data are also incorporated into the CoreScore supplemental credit report. Since it is updated continuously, the CoreScore credit report provides additional data to augment the information provided by the traditional credit report companies. The FICO Mortgage Score Powered by CoreLogic is a new score that combines the supplementary consumer credit history from the CoreScore credit report with the credit information that is typically provided by traditional credit repositories. We believe the lenders want to approve more borrowers and we think this score will help them do so in a safer manner.

ASR: What makes CoreLogic’s information analysis more accurate and safer for lenders than traditional credit data?

GRACE: The FICO Mortgage Score Powered by CoreLogic is specific to predicting mortgage defaults. The data that was used to develop the model is from recent consumer behavior. This is why the information better represents how today’s borrower behaviors affect credit risk. In our sample of 300,000 mortgage applicants, the score also would have enabled 3,100 more consumers to qualify to purchase a home at a credit score of 700 or above criteria.

ASR: What change did you make to the CoreLogic CoreScore credit report introduced in October 2011 to further improve accuracy?

GRACE: CoreLogic is focused on increasing the transparency into borrower credit behavior. In addition to the new FICO Mortgage Score Powered by CoreLogic, the CoreScore credit report now contains rental information and alternative credit data. All of the data is seamlessly integrated into a single, real-time credit report.

ASR: How does this product help the prequalification and origination phases of the process? Will borrowers be more likely to prequalify for loans?

GRACE: The new FICO Mortgage Score Powered by CoreLogic was designed for mortgage origination from prequalification to prefunding. Analysis of the new score shows that, for a great many consumers, the inclusion of additional credit data could help them. Over 70% of consumers in our sample scored higher with the FICO Mortgage Score Powered by CoreLogic than they did with scores in general use today, and 24% saw their scores increase by more than 50 points. For borrowers in the 580-619 range or those that are close to a lender’s typical credit score minimum, 45% of that population saw their scores improve enough to meet the credit score threshold.

ASR: How will the new scoring model developed by FICO help mortgage lenders more safely and profitably expand their origination volumes? Does it create more transparency or does it better borrower prequalifications?

GRACE: The new FICO Mortgage Score Powered by CoreLogic uses the same score range as traditional FICO scores, making it easy for lenders to operationalize, and for consumers to understand. The new FICO Mortgage Score Powered by CoreLogic is more predictive than generally available credit risk scores due to a number of factors: 1) FICO extracted predictive value from the incremental data contained in the CoreScore credit report; 2) The data that was used to develop the model is from recent consumer behavior, better representing how today’s borrower behaviors affect credit risk; 3) This model is specific to predicting the likelihood of mortgage default at the point of origination; 4) A single risk score is produced, reflecting borrower credit risk using both traditional and supplemental credit data.

ASR: How does CoreLogic’s data contribute to this partnership with FICO?

GRACE: The CoreScore credit report contains information from the CoreLogic proprietary databases of nearly 1 billion consumer credit transactions. By leveraging this data with the FICO’s expertise in analytics, a series of predictive models will be developed to increase visibility into borrower credit risk. The FICO Mortgage Score Powered by CoreLogic is the first model available in production, which leverages data only available on the CoreScore credit report.

Are You A Good Manager? Part 2

Posted by Joel pate in Business. Tagged: , , , , , , , , ,

Part 2

Next, managers motivate and communicate. The work of the manager is not complete until you develop a continuous process that will keep your team well informed of the plans and purposes of their job and how they fit into the organization. Nothing de-motivates an employ more than a lack of effective communication. I say effective because all communication is not created equally.

A key to effective communication is to understand the personality profile of all of your team members and of yourself. I recommend the DISC personality profiles for this. They are easy to learn and inexpensive.

The point is that you have a method that you prefer to use to communicate to others. And in this case, your employee has a method in which they receive information, digest it and use it to YOUR benefit. You must make sure that your communication to your employee is indeed in line with the way they actually are motivated. If you don’t know what I am talking about you can probably stand some improvement in this area.

