Expanded information has the potential to help create greater homeownership opportunities for millions of first-time mortgage applicants in the United States
ATLANTE, October 13, 2022 /PRNewswire/ — Equifax® (NYSE: EFX) is the first to provide certain telecommunications (telco), pay TV and utility attributes to the mortgage industry to help streamline the mortgage underwriting process and support lending in the secondary mortgage market. The majority of American adults have at least one utility bill in their name. Providing certain telecommunications, pay-TV, and utility attributes to mortgage lenders alongside traditional credit reports can help create greater homeownership opportunities for 191 million U.S. consumers, 80% of whom have credit records. traditional credit, but can benefit from additional information about their financial profile that can make mortgage underwriting faster and easier. Using this expanded data insights can also provide visibility to millions of unseen credit consumers—those without traditional credit records—and improve the financial profiles of thin, young, and unrated consumers when ‘they fill out first mortgage applications.
For many Americans, buying a home is a crucial first step in building wealth. However, credit-blind consumers may struggle to take the first step toward homeownership. Often these consumers have to go through a lengthy manual underwriting process of obtaining physical documentation from third parties to prove they have a credit history when applying for a mortgage. By providing certain attributes, based on a consumer’s aggregate history with telecommunications, pay TV and utilities, Equifax is able to deliver powerful new insights that help automate, save time and resources and Streamline the first mortgage process for each applicant – creating more opportunities for consumers to get a loan.
“At Equifax, we strive to create economically healthy individuals and communities everywhere we do business,” said Mark W. Begor, CEO of Equifax. “While traditional credit reports remain a strong indicator of credit history and past financial reliability, we believe that more data leads to better decisions. Reviewing traditional credit reports alongside other information on data enables the mortgage industry to develop a more complete picture of a consumer’s financial profile to drive greater financial inclusion by potentially streamlining mortgage underwriting processes for more consumers.This new offering is another how we leverage differentiated data assets to help more consumers access traditional financial services and opportunities.
This Fair Credit Reporting Act (FCRA) compliant information provides anonymous information to streamline the mortgage application process when consumers seek approval for a home loan. This expanded data cannot be used by lenders to deny applications for credit or other services.
“The path to financial well-being and equity often begins with home ownership,” said Craig Crabtree, Senior Vice President and General Manager, Equifax Mortgage and Housing Services. “The key to greater financial inclusion lies in higher levels of visibility. By offering these consumer-grade, highly structured telecommunications, pay-TV, and utility attributes in addition to its traditional mortgage credit reports, Equifax offers the mortgage industry the ability to access enhanced data sets that can further facilitate mortgage processes for more consumers. We look forward to working with the mortgage industry so that together we can unleash all the potential to help millions of Americans achieve their goal of home ownership.
This additional consumer information, provided alongside Equifax’s traditional mortgage credit report, will be provided at no additional cost to lenders, helping them simplify the manual underwriting process, improve the customer experience and reduce lender costs. . Equifax will begin making this information available to customers in the first quarter of 2023.
The inclusion of telecommunications, pay TV and utility attributes to mortgage lenders is just one of the many ways Equifax promote better access to credit. Equifax is committed to removing barriers to financial inclusion, supporting a number of industry initiatives designed to provide underserved populations with the same opportunities to succeed and benefit from the nation’s financial system as others.
For more information on Equifax mortgage and housing solutions, visit equifax.com/mortgage.
ABOUT EQUIFAX INC.
At Equifax (NYSE: EFX), we believe that knowledge is the engine of progress. As a global data, analytics and technology company, we play a vital role in the global economy by helping financial institutions, businesses, employers and government agencies make critical decisions with greater trust. Our unique blend of differentiated data, analytics and cloud technology generates insights to support decisions to move people forward. Headquartered in Atlanta and supported by more than 13,000 employees worldwide, Equifax operates or has investments in 25 countries in North America, Central and South America, Europe and the Asia-Pacific region. For more information, visit Equifax.com.
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Rebecca Paul Martin
SOURCE Equifax Inc.