L2C Tool Identifies Low-Risk, No-Credit Customers

Customer credit-scoring company, L2C Inc., specializing in assisting banks, credit card companies and other lenders reach the underbanked, offers a new risk assessment version of its Link2Credit scoring tool.

"In the wake of the subprime meltdown in the mortgage space, lenders are reluctant to extend loans to customers with thin credit, even though many of these prospects are actually low risk," said L2C president, Mike Mondelli.

"By using our mortgage-specific version of Link2Credit to identify these low-risk customers, mortgage lenders are finding a new, relatively untapped market that can boost profitability without incurring the risk posed by sub prime borrowers."

Initially introduced in June, the mortgage-specific scoring tool was created to more accurately evaluate credit risk when screening underbanked applicants.

It gathers data from seven alternative sources in real life delivering "a more precise evaluation of prospective borrowers who have traditionally been un-scorable," the company said.

The tool helps evaluate risk for both thin-credit and no-credit applicants using proprietary algorithms, alternative data sources, actual mortgage performance and a database of prior underbanked transactions, the company said.

Founded in 2000, L2C operates mainly through its Link2Credit customized scoring system and First Score Direct marketing list service. (c) 2007 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/