Overture Technologies Enables Lenders To Use Trended Credit Data In Automated Underwriting Analyses Of Non-agency Loans
New credit data provides new insights into consumer use of credit and enables lenders to more accurately evaluate consumer willingness and ability to repay
June 16, 2016 – BETHESDA, MD – Overture Technologies today announced the integration of trended credit data into its automated underwriting system, a move that enables lenders and investors to gain new insight into the credit risk of their non-agency loans. The enhancement to the industry’s leading independent automated loan underwriting system (AUS) follows Fannie Mae’s recent announcement regarding use of expanded credit data in its Desktop Underwriter AUS.
“We are committed to helping our customers profitably transfer credit risk at scale,” said Kim Thompson, EVP of Overture Technologies. “With over 7 million Americans rebuiliding their credit after a housing-related default, and the emergence of new, post-crisis attitudes about debt among many more consumers, lenders need new credit and other data to accurately evaluate loan applications. And as these new data sources become available, our technology will enable lenders to consistently and effectively evaluate and price their risk based on the powerful combination of traditional and new data inputs.”
Trended credit data records a consumer’s use and repayment of revolving credit over time and provides important insight into consumers’ evolving ability and willingness to repay a new debt obligation. Lenders, particularly those specializing in loans to borrowers with previous bankruptcy or housing defaults, can leverage this data to understand how consumers have managed their use of credit as they re-establish their credit history. As prime lenders seek new markets, trended credit data may provide a more accurate picture of the credit worthiness of debt-averse growth segments, such as millennials and immigrants, and other consumers who use credit cards for payment convenience.
“Like any new lending criteria,” Thompson continued, “those based on trended credit data will need to be analyzed consistently and objectively. Our technology enables lenders to do this across their multiple distribution channels, in flow or bulk purchase transactions. Lenders want to innovate and our technology enables them to do so profitably and compliantly.”
About Overture Technologies
Since 2000, Overture Technologies has pioneered automated underwriting and credit risk analysis tools for the benefit of private mortgage investors. Its AUS is the industry’s only independent, commercially-available automated underwriting system that powers investor evaluation of both single loan flow and bulk purchases. Overture’s is the only solution that enables investors to underwrite, price, onboard, and surveil mortgage assets on a single platform. With its emphasis on data integrity, Overture has developed industry-leading technology that ensures accurate data exchange between sellers, buyers, diligence vendors and servicers as pools are formed, traded, securitized and serviced. As a result, the platform is an interchange, or open network that enables investors to easily interact with any party, service or vendor it chooses without spending hundreds of dollars per loan verifying data accuracy with each exchange. In sum, Overture offers its customers an end-to-end platform that fits their business – all under a software-as-a-service structure that emphasizes variable-cost usage over fixed charges.
The company is based in Bethesda, Maryland. For more information, visit www.overturecorp.com or contact John Heck, Managing Director of Business Development, at 704.255-6083 or firstname.lastname@example.org.