Managers must also measure. In every business there are many things to measure but only a few are critical. Your profit for example is critical but so is your cash flow. The number of new leads turns into the number of new applications. The conversion ratio is critical to keep tabs on. Make a list of all of the measurable variables in your business and maintain a daily or weekly log for each. If they are not in line with your projections, you must do something about it now. Failure to act or to fully understand the new reality is a failure to manage.

Finally, managers to develop resources and typically that means people. I find that I work well with professionals; so many of my resources are other companies. How do you work best? Directly through employees or through contractors? Either way, they must be developed and recruited. Develop a plan to continuously monitor the needs of your enterprise to determine the adjustments that needs to be made. If you don’t have any, you are not doing something correctly.

Consider this: Your rolodex, electronic or not, is your resource. It is your asset. It is your ability to reach out and get things done through people. Are you managing it?

The action item for today is to step back from your operations and from your life for about an hour or so. It doesn’t take long to clear your head. Begin to put down on paper your objectives. Focus on the organization that is needed. Don’t get too deep. Just think through the next few days of what you want to accomplish this month on various objectives. Consider now, who has to be motivated to accomplish these task. How will I measure the results? Consider outsourcing the need for the resource if possible. If you need to develop a website for instance, don’t try to learn to do it yourself.

Remember that each step towards your objectives is the best step that you can make.

To your Success

Joel S. Pate

Joel Pate is an entrepreneur and founder of multiple successful companies in the mortgage, real estate, and marketing space. For more information on Joel, contact him at

PS: Plan to join Joel for his Jump Start Business Building webinar held each Thursday at 3 PM CST by clicking on this link:





Are You A Good Manager?

Posted by Joel pate in Business. Tagged: , , , , , , , , ,

Whether you like it are not, you are a manager. The only question: Are you a good manager?

As adults we manage many facets of our work as well as personal life. And we are responsible to ourselves to make the best of every minute of every day-if only to make it more enjoyable. These principles apply to work, home, charity-to every activity in which you spend time and energy.

There are five basic operations in the work of a manager. Managers can improve their performance by improving the results they achieve on the following activities:

Establish Objectives. The first job of a manager is to establish the correct objectives for your organization/life. Only by limiting your concentration to a clearly defined set of objectives will you be able to gain the focus you need for success.

Too much energy is wasted on events that are aligned with unclear objectives. Stop and ask yourself often, why am I working on this project? Does it meet my clearly defined objective(s)? If it doesn’t, consider eliminating it from your day as soon as possible.

With a clearly defined set of objectives, it is time to consider what needs to be done in order to reach your objective. The first question to ask: Do I have the resources needed to accomplish this objective? If you do not, determine what you need and do your best to obtain it before you commence. There is nothing worse than beginning a project and then abandoning it without meeting the objective. Too many times we waste such valuable time and resources because we did not critically examine our ability to complete a project before we started. You would be better off spending the day at the beach!!!

Managers manage people as well as the objectives. Most projects require the development and the management of resources. Do not limit yourself by limiting the resources that you have in your sphere of influence. Many times it is better to engage an outside resource than to develop your own.

For example, I recently hired an Infusionsoft Expert for $100 per hour to complete a project. What is the project? Develop Infusionsoft using a clearly defined sales process flow chart into a complete system and then train my team on how to use it.

For less than $1000, we will not only have the system developed but will be trained on its use.

Regardless of the type of resource, they all require that you communicate clearly to them the objective and the goals to be of value. Be careful that you do not engage resources or employees without a clearly defined objective for in all cases they will help you define the objective with their own benefit in mind. It will be a waste of money or become very expensive.

Of course commonly opportunities arise as you go through your day focused on your objectives. While you need to have an open mind, BE CAREFUL, because most of just distractions.

Key: Be clear about your objectives prior to committing resources.

