What is borderline applicant underwriting?
Borderline applicant underwriting focuses on applications near an approval, decline, or referral threshold where the lender's existing data or score does not provide sufficient separation to make a confident decision.
What is second-look underwriting?
Second-look underwriting reassesses a defined group of declined or referred applications using additional risk evidence. It is not a blanket override of the lender's original policy.
Does Carrington Labs replace our current scorecard?
No. Carrington Labs can add a lender-specific model or supplementary cash flow signal alongside your existing scorecard, bureau data, and policy framework.
Is this only for thin-file borrowers?
No. It can also help distinguish applicants with established credit files who have similar traditional scores but different current financial behavior or product-specific risk.
Can we test the model before changing policy?
Yes. The model can be evaluated against historical portfolio outcomes, subject to data quality and sample size. Lenders can then simulate how alternative cutoffs or referral strategies might have performed.
Does Carrington Labs make the approval decision?
No. Carrington Labs supplies risk analytics and model outputs. The lender retains control over policy and final decisions.
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