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FICO Announces New Mortgage Credit Score

Posted by Benjamin Dona on Friday, October 29th, 2010 at 5:08pm.

New FICO 8 Mortgage Score InformationFair Isaac and Company (FICO) announced the release of a new credit scoring product called the FICO 8 Mortgage Score. It was specifically designed to help lenders make better credit decisions in predicting mortgage performance risk and is now available from all three major U.S. credit reporting agencies - Experian, Equifax and TransUnion.

According to FICO, the FICO 8 Mortgage Score will analyze a borrower's full credit history on file to deliver a better assessment of mortgage repayment risk and hopefully help cut down on the number of future foreclosures. FICO claims a 15% performance improvement over the standard credit scores currently available and says the new product includes additional score reason codes to help lenders understand and explain the scores to mortgage applicants.

The FICO 8 Mortgage Score will retain the same 300-850 scoring range, minimum scoring criteria, and inquiry treatment as the standard FICO scores.

As with all the changes that have been implemented since the mortgage crisis began, we have to wonder if simply reverting back to sound underwriting principals might not just solve all the problems that have occurred in the lending industry.

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4 Responses to "FICO Announces New Mortgage Credit Score"

Mike in Indianapolis wrote:
Interesting, this is the first I have heard of this. Do you know of any company a consumer can get a copy of this score from or is it only available to lenders?

Posted on Monday, November 8th, 2010 at 11:45pm.

Benjamin wrote:
To my knowledge at this point, it will initially only roll out to the lenders. Supposedly, it will then filter down to the consumer providers over time.

I'll update the post when I get more info.

Posted on Tuesday, November 9th, 2010 at 10:10am.

Brad wrote:
I think it's just lenders that have this scoring model right now. I get people who come into my office with a paid consumer report that used a different scoring software. Their scores will often be 100 points or more higher than what FICO is scoring them at. Then they think I am the problem even after explainigng why that happens. One person got up and walked out thinking I was trying to take advantage of them because there interest rate was going to be so much higher due to her low FICO score.

These sites where people can purchase their own credit report and score should do a better job of explaining they don't use FICO scoring model.

Great info and I like your blog.

Posted on Saturday, December 11th, 2010 at 7:20pm.

Celine Bowdwick wrote:
I wish that our life didn't always have to depend on money and a three digit number!

Posted on Friday, September 30th, 2011 at 12:35am.

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