Experian has enhanced Power Profile Plus for Mortgage to help lenders reduce early-stage mortgage credit costs and access flexible scoring options. The updated solution provides a full Experian credit profile with VantageScore 4.0 through a soft inquiry. Additionally, lenders can request unlimited eligible follow-up soft inquiries without another Experian credit-profile charge.
These enhancements aim to simplify early mortgage assessments while helping lenders evaluate borrowers before initiating a hard credit inquiry.
New Features Streamline Mortgage Credit Assessments
Using Power Profile Plus, the lender is provided with a preliminary credit profile and score that will aid in making decisions on the qualification process. In the new update, lenders are able to reconsider any eligible profiles during the entire period of the application and qualification. Additionally, they are free to add scores without additional credit-profile fees.
Michele Bodda, Group President of Experian Housing, Verification Solutions and Employer Services, explained the company’s approach.
“As the mortgage industry expands its use of modern credit scores, our focus is on making that transition cost-effective and easy to implement,” said Michele Bodda, Group President of Experian Housing, Verification Solutions and Employer Services. “Our clients have told us they need a full credit profile and a score up front to assess consumers quickly and confidently. Experian’s Power Profile Plus enhancements deliver decision-ready insights while lowering early-stage costs. This creates a simpler path to VantageScore adoption and helps lenders make more-informed decisions that can ultimately support more consumers on the path to homeownership.”
How the Updated Workflow Operates
Lenders can begin with a full Experian credit profile and VantageScore 4.0 through a soft inquiry. They can then request eligible follow-up soft inquiries without additional profile charges.
If the lender decides to use a FICO Score, the fee applicable to the FICO score remains in effect. But there is no additional fee from Experian for providing the credit profile itself. And when the borrower is ready, the lender can pull a hard report and move forward with underwriting.
Supporting Modern Mortgage Scoring
The Federal Housing Finance Agency expanded VantageScore 4.0 availability. All approved Fannie Mae and Freddie Mac lenders can now access it. This development gives lenders more opportunities to evaluate modern credit-scoring models.
Experian research found that one in three people would consider switching banks. Their decision depends on whether banks use outdated scoring models. Such scoring models could neglect the rent and utility payments. Additionally, 52% of customers showed more interest in buying a home as a result of considering their positive payment history.
Expanding Scoring Options While Managing Costs
Experian keeps adding new options in terms of mortgage scores. For lenders, there is an option to get VantageScore 4.0 separately as a mortgage origination score for $0.99. Moreover, the Experian Score Choice Bundle offers VantageScore 4.0 and FICO Score 2 in a single transaction. By 2026, lenders will offer VantageScore 4.0 free of charge. It will be bundled with FICO Scores for consumers.
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News Source: Businesswire.com
