Dear Hilary – Determining Primary Borrower
September 2015

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Dear Hilary,

 

I am wondering if you could tell me how the primary borrower is determined in Visible Equity? We have some loans that have multiple borrowers.

Sincerely,

Determining Primary Borrower

 

Dear Determining Primary Borrower,

Visible Equity’s Loan Portfolio Analytics is built to analyze loans, but certain key data such as credit scores are often tied to a borrower or multiple borrowers. In these situations Visible Equity needs to determine which borrower is going to represent the loan.

We refer to this borrower as the Primary Borrower. Visible Equity uses the following rules to determine the Primary Borrower:

  • Case 1. Single Borrower. When a loan has only one borrower, that borrower is the Primary Borrower.
  • Case 2. Multiple Borrowers-Primary Borrower is Specified by Client. When a loan has multiple borrowers, a user can specify which borrower is the Primary Borrower and that borrower becomes the Primary Borrower.
  • Case 3. Multiple Borrowers-Primary Borrower not Specified. In the event a loan has multiple borrowers and none are specified as a Primary Borrower, Visible Equity will apply the following rules:
    1. First, check which borrower has both an original score and an updated score. If only one borrower has both scores, then that borrower is the Primary Borrower.
    2. Next, if multiple borrowers have both an original and an updated score, the Primary Borrower is the one with the newest updated score.
    3. Lastly, if multiple borrowers have both an original and an updated score and the newest updated score for all borrowers is the same date, then borrower with the highest score becomes the Primary Borrower.

Please note that under Case 3 the Primary Borrower is subject to change, depending on the credit data presented. Please let Visible Equity know if you would like to use different rules than what is described above.

Happy Friday!

Hilary

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