Premier Member Editorial: How Data-Driven Strategies Help Lenders Expand Access, Better Manage Risk
Wendy Hannah-Olson has more than 25 years of experience in domestic operations within consumer credit companies, real estate title transactions, compliance and financial services, P&L oversight, and multi-channel product management. In her current role as Vice President, Strategy Execution Leader, Mortgage & Housing for Equifax, she is responsible for overseeing the mortgage and housing connector team, a key portfolio of initiatives, maintaining enterprise support and escalations, and acting as the mortgage and housing point of contact for all enterprise initiatives.
In a market characterized by complex borrower profiles, economic shifts and evolving regulations, today’s mortgage lenders face the challenge of approving loans, while managing risk throughout the loan life cycle.
While traditional credit reports remain a strong indicator of credit history and past financial reliability, alternative data can responsibly expand access to credit and support a more inclusive economy. Maintaining a competitive edge in a changing housing market requires lenders to be more proactive in their use of additional, data-driven insights to make faster, more informed decisions.
Complex Borrowers and Increased Risk
Traditional underwriting models were not designed for thin-file applicants, gig workers and individuals with inconsistent income streams. Nearly 76 million U.S. consumers lack the necessary data to produce a traditional credit file and score, creating a more difficult and more manual process for loan approval. Manual processes and siloed data further complicate matters, leading to potential incomplete borrower visibility, delayed decisioning and increased lender exposure to fraud and risk. These challenges demand data-driven solutions that can be applied at any stage of the loan life cycle.
More data drives better decisions. Informed decision-making requires a modernized lending platform paired with the right data. Alternative data sets offer lenders specialized and often proprietary insights into customer behavior, market trends and potential risk. Data such as telecommunications, pay TV, utilities payment histories, and rental payment information provide a more comprehensive view of a consumer.
Real-time, verified employment and income data can also help reveal borrower stability and income consistency that may not be visible through a traditional credit score alone. For example, a borrower with limited credit history but a track record of steady employment and income could be a strong candidate for a loan, but may be overlooked if the lender is not leveraging alternative data.
Mitigating Risk and Ensuring Compliance
According to Equifax data, as of April 2025, outstanding mortgage debt in the U.S. was up 3.2% year-over-year and mortgage delinquencies (mortgages 90 days or more past due) were also up for the same time period. Lenders and mortgage professionals who have clear insights into their portfolios are better equipped to mitigate delinquency risk, defaults and foreclosures and increase efficiencies with non-performing loans. Ultimately, this level of insight helps improve overall profitability and predictability over time.
Leveraging third-party data can give lenders instant access to consumer information in a secure environment, allowing for quicker decisions. From an efficiency standpoint, it’s far easier to confirm information through third-party data integrations. Having this information centralized and available electronically in one location can reduce processing costs and time spent on paperwork.
In today’s highly competitive market, failing to leverage expanded data may create missed opportunities and lenders risk leaving revenue on the table and losing market share. Potential borrowers are more than willing to take their business to institutions that will approve them. Leveraging comprehensive borrower data that includes information not on the traditional credit report not only improves credit access but also helps institutions defend their underwriting practices under regulatory scrutiny.
During periods of uncertainty, lenders must proactively support borrowers by maintaining the most comprehensive view of their financial profiles possible. Monitoring for payment delays, delinquencies and sudden behavioral changes enables risk mitigation and timely course correction.
Servicing Loans Beyond Origination
Sustaining a profitable servicing model requires lenders to identify risk within their portfolios and implement operational policies aligned with regulatory requirements. This becomes even more complex when lenders rely on third-party providers to support and scale servicing operations.
Modern platforms and differentiated data sources allow lenders to stay engaged with consumers beyond origination. Proactive monitoring helps support borrowers through financial hardship, offers refinancing opportunities or identifies consumers for specific loan products.
By incorporating automation, lenders can streamline workflows, detect risk indicators earlier in the process and adjust strategies in real time. Data-driven tools can uncover behavioral or income anomalies that may go unnoticed in manual reviews.
To succeed in today’s lending environment, mortgage providers must deploy scalable solutions that accelerate processes and deliver actionable insights. Doing so will enable them to serve a broader borrower base regardless of market conditions.
(Views expressed in this article do not necessarily reflect policies of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA NewsLink welcomes submissions from member firms. Inquiries can be sent to Editor Michael Tucker or Editorial Manager Anneliese Mahoney.)
