ATLANTA, Sept. 26, 2016 /PRNewswire/ -- Equifax Inc.
(NYSE: EFX), a global information solutions provider, today
announced that for the first time in 30 years the information that
it provides lenders on traditional credit reports has been updated
to include up to two years of debt repayment and balance
history.
The change, effective Sept. 24, is
part of an effort to help mortgage lenders and other credit
grantors better understand an individual's creditworthiness. Now
lenders can review up to two years of debt repayment and balance
history.
When assessing a potential homeowner's credit report, mortgage
lenders historically had access to an individual's total
outstanding balance of credit, utilization and overall credit
availability. The information did not offer details on whether
payments serviced all or part of an individual's debt nor if
patterns existed in the consumer's balance utilization. The update
coincides with research conducted by Fannie Mae which demonstrated
that, all else being equal, borrowers who paid off their credit
card debt every month are 60 percent less likely to become
delinquent than borrowers who make only the monthly minimum
payment.
The inclusion of this trended credit data will provide mortgage
lenders with a more comprehensive view of a borrower's debt
management practices. The information will help lenders more
accurately identify and potentially reward responsible credit
behavior beyond just assessing an individual's credit score. In
addition, the use of trended credit data can help to expand access
to credit and to provide more borrowers an improved chance of
qualifying for a mortgage.
"For nearly three decades, mortgage lenders have used the same
static formula to determine whether or not someone receives a home
loan," said Craig Crabtree, general
manager of Equifax Mortgage Services. "Leveraging trended credit
data to evaluate how borrowers actually manage and pay off their
credit debt could have enormous potential in terms of opening up
credit and providing many Americans with access to mortgage loans
that they previously may not have qualified for."
Over the last 10 years, Equifax has focused on utilizing the
data it has on hand to support the sustainability of the financial
marketplace, as well as the needs of creditworthy consumers.
Consumer credit data is the most accurate way to assess a
consumer's financial health and a useful tool in assessing current
economic performance. Equifax is working to revolutionize consumer
credit information to enhance its offerings in support of consumers
and economies around the world.
For more information about this update to the tri-merge credit
report and trended data, visit: www.equifax.com/smarterlending.
About Equifax
Equifax powers the financial
future of individuals and organizations around the world. Using the
combined strength of unique trusted data, technology and innovative
analytics, Equifax has grown from a consumer credit company into a
leading provider of insights and knowledge that helps its customers
make informed decisions. The company organizes, assimilates and
analyzes data on more than 800 million consumers and more than 88
million businesses worldwide, and its databases include employee
data contributed from more than 5,000 employers.
Headquartered in Atlanta, Ga., Equifax operates
or has investments in 24 countries in North America, Central and South America, Europe and the Asia-Pacific region. It is a member of
Standard & Poor's (S&P) 500® Index, and its common stock is
traded on the New York Stock Exchange (NYSE) under the symbol EFX.
Equifax employs approximately 9,200 employees worldwide.
Some noteworthy achievements for the company include: Ranked 13
on the American Banker FinTech Forward list (2015);
named a Top Technology Provider on the FinTech 100 list
(2004-2015); named an InformationWeek Elite 100 Winner
(2014-2015); named a Top Workplace by Atlanta Journal
Constitution (2013-2015); named one of Fortune's World's
Most Admired Companies (2011-2015); named one of Forbes'
World's 100 Most Innovative Companies (2015). For more information,
visit www.equifax.com
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SOURCE Equifax Inc.