Mortgage TrueView, a provider of data-driven business intelligence services, has released a new Home Mortgage Disclosure Act (HMDA) scoring and benchmarking tool.
The new scores provide lenders with insights into their own lending practices, as well as a comparison to the rest of the industry. Lenders have the ability to understand their own HMDA data in order to both stay compliant and increase loan volume for unintentionally underserved market segments, the company explains.
Mortgage TrueView says its HMDA scores measure a lender's decisiveness in approving or denying loan applications. "The score can be provided on a total population of loans, a defined product segment or a specific geographic location," says Becky Walzak, executive vice president and director of regulatory compliance for Mortgage TrueView.
There are four possible outcomes with a loan application: approve, deny, withdraw or cancel, Walzak explains. "Approve and deny are considered active decisions, and withdraw and cancel are considered passive decisions," she says.
Other data elements that a lender has in its loan origination system, such as income or debt-to-income ratios, can be integrated with HMDA data, offering additional insights into lending practices, Walzak adds. "This is big data, and the score offers lenders a tremendous opportunity to improve their business by both increasing revenue and decreasing compliance risk."