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Incorporating Two Alternative Types of Data into Mortgage Underwriting Could Make the Process More Equitable (Urban Institute)

Research shows that using alternative underwriting data such as rental payment history and cash-flow data would allow for a better assessment of a borrower’s credit risk.

Guild Mortgage has launched initiatives in this space, including a pilot program that uses income and expenses data and measures of residual income derived from consumers’ bank accounts provided by FormFree to provide additional insight into borrowers’ ability to repay their mortgage.

Read the full story from the Urban Institute.

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