Industry NewsMortgage

Lenders using new credit score may approve more loans

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Mortgage lenders now have access to a new credit score designed to uncover potential borrowers' hidden credit histories and more accurately predict mortgage loan performance. Last fall, Santa Ana, Calif.-based real estate and mortgage data aggregator CoreLogic signed an agreement with Fair Isaac Corp., the owner of the widely used FICO score, to develop new credit risk scores for the U.S. mortgage industry. The result is the FICO Mortgage Score Powered by CoreLogic, which includes data reported to the three main credit bureaus -- TransUnion, Equifax and Experian -- and supplementary "alternative credit" data gleaned from CoreLogic's proprietary databases and public records and included in the company's CoreScore credit report. These data include property ownership and mortgage obligation records, including properties paid with cash and mortgages held with smaller, nonreporting lenders; property legal filings and tax payment status; rental applications and evictions; inquir...