LONDON, August 11, 2010 /PRNewswire/ --
-- Leading Credit Reference Agency for Payday and Other Alternative Lending Develops New Score to Predict Payment Risk --
CoreLogic (NYSE: CLGX), a leading provider of information, analytics and business services, today announced the launch of a new credit risk model built using proprietary payday loan performance data from Teletrack UK Limited, a subsidiary of CoreLogic, Inc.
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Built exclusively from payday loan performance data, the LendOptix risk model helps lenders understand and predict payment risk in the rapidly growing UK payday loan market. The LendOptix credit risk model complements the Teletrack AWARE credit report to provide a statistically sound and easy to utilize summary assessment of credit performance risk specific to payday lending.
"We were able to leverage extensive loan performance data and market expertise to build a powerful payday loan risk model that meets the needs of our customers in this higher risk lending sector," said Dale Williams, managing director of Teletrack UK. "Our customers can now use the LendOptix score to model the profitability performance of their lending portfolios by controlling the degree of acceptable lending risk at origination and any subsequent renewal or rollover of the loan."
With the ability to modify score cutoffs in line with the applicant pool and changing business needs, lenders have greater control over portfolio performance and profitability. Demand for short-term loan products remains high, particularly among consumers whose financial service needs are not met by more traditional providers. These loan products require focused, built-for-purpose risk management solutions because of the inherent higher risk associated with making short-term loans, particularly in the online payday market.
"As the UK payday lending market evolves, access to more focused risk tools can help lenders develop increasingly sophisticated business models, pricing strategies and market position to differentiate themselves from their competitors, and that is what our customers have asked us to do in developing this model," said Williams. "We are committed to providing innovative data and analytics solutions in the specialist markets in which we operate to help our clients manage profitable and responsible lending businesses and the development of a payday loan score exemplifies that commitment."
Development of this model highlighted a number of characteristics that are unique to both the industry and the data available from Teletrack, including the velocity, recency and frequency of loans and credit searches. The LendOptix model is different from traditional credit scores in a number of ways. The data gathered and reported from payday loan providers is uniquely current and reported in real-time, which permits immediate use of the data in the calculation of a score for a particular applicant. The LendOptix model can be accessed through the same interface used to process credit searches against the Teletrack AWARE database.
"For our clients, Teletrack data is the foundation of the credit risk assessment process. The LendOptix model will allow our clients to make risk-based customer acquisition decisions more efficiently in store or online, enabling early determination of credit risk based on similar products before accessing traditional credit data and scores," said Dale Williams. "Whilst incrementally valuable in the overall decision process, scores from the broader credit market may not reflect the higher inherent risk associated with the rapid nature of payday lending, which is why Teletrack invested in the development of an industry specific score that accesses real-time data."
In addition to providing non-traditional credit data and scores, Teletrack connects businesses to multiple external data services and scores, including traditional credit data, fraud prevention tools, public record data and historical bank account information to manage risk. To learn more about CoreLogic Teletrack UK Ltd, visit their website at www.teletrack.co.uk.
About Teletrack UK Limited
CoreLogic Teletrack UK, a subsidiary of CoreLogic, Inc., was formed in 2007 to deliver risk management tools and solutions to the non-traditional lending markets in the UK. As a credit reference agency, Teletrack UK creates fast, reliable and cost effective access to proprietary consumer credit data. As a multi-national provider of credit referencing services in non-traditional markets, Teletrack UK offers an unparalleled suite of credit risk and fraud prevention solutions, and also acts as a full service data provider, enabling single-point access to additional third party external databases. Teletrack delivers real-time transaction processing to support the risk assessment needs of payday loan providers, installment lenders, mail order companies and other consumer finance businesses serving consumers with less than perfect credit histories in-person and online. In addition, Teletrack offers integrated access to additional summary credit performance data, fraud prevention, and scoring solutions from the broader credit market. Our uniquely efficient single interface enables lenders to combine our data with market leading traditional credit reporting, fraud prevention and consumer authentication services. For more information visit http://www.teletrack.co.uk
About CoreLogic
CoreLogic (NYSE: CLGX) is a leading provider of consumer, financial and property information, analytics and services to business and government. The company combines public, contributory and proprietary data to develop predictive decision analytics and provide business services that bring dynamic insight and transparency to the markets it serves. CoreLogic has built the largest U.S. real estate, mortgage application, fraud, and loan performance databases and is a recognized leading provider of mortgage and automotive credit reporting, property tax, valuation, flood determination, and geospatial analytics and services. More than one million users rely on CoreLogic to assess risk, support underwriting, investment and marketing decisions, prevent fraud, and improve business performance in their daily operations. Formerly the information solutions group of The First American Corporation, CoreLogic began trading under the ticker CLGX on the NYSE on June 2, 2010. The company, headquartered in Santa Ana, Calif., has more than 10,000 employees globally with 2009 revenues of US$2 billion. For more information visit http://www.corelogic.com
CoreLogic and Teletrack are registered trademarks of CoreLogic. LendOptix is a trademark of CoreLogic.
CoreLogic
Media, Bob Visini, Corporate Communications, +1-415-536-3526, newsmedia@corelogic.com, or Investors, Dan Smith, Investor Relations, +1-703-610-5410, investor@corelogic.com, both of CoreLogic