New Credit Index Points to Lending Opportunities

Data shows that 71% of inquiries below 760 could increase by 20+ points

MCPI January 2022

CreditXpert, the predictive credit score platform that helps lenders expand homeownership opportunities, has launched a new mortgage credit score index. The Mortgage Credit Potential Index (MCPI) is a monthly snapshot of mid-score mortgage credit inquiries by 20-point bands that serves as an indicator of changes in mortgage demand across the credit spectrum.

"We've put our proprietary predictive analytics engine to work analyzing the millions of credit inquiries that run through our platform to reveal demand-side opportunities for lenders and consumers," said Vice President of Marketing, Mike Darne. "Because we analyze millions of mid-score credit inquiries each month, CreditXpert is in a unique position to help drive early awareness of how applicants may better their scores in a relatively short period of time. That potential means more business for lenders and better outcomes for borrowers." 

Until now, lenders have relied on supply-side credit information provided after loans are closed. This lagging indicator doesn't offer lenders actionable information they can use to build stronger businesses. The MCPI provides two unique views into a significant portion of all mortgage credit inquiries: 

The Macro View: Highlights the mortgage credit score outcomes and trends in the current market, including overall inquiry volume, by 20-point band, and the average potential increase in these bands. Highlighting the increased potential will help mortgage lenders better understand how they may be able to help their broader applicant pool qualify for a mortgage program or a lower interest rate based upon the applicant's mid-score.

The Outcome View: Offers lenders valuable insights into credit score-driven lending strategies and risk-based pricing, revealing a potential increase each applicant could achieve within 30 days if they complete a custom action plan(1) and how that increase could impact an applicant's ability to qualify for a loan program or lower their interest rate.

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

The January 2022 MCPI showed that 52% of applicants with sub-580 credit scores could potentially qualify for an FHA loan within 30 days. In addition, 6.25 million applicants with scores between 640 and 739 could better their score by at least one 20-point band, allowing lenders to give them better risk-based pricing and edge out competitors.

"CreditXpert was founded on a vision of making homeownership more accessible and affordable for all," said Darne. "Helping mortgage applicants achieve a higher score helps us deliver on our mission by allowing lenders to expand access to homeownership, arming applicants with greater purchasing power, and reducing the costs of a mortgage through lower interest rates." 

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

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

(1) 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. 

Media Contact:  Mike Darne, mdarne@creditxpert.com

Source: CreditXpert

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Categories: Real Estate Investments, Real Estate, Real Estate, Real Estate Law

Tags: Credit, Mortgage, Real Estate


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