Standard & Poor’s has found that VantageScore 4.0 and classic FICO produce similar enough results when used to assess credit risk that mapping between them could be done to incorporate the former into rating models based on the latter. Processing Content To test this, S&P modeled theoretical loss coverage and foreclosure frequency rates for a […]
S&P says VantageScore 4.0 could work for MBS ratings Read More »
Lenders are drawing up new game plans, or preparing to, now that Fannie Mae, Freddie Mac and the Housing and Urban Development have committed to adding modernized credit scores as alternatives to Classic FICO. Processing Content NewRez, a division of Rithm Capital, completed a test sale of $10 million in loans to Freddie Mac using
Lenders test new Fannie Mae, Freddie Mac, FHA scores Read More »
Federal regulators announced today that they are taking steps to spur competition and legislatively mandated modernization in credit scoring. Processing Content Freddie Mac has already tested $10 million in loan sales involving use of VantageScore 4.0 and Fannie Mae also now is offering to buy loans on this basis, according to Bill Pulte, head of
Fannie, Freddie, FHA to accept VantageScore immediately Read More »
Senator Josh Hawley, a Republican from Missouri, during a hearing on Wednesday, April 17, 2024. Photographer: Graeme Sloan/BloombergGraeme Sloan/Bloomberg A Republican senator launched a new investigation into the leading provider of mortgage borrower credit scores, reiterating prior criticism of a “monopoly” he says proves detrimental to aspiring home buyers. Processing Content Alongside his own investigation
Senator calls for FTC investigation into FICO score pricing Read More »
TransUnion has further slashed its mortgage origination price for VantageScore 4.0, a metric the government-related secondary market is seeking to promote as an alternative to traditional measures available from FICO. Processing Content The considerably lower $0.99 price is down from $4, which already was a 50% discount relative to earlier pricing, said Satyan Merchant, the
TransUnion fires latest volley in credit-score price war Read More »
Plans to expand competitive use of VantageScore in the mortgage market could save the industry hundreds of millions of dollars, potentially offsetting concerns about rising credit score costs. Processing Content VantageScore estimates that full adoption of its 4.0 version under a “competitive use” scenario could cut more than $600 million in the first 12 months,
FHFA VantageScore savings sized up, FICO expands in mortgage Read More »
The mortgage industry loves speed. Faster verifications, faster underwriting, faster closings. Over the past decade, lenders have invested heavily in technology designed to compress cycle times, reduce manual touchpoints, and improve margins in an increasingly rate-sensitive market. Processing Content But there is a structural problem technology alone cannot solve: a mortgage decision is only as
Mortgage tech can’t fix bad credit data Read More »
Key insight: The three credit bureaus — Equifax, Experian and TransUnion — say the complaint portal is being abused by third-party credit repair firms and AI bots. What’s at stake: Credit repair firms are using the CFPB’s complaint portal to try to remove accurate but negative information from credit reports. Supporting data: Credit reporting complaints hit
CFPB implements new requirements for complaints on its portal Read More »
Last week the Community Home Lenders of America released its CHLA 2025 Report on Independent Mortgage Banks. Processing Content The report leads off by highlighting significant developments over the past year that affect mortgage lender/servicers and the homebuyers and borrowers they serve. In many ways, 2025 was a good year, at least for advocacy
The mortgage market runs on IMBs. Washington hasn’t caught up Read More »
The Community Home Lenders of America has published a new list of reasons it views the effort it would take to transition to a single-bureau credit report option at the government-sponsored enterprises as outweighing benefits related to a potential reduction in expense. Processing Content “Costs will likely not be reduced — and could be increased,”
Lenders group flags risks in single-bureau credit plan Read More »