New credit index points to lending opportunities

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BALTIMORE, March 01, 2022 (GLOBE NEWSWIRE) — CreditXpert, the predictive credit scoring platform that helps lenders expand homeownership opportunities, has launched a new mortgage credit score index. The Mortgage Potential Index (MCPI) is a monthly snapshot of average-scored mortgage applications in 20-point increments that serves as an indicator of how demand for mortgages is changing across the mortgage spectrum. credit.

“We put our proprietary predictive analytics engine to work analyzing the millions of credit applications flowing through our platform to reveal demand-side opportunities for lenders and consumers alike,” said VP of marketing, Mike Darne. “Because we analyze millions of average-scoring credit applications every month, CreditXpert is in a unique position to help educate applicants early on how applicants can improve their scores in a relatively short period of time. This potential means more business for lenders and better results for borrowers.”

Until now, lenders have relied on credit supply information provided after loans have closed. This lagging indicator does not provide lenders with actionable insights they can use to build stronger businesses. The MCPI provides two unique views of a significant portion of all mortgage applications:

The macro view: Highlights mortgage credit score results and trends in today’s market, including overall application volume, in 20-point increments, and the average potential increase in those increments. Highlighting the increased potential will help mortgage lenders better understand how they can help their broader pool of applicants qualify for a mortgage program or at a lower interest rate based on the applicant’s average score.

The results view: Provides lenders with valuable insight into credit score-based lending strategies and risk-based pricing, revealing a potential raise each applicant could earn within 30 days if they complete a personalized action plan(1 ) and how that increase might affect an applicant’s ability to qualify for a loan program or lower their interest rate.

The MCPI will help lenders see how volume changes and applicants’ credit potential should shape their lending operations to reduce credit fallout in an increasingly competitive mortgage market. The index was designed to help lenders develop strategies that will broaden their target audience and provide more competitive offers to an increasingly savvy consumer.

The January 2022 MCPI showed that 52% of applicants with credit scores below 580 could potentially qualify for an FHA loan within 30 days. Additionally, 6.25 million applicants with scores between 640 and 739 could improve their score by at least a 20-point increment, allowing lenders to offer them better risk-based pricing and outpace their competitors.

“CreditXpert was founded on a vision to make home ownership more accessible and affordable for everyone,” Darne said. “Helping mortgage applicants score higher helps us fulfill our mission by enabling lenders to expand access to home ownership, equipping applicants with greater buying power and reducing the costs of a mortgage thanks to lower interest rates.”

The January 2022 MCPI is available for download now at https://creditxpert.com/credit-potential-index/.

About CreditXpert

CreditXpert was founded in 2001 with a mission to make home ownership more accessible and affordable for everyone. The company’s predictive analytics platform helps mortgage originators and their applicants realize applicants’ credit score potential by generating a highly accurate and detailed action plan. Since its creation, the CreditXpert platform has analyzed more than 750 million credit files. Today, most of the top 10 mortgage originators and over 60,000 mortgage professionals leverage the company’s platform. Learn more at http://www.creditxpert.com.

(1) CreditXpert Action Plans are tools intended to educate mortgage professionals and potential consumer loan applicants, and are not provided for the purpose of improving credit report, credit history or an applicant’s credit rating, or to delete or alter any undesirable, inaccurate, fraudulent or other information in an applicant’s credit file. CreditXpert is not a credit counseling, credit repair or credit reporting agency. CreditXpert credit scores and score changes are estimates and will likely differ from credit score information used by mortgage professionals to assess loan eligibility. CreditXpert does not guarantee that another company’s scores will change by the same amount, in the same way, or at all.

Media Contact: Mike Darne, mdarne@creditxpert.com

Related images

Image 1: MCPI January 2022

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