ScoreNet Offers Additional Data, Monthly Updates to its Customers
The Fair Isaac Corp. has expanded its ScoreNet service to offer subscribing banks and businesses their choice of up to 202 credit attributes from Experian consumer credit files, accompanying Fair Isaac scores calculated at Experian.
Subscribers can also now conduct monthly score updates delivered over the Fair Isaac proprietary network.
Monthly credit score updates give lenders more up-to-date risk evaluations of their customers. Lenders use credit file attributes, which provide information from each credit file, such as how many bankcards the person has, to gain a better understanding of their credit status and history.
By greatly expanding the suite of credit file attributes, ScoreNet Service enables subscribers to refine their strategies for decreasing delinquency rates, increasing balances and building stronger customer relationships, according to Fair Isaac.
Barbara Dalmau, product management director for global scoring solutions at Fair Isaac, said the increased frequency of score updates can help loan servicers improve customer management strategies. With ScoreNet, even small lenders can check on their customers' payment status every month, she said.
She told Mortgage Servicing News that the ScoreNet service is just as applicable for mortgage and home-equity portfolio managers as it is for servicers of other types of loans such as credit cards and auto loans.
In the Internet age, consumers are able to make changes in their credit profiles with new transactions more quickly and frequently than ever before, she said. That makes it all the more valuable for loan servicers to be able to track Fair Isaac scores on a monthly basis. Previously, ScoreNet users could only get information on the loans in their accounts updated quarterly or less frequently. Having access to monthly updates allows lenders to make "quicker and more effective decisions" about managing their portfolio, Ms. Dalmau said.
"One of the major enhancements is that now they can obtain the scores monthly through Experian," she said.
She said that in addition to monitoring for credit quality, ScoreNet can help mortgage servicers with cross-sell and customer retention strategies.
"Banks and mortgage companies these days are really focused on cross-sell issues. So this product would help them determine if this is someone to whom they want to offer more products," she said.
The new service allows users to choose from up to 202 loan attributes to monitor, up from a maximum of 51 previously, Ms. Dalmau said. Examples of those attributes include aggregate balances on mortgage loans or any delinquencies over the previous 12 months. The service offers 20 mortgage-related attributes in addition to 20 home-equity attributes.
Home-equity lenders might benefit from tracking the performance and features associated with an underlying first mortgage, she added.
She said the service can accommodate a variety of technology systems used by lenders, from tapes to online desktop access. It can be offered in a way that minimizes the burden on a client's IT staff because they do not have to do the auditing and tape cutting that would normally be required, Ms. Dalmau said.
Ron Totaro, vice president of Global Scoring Solutions, echoed those thoughts.
"ScoreNet Service's richer set of credit attributes helps lenders to get even more mileage from Fair Isaac credit bureau scores," Mr. Totaro said. "Lenders can apply these attributes in many ways to improve their bottom line, such as by selecting attributes that will fine-tune their credit risk evaluation or improve their account retention strategies or increase their cross-sell opportunities."
He said subscribers who use ScoreNet Service for account management can also obtain guidance from Fair Isaac consultants to select attributes to solve specific business problems such as modeling segment populations or refining account management decisions.
ScoreNet Service has provided businesses with a one-stop source for Fair Isaac credit bureau scores, including revenue, bankruptcy and FICO risk scores from all three national credit reporting agencies. The new, expanded service includes features such as "time of most recent delinquency, aggregate monthly payment for open trades and highest utilization" of specific loan or credit products.
(c) 2005 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com