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CreditXpert – HousingWire Virtual Demo Day
Diego: Jennifer will now introduce our first presenting company, CreditXpert. Take it away, Jennifer.
Jennifer: Thanks, Diego. Hi Matt. How are you?
Matt: I’m good. How are you?
Jennifer: I’m great. Welcome to Demo Day. Let me give a little brief bio for CreditXpert. And then the floor will be yours. CreditXpert, Wayfinder and What If Simulator tools are used by mortgage originators to analyze and simulate a borrower’s mid score potential and the plan on how to achieve it. As a result, lender offers are more competitive and more consumers qualify for mortgages at the rate they can afford to achieve their dream of home ownership. Sounds exciting. Take it away, Matt.
Matt: Thank you so much and I appreciate the time today to introduce everyone to CreditXpert. Let me share my screen here. All right. So perhaps you’re familiar with CreditXpert as you’ve seen it on your credit reports from your credit provider. I like to say often that mortgage companies that are either really heavy users and huge fans of CreditXpert or they just don’t know us yet. So I’m excited to introduce to you. So our mission as a software organization is to help make the American dream of home ownership accessible and affordable for everyone. So this is always in our thoughts and our minds as we build and develop new tools for the mortgage space. Our credit assure product appeared on more than 65 million credit reports last year. And you as a lender have access to credit share and our other products as mentioned before by Jennifer, Wayfinder and What If Simulator through your credit report providers.
If our credit assure product is not appearing on your credit reports, ask for it. But why would you do that? Why would you add it? CreditXpert add is a certain dimension to credit report. It’s a credit report on its own. As we know, a tri merge is required to originating a loan but it tells you what a borrower’s credit score is. CreditXpert tools give you the options and ability to see what a credit score can be. More specifically, its purpose built for the mortgage FICO. Today, as we all know, credit scores are available through a lot of different outlets like credit cards and things of that nature, but they aren’t specific to the mortgage FICO and that’s where CreditXpert comes in.
So just to set up the demo for today, you’re going to have the ability as a lender to see the maximum potential in every borrower. So you’re going to have a credit score conversation. And CreditXpert allows for a more meaningful conversation around credit and credit scores. Borrowers in general, don’t fully understand the impact of their credit score around affordability, what type of loans they can get into, different insurance aspects of it. To be more thoughtful and specific and transparent around credit is going to give lenders a competitive advantage and show how borrowers can improve. So listen, we understand right now capacity is an issue but there’s going to be a transition from this hectic reify market into a more purchase heavy market. And you’re going to need to think more deeply around lead conversion, where in pre-qualifications, you’re having fallout and how credit impacts those. So CreditXpert software is going to allow you to run some automation to find the right loan product and the right deal for the borrower every time.
Last year, we helped over 895,000 consumers with score improvement. And this is through lenders with credit conversations and the tools I’m about to demo. So quickly before I jump into that demo, four ways that CreditXpert is going to help your business. One, better lead conversion and curating. So yeah, it’s a reify boom but why waste leads? Think of it as an on deck circle and getting certain borrowers credit ready. Think of even a pre-purchase pipeline to where borrowers can go out, look for the home of their dreams while you’re giving them a good plan to optimize their credit. There’s also situations where borrowers qualify with limited options or not the best option, low rates and advertisements of low rates are prevalent. How credit affects that is really important. So think of better affordability, different loan types and even larger loan amounts.
The sophisticated digital borrower, you’re out there advertising, you have lead sources that come in, those borrowers are looking for the best deal, the low rate and lowest payment and so CreditXpert’s going to help you achieve that. And then think about your community and the new administration fair lending market. You’re going to have borrowers that come to you that simply won’t qualify or they don’t have a score or a thin file and you need to get them a score. CreditXpert can help in those ways as well. Make a difference and it’s not, no, it’s kind of not now.
All right. Let me set up a little bit more about what I’m going to show you today. So I talked about credit assure, which basically is an indicative score improvement possibility. So when you run credit, credit assure runs in the background, some automation to say, hey, this potential borrower actually could qualify for some score improvement. It’s really a way for you to get some understanding on how to improve that score and whether it’s worth it for you or not to click deeper. Wayfinder is going to find the way for you. It’s running our automation that we’ve built to find the way to reach a target score. And I’m going to show you that here in just a second. What If Simulator really allows you to play with scenarios. What if I put down a balance? What if I trade change the status of particular detail on a credit report allows you to do those things to see what then a potential score could be in the future.
All right. Let me bring over my demo and we’ll start. All right. So I talked about credit assure. This is what I mentioned before that showed up on over 65 million credit reports last year. So you can see for this individual, we have an experienced 631 score, a TransUnion, 632, and an Equifax 632 score. And running some CreditXpert automation in the background, we see that there’s a potential to increase that score. And depending on the different FICO band that they’re in, this could be impactful to the type of loan product they could qualify for or the affordability. So what we’ll typically run next is Wayfinder. So let me bring that up.
