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GreenLyne, a company that provides loan underwriting technology aimed at prospective borrowers who fail to meet traditional guidelines, has agreed to use the Residual Income Knowledge Index (RIKI) from FormFree. RIKI will be used to determine optimal loan terms for borrowers excluded by traditional underwriting, according to the companies.


GreenLyne says its technology enables mortgage lenders to finance borrowers who have the capacity to support a mortgage but typically would be deemed ineligible for home financing. FormFree says its RIKI is a risk-analysis model that analyzes cash flow and residual income to ascertain a more complete picture of a borrower’s creditworthiness than traditional credit scoring alone. 


“Too many consumers who have a steady income and dutifully pay their bills on time are being excluded from homeownership because mortgage lenders haven’t had tools to assess their ability to pay. In effect, these consumers are being punished for an industry’s weakness, which is profoundly unfair,” said FormFree Founder and CEO Brent Chandler. “We are proud to provide GreenLyne with RIKI’s residual income analytics so it can pave a more inclusive path to homeownership for a large cohort of Americans.”


“GreenLyne’s fair lending credit underwriting innovation provides a precise path to safely and soundly expand homeownership for a large, unfairly underserved segment of Americans,” said GreenLyne CEO Syeed Mansur. “We are delighted to forge a deep partnership with FormFree, which couples a new era of consumer financial data with breakthrough advances in high accuracy credit risk prediction and fair underwriting that optimally balance affordability for borrowers and profitability for lenders.”


The companies says their partnership will allow them to more precisely and fairly predict a borrower’s risk of default and thereby set appropriate loan terms that balance profitability for the lender and affordability for the homebuyer.