FormFree, a provider of automated asset, income and employment verification solutions to mortgage lenders, reports that it has received a U.S. Patent for its approach to credit decisioning.
FormFree says its technology, which analyzes direct-source financial data to determine a consumer’s ability to repay any type of loan, offers a more accurate and comprehensive measurement of ability to pay (ATP) than traditional credit scoring.
“This patent is another important milestone in strengthening our intellectual property position,” says Brent Chandler, CEO of FormFree in a release. “Nearly 50 million Americans – disproportionately including the poor and minorities – lack a credit score and cannot obtain mortgages or other lending products. FormFree understands that every consumer has a quantifiable ability to pay, not just those with a 720 or higher credit score. We are reimagining credit scoring with a new framework that provides a more complete understanding of what a person can actually afford than merely reviewing their repayment history.
“Our multi-dimensional analysis of ability to pay allows lenders to instantaneously understand risk and make better credit decisions,” Chandler adds. “It also democratizes lending by putting control of the process in the hands of borrowers, making it easier for consumers to seek-out financial institutions that want their business.”