Managers must organize. Organization is a primary duty of the manager. With a clearly defined objective you can now begin the job of organizing the work that needs to be performed as well as development of the non-negotiable that you will deliver. I find that companies that do not have non-negotiable waive key elements of the protocol necessary to maximize results.

For example, if your business has a complicated sales process that requires training, require the participants to submit to training. No ifs ands or buts. Maintaining this important decision will help you grow your business in a focused manner. Elimination of problems is best when done from the beginning.

In addition, you must analyze your activities and decisions. What are the key components of your enterprise? What are the variables of your forecast? Managers must manage to those variables on a regular, even daily basis, if they hope to accomplish the goals established.

How many customers must come through your door on a daily basis to be successful? How much must they spend? Duration of the revenue activity? Productivity per hour for your staff? Percentage of re-occurring revenue units? These are just a few of the measurements for your business. The key is to measure and then soberly understand if you are meeting your targets.

Only the accomplishment of specific measurable events will culminate in the end result of your objective. Don’t get to the end of the month to determine that it was not a good month. You can determine it on a daily basis if you have the proper analysis of data.

To be continued……..

To your Success

Joel S. Pate

Joel Pate is an entrepreneur and founder of multiple successful companies in the mortgage, real estate, and marketing space. For more information on Joel, contact him at

PS: Plan to join Joel for his Jump Start Business Building webinar held each Thursday at 3 PM CST by clicking on this link:






Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales. Tagged: , , , , , , , , ,

Dear Friends,

In life we are fortunate when we can say that any court ruled in our favor but when it is the Supreme Court of the United States, it is definitely a great day.

As you may know, Compucredit was sued a few years ago under the Credit Repair Organizations Act.
The details of the case are important but the really important facts are that the Supreme Court ruled that Consumers can be required to be compelled to arbitrate a case, if the company has the proper provisions in their Contract.
So act quickly to make sure that your contract has the appropriate and legally binding clause to protect yourself against consumer lawsuit.

For more information follow this link.


Joel S. Pate, President

Ox Publishing

Execution-The Key to Un-Lock your Success

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales. Tagged: , , , , , , , , ,

Execution-The Key to Un-Lock your Success


Execution is the key to your success. Without the systematic rigorous process of tenaciously following through, while ensuring accountability, your business and personal life will be less rewarding than it could be.

Of course you need to plan, and you need to prepare. Many articles on that subject. But without execution nothing happens. Without continuous execution, not enough continues to happen.

On a daily basis, I speak with mortgage companies and credit repair companies from all over the country. If I had a nickel for every time that I have heard “I’m about to do… name it” I would have a lot of nickels.

Every day I see business owners stuck in what I have deemed to be Work Avoidance Behavior.

Now these are good folks. Smart, well-educated but none the less stuck in some type of rut.

So if you are stuck in this type of rut, how to you break free?

Determine just like Microsoft has:

  • Good is good enough-there is always a 2.0 that you can roll out
  • Make your list today but tackle first the one thing that you are avoiding
  • Yes that’s right-don’t do everything else to “get it out of the way”
  • Execute on the one thing that you know you need to do-do it now
  • You will only change your behavior when you change it

Getting ready to get ready is another way of saying work avoidance behavior. It’s time to execute your plan, roll out your website, purchase those online key words, schedule presentation meetings, etc. Do it today, you will be glad you did.

To your Success



Join Joel for his Jump Start Business Building webinar held each Thursday at 3 PM CST by clicking on this link:

Pro-Active vs. Re-Active Credit Repair

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales. Tagged: , , , , , , , , ,

Pro-Active vs. Re-Active Credit Repair


What is Pro-Active Credit Repair?

Before I answer that, let’s define Re-Active Credit Repair. As the President of a credit repair backend processing company, I have the good fortune to counsel with mortgage and real estate professionals as well as Credit Service Organization company owners from all across the county on a daily basis.

Typically in consultive roles you are looking at the problems in a business. In nearly every conversation with both large and small operators they state that their greatest problem is:


But is this the problem or a symptom of the real problem?

