(Originally published 07/10/12.)
It’s almost common knowledge that in recent years, lenders have been delving deeply into borrowers’ credit and financial affairs. Now lenders have another tool at their disposal, allowing them to investigate deep into areas of a borrower’s history never before available.
CoreLogic, a provider of high-value information, analytics, and risk-reducing business services to the financial industries, has introduced a new type of credit file, called CoreScore™. CoreScore™ reports include all sorts of information about your financial life that is not captured nor reported on traditional credit reports from credit reporting agencies. CoreScore™ reports could include information such as:
- Rental history
- Homeowner’s association payment history
- Child support payments
- Applications for payday loans
- Tax Liens
- Mortgages from small or private lenders
- Estimated market values on properties you own
- Any property owned – with or without debt obligations
- Even payment histories on utility and cell phone bills!
What does this mean for consumers and mortgage applicants? For some who have been juggling payments to make ends meet, it could uncover some unflattering and potentially damaging information. However, for other borrowers who haven’t established traditional credit, yet pay their bills responsibly, they could realize a boost in their qualifications.
CoreLogic has partnered with FICO to create a credit score based on this new data. This new credit scoring tool was released in March 2012.
As is the case with the three major credit bureaus, CoreScore™ will be subject to The Fair Lending Act. Therefore, by next year, consumers will be able to obtain annually, a free copy of this report through www.AnnualCreditReport.com, and will have the right to dispute any information on the report they believe to be incorrect.
As information technologies continue to evolve, one thing is for certain. Mortgage underwriters will continue to have access to more detailed information on consumers’ finances, payment habits, and credit management skills.
Warren Goldberg is a Certified Mortgage Planning Specialist and a published author. His interviews include Blog-Talk Radio, Newsday, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.