FICO announced its new credit score model earlier this week, but will it revolutionize the lending industry, or fall through the cracks?
While time may be the only true way to tell the answer to that question, HousingWire spoke to FICO executives in order to determine the vision and capabilities of the new model, UltraFICO.
As we previously reported, UltraFICO has the potential to increase the FICO score for millions of consumers, that is, if they opt in. The new model depends on consumers to “build their own credit score,” and give permission for access to their bank records.
Once this permission is given, FICO, Experian and Finicity team up to provide a score that looks not just at the applicant’s credit file, but also how they manage their personal finances.
FICO explained that this could be a tool to increase homeownership by boosting the score of applicants with thin files, those who have previous marks against them but are working to improve their score or even those who are credit invisible (consumers who have no credit file whatsoever.)…continue reading the rest of this post: Will new FICO model be key to increasing homeownership?