Alternative Credit Data Can Help More Consumers Qualify For Home Loans

    Alternative Credit Data Can Help More Consumers Qualify For Home Loans

—CEB TowerGroup Report Finds Lenders Leverage Supplemental Credit Reporting
Tools to Keep Pace with Changes in Consumer Debt Payment Behavior—

PR Newswire

IRVINE, Calif., Oct. 30, 2012

IRVINE, Calif., Oct.30, 2012 /PRNewswire/ --CoreLogic^® (NYSE: CLGX), a
leading provider of information, analytics and business services, today
announced the results of a report by CEB TowerGroup analysts that indicates
using alternative data, such as unsecured credit, payday lending and property
history in consumer credit report analysis, can help safely increase mortgage
lending. The report finds that this new data is relevant as consumers have
changed their debt payment behavior.As a result, lenders can adjust their
credit risk evaluation policies to better assess each applicant.

(Logo: http://photos.prnewswire.com/prnh/20100609/CLLOGO)

The report, titled "Enhanced Credit Data and Scoring: Deeper Insight into
Mortgage Applicants," notes that consumers used to pay mortgage debts first,
but because of the recent financial crisis some consumers now treat paying
other debts, such as credit card bills and car payments, as a higher priority
to maintain personal financial liquidity.

"Traditional credit data and analytics continue to be relevant, but are not
sufficient to satisfy the consumer credit reformation of today," said the CEB
TowerGroup's senior research director, Craig Focardi. "As a result of the
changes in consumer behavior, lenders cannot revert back to their prior
mortgage underwriting policies. Too much damage has already been done to the
market, consumers, shareholders and investors."

CEB TowerGroup evaluated data from a joint analysis conducted by CoreLogic and
FICO that compares the FICO^® Score used by most lenders today with the FICO^®
Mortgage Score Powered by CoreLogic^®, a new score launched in July. The FICO
Mortgage Score Powered by CoreLogic evaluates the traditional credit data from
national credit data repositories and the unique alternative credit data
contained in the recently launched CoreScore™ credit report.

"This CEB TowerGroup report shows that enhancing the process of determining
risk with new alternative data and analytics would allow lenders to approve
loan applications that might otherwise be denied, or deny problem loans that
might otherwise be approved. Both outcomes would help consumers and the market
itself," said Tim Grace, senior vice president of Product Management at
CoreLogic. "In our own analysis, approximately 70 percent of a sample
population saw their credit score improve with the FICO Mortgage Score Powered
by CoreLogic. A separate analysis of 300,000 mortgage applications found that
3,100 more applicants would receive a qualifying credit score of 700."

Key findings in the CEB TowerGroup report include:

  oAlternative credit information can support loan applicants with newly
    established credit files with good credit, those with minimal information
    in their traditional credit files but with good alternative credit payment
    histories, and long-time renters with no serious payment issues.
  oMore complete loan applicant, property and related information will bring
    greater transparency and efficiency to the mortgage lending markets and
    help reduce risk.
  oThe FICO^® Mortgage Score Powered by CoreLogic^® is more accurate than the
    prior FICO^® Score in identifying the riskiest loans improving lenders
    ability to discern consumer credit risk at origination. For applicants
    identified as the riskiest 10 percent of the lending population (those
    most likely to become past due on their mortgage loan), it identified 10
    percent more seriously delinquent mortgage loans – loans 90 days or more
    past due.

For a complete copy of the white paper, "Enhanced Credit Data and Scoring:
Deeper Insight into Mortgage Applicants," visit
http://credco.com/tgwhitepaper/.

CoreLogic commissioned CEB TowerGroup to conduct research and analysis of
consumer credit data, reporting and scoring practices and trends in financial
services.

About CoreLogic
CoreLogic (NYSE: CLGX) is a leading residential property information,
analytics and services provider in the United States and Australia. Our
combined data from public, contributory and proprietary sources spans over 700
million records across 40 years including detailed property records, consumer
credit, tenancy, hazard risk and location information.The markets CoreLogic
serves include real estate and mortgage finance, insurance, capital markets,
transportation and government.We deliver value to our clients through unique
data, analytics, workflow technology, advisory and managed services.Our
clients rely on us to help identify and manage growth opportunities, improve
performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic
operates in seven countries.For more information, please
visitwww.corelogic.com.

CORELOGIC, the stylized CoreLogic logo, and CORESCORE are registered
trademarks owned by CoreLogic, Inc. and/or its subsidiaries. FICO is a
registered trademark of Fair Isaac Corporation in the United States and in
other countries. All other trademarks are the property of their respective
owners.No trademark of CoreLogic shall be used without the express written
consent of CoreLogic.

SOURCE CoreLogic

Website: http://www.corelogic.com
Contact: Media Contact: Alyson Austin, Corporate Communications,
+1-949-214-1414, newsmedia@corelogic.com; Investor Contact: Dan Smith,
Investor Relations, +1-703-610-5410, danlsmith@corelogic.com
 
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