FICO Shares Insight on Credit Scoring Model. Launches New Consumer Site

Over the past year we've given much attention to the lack of common sense that continues to pervade the mortgage industry. As part of the discussion we recently raised the question of whether or not the home loan underwriting process is too reliant on the FICO model. READ MORE : Does the Mortgage Industry Rely Too Heavily on Credit Scoring Models? However before posing that question we performed a fair amount of research on the FICO model and addressed the general confusion that surrounds the determination of a borrower's FICO score. Craig Watts, FICO's Public Affairs Director, told us that FICO's scoring models are not static. "They are constantly evolving, but each change reflects data over time, and users do not adopt new models immediately because of the cost and labor involved." Today...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: http://www.mortgagenewsdaily.com/01122011_fico_model.asp

Luxury Home Prices Mortgage Rescue Scams Real Estate Vacation Properties