CoreLogic Credco has unveiled a new product called the LQ GAP report, which is designed to help residential lenders comply with Fannie Mae's 'Loan Quality Initiative' by identifying and summarizing any changes in an applicant's credit report between pre-approval and pre-funding.
LQ GAP joins a number of other CoreLogic Credco products operating in this space, including ENCORE LQ, Instant Merge LQ, and ProScan SSN.
"Up to 19% of all applicants incur additional debt between the pre-approval credit report and pre-funding, ranging from new revolving debt and auto loans to additional new mortgages," said John Bauer, executive vice president of business development for the company.
He said the new product can help mortgage bankers monitor debt-to-income ratios as well as debt increases.
CoreLogic Credco noted that Freddie Mac updated its guidelines to require that all borrower debts incurred through the note date must be included in the debt payment-to-income ratio when submitted.
