CoreLogic, through a partnership with the Fair Isaac Corporation (FICO), recently made its non traditional credit report
public, according to The New York Times.
The credit files will report on data that the three main credit agencies - Experian, Equifax and TransUnion - don't pick up. These include missed rental payments, evictions, child support judgments, applications for short term loans and property tax liens. With the additional information, lenders will now be able to view more details about prospective borrowers to make informed decisions about mortgages and home equity, although other types of credit will likely be available in the future. "Lending is very constrained and origination volumes need to grow to make for a profitable mortgage business," Joanne Gaskin, director of product management global scoring at FICO, told the new source. "So lenders are looking for ways to expand, but to expand safely." The result is a double-edged sword. For consumers with healthy scores but a less than ideal history with alternative credit data
, the CoreScore could be a burden. However, for others whose credit scores are lacking, it could become a saving grace. ECreditDaily adds that as a result of the new data, lenders with tighter, risk-based policies may increase their mortgage fees or interest rates.