Items Tagged with 'FICO Score'

ARTICLES

  • FHFA flip-flops, won't blacklist VantageScore as FICO alternative for Fannie and Freddie

    FHFA removes pending prohibition on GSEs using credit bureau-owned model
    In a rather surprising development, the Federal Housing Finance Agency announced Tuesday that it will allow Fannie Mae and Freddie Mac to consider using VantageScore as an alternative to their current FICO credit scoring model, a dramatic reversal from a proposed rule issued late last year.
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  • CFPB study shows alternative credit models lead to more loans, cheaper loans

    Test shows one alternative credit model leads to 27% more loan approvals
    For the better part of this decade, there’s been a serious push to get the GSEs to use newer credit scoring models that consider factors such as a person’s bank account history or utility payments when determining their creditworthiness. That movement all but ended last year, when the FHFA said that it will not be authorizing the use of any new credit scoring model for several years, but a newly released study from the CFPB shows that using alternative credit models will not only lead to more borrowers getting loans, the loans they get will be cheaper too.
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  • Mortgages are now available for borrowers without credit scores

    Think you need a credit score to get a mortgage? Think again
    For the better part of this decade, there’s been a movement afoot to try to get the two main sources of mortgage financing, Fannie Mae and Freddie Mac, to begin using newer credit scoring models that use factors like a person’s bank account history or utility payments as a consideration when determining their creditworthiness. But now, there's one mortgage company that will lend to borrowers who have no credit score at all.
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  • Experian offering potentially higher credit scores in exchange for access to people’s bank accounts

    Will use utility, cell phone payments to calculate FICO score
    Experian wants access to consumers’ bank accounts as part of an effort to help people boost their credit scores. Experian announced Tuesday that it is launching a new program called “Experian Boost.” Through the program, consumers grant access to their bank accounts to allow Experian to use utility and telecommunications payments in the calculation of their credit score.
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  • FHFA issues new rule effectively prohibiting Fannie and Freddie from using VantageScore

    Regulators cites conflict of interest as concern in alternative credit score proposal
    Anyone hoping that Fannie Mae and Freddie Mac may soon start using VantageScore as an alternative to their current FICO credit scoring model is about to get a cold dose of reality. The FHFA announced this week that it is issuing new rules surrounding the adoption of alternative credit scoring rules. Chief among those rules is a provision that would prohibit the GSEs from using the VantageScore credit scoring model because of conflicts of interest with the company’s backers.
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  • Jim Wehmann explains the impact UltraFICO Score will have on consumers

    FICO partnered with Experian and Finicity to provide borrowers further access to credit
    FICO, Experian and Finicity announced the launch of a new credit score, the UltraFICO Score. FICO partnered with Experian and Finicity on the new score to help lenders safely provide further access to credit or credit potentially at better terms to consumers with limited credit history or who had previous financial distress. With distribution from Experian and new aggregated data from Finicity, the UltraFICO Score improves access to credit by including consumer-permissioned data. The new score may impact approximately 15 million consumers who currently do not have a FICO Score.
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  • Can scoring trended data help lenders expand credit access?

    And what’s keeping 50 million credit invisible in the U.S.
    [Expert Commentary] Americans who don’t have a FICO Score present both an opportunity and a challenge for lenders. Some lenders are asking can scoring trended data, or more accurately trended credit bureau data, as some credit score companies claim, actually help expand credit access to these consumers? The short answer is no and here’s why.
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  • Closing rates in August hit highest point since January

    Refis held steady despite interest rate increase
    Ellie Mae’s latest Origination Insight Report showed much of the loan origination data held steady from July to August. However, closing rates increased during the month to their highest point since the beginning of this year. Here’s the full rundown.
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  • Senate to consider bill to end “FICO monopoly” at Fannie Mae and Freddie Mac

    Bipartisan push continues to allow GSEs to use alternative credit scoring models
    Earlier this year, a bipartisan group reintroduced a bill in the House of Representatives that would allow Fannie Mae and Freddie Mac to consider alternative credit-scoring models beyond the FICO credit score the government-sponsored enterprises currently use. Now, a companion bill is being introduced in the Senate as well, with the backing of Senators from both parties.
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