Credit Analysis

When a person applies for any type of credit (such as a mortgage, credit card, or an automobile), the risk of that potential borrower must be evaluated. Using credit scores is a significant tool most lenders rely on in this evaluation. This course will present the five factors that make up a borrower’s credit score and how certain actions taken can impact the score. Explanations for the reason codes that appear on a borrower’s credit report along with the effect of derogatory accounts in credit analysis are provided. Definitions for the different types of bankruptcies are presented along with an explanation of extenuating circumstances that might have impacted the borrower’s credit. Finally, nontraditional credit is described as an option for borrowers without a credit score or with thin credit.


The course covers the following objectives:

 - How to find a representative credit score for eligibility
 - The impact of credit inquiries on a credit scores
 - A list of credit score reason codes
 - Define the different types of credit reports
 - Sections of a credit report
 - Types of bankruptcies
 - Basic rules for foreclosures
 - Role of nontraditional credit


The course covers the following topics:

 - Understand the definition of a credit score
 - Determine the different credit bureaus
 - Outline the components of a credit score
 - Define the reason codes on a credit report
 - Outline the segments of a credit report
 - Define derogatory accounts
 - Define the different bankruptcy types for residential mortgage lending
 - Analyze the causes of bankruptcy and the court actions
 - Know the details for a pre-foreclosure or short sale
 - Define the use for non-traditional credit


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