Analytics companies FICO and CoreLogic have launched a new credit score to help mortgage lenders better evaluate potential borrowers.
The new model uses traditional credit score data along with supplemental information including property transaction data and landlord/tenant data collected by CoreLogic to better predict mortgage loan performance.
"The new FICO Mortgage Score is designed especially for prequalification and origination and delivers increased insight when it matters most," said Joanne Gaskin, senior director of scores product management and mortgage practice leader at FICO, in a press release Tuesday.
"For a top-20 lender processing 300,000 applications a year, adopting this new score could translate into 3,900 more loans approved every year along with a net financial benefit of $14.5 million," said Tim Grace, senior vice president of product management at CoreLogic, in the release. "As such, it not only provides a more complete and predictive evaluation of a consumer's credit risk profile, but it can empower lenders to better mitigate risk and approve more loans for more consumers."