In March 2012 a new credit score will be introduced by CoreLogic. This new score aims to supplement Fico scores pulled by lenders. This will be optional for banks. Since CoreLogic already provides merged reports to lenders and creditors it will be an easy product to sell. This score will compile non-traditional credit history information that may not be on regular credit bureau reports and provide a much quicker window for updating filings. The turnaround time for filings is 23 days compared to the 60 day period the bureaus usually take.
Here is a list of some of the information CoreLogics described as being part of the new score tabulation:
*Properties owned, with and without debt obligations
*Mortgage obligations with companies that may not report to traditional credit reporting agencies
*Property legal filings, such as notices of default
*Property tax amounts and payment status
*Estimated market values on all U.S. properties owned
*Rental applications and evictions
*Inquiries and charge-offs from pay-day and online lenders
*Consumer-specific bankruptcies, liens, judgments and child support obligations
So what does this mean for lenders and consumers?
While some think this will make it more difficult for consumers, others believe it will give lenders the ability to approve more loans. Those banks that chose to use the supplement will most likely see some applicants benefit from it while others are hurt. The Fico scores will still be used by lenders and the CoreLogic score and report will just be a supplement adding to the information the bureaus supply. This will give underwriters a more detailed vision into the consumers paying habits and credit management skills.