ATLANTA -

FactorTrust finalized a partnership with Equifax on Tuesday to provide its customers with an improved view of consumers’ ability to repay (ATR).

Executives explained that the collaboration blends data from the alternative credit bureau with traditional credit data from one of the nation’s largest credit reporting agencies. As a result, the companies indicated finance companies will have access to the comprehensive credit profiles needed to assess an underbanked consumer’s residual income and comply with forthcoming regulations regarding a consumer’s ability to repay loans. 

FactorTrust’s Ability to Repay product, LendProtect ATR can provide finance companies with a robust solution that can accelerate their ability to add the information and tools needed to meet the anticipated ATR underwriting requirements from the Consumer Financial Protection Bureau. The flexible platform simplifies integration of core data sets such as existing credit obligations from FactorTrust and Equifax with validated income and living expense data to calculate residual income, a key component of the CFPB’s proposed rulemaking.

In addition, the platform can help finance companies to manage compliance, reporting and maintain data on underwriting decisions. 

“We are committed to continually improving our solutions with quality data that helps our customers,” FactorTrust chief executive officer Greg Rable said.

“Our partnership with Equifax not only benefits lenders, but also borrowers,” Rable continued. “It’s important that everyone have access to financial services when needed, and it is important for lenders to make the most informed decisions possible when offering loans to consumers.”

LendProtect ATR will include new predictive data attributes and scores. These components will capture borrowing capacity, debt-to-income ratio and other measures related to a consumer’s ability to repay in order to enable improved credit risk management.

“Lenders will now have more insight into a consumer’s credit history, enabling the lender to offer smart, profitable lending solutions with confidence,” FactorTrust said.