FICO's Julie May on how score use in mortgages is changing
National Mortgage News
In-depth analysis, strategy and data spanning the entire residential mortgage industry. An Arizent brand.
The push for government-related mortgage investors to adopt advanced credit metrics has been put on hold. As a result, the spotlight has shifted to the private market, where lenders are exploring new scoring models like FICO 10T and VantageScore 4.0 to expand originations while managing risk. It's a change in the landscape that the government-sponsored enterprises, lenders and providers of the scores have to navigate as the current administration looks to potentially privatize the GSEs. To better understand how private lenders are adopting these metrics, we spoke with Julie May, vice president of business-to-business scores at FICO. She shared insights on how FICO is positioning its 10T score for the nonconventional market as credit costs rise.
READ MORE: FICO's Julie May on how score use in mortgages is changing
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Lender | MGM Capital Investments | NMLS #2758028 | Founder & CEO, Blue Ridge Cap, LLC | Host of THE MTR Connect for Midterm Rental Investors
6moI'd love a blog from either NMN or FICO that goes a little deeper into the different FICO scoring models such as VantageScore 3.0, FICO 8, etc. I am forever trying to get a better understanding of what types of lenders and credit issuers use which scores because, as a consumer, my scores are all over the map - depending on which scoring model the credit issuer is using. And, no, I'm not talking about the difference between the 3 major reporting bureaus (Experian, TransUnion and Equifax). More information on this topic would be greatly appreciated, not only for myself, but so I can better advise my borrower clients!
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6moExcellent insights from Julie May! Adopting FICO 10T and VantageScore 4.0 in private markets feels inevitable, especially with the ongoing uncertainty around GSEs. I'm particularly intrigued by how these advanced scoring models could help lenders better serve nontraditional borrowers without elevating risk. I'm curious, has anyone started seeing tangible results from implementing these new scoring models? Would love to hear experiences from other lenders or underwriters navigating this transition.