Credit Potential Increases Slightly in February Despite Dip in Mortgage Credit Inquiry Volume

Falling inquiry volume points to increased competition for lenders

March Mortgage Credit Potential Index

CreditXpert, the predictive credit score platform that helps lenders expand homeownership opportunities, has released its Mortgage Credit Potential Index (MCPI) for February 2022. MCPI is a monthly study of mid-score mortgage credit inquiries by 20-point band that serves as an indicator of changes in mortgage demand across the consumer credit spectrum and reveals affordable housing and other lending opportunities.

The February 2022 data indicate that more mortgage applicants had the potential to better their credit scores by at least one 20-point band within a 30-day timeframe, with the index climbing slightly from 71% to 72%. Credit inquiries, however, were down month-over-month in February (-7.4%) and three times that at -23.8%, when compared to the year prior.

"Given the rising interest rate environment, we're excited to see that the nearly three quarters of applicants could better their score is holding steady," said CreditXpert Vice President of Marketing, Mike Darne. "Overall inquiry volume did fall, but that's consistent with what we would expect given the reduction in refinance applications lenders are seeing in the current market."

The February 2022 MCPI showed that 54% of the nearly 125,000 inquiries with sub-580 credit scores could potentially qualify for an FHA loan within 30 days. In addition, more than 886,000 of the 1.2 million February inquiries with scores below 760 could better their score by at least one 20-point band, allowing lenders to give them better risk-based pricing and edge out competitors.

The MCPI was designed to help mortgage lenders see how shifts in volume and applicant credit potential might shape their lending operations and reduce credit fallout in an increasingly competitive market. The Index helps lenders craft strategies that will expand their addressable audience and offer more competitive offers for an increasingly savvy consumer.

"CreditXpert's Mortgage Credit Potential Index is a powerful tool that can help lenders make homeownership more accessible and affordable for all," said Darne. "When lenders help mortgage applicants achieve a higher score, it helps us deliver on our mission as lenders expand access to home ownership, arm applicants with greater purchasing power and reduce the cost of a mortgage through lower interest rates." 

The March 2022 MCPI is available for download now at https://creditxpert.com/credit-potential-index-march22

About CreditXpert

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

CreditXpert action plans are tools meant to educate mortgage professionals and prospective consumer loan applicants, and are not furnished for the purpose of improving an applicant's credit record, credit history or credit rating, or removing or modifying adverse, inaccurate, fraudulent, or other information in an applicant's credit record. CreditXpert is not a credit counseling, credit repair, or credit reporting agency. Credit scores and score changes from CreditXpert are estimates, and will likely differ from credit score information used by mortgage professionals to assess loan eligibility. CreditXpert does not guarantee that scores from any other company will change by the same amount, in the same way, or at all. 

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Source: CreditXpert

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Categories: Business Finance

Tags: Credit, Mortgage, Real Estate


Mike Darne
Mike Darne
VP, Marketing, CreditXpert, Inc.