Factual Data, a provider of credit and verification services to the mortgage lending industry, announced Thursday its alignment with the data and analytics company LexisNexis Risk Solutions to offer the LexisNexis Riskview Liens and Judgments Report. When the National Credit Reporting Agencies cease offering access to most liens and judgment data in July, the new FCRA product will enable lenders to fill the gap.
As part of this July change, 50 percent of tax liens and data and 96 percent of civil judgments will be removed from the three Nationwide Credit Reporting Agencies reports. Factual Data said this change has created an environment of uncertainty for mortgage lenders, who have relied on this data for more than two decades to evaluate consumer home loan applications.
“Aligning with industry leader LexisNexis was critical in our efforts to addressing this impending information gap for our customers,” said Jay Giesen, SVP of Factual Data. “Factual Data is proud to provide to our customers a FCRA product that will be fully integrated into their current credit report format, helping them to continue to thoroughly assess consumer credit worthiness.”
According to LexisNexis Risk Solutions, borrowers who have a judgment or tax lien are 5.5 times more likely to end up in pre-foreclosure or foreclosure, as compared to borrowers who don’t have judgments and tax liens, making this information essential for lenders. LexisNexis explained that the new RiskView Liens & Judgments Report delivers technology advancements that strengthen the reliability of lien and civil judgment content with greater than 99 percent reliability and full compliance with Fair Credit Reporting Act regulations.
“Factual Data approached us early in our development effort and recognized the importance of liens and judgments data for their customers,” said Tim Coyle, Senior Director, real estate and mortgage at LexisNexis Risk Solutions. “The report will assist a lender’s ability to assess an applicant’s ability to pay, minimize related closing delays and comply with investor requirements. Factual Data’s extensive integrations with customers and leading industry platforms will make it simple for customers to adapt and protect themselves from the upcoming credit report content change.”