Credit scoring company FICO has teamed up with data provider CoreLogic on a new credit scoring system specifically for mortgage lenders aimed at giving them more confidence in risk taking and homebuyers more credit for good financial decisions.
The FICO Mortgage Score Powered by CoreLogic uses the FICO model to mine information from a new CoreLogic credit report, much as the old model worked with other data sources to produce the familiar FICO score.
The new system supplements traditional credit data with property transaction data, landlord and tenant information, borrower-specific public data and other alternative credit information that creates a more complete and predictive evaluation of a consumer’s credit risk profile to help lenders better manage risk.
Whether the new scoring helps more people get mortgages remains a question. Realtor Marc Cormier, of Keller Williams in Arlington, said the answer depends on who uses it….read more