Mortgage lenders will soon have access to a prospective borrowers’ financial history, such as inquiries to pay-day lenders, previous rental applications and child support payments — all factors which will be taken into account for a new credit score.
CoreLogic, a leading provider of information and analytics, announced that it had inked an agreement with Fair Isaac Corp (FICO), owner of the FICO Score, to develop new credit risk scores, which will provide increased visibility into a borrower’s activities and future credit risks.
Most of the data gathered by CoreLogic from consumers are not available from conventional credit agencies but are critical to lenders, it said.
The new score will serve as a “supplemental credit repository”, complementing the data supplied by Equifax, Experian and TransUnion, along with property ownership and mortgage records, property legal filings, tax records, rental history, child support rulings, judgements and pay-day inquiries and charge-offs.
“CoreLogic’s unique data allows us to lever FICO’s deep analytic expertise and industry-standard mortgage score to create the consumer credit risk insights lenders need in today’s volatile market and for the future,” noted Greg Pelling, Vice President of Scoring and Analytics for FICO.
Tim Grace, Senior Vice President of Product Management and Analytics for CoreLogic, said, “We envision this score as the first in a series of new scoring solutions that FICO and CoreLogic will create for use in the mortgage industry and beyond.”
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