Mortgage Industry News
« Return to Mortgage Industry News
Changes to FICO are on the Way
Friday, January 24, 2020
Paying bills on time is about to become more important
for American consumers, and this as their debt levels are reaching new highs.
Fair Isaac Corporation, the company which creates the FICO credit score models,
will introduce two new ones this summer, the FICO Score 10, and the FICO Score
10- T. The company says its new models "incorporate trended credit bureau
data to further enhance predictive power" and that lenders could
reduce defaults by as much as ten percent among newly originated bankcards and
nine percent among newly originated auto loans, compared to using FICO's
previous models. The reduction, the company says, could be 17 percent for newly
originated mortgage loans compared to the version of the FICO Score used in
that industry.
Read Full Article