Fair, Isaac & Co. and Formation Technologies Inc. have announced an agreement to build an electronic link between Fair Isaac's credit analysis software and Formation's loan application processing system.

Under this new arrangement, users of Formation's Pedestal loan origination system will be able to utilize Fair Isaac's software for credit bureau report analysis, credit scoring, and broader loan-application processing capabilities.

Based in San Rafael, Calif., Fair Isaac is the leading developer of predictive technologies used by banks and other credit grantors.

CreditDesk, one of its most widely used products, is a Microsoft Corp. Windows-based system that scores consumer loan applications.

Denver-based Formation Technologies' LoanCalc and LoanPublisher software have long had the ability to import information from loans approved by CreditDesk thereby eliminating the need to rekey data.

According to Peter Nielsen, a marketing manager at Fair Isaac, the Pedestal/CreditDesk interface takes this feature a step further. Bank branhes enter new application information into Pedestal. The data are then automatically transferred to CreditDesk, which resides on personal computer network.

CreditDesk obtains and analyzes the credit bureau report, calculates financial ratios, generates a score, and applies a management-defined strategy. After a decision on an applicant is made, data are automatically transferred back to the branch via Pedestal.

"Pedestal users no longer have to physically take a loan application to the area of the bank where CreditDesk is running," Mr., Nielsen said.

"An automatic interface provides a faster and more consistent method of screening applications. Approval ratios are increased, and credit losses are reduced," Mr. Nielsen said.

Pedestal customers will have a choice of Fair Isaac scoredcards, including industry-specific methodologies for direct or indirect installment loans. Fair Law can also provide custom" scorecards tailored to a bank's particular portfolio.

The interface will be available in the first quarter of 1995, company officials said.

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