Overview
With Credco, you can order supplemental credit upgrades, such as Merge Plus and Rapid Recheck reports, to meet your originating and underwriting needs.
Product Comparison
Merge Plus (credit supplement) | Rapid Recheck (rescore) | |
|---|---|---|
Credit Updates at the Bureau | No | Yes |
Scores Recalculated | No | Yes |
Manual Credit Verification | Yes | No |
Available Platform | Encompass & Credco.com | Credco.com |
What is Merge Plus (Credit Supplement)?
Merge Plus (also called a credit supplement) is used to correct, clarify, or add information to a supplemental credit report. Loan underwriters or processors typically request this when additional documentation is needed. Unlike Rapid Recheck, this does not update the borrower's credit report with the credit bureaus. Merge Plus cannot be reissued for automated underwriting.
Common Uses
Bringing an account current: If a borrower has made payments, but the tradeline still shows as delinquent a Merge Plus can verify with the creditor and update the status.
Verifying an account is paid off: When a loan or credit card has been fully paid but still appears open or with a balance, a Merge Plus can confirm pay off and update the payment.
Adding context to existing items: As an example, noting a formal payment plan that isn’t shown in the report.
Incorporating alternative credit data: Such as rent or utility payments, to demonstrate financial responsibility.
Supplements require a borrower’s authorization, which allows Cotality Credco to contact creditors on behalf of borrowers to retrieve updated information.
How the Merge Plus Process Works
Automated call: Cotality Credco uses an automated phone system from the creditor to obtain current account information.
Conference call: Sometimes, a three-way call is set up between the borrower, creditor, and Cotality Credco so that the creditor receives borrower authorization to verify account information. This is usually required when the creditor does not offer an automated phone system.
Documentation: Cotality Credco works with the creditors to obtain updated and accurate account information and applies the new information to the supplement file.
Most Merge Plus orders are processed within at least two business days. If multiple updates are needed, additional calls may be required.
Example
A borrower’s student loans are incorrectly reported as active instead of deferred, which inflates their debt-to-income ratio.
The lender requests a Merge Plus. Cotality Credco sets up a conference call with the student loan provider and the borrower to receive updated information.
The error is corrected on the Merge Plus report within days, lowering the borrower’s DTI and improving mortgage eligibility.
What is Rapid Recheck (Rescore)?
When borrowers take steps to improve their credit - such as paying down credit card balances or disputing errors - those updates can take 30 to 45 days to appear on a credit report. A Rapid Recheck is a service that speeds up this process, allowing updates to be reflected in as little as 3 to 5 business days.
How It Works
Borrower Action: The borrower takes steps to improve their credit (e.g., paying down balances, providing a letter of dispute removal).
Lender Submission: The lender submits the Rapid Recheck request and provides supporting documentation. Rapid Recheck is a service available only to mortgage lenders and inaccessible to borrowers. In some cases, we can perform a Rescore without the need for documentation.
Bureau Update: Once verified, the credit bureaus update the borrower’s credit file, and a new credit report is generated, and the lender receives an updated credit report to evaluate eligibility.
When to Use
If a borrower needs to quickly improve their score – such as qualifying for a better interest rate before closing – the lender should submit a Rapid Recheck order.
Example
A borrower enters escrow on a home with a 21-day closing timeline. Their initial credit score is 692, just below the 700 threshold for a lower interest rate.
The lender advises paying down credit balances.
Borrower completes these actions; lender requests a Rapid Recheck and provides supporting documentation.
Within three business days, the bureaus update the file, and the borrower’s score rises to 702, unlocking a more favorable interest rate.