CoreLogic‘s Credco unit introduced its LQ GAP product to help lenders meet requirements of new Fannie Mae loan quality initiative programs. Fannie Mae’s updated guidelines include new mandates for debt-to-income ratios wherein an applicant’s debt increases by 3 percent or more — or exceeds 45% of debt-to-income — the lender must re-underwrite the loan. Freddie Mac also has updated its guidelines. “Up to 19% of all applicants incur additional debt between the pre-approval credit report and pre-funding, ranging from new revolving debt and auto loans to additional new mortgages,” said John Bauer, executive vice president of business development for CoreLogic Credco. Bauer says the new product monitors debt-to-income ratios and debt increases, and can recognize changes in a borrower’s credit report between pre-approval and pre-funding. By providing an automated variance, the LQ GAP collects, organizes and compares changes in trade lines, inquiries, balances, alerts and other credit profile factors to avoid buybacks and preserve loan integrity, according to CoreLogic Credco. Write to Ariana Garza.