FICO has released a new mortgage score simulator that tests the impact of hypothetical steps to improve a borrower’s credit and is mortgage-market specific.
There are other simulators on the market, but FICO says its FICO Score Mortgage Simulator is the only one built by the company’s data analytic scientists and powered by the FICO credit score algorithm.
FICO’s credit score, which the company says is used by 90% of top lenders in the country, is the standard measure of consumer credit risk. But other companies, specifically VantageScore, have been nipping at FICO’s heels.
The Federal Housing Finance Agency (FHFA), the conservator of Fannie Mae and Freddie Mac, has recently told the two government-sponsored enterprises (GSEs), to accept VantageScore as well as FICO scores when underwriting mortgage applicants.
The new simulator is now available to mortgage professionals through Credit Interlink, a software services provider to mortgage originators and underwriters, as well as through Interlink’s reseller partners, Partners Credit & Verification Solutions and Advantage Credit Inc.
“What truly sets this integration apart is its direct connection to the credit scores that matter most in mortgage decisions,” Shawn Jobe, vice president of software and product development at Credit Interlink, said in a statement. “No other tool provides the ability to model real FICO Score behavior with such accuracy and ease.”
Lenders who use the “what-if” simulator will be able to provide actionable, data-driven credit insights to help their clients gain approval for financing. “This is about smarter credit strategy, faster decisions, and a better overall lending experience,” Jobe said.
The FICO simulator supports scoring mock-ups on one, two, or three credit bureaus and models potential changes to the classic FICO scores used in mortgage lending.
“Through transparent and actionable insights, lenders (will be) empowered to guide borrowers toward better financial outcomes and unlock access to credit in a responsible, informed way,” Geoff Smith, vice president and general manager of consumer scores at FICO, said in the same statement.
