Items Tagged with 'credit scoring model'

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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  • VantageScore hires former Radian, Wells Fargo exec Phillip Bracken to lead industry relations

    Bracken also tasked with dealing with regulators
    VantageScore Solutions, the developer of the VantageScore credit scoring model, is hiring former Radian Guaranty and Wells Fargo executive Phillip Bracken to lead the company’s government and mortgage industry relations. Bracken comes to VantageScore from Radian, where he was chief policy officer and head of government and industry relations.
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  • FHFA takes next step to changing credit scoring models, requests input

    Looks to expand homeownership opportunities
    The Federal Housing Finance Agency is asking interested parties to weigh in on its request for input on its possible change to its credit scoring models. The credit score models independently analyzed by the Enterprises were – Classic FICO, FICO 9, and VantageScore 3.0, and now, the agency is asking for input from the industry.
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