CoreLogic has launched a supplemental consumer credit report to help lenders mitigate risk by uncovering additional debt obligations, as well as increase new lending opportunities by identifying previously hidden credit behavior that could improve a consumer’s credit profile.
The California-based company’s CoreScore Credit Report contains consumer credit risk information that is compliant with the Fair Credit Reporting Act (FCRA) and can be delivered in seconds.
The CoreScore Credit Report is designed to provide timely consumer credit information to enhance existing credit bureau reports, helping lenders make more informed lending decisions that improve overall loan portfolio value and performance, CoreLogic explained in a statement.
CoreScore consumer information is merged with traditional credit data into a single, integrated report. The supplemental data is sourced from CoreLogic’s proprietary databases, which include nearly 1 billion consumer transaction records.
The aggregation of consumer data by CoreLogic includes consumer property ownership and mortgage obligation records, property legal filings and tax payment status, rental applications and evictions, inquiries and charge-offs from pay-day and online lenders, and consumer-specific bankruptcies, liens, judgments and child support obligations.
Additionally, CoreLogic adds new tradelines and other public record transactions in an average of just 23 days, which the company says can be up to two months sooner than traditional credit report updates.
“The CoreScore Credit Report enhances the traditional credit review process by adding exclusive and more timely supplemental credit information, enabling a more comprehensive view of the consumer for more informed lending decisions,” said Tim Grace, SVP of product management and analytics for CoreLogic.
Grace stressed that certain supplemental information is provided in isolation by smaller companies, but CoreLogic has the ability to aggregate multiple data sources and deliver this information to both lenders and consumers.
As a nationwide consumer reporting agency, CoreLogic intends to become a part of AnnualCreditReport.com, enabling consumers to request copies of the information provided to lenders.
CoreLogic says a preliminary analysis of over a quarter-million traditional credit reports for mortgage applicants demonstrated that one out of every 13 applicants lacked unique consumer credit data that the CoreScore Credit Report provides – information that could significantly impact a borrower’s debt-to-income ratio and credit risk score.
Of these, 22.6 percent contained open mortgage obligations which were nearly twice as likely to appear for a borrower with no open mortgage tradelines, and 20 percent of the loans represented by these tradelines were found to be derogatory or delinquent.
CoreLogic says its analysis also found that CoreScore provides nearly a 10 percent increase in public record data, capturing additional liens, judgments, and evictions not reflected in traditional credit reports.
To ensure users can easily interpret the new reporting solution, CoreLogic is bringing to market a new scoring solution. The solution will be designed to capture the predictive benefit of the CoreScore Credit Report’s data, combined with traditional credit bureau data and scores.
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