July 26, 2010 

Lenders Are Studying Shopping Habits
 

Lenders are experimenting with alternative ways to check borrowers’ credit in hopes of finding better ways to ensure loan quality.

Some are studying borrowers’ phone and online buying habits. In this case, what they are looking for is proof that you really live where you say you live – or is that pizza being delivered miles away?

Some people say that this approach is an invasion of privacy, but Alex Santos, president of Digital Risk, an Orlando, Fla.-based analytics firm that seeks to build better underwriting tools, isn’t deterred. “If the data is available and it can be obtained legally, I’m going to test it,” he says.

Source: United Feature Syndicate, Lew Sichelman (07/25/2010

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