Azstarnet says mortgage analytics firm Digital Risk, noting credit scores such as FICO failed to anticipate many strategic defaulters during the mortgage bust years, has developed a 123 point statistical cluster of borrower, market conditions, and property data which will more accurately predict how an applicant may react to financial distress regardless of credit score. Its multidimensional risk evaluation system, called Veritas, is based on analysis of five million loans originated between 2006 and 2011 as well as the performance of 100,000 separate borrowers after their loans were modified. CEO of Digital Risk Alex Santos says Veritas is a valuable tool in distinguishing how applicants with identical credit scores might differ in terms of being a safe bet or not. MHProNews has learned it may be a while (if ever) before this new system is used, but it does raise the possibility of a different method to judge credit worthiness besides a credit score.
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