Expanded Credit Report + Enhanced Scoring Solution
Available exclusively from CoreLogic Credco®, the CoreScore™ Solution is an expanded credit report combined with the industry’s first composite mortgage credit score. The result is a comprehensive, fully decisionable and FCRA-compliant credit report and mortgage credit score that helps lenders mitigate risk by uncovering additional debt obligations, and increases new lending opportunities by identifying previously hidden credit behavior that could improve a consumer’s credit profile.
The CoreScore Solution:
- Uncovers unique mortgage data for 1 in 13 mortgage applicants
- Highly predictive credit score developed by FICO delivers a 7.5% predictive lift over other generally used risk scores
- Mitigate risk and identify new lending opportunities
- Helps lenders make better informed lending decisions, improving loan portfolio value and performance
- Delivers new mortgage liens up to two months faster than traditional credit reports
- CoreLogic supplemental credit data is easy to identify and interpret in the CoreScore credit report
- Currently available on major LOS platforms via MISMO/XML format
- One-Call Consumer Assistance and Disputes Resolution
- FCRA-compliant and 100% actionable
Exclusive data intelligence
The supplemental data featured in the CoreScore credit report is sourced exclusively from the CoreLogic proprietary information databases, the largest and most comprehensive collection of real estate, rental information and public records in the nation. Our databases contain nearly 1 billion consumer transaction records covering 99.9 percent of the U.S. population including county, municipal and special tax jurisdictions, landlord/tenant data, payday lending, installment and rent-to-own information, residential properties and liens and consumer-specific bankruptcies, liens and judgments.
The CoreLogic aggregated consumer data includes:
- Property ownership and mortgage obligation records
- Property legal filings and tax payment status
- Rental applications and collection accounts
- Inquiries and charge-offs from payday and online lenders
- Consumer bankruptcies, liens, judgments and child support obligations
Plus, CoreScore shortens reporting times for new mortgage liens from an average 60 to 90 days to an average of 23 days – which can be up to two months sooner than traditional credit report updates – allowing lenders to obtain critical borrower data faster than ever before.
The Scoring Model
Developed in partnership with FICO, the leading provider of analytics and decision management technology, the scoring model takes all of the data available in the merged CoreScore credit report - the traditional data from the national repositories and the unique supplemental consumer credit data from CoreLogic – and generates the industry's first "composite” credit score for mortgage origination risk. This scoring model is designed to help determine whether or not a loan will go 90+ days past due within 24 months of scoring.
Analysis of the model shows that the score is 7.5% more predictive than other generally available risk scores commonly used by lenders today. This lift can potentially translate into millions of dollars in additional revenue by helping lenders reduce the number of bad loan applications they accept, and increasing the number of good loans approved. The score has been developed using FICO's traditional score range ( 300-850®), calibration and reason codes, making it easy to integrate into your existing processes.
Discover New Lending Opportunities
Analysis conducted using a representative sample of loan applications demonstrates that the use of CoreScore can increase the number of loans accepted and new revenue generated. For example, a lender specializing in conforming loans ($417K or less) and using a cutoff score of 700 on an industry-standard FICO risk score could incorporate the score into their existing underwriting strategy and increase its acceptance rate by over 1% with a slight reduction in the overall bad rate.
Assuming the revenue from a good loan equals $2,000 and the loss from a bad loan is $50,000*, the new scoring model would generate a net financial benefit of $38.59 per application. On a pool of 300,000 applications, this equates to an incremental impact of approximately $11.6 million, attributed to safely approving more than 3,100 new applications and mitigating potential credit losses of $5.5 million.
*Loss metric is from the Mortgage Bankers Association Lender’s Cost of Foreclosure Policy Paper and represents the cost of taking a property to foreclosure excluding the gain/loss on disposition. Loan profit figures are an assumption based on average figures provided by multiple lenders and additional sources. Results may vary based on location, population, loan pool and other external factors.