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Credit potential increases slightly in February despite lower volume of mortgage applications

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Press release

April 5, 2022 9:00 a.m. EDT

BALTIMORE, April 5, 2022 (Newswire.com) –
CreditXpert, the predictive credit score platform that helps lenders expand homeownership opportunities, has released its Mortgage Credit Potential Index (MCPI) for February 2022. The MCPI is a monthly survey of applications 20-point band average mortgage credit score indicator that serves as an indicator of changes in mortgage demand across the consumer credit spectrum and reveals affordable housing and other lending opportunities.

February 2022 data indicates more mortgage applicants had the potential to improve their credit scores by at least a 20-point increment within 30 days, with the index increasing slightly from 71% to 72% . Credit inquiries, however, were down month-over-month in February (-7.4%) and tripled to -23.8%, from a year earlier.

“Given rising interest rates, we’re pleased to see nearly three-quarters of applicants could improve their score,” said Mike Darne, vice president of marketing at CreditXpert. “The overall volume of applications has declined, but this is in line with what we expected given the reduction in refinance applications that lenders are seeing in today’s market.”

The February 2022 MCPI showed that 54% of nearly 125,000 applications with credit scores below 580 could potentially qualify for an FHA loan within 30 days. Additionally, more than 886,000 of February’s 1.2 million inquiries with scores below 760 could improve their score by at least a 20-point chunk, allowing lenders to offer them better pricing based on the risk and outpace their competitors.

The MCPI was designed to help mortgage lenders see how changes in volume and applicant credit potential could shape their lending operations and reduce credit fallout in an increasingly competitive market. The index helps lenders develop strategies that will broaden their target audience and provide more competitive offers to an increasingly savvy consumer.

“CreditXpert’s Mortgage Potential Index is a powerful tool that can help lenders make homeownership more accessible and affordable for everyone,” Darne said. “When lenders help mortgage applicants score higher, it helps us fulfill our mission, as lenders expand access to home ownership, provide applicants with greater buying power and reduce the cost a mortgage due to lower interest rates.”

The March 2022 MCPI is available for download now at https://creditxpert.com/credit-potential-index-march22

About CreditXpert

CreditXpert was founded in 2001 with a mission to make home ownership more accessible and affordable for everyone. The company’s predictive analytics platform helps mortgage originators and their applicants realize applicants’ credit score potential by generating a highly accurate and detailed action plan. Since its creation, the CreditXpert platform has analyzed more than 750 million credit files. Today, most of the top 10 mortgage originators and over 60,000 mortgage professionals leverage the company’s platform. Learn more at http://www.creditxpert.com.

CreditXpert Action Plans are tools intended to educate mortgage professionals and potential consumer loan applicants, and are not provided for the purpose of improving credit report, credit history or rating. applicant’s credit report, or to delete or alter any adverse, inaccurate, fraudulent or other information in an applicant’s credit file. CreditXpert is not a credit counseling, credit repair or credit reporting agency. CreditXpert credit scores and score changes are estimates and will likely differ from credit score information used by mortgage professionals to assess loan eligibility. CreditXpert does not guarantee that another company’s scores will change by the same amount, in the same way, or at all.

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Source: Credit Xpert