A consumer’s debt-to-income ratio (DTI) is an important metric for lenders when considering a potential borrower’s ability to repay. When a consumer has a DTI that exceeds the lender’s or investor’s maximum values, they may need to pay down trades, or perhaps they already paid down a trade since the credit report was pulled. The lender may be required to subsequently order a supplement report to meet lending DTI requirements.
The traditional process used to obtain a supplement report with updated tradeline information can take up to 24 - 48 hours, plus:
May require conference calls (dependent on the creditor requirements) - Can face challenges coordinating calls - Creditor hold time can be significant
Manual work may be required by the lender as well as the borrower, such as locating and gathering documentation
Accelerated Refresh™ is a supplement report tool that will allow lenders to obtain the most up-to-date view of specific account(s) on the consumer's credit file reported to Equifax.
Accelerated Refresh can easily generate a supplemental report in real-time, providing an expedited path to credit verification needs.
Save time and resources, close loans faster and provide a better borrower experience.
How It Works
In scenarios where the credit score is acceptable, but a tradeline needs to be updated, consider using Accelerated Refresh™. If a tradeline was reported by Equifax as one of the bureaus, and the date reported is greater than thirty days, simply request an Accelerated Refresh supplement report, choose the tradelines to be refreshed and the latest information for that tradeline will be returned in near real-time.
Real World Application Example 1: Lower DTI
Amy has a credit score that meets the Lender’s requirements, but she has a DTI that exceeds the minimum threshold. Since her credit report was pulled, Amy paid off a $5,000 revolving account. Based on the date reported, the lender opts to pull an Accelerated Refresh report. Amy’s new calculated DTI is now below the threshold requirements. Amy didn’t have to perform any actions, and the actions required by the lender took minutes from the order entry to the report delivery.
Amy is now able to lock her rate and move forward with fulfilling her dream of home ownership.
Real World Application Example 2: Incorrect Delinquency
Robert has a credit score that meets the Lender’s requirements, but he had a recent delinquency erroneously reported on his credit file. Since his credit report was pulled, Robert worked with the creditor and the delinquency has been removed. Based on the date reported, the lender opts to pull an Accelerated Refresh report. The delinquency previously reported is no longer present. Robert didn’t have to perform any additional actions, and the actions required by the lender took minutes from the order entry to the report delivery.
Robert is now able to lock his rate and move forward with fulfilling his dream of home ownership.
