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FICO 9 Flavors


virtualtreasure
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The last post in this topic was posted 2944 days ago. 

 

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4 new scores x 3 credit bureaus = 12 new FICO scores

"Fair Isaac, the company behind the FICO credit scoring system, announced the latest generation of their credit scoring software. The new suite of FICO scores, called FICO 9, is a standard redevelopment of their commonly used credit scoring models."

 

http://www.creditsesame.com/blog/what-you-dont-know-about-fico-9/?utm_nooverride=1&ref=Newsletter_08-29-14&utm_campaign=website&utm_source=StrongView&utm_medium=email

 

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I would still want the damn collections off my report whether they counted in the scoring model or not. A clean file just looks so purty!

And just because they are not counted in the scoring model does not mean that lenders will not see them and deny an application.

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No big news there. The bankcard, auto enhanced and mortgage versions already exist for previous scoring models.

Yep, hence..."is a standard redevelopment of their commonly used credit scoring models" from OP.

 

Not to mention nobody will use this thing for years, if ever.

Remains to be seen, if history is any lesson, no time soon to never.

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The half-flowers headlines are also confusing people, and causing them to think that the algorithm has changed on an existing score model.

 

A few:

 

Got medical debt? Your FICO credit score may go up

 

FICO Credit Score Changes – Will Yours Go Up?

FICO formula changing to ease impact of some bad debts

 

FICO Eases Pain of Medical Debt on Credit Scores
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This scoring model seems stupid. I predict most lenders will stick to 04 and 08.

If it's more predictive of delinquency it will be embraced over time.

 

 

Along with improved risk prediction if the new model increases the pool of people banks can lend to there will be additional incentive. Since the CFPB has put out a paper decrying the excessive harm medical collections cause by overestimating risk in current score models regulators may be pushing this as well. Wouldn't surprise me if this isn't adopted much quicker than earlier FICOs.

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This scoring model seems stupid. I predict most lenders will stick to 04 and 08.

If it's more predictive of delinquency it will be embraced over time.

Along with improved risk prediction if the new model increases the pool of people banks can lend to there will be additional incentive. Since the CFPB has put out a paper decrying the excessive harm medical collections cause by overestimating risk in current score models regulators may be pushing this as well. Wouldn't surprise me if this isn't adopted much quicker than earlier FICOs.

It would probably be a huge boost to the housing market if they could get Fannie Mae and Freddie Mac on board with it.

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This scoring model seems stupid. I predict most lenders will stick to 04 and 08.

If it's more predictive of delinquency it will be embraced over time.

Along with improved risk prediction if the new model increases the pool of people banks can lend to there will be additional incentive. Since the CFPB has put out a paper decrying the excessive harm medical collections cause by overestimating risk in current score models regulators may be pushing this as well. Wouldn't surprise me if this isn't adopted much quicker than earlier FICOs.

It would probably be a huge boost to the housing market if they could get Fannie Mae and Freddie Mac on board with it.

 

 

It would. I'm sure there are pressures to do so. Still, they are always so slow to change.

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This scoring model seems stupid. I predict most lenders will stick to 04 and 08.

 

If it's more predictive of delinquency it will be embraced over time.

Along with improved risk prediction if the new model increases the pool of people banks can lend to there will be additional incentive. Since the CFPB has put out a paper decrying the excessive harm medical collections cause by overestimating risk in current score models regulators may be pushing this as well. Wouldn't surprise me if this isn't adopted much quicker than earlier FICOs.

It would probably be a huge boost to the housing market if they could get Fannie Mae and Freddie Mac on board with it.

It would. I'm sure there are pressures to do so. Still, they are always so slow to change.

Something about lending trillions of dollars makes the GSEs a tad conservative about making changes like this.

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This scoring model seems stupid. I predict most lenders will stick to 04 and 08.

If it's more predictive of delinquency it will be embraced over time.

Along with improved risk prediction if the new model increases the pool of people banks can lend to there will be additional incentive. Since the CFPB has put out a paper decrying the excessive harm medical collections cause by overestimating risk in current score models regulators may be pushing this as well. Wouldn't surprise me if this isn't adopted much quicker than earlier FICOs.

It would probably be a huge boost to the housing market if they could get Fannie Mae and Freddie Mac on board with it.

It would. I'm sure there are pressures to do so. Still, they are always so slow to change.

Something about lending trillions of dollars makes the GSEs a tad conservative about making changes like this.

 

I agree.

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It is traditional for FICO to rewrite their formulas for each bureau somewhere around every 4 or five years. It has always been this way. Newer versions tend to be more predictive of loss. In the automotive sector, the 09 Auto Enhanced Version has long since been adopted.

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While both the VantageScore 3.0 and FICO 9 are new rollouts there is one difference that may support both the radical change in CA impact and their claims that the models are more predictive. Prior models did not use the monthly payment made data in a report which started being reported a few years ago. The new ones incorporate this data. This data not only allows creditors to group people into "revolvers" v "transactors" but provides much better risk info for "revolvers." because the payments made can provide info on financial stress that was unavailable to prior models.

 

Aside from the usual profit seeking rationale for moving to a new model this change promises a significantly more predictive score due to the fine grain data now reported to CRAs.

Edited by cashnocredit
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