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Over the next decade, a projected
60% of first-time home purchases in the United States
will be made by consumers that fall into traditionally
underserved markets. Most are low-to-moderate income borrowers.
Some are minorities and immigrants. But most importantly,
many have little or no credit history. As these markets
continue to expand, your business will increasingly be
faced with the challenge of serving these consumers. Without
the tools to meet their needs, your business might miss
out on tremendous opportunities. In
the past, running a financial check on a person without
a credit score was a costly and time consuming effort.
This usually resulted in most lenders avoiding this
type of customer all together. Traditional customers
with high credit scores were plentiful and providing
more than enough business. Today, given the current
situation in the housing market, many traditional sources
of business are drying up. But advances in technology
in the lending industry have made it possible to explore
other business opportunities. Using new risk assessment
techniques, potential customers with little or no credit
history can now be quantified in much the same way as
traditional borrowers.
Alternative credit methods such as
First American CREDCO’s Anthem Suite can perform
a check on a person’s credit worthiness using
methods such as verification of rent, utility and insurance
payments. This information can then be turned into a
score that can be interpreted in much the same way as
a traditional credit score. The result – an industry-accepted
method to help you write more loans to a new and rapidly
growing market segment. |
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