PMI Mortgage Services released a new version of its PMIAura automated underwriting and mortgage scoring system. PMI Mortgage Services is a subsidiary of the PMI Group, the nation's third-largest mortgage insurer.
This upgrade of PMIAura will generate three types of mortgage scores and enable lenders to factor in economic data about the area where borrowers live.
"Underwriters generally consider an area's economic health when evaluating a loan's relative risk," said Claude J. Seaman, PMI's executive vice president for insurance operations.
The three types of scores PMIAura will create are a loan risk score that only takes into account a borrower's risk of default based on the borrower's credit history and other economic data; a market score which measures default risk based solely on the economic conditions of the metropolitan area that the borrower lives in; and a final score that combines the loan risk and market scores.