Fair Isaac Corp., the creator of FICO scoring, announced a
new score they are developing that is intended to make millions of additional
people credit worthy. Credit reporting giant Equifax and Lexis Nexis Risk
Solutions are providing alternative data to include utility bill, cable bill
and cell phone bill payment information.
This former “alternative credit” information now will have the potential
of contributing to a credit report that could open up FICO scoring to more than
53 million additional potential borrowers who, for various reasons, have not
previously been mainline users of credit, and thus, do not have a FICO
score. In the world of mortgage lending,
no FICO score means no mortgage.
Fair Isaacs has partnered with 15 of the top US credit card
issuers to agree to issue credit cards, based on the alternative credit
score. If the users don’t exceed card
credit limits and pay as agree for only 6 months, they will then receive a
standard FICO score.
This mortgage banker will watch the metamorphosis of the new
FICO score, with great interest, to see just how accepting FHA, VA, Fannie Mae
and Freddie Mac will be of this new “credit report”.
Forget about the congressional uproar over 3% down vs. 3.5%
down payments. This manipulation of the,
up to now, sacred FICO score could dramatically skew credit assessment as well
as risk analysis.
Frost Mortgage Concierge Program on Display: Coldwell Banker Legacy
Frost Mortgage Concierge Program on Display: Keller Williams Realty
Frost Mortgage Concierge Program on Display: Berkshire Hathaway HomeServices ALLSTAR
Fair Isaac Corp., the creator of FICO scoring, announced a
new score they are developing that is intended to make millions of additional
people credit worthy. Credit reporting giant Equifax and Lexis Nexis Risk
Solutions are providing alternative data to include utility bill, cable bill
and cell phone bill payment information.
This former “alternative credit” information now will have the potential
of contributing to a credit report that could open up FICO scoring to more than
53 million additional potential borrowers who, for various reasons, have not
previously been mainline users of credit, and thus, do not have a FICO
score. In the world of mortgage lending,
no FICO score means no mortgage.
2 National Labs, 4 Military Bases, Federal Ownership of 25%
of the State's land along with Federal poverty programs, Medicare, Medicaid,
Social Security payments, Agricultural subsidies, Forest Service management and
the like keep New Mexico at the top of the list of states getting Federal
money.
Frost Mortgage Concierge Program on Display: Berkshire Hathaway Home Services ALLSTAR
CoreLogic reports that 1.2 million homeowners, whose homes
were previously underwater (their mortgages were higher than the value of their
homes), gained an equity position in 2014.
