Amidst the Impact of Interest Rate Movements, TransUnion Introduces New Solution to Better Assess Property Values
January 10 2024 - 8:00AM
With an anticipated drop in interest rates in the months to come,
many homeowners may soon begin tapping the equity that has built up
in their homes as a result of today’s historically high property
values. It is with that possibility in mind that TransUnion (NYSE:
TRU) today unveiled TruVision Consumer Property Insights for
Portfolio Management to help ensure both lenders and borrowers are
protected from the potential risks associated with property value
fluctuations.
According to the recent Q3 2023 TransUnion Credit Industry
Insights Report, tappable home equity continues to rise, up to
$19.7 Trillion in Q2 2023. And while home equity originations
continue to lag in this abnormally high interest environment, an
anticipated reduction in interest rates may be the motivation for
many homeowners to tap into that available equity. As a result, it
is imperative for lenders to have a true picture of the property
values in their portfolio.
“Both macro and microeconomic conditions and fluctuations can
dramatically impact the value of a property, putting mortgage and
home equity borrowers and lenders at risk,” said Satyan Merchant,
senior vice president, auto and mortgage business leader at
TransUnion. “Having access to current property value insights for
portfolio management can help lenders determine the risk of the
property values in their portfolio to manage risk exposure.”
TransUnion has long understood the value of these property
insights and has previously leveraged them to lenders in the market
with Consumer Property Insights for Prescreen. Lenders can now use
this same information for portfolio management to help them
determine the risk associated with property values in their
portfolio to manage their risk exposure.
Portfolio management solutions fueled by property insights can
help lenders and servicers address changes in their portfolios to
optimize performance and manage risk. Ultimately, this provides a
more holistic view to help assess the riskiness of a portfolio from
a property perspective.
Consumer Property Insights for Property Management provides
lenders with an array of new and differentiated insights, such as
combined-loan-to-value (CLTV), on each property a consumer owns. As
well, it includes characteristics of those properties to help
mortgage and home equity lenders gain a deep understanding of the
underlying asset securing the mortgage or home equity loan.
The proprietary algorithm links property lien data with the
corresponding tradeline, enabling TransUnion to deliver mortgage
and home equity lenders more accurate information about the
underlying asset by using an actual value for the amount owed on
the property instead of an estimated or derived value. This linking
enables TransUnion to provide information about all properties (up
to five) owned by a consumer instead of only the property for which
the lender might have a Mortgage or Home Equity loan, enabling
deeper property value insights in the lender’s portfolio.
TransUnion Consumer Property Insights for Portfolio Management
helps customers achieve a better understanding of risk for all
properties that consumers in a portfolio have in order to make more
proactive and informed portfolio decisions. This helps them to
identify early warning signs in property values based on property
activity, as well as implement a risk management plan to address
significant shifts in market conditions.
Merchant concluded, “We believe this solution significantly
increases TransUnion’s value proposition for its already robust
portfolio management solutions and will position TransUnion as a
market leader insofar as understanding the needs of the mortgage
industry.”
To learn more about TruVision Consumer Property Insights for
Portfolio Management, click here.
About TransUnion (NYSE:TRU)
TransUnion is a global information and insights company with
over 13,000 associates operating in more than 30 countries. We make
trust possible by ensuring each person is reliably represented in
the marketplace. We do this with a Tru™ picture of each person: an
actionable view of consumers, stewarded with care. Through our
acquisitions and technology investments we have developed
innovative solutions that extend beyond our strong foundation in
core credit into areas such as marketing, fraud, risk and advanced
analytics. As a result, consumers and businesses can transact with
confidence and achieve great things. We call this Information for
Good®—and it leads to economic opportunity, great experiences and
personal empowerment for millions of people around the
world.
http://www.transunion.com/business
TransUnion (NYSE:TRU)
Historical Stock Chart
From Apr 2024 to May 2024
TransUnion (NYSE:TRU)
Historical Stock Chart
From May 2023 to May 2024