Right data, right step: The new playbook for mortgage credit affordability

Key takeaway

Reno D’Water said lenders can start losing money within the first 10 to 15 minutes of a mortgage application by buying too much credit data too early — or pulling it in the wrong sequence. His message: credit is no longer just a cost of doing business. It is a business decision that affects affordability, workflow efficiency and per-loan profitability.

What leaders need to know:

• Credit costs are under pressure. D’Water said lenders are facing rising costs across the origination process, and credit has become one of the larger line items.
• Fallout is often the biggest credit expense. D’Water said when lenders pull credit for applicants who don’t move forward, they absorb the cost without a funded loan.
• The first 15 minutes can determine file economics. D’Water said early decisions can drive overbuying, rework and avoidable cost.
• Sequencing controls cost and outcomes. D’Water said lenders should be deliberate about when to use lighter data and eligibility signals, when to run a full credit pull, and when a refresh is actually needed.
• Repulls can erode margins quickly. D’Water said some files generate multiple credit “touches,” making it critical to audit how often lenders are repurchasing data — and why.
• Workflow design is part of affordability. D’Water said pulling the right data at the right step can reduce cost, improve the borrower experience and support faster, cleaner loan decisions.