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Will the new FICO scores make a difference?

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Mortgage Professional America | 04 Sep 2014, 07:37 AM Agree 0
FICO has announced it will change the way it calculates credit scores, resulting in higher FICO ratings for many consumers. But will lenders accept the new scores?
  • | | 04 Sep 2014, 09:35 AM Agree 0
    These new scoring models will not do much from a lending standpoint in the short run due mostly in part to the fact it would require lenders and GSE to rewrite the back end code for AUS plus there is no data/resources supporting the that this model leads to better repayment ability outside of blindly trusting the agencies statements. Until are is hard data on the effectiveness of this model there is no way I can see the GSE investing the needed capital to rewrite AUS.
  • Dave | | 04 Sep 2014, 09:52 AM Agree 0
    Scoring models should have been changed years ago! Considering a payment in full on a 3-year old collection as "current activity", resulting in a lower score, is ridiculous. Most small collections for old medical, cell phones, cable TV, etc. are no indication of whether someone will pay their car, credit cards, personal mortgages and/or mortgages payments on time. Scoring models should focus on installment and revolving debt repayment histories and not older collections!
  • D | | 13 Jan 2015, 08:44 PM Agree 0
    I agree paid collections in full should show a better credit score. The system sometimes works in favor of the banking industry then the consumers.
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