Marketplace Insights: How the New CreditXpert Platform Helps Lenders

What’s the current mortgage market look like?

It’s a heavy purchase market, but volume is down considerably. Refi’s are significantly down, purchases are also down and interest rates are up. If you look at, historically, volume where we’re at, we’re on pace with where we were pre-pandemic in a way.

Nonetheless, it’s a very challenging market, with many different factors that are coming into play that didn’t exist pre-pandemic. There are people companies cutting jobs left and right, and to address those actions, we’re trying to get the message out there about CreditXpert and what it can do to keep lenders competitive and active in a down market. As VP of Sales and Client Success, I must look at the market holistically, focus on your existing clients’ success, see what makes them tick and what makes them profitable. After having a better understanding of how they operate, we’ll know best recommendation on how they can best utilize CreditXpert to assist with their initiatives and goals.

How can CreditXpert help lenders find more success?

Traditionally, we’ve offered our solution through credit reporting agencies, but that has always created distance between us and lenders. We’re getting much closer to the lenders now that we’ve launched the CreditXpert Platform, which allows us to get more engaged with end users.  We will now have the visibility into the pre-application process and top-of-funnel activities, which lets us know where CreditXpert best fits in the borrower’s credit score development within each lender’s strategy.

Here’s what we’re looking forward to discovering:

1. What’s happening during the pre-qualification or lead stages?
2. How many potential borrowers are falling out due to credit?
3. How is a lender creating trust and transparency with their borrowers by using credit as a strategic tool?

When we start mapping these answers, we’ll be able to get more granular with our client relationships and provide them with the best path to maximize profitability.

What is the Credit First strategy?

At some point in time a borrower is going to inquire or shop for a loan. When the borrower finds a lender, the lender’s going to put that consumer through their origination process. Do they perform pre-qualifications? Do they pull a single bureau soft pull of credit to perform a level of initial qualifying? Are they pulling a full tri-merge credit report right away to really understand the full credit profile? CreditXpert will consume that credit data and  give an idea or probability of success to increase that credit score.   From there the originator or the mortgage professional know as example, “…this person isn’t at a 720. They’re at a 700 and there’s a 90% chance we can get that done in 30 days or less. We can get them a better rate.”

There are all kinds of timeframe options – maybe the lender presents a plan with a three-month completion timeline, or the borrower’s credit plan can be achieved immediately. In this case, after all the tasks are complete, the lender can rescore and see results or wait the appropriate number of days and repull credit. Understanding and working with a borrower’s credit early on is imperative in these current market conditions.

How can the Mortgage Credit Potential Index help?

The MCPI is a report geared toward helping lenders see how shifts in credit pull volume and applicant credit potential should shape their lending operations and help reduce credit fallout. We’re also now offering market specific data, so not only can a lender see the overall market potential for a specific credit band, but they can also see if their market is one with the most borrower’s that could improve their credit in 30 days or less (by completing a CreditXpert custom action plan).

Read our blog on How to Grow Your Business with the New MCPI >>

What does systematic borrower credit score assistance look like?

CreditXpert has been used as a very tactical tool up until this point — we’ve seen it used when a loan officer is really trying to help a borrower to find a home, going the extra mile to ensure they meet their needs. We want to change that. We’re striving to make CreditXpert usage more systematic, every borrower should have the option. Lenders are starting to catch on, and they’re seeing the value in securing one more home for a family and they’re seeing the return from referrals received from the extra time spent on a particular borrower.

Our mission is all about making home ownership accessible and affordable, and we think this type of systematic use of the CreditXpert Platform could bridge the gap in under banked communities, or with those who may be credit challenged.

In 2023, we want to continue to help lenders build CreditXpert into their processes and bring our mission to the market. Our tactical, data driven analytics platform can alleviate borrower stress, give them more purchasing power and even save them hundreds of dollars a month on their mortgage payment.

*Blog was written from direct quotes and subject matter covered in the embedded interview video.