Candor Technology has added a mortgage loan scoring engine as part of its Loan Engineering System, which it is calling The Candor Metascore. The tool is designed to provide an indication of the overall quality of a loan manufactured by Candor’s machine.
To produce the score, all loan data is analyzed to assess investor guideline eligibility, then cross checked to identify and mitigate defects. The results are saved to a Blockchain-type database. A Metascore of 85 or higher triggers eligibility for a defect insurance policy from a major international insurer.
“We developed the Metascore to benefit lenders manufacturing loans in the primary market and to benefit loan buyers in the secondary market,” said Candor’s CEO Tom Showalter. “If a loan has a high Metascore, a secondary market analyst can be confident a rigorous credit analysis was conducted, that guideline eligibility has been met, that the loan data faithfully reflect the status of the loan, and that loan can be efficiently priced.”
Candor says it now has the only solution able to autonomously conduct detailed, nuanced cross checks across a vast and complex set of dynamic data.
The company says the results exceed guideline requirements and mirror those conducted by seasoned underwriters. The difference is that Candor says its cross checks are conducted in seconds, not weeks.