FICO to Update Credit Score

Jan 24, 2020

FICO is updating its credit score with the release of FICO Score 10 Suite, to be made available this summer.

According to the company, the new product “gives lenders unparalleled flexibility and predictive power to make more precise lending decisions” by incorporating trended credit bureau data that considers a wider data mix including as account balances for the previous 24 months. FICO added the new offering would result in a 17 percent reduction in mortgage defaults to the version of the FICO Score now being used.

"Clients value the dependability and industry-leading predictive power of the FICO Score," said Jim Wehmann, executive vice president for Scores at FICO. "FICO is a cornerstone for consumer lending decisions. We continuously innovate using the latest, most robust data, while maintaining consistency with previous models to ensure backward compatibility and minimize operational changes required to adopt a new score."

Wehmann added that the creation of the new offering comes in response to feedback from lenders.

"Many lenders want to leverage the most comprehensive data possible to make precise lending decisions," he continued. "By offering a score that taps further into trended data, we're able to give lenders greater flexibility and predictive power, as well as ease of integration."

About the author

Phil Hall

Link copied

Published

Jan 24, 2020

People On The Move

Ginnie Mae President Alanna McCargo Announces Resignation

McCargo was first woman and first woman of color at the helm of Ginnie Mae.

The U.S. Department of Housing and Urban Development (HUD) today announced that Alanna McCargo, president of the Government National Mortgage Association (Ginnie Mae), will resign, effective May 3, 2024. McCargo has served in the Biden-Harris Administration since January ...

People On The Move

Christensen, Andrus Added At CE Class Leader

Maximum Acceleration hires mortgage exec. as education director, adds banking manager

Brandon Christensen, a longtime mortgage broker and trainer, has been named Director of Education and National Instructor for Maximum Acceleration LLC, a leading NMLS-approved course provider for mortgage pre-license and continuing education. "Having Brandon join our amaz...