When digging deeper into these conversations, the real problem begins to surface. It is really a lack of ability to view the results being obtained by the industry professional on their customer’s files in a timely fashion. Why? The customers do not send in their results on a consistent basis, if at all. And, if you pull credit for credit repair from a mortgage company or other source you are violating their Terms of Service and they are subject to losing the valuable privilege with the Bureaus.

But how does this affect so many other areas of the business?

  • Since results are the primary driver of the business, the reason that consumers signed up with you and thus your deliverable, just in time delivery of this natural resource or inventory item is crucial to your business model
  • Your sales are affected due to the fact that you spend unproductive time chasing down bureau results instead of focusing on acquiring new sales and servicing the accounts you’ve already sold. Remember referrals are king.
  • Every un-planned contact from your customer is very time consuming. To increase profits you must develop a system that reduces customer communication interaction.

Whether your business is based on the Monthly Fee model or the new Pay For Delete model that is sweeping the industry, lack of control of the timely delivery of your demonstrable results impacts your ability to schedule your work and that of your production staff. Result: You have Cash Flow Instability.

Just imagine for a moment an auto assembly plant not knowing if they have enough steering wheels, bumpers or transmissions for today’s production. Can you imagine in today’s competitive landscape how that would affect their business? It’s the same for you.

So what is the solution? Credit Monitoring

It sounds ridiculous but it is true.

The timely access to credit monitoring allows you to systemize your work flow and thus drive your process without unproductive and needless contacts with you customers to chase down results.

Additionally, as you have experienced, the results arrive over a period of days if not weeks. As a result, the consumer is touching you up to three times and then you are required to examine three different reports at potentially three unique times.

Each of these extra steps takes time away from sales, meaningful customer touches and ultimately profits.

Only with a durable credit monitoring account can you plan your work and work your plan. How does it work?

Schedule the new credit monitoring pull in your calendar for each customer for a particular date. Or better yet push that down to a lower paid employee. By using your CRM platform to schedule your time to review the “results” allows you to become more productive-like a normal business.

This easy to implement process gives you “inventory” control over your work flow scheduling and thus the ability to manage your cash flow in a more businesslike fashion.

As always, many company owners were initially skeptical of this enhancement to their business and have had these objections: “That won’t work in my market….But then I’ve got to stop what I’m doing to log into the account….What if their credit card fails and I can’t access the report?… It’s too expensive… the customer cannot pay any more…”

These are all valid objections but ones that have been overcome by numerous successful operations:

  • In every market we have found that if you train your sales staff effectively you can overcome the objections from the customer of the added expense
  • The time it takes for one of your staff to log into a credit monitoring account is less than two to three minutes
  • Credit cards fail on approximately 20% of the accounts-but that is better than chasing down 100% of the consumers for results
  • The customer doesn’t want to help you do your job, the consumer wants results

Running a successful business requires that you become Pro-Active instead of Re-Active in your approach.

You do this by systemizing every possible event and by wringing out of the organization unproductive time wasters.

Ultimately you will find more time and energy for the growth drivers in your business:

  • Marketing
  • Lead Management
  • Affiliate Development
  • Sales
  • Productive Customer Interaction
  • Which leads to referrals

If you are ready to improve the results you achieve in your business, begin to implement this plan today on your next sales call.

To your Success

Joel S. Pate

Joel Pate is an entrepreneur and founder of multiple successful companies in the mortgage, real estate, and marketing space. For more information on Joel, contact him at


PS: Plan to join Joel for his Jump Start Business Building webinar held each Thursday at 3 PM CST by clicking on this link:

How To Get Organized In One Week-Part 1

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales, Uncategorized. Tagged: , , , , , , , , ,

Are you tired of facing organizational crisis? bigstock_Crisis_4188304

Have you missed your last deadline?

Well join the ever growing crowd that is tired of it right along with you.

But here’s the real question: Are you willing to join the ranks of those that need you to do something about it?

It’s time to get organized. Shall I show you were to start?

