MINNEAPOLIS – Oct. 29, 2010 – FICO announced that its latest credit scoring product, the FICO 8 Mortgage Score, is now available from all three major U.S. credit reporting agencies.
The FICO 8 Mortgage Score was built specifically to help lenders better predict mortgage performance and improve credit decisions. The score analyzes the full credit history on file to deliver a better assessment of mortgage repayment risk, with an eye toward cutting down on the number of future foreclosures. FICO claims a 15 percent performance improvement over credit scores currently available.
“To do the best job of evaluating risk and increasing profits, lenders need updated credit scoring analytics that incorporate mortgage credit performance since the subprime mortgage meltdown,” says Craig Focardi, senior research director at TowerGroup.
The FICO 8 Mortgage Score retains the same 300-850 scoring range, minimum scoring criteria, authorized user and inquiry treatment as the general-risk FICO score. To achieve its increase in predictive strength for mortgages, the FICO 8 Mortgage Score assesses additional data from consumer credit files to predict mortgage repayment risk.
The FICO 8 Mortgage Score also includes additional score reason codes, compliant with the Fair Credit Reporting Act, to help lenders understand and explain the scores to applicants.
© 2010 Florida Realtors®
Reprinted with permission. Florida Realtors®. All rights reserved.
The recession was caused by people being unable to pay back their home mortgages because the mortgage rates were too high?
Posted by: Poplar Bluff Real Estate | October 31, 2010 at 10:55 AM
I think that announcement of new mortgage credit scoring system can attract lot of the people willing to have any mortgage plan.
Posted by: Home Mortgage Loan | October 30, 2010 at 05:57 AM