Lenders Interested In Finding More Borrower Data

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Data For Lenders

For financial institutions determining the credit worthiness of a borrower, there are often many factors that go into the decision, such as the debt-to-income ratio, the borrower’s credit score and borrowing history. But is this enough? For some lenders, the answer is no, and the search for more data is on.

HousingWire article this week explained that some mortgage originators are hoping to gain access to more data to determine if a borrower is qualified for a loan. Risk management experts at the SourceMedia mortgage servicing conference said that while information like credit scores are telling, it’s also important to look into cash flow and personal expenses.

“A 780 FICO means very little once a person’s monthly cash-flow is cut in half, leaving them without an ability to make monthly payments,” the article said.

To fill in the gap with this information, some services are asking for even more specific data, such as how much applicants typically spend on gas, or even cigarettes. If a borrower’s monthly expenses put them in a place where they have little emergency money or little savings to rely on, their high credit score may not be as valuable as those with a more consistent cash flow.

Fortunately, there are tools for financial institutions to gain access to information about a borrower, and assist in making decisions regarding a loan applicant’s qualifications. Portfolio management software can help paint a better picture of a borrower’s history, and with decisioning software, banks can determine the likelihood of delinquency. In general, the more data regarding an applicant, and the more accurate that data is, financial institutions can continue to remain profitable by decreasing their rate of delinquencies.

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For financial institutions determining the credit worthiness of a borrower, there are often many factors that go into the decision, such as the debt-to-income ratio, the borrower's credit score and borrowing history. But is this enough? For some lenders, the answer is no, and the search for more data is on. 

HousingWire article this week explained that some mortgage originators are hoping to gain access to more data to determine if a borrower is qualified for a loan. Risk management experts at the SourceMedia mortgage servicing conference said that while information like credit scores are telling, it's also important to look into cash flow and personal expenses.

"A 780 FICO means very little once a person's monthly cash-flow is cut in half, leaving them without an ability to make monthly payments," the article said. 

To fill in the gap with this information, some services are asking for even more specific data, such as how much applicants typically spend on gas, or even cigarettes. If a borrower's monthly expenses put them in a place where they have little emergency money or little savings to rely on, their high credit score may not be as valuable as those with a more consistent cash flow. 

Fortunately, there are tools for financial institutions to gain access to information about a borrower, and assist in making decisions regarding a loan applicant's qualifications. Portfolio management software can help paint a better picture of a borrower's history, and with decisioning software, banks can determine the likelihood of delinquency. In general, the more data regarding an applicant, and the more accurate that data is, financial institutions can continue to remain profitable by decreasing their rate of delinquencies. 

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For financial institutions determining the credit worthiness of a borrower, there are often many factors that go into the decision, such as the debt-to-income ratio, the borrower's credit score and borrowing history. But is this enough? For some lenders, the answer is no, and the search for more data is on. 

HousingWire article this week explained that some mortgage originators are hoping to gain access to more data to determine if a borrower is qualified for a loan. Risk management experts at the SourceMedia mortgage servicing conference said that while information like credit scores are telling, it's also important to look into cash flow and personal expenses.

"A 780 FICO means very little once a person's monthly cash-flow is cut in half, leaving them without an ability to make monthly payments," the article said. 

To fill in the gap with this information, some services are asking for even more specific data, such as how much applicants typically spend on gas, or even cigarettes. If a borrower's monthly expenses put them in a place where they have little emergency money or little savings to rely on, their high credit score may not be as valuable as those with a more consistent cash flow. 

Fortunately, there are tools for financial institutions to gain access to information about a borrower, and assist in making decisions regarding a loan applicant's qualifications. Portfolio management software can help paint a better picture of a borrower's history, and with decisioning software, banks can determine the likelihood of delinquency. In general, the more data regarding an applicant, and the more accurate that data is, financial institutions can continue to remain profitable by decreasing their rate of delinquencies. 

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For financial institutions determining the credit worthiness of a borrower, there are often many factors that go into the decision, such as the debt-to-income ratio, the borrower's credit score and borrowing history. But is this enough? For some lenders, the answer is no, and the search for more data is on. 

HousingWire article this week explained that some mortgage originators are hoping to gain access to more data to determine if a borrower is qualified for a loan. Risk management experts at the SourceMedia mortgage servicing conference said that while information like credit scores are telling, it's also important to look into cash flow and personal expenses.

"A 780 FICO means very little once a person's monthly cash-flow is cut in half, leaving them without an ability to make monthly payments," the article said. 

To fill in the gap with this information, some services are asking for even more specific data, such as how much applicants typically spend on gas, or even cigarettes. If a borrower's monthly expenses put them in a place where they have little emergency money or little savings to rely on, their high credit score may not be as valuable as those with a more consistent cash flow. 

Fortunately, there are tools for financial institutions to gain access to information about a borrower, and assist in making decisions regarding a loan applicant's qualifications. Portfolio management software can help paint a better picture of a borrower's history, and with decisioning software, banks can determine the likelihood of delinquency. In general, the more data regarding an applicant, and the more accurate that data is, financial institutions can continue to remain profitable by decreasing their rate of delinquencies. 

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For financial institutions determining the credit worthiness of a borrower, there are often many factors that go into the decision, such as the debt-to-income ratio, the borrower's credit score and borrowing history. But is this enough? For some lenders, the answer is no, and the search for more data is on. 

HousingWire article this week explained that some mortgage originators are hoping to gain access to more data to determine if a borrower is qualified for a loan. Risk management experts at the SourceMedia mortgage servicing conference said that while information like credit scores are telling, it's also important to look into cash flow and personal expenses.

"A 780 FICO means very little once a person's monthly cash-flow is cut in half, leaving them without an ability to make monthly payments," the article said. 

To fill in the gap with this information, some services are asking for even more specific data, such as how much applicants typically spend on gas, or even cigarettes. If a borrower's monthly expenses put them in a place where they have little emergency money or little savings to rely on, their high credit score may not be as valuable as those with a more consistent cash flow. 

Fortunately, there are tools for financial institutions to gain access to information about a borrower, and assist in making decisions regarding a loan applicant's qualific
ations. Portfolio management software can help paint a better picture of a borrower's history, and with decisioning software, banks can determine the likelihood of delinquency. In general, the more data regarding an applicant, and the more accurate that data is, financial institutions can continue to remain profitable by decreasing their rate of delinquencies. 

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