FICO Launches New Credit Scoring Model

Jan 24, 2020, 10:38 AM by

For borrowers with already good credit, the new model will likely provide a boost. On loans and mortgages, it could even mean additional saved on interest and fees for this cohort, according to Mat Ishbia, president and CEO of United Wholesale Mortgage.

“A more accurate picture of a borrower’s credit will not hurt,” he says. “In fact, it can help. Anytime a scoring model is more accurate, it’s better for consumers because there’s a lot of consumers who aren’t getting the credit score they deserve. For example, if someone has a 690 but really should have a 700 they’re missing out on lower fees and rates that the higher credit score would get them.”

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