TransUnion Announces New Risk Management Tool

TransUnion released a new portfolio management tool to help lenders manage risk for home equity loans.

TruVision Consumer Property Insights for Portfolio Management was designed to calculate property value fluctuations as more homeowners tap into their accrued equity.

The product offers new insights such as combined-loan-to-value. It links property lien data with the corresponding tradeline, allowing lenders to see the actual value for the amount owed on the property, not an estimate.

It also provides data about up to five properties owned by a borrower, offering a more complete view of their overall financial health and any potential risk indicators.

“Both macro and microeconomic conditions and fluctuations can dramatically impact the value of a property, putting mortgage and home equity borrowers and lenders at risk,” said Satyan Merchant, senior vice president, auto and mortgage business leader at TransUnion.

“Having access to current property value insights for portfolio management can help lenders determine the risk of the property values in their portfolio to manage risk exposure.”

TransUnion leaders say that home equity loans have yet to catch up with their potential thanks to high interest rates. Equity lending actually slipped by 7% in Q3 2023 as rates soared to two-decade highs.

But rates are expected to cool in 2024, and home price appreciation is up thanks to demand for limited inventory. Overall equity hit $19.7 trillion in Q2 2023, and mortgage holders gained more than $1 trillion YOY in Q3 alone.

Lenders need to carefully evaluate risk when considering home values for these loans. Portfolio management solutions fueled by property insights can optimize performance as well as mitigate uncertainty.

“We believe this solution significantly increases TransUnion’s value proposition for its already robust portfolio management solutions and will position TransUnion as a market leader insofar as understanding the needs of the mortgage industry,” Merchant said.

TransUnion is one of the country’s three big credit score and credit report providers.

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