Time to put first things first!

The first step is to step back from the day to day grind to determine what is actually important in your life. You know we are individuals before we are family of men and women. Yes that’s right, your job or business is not the most important thing in your life. Thus, putting first things first is the only place to start.

What does that mean? The fact is that life is pretty short so do what is important first and continuously.

Do it for yourself. That’s right put you first. At first, this seems selfish. In the wrong context it is selfish. Realize that you can only get organized when YOU take control of what is important. You’ve got to start with you. One example of this is deciding to get into shape physically.

That journey began for me two years ago when I made a ninety day commitment to hire a trainer. What does this have to do with getting organized? It has everything to do with it. I have found that when you organize the basic element of your life, then it centers you; thus empowering you to get focused. But unfortunately it takes more than the physical element.

Next, take time out for those you care about most

The next step is focusing on your family. The key here is to set aside time, time block INTO your day and week, the events that when you look back on your life, you will be proud that you spent that time. And then, get off the damn phone and be in the moment.

Until you accomplish these two critical elements of control, you will always have a mountain of regrets and a pit of unresolved issues to transverse before you can get down to real organization.

Now we can discuss the business. Whether you work in a large organization or you work alone or in a small organization, you are the CEO of your life. In today’s integrated world, even the smallest qink in your “just in time inventory” life style causes disruption. The key to getting and remaining organized is in the selection of vendors, partners, and customers you do business with that become an integral part of your organization and thus play a huge role in determining how “organized” your life can be.

As a former homebuilder I can attest to this fact. No matter how well I planned the schedule, if one person did not show up or complete their part of the project on time, everyone had to be rescheduled. Thus to maintain an appropriate level of organization, I had to build into the schedule the realities of the frailty of mankind and the fact that it rains sometimes.

The cold reality: you still must rely on others

Overtime, I understood that no matter how organized I wanted to be, I relied upon others and their habits, lack of organization, and even worse, the use of wiggle words and even outright lies that they used to “manage “ their organization to get what they wanted.

For example, one dirt contractor when asked would say “yes, the trucks are on the road.” I took that to mean that the trucks I had been waiting on were on the way. The man I was paying to install the dirt could do his job and the plumber could then do his job and the framer who was also on the road heading to my job could do his job. But no. I discovered over time he was essentially lying by telling me that the trucks were on the road. The truth, but they were not heading to my job.

It is impossible to get organized when relying upon vendors like this.

So what is your example? More importantly, are you doing this?

The bedrock material of our life and thus your ability to organize is dependent entirely upon words and agreements and the words and agreements of those around you. The more reliable everyone in your life is to their word the more organized you can become.

Real organization requires that when you commit to something that you have every reasonable expectation of knowing it can be done. If the accomplishment of a certain obligation requires the requisition of various resources beyond your current means, then, be honest with yourself and everyone that relies upon you for this affirmative statement. If manna from heaven is required, and you’ve never seen any manna, ever, then you should disclose this fact to everyone involved, BEFORE THEY RELY UPON YOU.

What does this have to do with organization? Everything.

Saying what you mean and meaning what you say is the bedrock of a solid organization.

It is the foundation of your effort to bring your most precious asset — your time — under control. If you make obligations that cannot be accomplished in the time frame that you establish, and others place reliance upon your claims, your organizations foundation is weakened by every unmet obligation. You can’t build a solid organization on empty promises to others or to yourself.

To build a solid organization and thus be organized, you must wring out of your organization vendors, contributors and participants that do not hold to this same standard of excellence. It is the only way to deliver on your own promises and commitments and thus make the most of your energy and effort.

Always remember that unresolved issues dam up your creative power, your organizational strength and make you ineffective. As a result, you accomplish even less.

Stay tuned for Part 2 next week…

To your success,


Joel S. Pate, Ox Publishing
Chairman & President

Would you like to receive more information from Joel? Joel Pate is an entrepreneur and founder of multiple successful companies in the mortgage, real estate, and derogatory credit industry. For more information on Joel, contact him at

Fixation leads to death

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales, Uncategorized. Tagged: , , , , , , , , ,

bigstock_Doorway_To_Heaven_88666You’ve got to look up and out. That is where you build your business.

