FormFree recently announced its proprietary financial data analysis software has been granted a patent by the United States Patent and Trademark Office.
Formfree said the software uses a multi-dimensional analysis to determine a potential homeowner’s ability to repay a loan. This may create an alternative to a credit score for consumers who have little or no credit.
“This patent is another important milestone in strengthening our intellectual property position. Nearly 50 million Americans — disproportionately including the poor and minorities — lack a credit score and cannot obtain mortgages or other lending products,” FormFree founder and CEO Brent Chandler said in a release.
The software analysis is meant to give borrowers control of the lending process by making it easier to find financial institutions with which to work. In addition, lenders can use the data for better risk management and to make better credit decisions.
“FormFree understands that every consumer has a quantifiable ability to pay, not just those with a 720 or higher credit score,” Chandler said. “We are reimagining credit scoring with a new framework that provides a more complete understanding of what a person can actually afford than merely reviewing their repayment history.”