Jump to content

WSJ - FICO Sees Its Hold on Credit Slipping (paywall)


racer7949
 Share

Recommended Posts

 

 

FICO Sees Its Hold on Credit Slipping {print edition headline}

 

Highlights:

 

Big lenders are moving away from FICO... Capital One Financial Corp. and Synchrony Financial don’t use its scores for most consumer-lending decisions. They are becoming a smaller factor in some underwriting decisions atJPMorgan Chase & Co. and Bank of America Corp.”

 

Regulators are concerned that FICO leaves too many Americans behind, limiting them to payday loans and other costly forms of credit.”

 

“Big banks are increasingly approving applicants with low FICO scores or rejecting those with high scores if alternative metrics point in a different direction, lending executives said.”

 

 

Edited by racer7949
Link to comment
Share on other sites


I read this yesterday and wondered what you all thought about it. Are consumers really seeing less FICO use and more VantageScore use? I wonder if a lenders’ internal metrics are more bewildering than how we work within the current framework, if we will be able to keep up with how it all works.


Sent from my iPhone using Tapatalk

Link to comment
Share on other sites

4 hours ago, BigSpenderBigSaver said:

I read this yesterday and wondered what you all thought about it. Are consumers really seeing less FICO use and more VantageScore use? I wonder if a lenders’ internal metrics are more bewildering than how we work within the current framework, if we will be able to keep up with how it all works.

 

I'm not sure ANY major lender has been identified as using Vantage sKores. 

 

Some have some proprietary internal algorithms, which is part of why American Express was long noted for approval of some with lower scores (low 600's) while declining some high-scoring applicants. 

 

Almost every lender who posts a Vantage sKore makes note of the fact that it is NOT the score they use for decisioning!

Link to comment
Share on other sites

4 hours ago, BigSpenderBigSaver said:

I read this yesterday and wondered what you all thought about it. Are consumers really seeing less FICO use and more VantageScore use? I wonder if a lenders’ internal metrics are more bewildering than how we work within the current framework, if we will be able to keep up with how it all works.

 

Industries don't move very fast, and change is in constant motion.

 

But a headline which says that doesn't get you to read the article below it.  :)  

 

Note that the push related to the mortgage industry accepting alternative scores has nothing to do with ensuring a resilient, robust housing finance market.  

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share




  • Member Statistics

    • Total Members
      184739
    • Most Online
      2046

    Newest Member
    angayuqaq
    Joined
×
×
  • Create New...

Important Information

Guidelines