Adjustable-Rate Mortgage Data

Understand the impact and mitigate the risk associated with ARM resets

Adjustable-rate mortgage resets have impacted consumer performance and will continue to do so in the future. Consumers with an ARM display increased risks, including:

  • Higher delinquency rates
  • Larger average balances carried
  • Higher utilization rates on revolving lines
  • Access to significant open-to-buy on revolving lines

There are three steps you should take now to understand and reduce the risk posed by consumers with ARMs.

Step 1:

  • Identify consumers in your portfolios that have an ARM with another lender.

Step 2:

  • Assess the risk associated with consumers that have an ARM by determining ARM details, including reset information.

Step 3:

  • Take action, including adverse action to mitigate risk and reduce losses while acquiring new accounts or managing your portfolio.

Find the right scores and models to fit your needs

TransUnion ARM data includes approximately 10 million active ARM records that are refreshed on a monthly basis. This ensures that you receive timely, comprehensive information that you can use to understand the increased risk and take action to mitigate the risk. You’ll receive up to three ARM records returned per consumer.

ARM Append

  • Available for batch portfolio reviews and batch prescreen applications

ARM Alert

  • Available as a credit report add-on
  • Available as add-on to Acquire decision systems
  • Available as add-on to Express Portfolio Review output file

ARM Append / ARM Alert

Manage account risk

  • Portfolio Review Append
  • Line Management Decisions
  • Re-pricing
  • Re-issue Decisions
  • New Account Underwriting
  • Early Collections Activity

Predict loan type with the ARM Estimator

In addition to ARM data, TransUnion also offers the ARM Estimator. This tool predicts whether a loan has a fixed or adjustable rate, accurately predicting an ARM 77% of the time.*

  • Flags each mortgage tradeline on the TransUnion credit file (up to five per member)
  • Estimates APR
  • Business applications
    • Input Into Prescreen Process
    • Back-end Append to Prescreen (Offer Differentiation)
    • Suppression
  • Available for batch portfolio review and batch prescreen applications
  • Cannot be used for adverse action
* Actual percentages will vary based on the type of portfolio.

Better understand the risk associated with ARMs in your portfolio.

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