According to world renown business management author Peter Drucker, “Growth for any company is found outside of its four walls, not from within.” That is where you will find the business – outside of your four walls.

Regardless of the size of your enterprise, it is easy to find yourself fixated on the details. Now, don’t get me wrong, you’ve got to focus on the details but not to the point that you do not have sufficient outward focus. There is a balance and you must find it. So I’m sure you’re wondering…

“How do I find it?”

Glad you asked. The only way is to time block activities into your day. Again, regardless of the size of your company, you will be required to focus on internal details, Key Performance Indicators as well call them. These KPIs tell you how your business is running. So, part of the day, you’ve got to time block out for review of the KPIs.

The same goes for your focus outside of your business. You need to literally block out appointment time on your calendar a week or more in advance when you will make sales calls, follow up with your existing and past clients, seek referrals, build new marketing campaigns, attend tradeshows, participate in webinars and of course give webinars.

But if you are like just about everyone else, you find yourself fixated (my word) either too much on the details or on the sales. You have a pre-disposition to either be internally focused or externally focused. But you can’t become fixated.

bigstock_Electronic_Altimeter_Close_Up_1571269Fixation for a pilot of an airplane will surely lead to death. A pilot must have a heads up display of multiple instruments-and not become fixated on just the compass for instance. Many pilots have crashed their plane by fixating too intently on the direction they are flying while losing focus on the altitude. They were indeed flying in the proper direction but straight towards the ground.

But as the CEO of your life, your enterprise, your department, to be successful it dictates a multi-faceted approach, a multifaceted approach is what you have to give it.

So, let’s start on Monday. Over the weekend, pull out the old day planner and time block in the things you need to do to grow your business. And of course time block in an appropriate amount of time for the KPI’s of your business. And time block in time for outward focus and for family time and for time for yourself too.

I say time block in because you can’t time block out time. You never started doing a new thing by ceasing to do anything. You must fill your day with activities on purpose in order to obtain the purpose for which the day was planned.

By next week, I promise that if you implement this approach you will have accomplished more and be on the way to making more money and keeping more of it too.

To your success.


Joel S. Pate

Ox Publishing

Would you like to receive more information from Joel?

Joel Pate is an entrepreneur and founder of multiple successful companies in the mortgage, real estate, and marketing space. For more information on Joel, contact him at

Risk-Based Pricing Guidance in Plain English

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales, Uncategorized. Tagged: , , , , , , , , ,

bigstock_Law_School_2856177Information. It’s the key to knowledge and to success. I recently received this valuable information from a top law firm and top DC based political consulting firm. After receiving permission, I wanted to share it with you.

Understanding these changes will make you stand out as the expert in your field. Send me a note to let me know how you enjoy it. To your success…



If a consumer’s credit score is used in setting the material terms of credit, the risk-based pricing notice must provide the credit score and certain related information. These new content requirements also apply if a credit score of the consumer whose extension of credit is under review was used to increase the APR.

The final rule requires the following five (5) additional information to be included in risk-based pricing notices if a credit score of the consumer was used in setting the material terms of credit or in increasing the APR:

(1) the credit score used in making the credit decision;

(2) the range of possible credit scores under the model used to generate the credit score;

(3) all of the key factors that adversely affected the credit score. Note that the risk-based pricing notice generally may not list more than four key factors. However, if one of the key factors is the number of inquiries made with respect to the consumer report, up to five key factors may be used.

(4) the date on which the credit score was created; and

(5) the name of the consumer reporting agency or other person that provided the credit score.

The risk-based pricing notice also must include a statement that a credit score is a number that takes into account information in a consumer report and that a credit score can change over time to reflect changes in the consumer’s credit history. In addition, although the final rule is largely unchanged from the proposed rule, the final rule also requires the risk-based pricing notice to include a statement that the consumer’s credit score was used to set the terms of credit offered.

