CoreLogic has launched a new credit report designed to provide consumer credit information that enhances existing credit bureau reports.
The purpose of the new report is to help lenders mitigate risk by uncovering additional debt obligations for a consumer that were previously hidden that could improve a consumer's credit profile. This allows the lenders to make more informed decisions that improve overall loan portfolio value and performance.
The CoreScore Credit Report consumer information is merged with traditional credit report data into a single report. The supplemental data used in this report, which will be delivered to lenders in seconds, comes from approximately one billion consumer transactions that are pulled from the Santa Ana, Calif.-based firm's national databases on real estate, rental information and public records.
Information on the new credit report will include 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.
According to CoreLogic, this type of data has not been available from traditional credit reporting agencies. CoreLogic said it will provide lenders with this information and other public transactions in an average of just 23 days, which can be up to two months faster than existing credit report updates.
CoreLogic conducted an analysis of over 250,000 traditional credit reports for mortgage applicants and found that one of out of every 13 applicants lacked the "unique" consumer credit data that the CoreScore provides. CoreLogic said this information could significantly impact a borrower's debt-to-income ratio and credit risk score.
"While certain supplemental information is provided in isolation by smaller companies, the ability for CoreLogic to aggregate multiple data sources and deliver through convenient access points for lenders and consumers positions CoreLogic as the industry's primary supplemental bureau," said Tim Grace, senior vice president of product management and analytics for CoreLogic. "Further, as a nationwide consumer reporting agency, we intend to participate on the website Annual Credit Report, enabling consumers to request copies of the information provided to lenders."
CoreLogic is utilizing a new scoring solution for their credit report solution, which will combine the traditional credit bureau data and scores with the information CoreScore captures about a consumer.
"We believe that the creation of a new score that considers traditional credit information along with unique CoreLogic data will provide a more predictive model for the lending industry," Grace said.
