Deciding whether an applicant is creditworthy is as much an art as it is a science. At Credit Plus, we’re here to assist you every step of the way as you gain the necessary insights you need to make educated lending decisions. Here are four things you need to know about your applicants and how to uncover this important information.
- Is the applicant a good manager of credit? – One of the first ways to properly analyze applicants is by reviewing their credit reports and scores. However, as of April 16, those reports no longer include tax lien information. According to CNBC, the omission of this data could cause credit scores to jump as much as 30 points.1 Additionally, LexisNexis® Risk Solutions predicts almost 11 percent of the population will have a judgment or lien removed from their credit file. In the absence of a complete consumer profile, how can you thoroughly assess credit risk and make profitable lending decisions? Get the risk intelligence you need to manage this critical information gap with LexisNexis® RiskView™ Liens & Judgments Report available from Credit Plus.
- Is the applicant who she says she is? – We live in a day and age when identify theft is on the rise. Almost 60 million Americans have been affected by identity theft, according to a 2018 online survey by The Harris Poll. That same survey reveals that nearly 15 million consumers experienced identity theft last year.2 To combat this increasing problem, run a Borrower Detail Report to validate an applicant’s identity, including name, Social Security number, birthdate, and phone number. Our report raises any red flags that need to be investigated further.
- Is the applicant moving to where he says he is? – Confirm the property in question with our Property Detail Report. It can be customized to provide the following information:
- Subject valuation
- Area recent sales
- Area active listings
- Area market analysis
- House price index
- Comparables index
- Competitive market climate within the property’s neighborhood/segment and/or within the property’s zip code
- FEMA disaster area check
- And more
- Is anyone associated with the applicant’s mortgage transaction on a watch list? – With our Mortgage Participant Detail Report, you can obtain the results of a comprehensive examination of appraiser licensing data and industry watch lists, including:
- OFAC
- SDN and Non-SDN (Specially Designated National) entities
- SAM-EPLS (Excluded Parties List System)
- Mortgage Sanctions
- Financial Sanctions
- HUD LDP (Limited Denial of Participation)
- BSA/AML Industry Watch Lists
- ASC National Registry of Appraiser
- And more
These four tools can give you the precise data you need to make more informed lending decisions. Contact your Credit Plus representative to learn more.
1 https://www.cnbc.com/2018/04/12/credit-scores-may-jump-as-tax-liens-disappear-from-reports.html
2 https://www.lifelock.com/education/how-common-is-identity-theft/