Credit score” is generally defined under FCRA to mean a numerical value or a categorization derived from a statistical tool or modeling system used by a person who makes or arranges a loan to predict the likelihood of certain credit behaviors, including default. However, the definition of “credit score” expressly excludes any mortgage score or rating of an automated underwriting system that considers one or more factors in addition to credit information, including the LTV ratio, the amount of down payment, or the financial assets of a consumer. Therefore, the final rule notes that some, but not all, proprietary scores would be excluded from the definition of a “credit score” and would not need to be disclosed to the consumer.

The final rule also provides model forms for situations where a credit score and information relating to the credit score must be disclosed. The FIRST NEW MODEL form provides a general risk-based pricing notice when a credit score is used in setting the material terms of credit. The SECOND MODEL FORM provides a risk-based pricing notice in connection with account review if a credit score is used in increasing the APR. The use of the model forms is optional. However, appropriate use of the model forms provides a safe harbor for compliance with the risk-based pricing notice requirements.

If the transaction involves two or more consumers, the lender must provide a separate notice to each consumer. However, if the consumers have the same address, and the notice does not include a credit score, lenders may provide a single notice addressed to both consumers. The final rule also addresses situations when multiple credit scores were obtained by the lender. If a lender obtains multiple credit scores but uses only one of the credit scores in setting the material terms of credit, such credit score that was used must be included in the disclosure. If a lender obtains and uses multiple credit scores (e.g., by computing the average of the credit scores), the final rule requires the lender to disclose any one of such credit scores. However, the lender has the option to include more than one credit score in the disclosure.

The final rule does not change the existing exception under Regulation V from the requirement to provide a risk-based pricing notice to a consumer whose credit score was used in setting the material terms of credit. Such exception continues to be available to lenders who provide a credit score disclosure exception notice to all consumers who apply for credit. (Dodd-Frank Section 1100Fand 15 U.S.C. 1681m)



The second final rule amends the model adverse action notices in Regulation B to satisfy the adverse action notice requirements under FCRA, as amended by the Dodd-Frank Act. Certain model notices in Regulation B include the content required by the adverse action provisions of both ECOA and FCRA so that creditors can use the model notices to comply with both statutes. The Board amended these model notices to include the disclosure of credit scores and related information if a credit score is used in taking adverse action.

FCRA requires a person to provide, in an adverse action notice, information regarding the consumer reporting agency that furnished the consumer report used in taking the adverse action. It also requires a person to disclose that a consumer has a right to a free consumer report and a right to dispute the accuracy or completeness of any information in a consumer report. The final rule applies to any person that (1) is required to provide an adverse action notice to a consumer; and (2) uses a credit score in making the credit decision requiring an adverse action notice.

Creditors also disclose additional information on certain adverse action notices. If a credit score is used in taking an adverse action, a FCRA adverse action notice must include the same information that was added by the Dodd-Frank Act with respect to risk-based pricing notices:

(1) a numerical credit score used in making the credit decision;

(2) the range of possible scores under the model used;

(3) up to four key factors that adversely affected the consumer’s credit score (or up to five factors if the number of inquiries made with respect to that consumer report is a key factor);

(4) the date on which the credit score was created; and

(5) the name of the person or entity that provided the credit score.

The second final rule is largely unchanged from the proposed rule, but the Board made the following clarification changes:

The final rule added optional language in Forms C-1 through C-5 that may be used to direct the consumer to the entity that provided the credit score for any questions about the credit score, along with the entity’s contact information. Creditors may use or not use this additional language without losing the safe harbor, since the language is optional.

On Forms C-1 through C-5, references to “credit report” have been changed to “consumer report”.

Official Staff Comment # 9 to paragraph 9(b)(2) was revised to clarify that FCRA requires a creditor to disclose, in addition to the credit score used in taking adverse action, up to four key factors that adversely affected the consumer’s credit score (or up to five factors if the number of inquiries made with respect to that consumer report is a key factor).