So as you can see, we just recently pulled Ashley’s credit. There’s one alert, so anytime that there’s alert on the credit score, this is more about on the Experian credit report, there is a dispute. So we could dig into that a little bit deeper, but here we could find a way to either raise a score on Experian, TransUnion, or Equifax for Ashley. Let’s click into Equifax here. So the next step here, it’s going to allow the user to select a particular target score or band. It starts here at 632, is what our score is currently. And then we’re going to want to achieve a score. We could put in 640, 660, or some other options there. Let it load up in just a second. Sometimes this happens when you preload it. Let me just restart here and let it load up.
So as I mentioned before, these products are offered through your credit report provider and so please ask about it. If you’re not using it today, they could give you more details on how you can access these tools. And as I mentioned before, Wayfinder is going to find the way for a target score. So here I could toggle between bureaus as needed here when I’m in Wayfinder and here I’m going to select a 660. And what we’ll look into is paying down debt, charging more, opening different accounts, canceled, authorized users, things of that nature. So for Ashley here, we have a 94% probability of reaching a 660. And what it’s suggesting is that using a total of $381 to strategically pay down debt, cancel one authorized user, and of those that $381 were paying down three accounts.
Let’s take a look at the details. So here we could see that Ashley wants to get a hold of the primary account holder and contact the creditor to remove her as an authorized user. We’re going to pay down the balance of the city card from 966 to 740, the chase card from 445 to 370, and then also down here, a pay the balance down to 740 on a discovery card. It’s also going to give you some other options around other things to avoid within the borrower’s credit. So now that you have a plan, and by the way, the individuals that use this could be a loan originator, it could be someone staffed within your mortgage department that’s more chained on credit where the loan officers funnel it to that particular user, but here’s where I can either print the instructions to actually email them out, share them in some way, post them to a portal. Also have the ability to copy and paste the details, put it in an email and give Ashley the right track on how to improve her score. So this is Wayfinder. Let’s jump into what if simulator.
Hopefully this preload will not freeze on me there. So we could see we’re using the Experian in this instance. And then we could see all the details on this existing credit report. You’d see this is the Experian pulled on this particular date today, and then I have the ability change timeframe. Let’s talk about a pre-purchase pipeline. So if we have a few months to work with the borrower, we might say let’s run a plan that the borrower can work over 60, 90 days. So here, I’m able to take the individual details on the line and delete them, I’m able to change the balance. And when I change the balance, you’re going to be able to see an impact of score.
That preload didn’t work for me. Let me set it back up again and we’ll hit the same. So in other words, this is going to allow the user to say, what if this particular issue had happens? What if I change the status of this line? What is the impact going to be? Here, if I just simply pay down my balance of this discover card of 500, I see it has a potential as 641. Let’s hear on the city card, if we pay this balance down slightly to 1,000, what would happen? What if I wanted to remove a late payment or remove a dispute? I can always come over here and start back over again.
When ready, you could share the plan just like we did before. So in general, these tools are supposed to be fairly easy, simple to use, and very effective in explaining to borrowers their current credit situation. So to recap, what are some of the bottom line benefits? You’re going to be able to curate and cultivate more leads which is going to translate into greater pre-qual, conversion, and greater conversion to applications and close loans. You’re going to maximize every opportunity. And as we transition to a more purchase market and into a different regulated market with a new administration, these are some tools that are really going to help you. Think about higher profitability, if you could convert more. One loan officer told me that based on his use of CreditXpert, he has a specific pipeline of loans where he is working with borrowers and last year alone earned more than 35,000 commission on just working with borrowers a little bit more specifically on their credit.
Another large independent regional lender saw a significant fallout up to 20,000 pre-qualifications due to credit. And by coming up with a process with CreditXpert, we were able to convert more than 42% of those. That was a huge revenue list. But there’s also what I would say service and reputation benefits too. Think of customers for life. No one is really explaining and being more transparent on how they’re credit judged. Your referral partners are going to thank you because you’re taking more time for a deeper, thoughtful conversation around credit.
Diego: Quick question from the audience. Can you talk about the cost structure for your products?
Matt: Yeah. You’d have to talk to your credit report providers. Those are the ones that offer, but it’s very affordable. Think a couple of dollars rather than licensing fees.
Related Credit Insights
Matt Hydrew, CreditXpert VP of Sales, shares insights and a product demonstration of CreditXpert Wayfinder on HousingWire Virtual Demo Day hosted for mortgage originators on Thursday, September 2, 2021.