Fair Isaac Corp.’s (FICO) decision to let resellers calculate and distribute its scores directly to lenders drew a mixed response from the mortgage industry — viewed by some as a step toward more competition, but by others as a potential driver of higher credit score costs in the short term. On Wednesday, FICO unveiled the […]
FICO’s new program draws mixed reviews from mortgage market Read More »
Fair Isaac Corp. is rolling out a new program that lets mortgage resellers bypass the three major credit bureaus Equifax, Experian and Transunion and deliver its FICO credit scores directly to lenders, a shift the company says will bring down costs. The announcement drew cautious optimism from industry trade groups. The move avoids any additional
FICO’s new pricing program met with cautious optimism Read More »
Fair Isaac Corp. (FICO) has launched a program allowing tri-merge resellers to calculate and distribute its scores directly to mortgage companies, effectively bypassing the three nationwide credit bureaus: Equifax, TransUnion and Experian. The move comes amid intensified competition with VantageScore, owned by the three bureaus, following the Federal Housing Finance Agency’s (FHFA) decision to let
FICO bypasses credit bureaus with new program for mortgage lenders Read More »
The American Enterprise Institute’s (AEI) recent opinion piece (“FICO isn’t the problem. A premature two-score system is“) challenges a nearly unanimous market conclusion: VantageScore 4.0 is a more predictive credit score for mortgages than Classic FICO. Tobias Peter and Sissi Li’s critique tells yesterday’s story. VantageScore 4.0 is about tomorrow, and the market agrees. While
VantageScore 4.0’s predictive power stands up to scrutiny Read More »
Figure Technology Solutions, a blockchain-native capital marketplace, announced on Monday an expansion of Intellidebt, its Direct Debt Payoff (DDP) solution. The move aims to allow borrowers to consolidate existing liens and high-interest debt directly through the loan application process. The upgrade boosts borrower qualification potential by improving combined loan-to-value (CLTV) ratios, debt-to-income (DTI) ratios and
Figure expands Intellidebt offerings for debt consolidation Read More »
Bill Pulte, director of the Federal Housing Finance Agency (FHFA) recently roiled the mortgage market with a post on X, writing “Fannie [Mae] and Freddie [Mac] will ALLOW lenders to use Vantage 4.0 Score with no current requirement to build new infrastructure (stays Tri Merge).” Not only is it highly unorthodox to be making huge policy decisions
Pulte’s tweet hands credit bureau an unfair edge Read More »
Nearly two dozen members of Congress recently sent a letter to Bill Pulte, director of the Federal Housing Finance Agency (FHFA), that supports his decision to accept VantageScore 4.0 credit scores for mortgages purchased by Fannie Mae and Freddie Mac. The lawmakers, led by Rep. Mike Flood (R-Neb.), said that the move will help President
Lawmakers voice support for FHFA’s adoption of VantageScore 4.0 Read More »
VantageScore and FICO have escalated their rivalry in the mortgage space following the Federal Housing Finance Agency’s (FHFA) decision to allow Fannie Mae and Freddie Mac to purchase loans underwritten with VantageScore 4.0 as an alternative to the Classic FICO score. Both companies published analyses this week from their data scientists. Naturally, each claims their score more
Which is better for mortgage — FICO or VantageScore? Read More »
In the days following the announcement that VantageScore 4.0 was suddenly in play for conventional mortgages, FinLocker‘s Brian Vieaux had to burst some bubbles. Most of the 15 to 20 loan officers he spoke to were ecstatic about being able to use the new credit scoring model. Millions of new prospective borrowers could be scored
VantageScore 4.0 is coming. But much work needs to be done Read More »
Mortgage industry professionals had more questions than answers following last week’s bombshell announcement that the government-sponsored enterprises Fannie Mae and Freddie Mac have approved the use of VantageScore 4.0, a new credit scoring model. A week after the initial announcement, Federal Housing Finance Agency (FHFA) Director Bill Pulte answered several key questions. In an FAQ
FHFA clarifies key VantageScore 4.0 implementation questions Read More »