Thank you Weiner, Brodsky and Herman Thordsen for the updates.

To your succes,


Joel S. Pate

Founder & Chairman

Joel Pate is an entrepreneur and founder of multiple successful companies in the mortgage, real estate, and marketing space. For more information on Joel, contact him at


Need to Jump Start Your Plan?

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales, Uncategorized. Tagged: , , , , , , , , ,

To Jump bigstock_Jump_Start_The_Economy_2341107Start a plan or to get unstuck, you must accept that no matter how good the plan (to increase your sales) you will need to build into it The Law of Continuous Process Improvement for the plan to work over the long haul.

Every plan requires continuous analysis and adjustment to find the way forward. Even basic tasks require a plan and a process of continuous improvement. This is important.

In the mortgage and credit business there are a number of basic processes that must be developed for the business to become a business and not a complicated job. For just a moment, imagine the axle, the spoke, the tire, and for simplification the engine providing power for the movement of a vehicle. Now imagine yourself the person benefiting from the system that generated the advancement that began with the engine that transferred power to the axle, etc.

This example asks you the question: Would you prefer to be the device that spins the most (the axle) or at the other end of the spectrum, the person benefiting from the system/process that allows you to accomplish a goal without spinning around like crazy?

Well of course you don’t want to be the axle but if you are not very careful and plan NOT to be and actually place processes in place to take care of the axle’s job, you will be the axle!

Knowing that it is not possible to just wake up every day, open your bank account online to see money that was deposited directly into your bank account without you doing anything, let’s work to get as close to that reality as possible. But how?

Every great plan starts the same way:

  • Define the objective
  • Make a list
  • Now make a detailed step by step list (don’t be complicated just use pen and paper)
  • Even better if you use different pieces of paper
  • Tape it all to the wall in sequence
  • Begin to add details to each step and then more detail
  • Now STOP. Now you must spend the appropriate amount of time determining if this is the right plan and if you have the energy and resources to really pull it together before you go one more step.
  • Because if you do spend time and money working on a plan that does not work, for any reason, you would have been better off if you just simply stop right here.

It’s OK to stop right here until you can determine how to move forward.

Only after you have completed this exercise, assign the task with a deadline to a responsible and capable person whether that person is yourself or someone else

Yes, but you say, I work alone. It’s just me. Well it’s even more important that you have a process for everything. That may be why you are working alone and can barely afford yourself.

Since I am part owner of an outsource company, it has dawned on me that I should be outsourcing even more task of my business. I have my own IT staff, but we outsource special projects such as:

  • Website design
  • Email creation
  • Content creation
  • A contractor manages my Go to Webinar, and other blogs
  • I recently used Elance to hire a person to find computer suppliers
  • I even outsource my daughter to add pictures to my Facebook of my grandson ;)

According to world renowned management expert Peter Drucker:

The best plan is only good intentions unless it degenerates into work”

Then he asks of every business that he consults when told of a new plan:

Which of your best people have you put on this work today?….if you don’t have any best people or you can’t afford to place your best people on a project then you are simply admitting that you don’t have a plan.”

All this sounds good right. But what do you do if you need to increase sales, build a new website, etc. but you just simply feel overwhelmed and don’t know the next step to take and thus you have paralysis:

  • Step away from the office (and email and Text) JUST SIMPLY STOP
  • Use paper and pen to make a list of what is really important and needs immediate attention
  • Determine what you can and cannot do today and this week
  • Make a list of the resources that you have AND THE RESOURCES THAT YOU NEED
  • Determine what is needed, what is possible and what is likely.

It’s OK to not be able to do everything today. Take a breath.

More next time.

To your success,


Joel S. Pate

Founder & Chairman

Joel Pate is an entrepreneur and founder of multiple successful companies in the mortgage, real estate, and marketing space. For more information on Joel, contact him at