Dattell, a consumer information company serving banks, mortgage lenders and credit card companies, has released a new consumer credit underwriting report designed to help lenders underwrite credit risk for borrowers with non-traditional credit. Called the Repayment By Analysis (ReBA) report, this customizable assessment returns a wealth of information about any consumer who has opted in to the credit underwriting process.
“We identified weaknesses in the traditional methods of underwriting consumers for mortgage financing,” said Maria Angelella, Ph.D., managing partner of Dattell. “Too often borrowers with nontraditional credit histories are denied credit because there isn’t enough information available in the file for the lender to assess the risk. ReBA fills the gap, providing all of the information the lender needs to assess the character and credit risk of any U.S. consumer.”
The ReBA report provides a wealth of data including the consumer’s traditional credit scores, if available, as well as income and expense trends, web browsing history, purchase history and location information. The consistency, or inconsistency, with which a potential borrower pays monthly bills is included in the report, along with text and e-mail threads that provide information about purchases.
“We created a technology that allows lenders to know more about a consumer’s credit experience than ever before,” said Barry Hatfield, a software engineer and Dattell partner. “Because ReBA is customizable, lenders decide exactly what information they will use for underwriting purposes and Dattell will deliver it in an easy to read report that can be as short as a single page.”
Much of the new data that lenders can now access through Dattell about prospective borrowers is stored on cell phones. Consumers are now using their phones for most of the tasks they previously performed via computer or paper. While businesses have moved to push more information out through the mobile channel, financial services companies have not been able to pull consumer information back through this channel until now.