LQIs & Credit Rescores

In the context of intermediate mortgage lending, LQIs (Loan Quality Initiatives) and credit rescores are two important aspects to consider.

Loan Quality Initiatives (LQIs) are measures and guidelines implemented by mortgage lenders to enhance loan quality, mitigate risk, and comply with regulatory requirements. Credit rescores involve the process of requesting an update or correction to a borrower's credit report to reflect more accurate credit information. Understanding LQIs and credit rescores is essential in the intermediate mortgage lending process to ensure compliance, accuracy, and fair assessment of borrower creditworthiness.

Let's explore each of them in detail:

Loan Quality Initiatives (LQIs)

Loan Quality Initiatives are measures and guidelines implemented by mortgage lenders and loan originators to ensure the accuracy and integrity of loan applications, documentation, and underwriting processes. LQIs aim to enhance loan quality, reduce fraud, and mitigate risk within the mortgage lending industry.

Key characteristics of Loan Quality Initiatives include:

Credit Rescores

Credit rescores refer to the process of requesting an update or correction to a borrower's credit report in order to reflect more accurate and up-to-date credit information. Credit rescores are typically initiated when there are errors or discrepancies in the credit report that may impact the borrower's creditworthiness assessment.