Industry News

Buyers with limited credit history may qualify for prime loans

Anthem uses rent, utility and insurance payments to evaluate borrowers

First American Corp. has compiled a directory of more than 200 loan officers who are using its Anthem suite of credit reporting applications to help home buyers with limited credit histories qualify for prime-grade mortgage loans. First American's Anthem Lender Directory is designed to help real estate agents, community-based organizations and home buyers find lenders who are using "the latest credit evaluation techniques to deliver the best possible loans at the best possible prices," the company said in a press release. According to First American's credit information subsidiary, First American CREDCO, 20 percent of Americans are "unscorable" using traditional credit bureau data. But they may qualify for prime-grade loans if an alternative payment history is used in the loan evaluation process. Anthem augments traditional credit bureau data with rent, utilities, insurance and other types of payment histories to produce a more comprehensive view of a borrower's payment behavior, Fi...