FICO Score 10 T Adoption Reaches Significant Milestone by Serving $300 Billion in Eligible Mortgage Portfolios
17 April 2024 - 10:00PM
Business Wire
Liberty Home Mortgage latest to proactively
adopt FICO’s newest, most innovative and predictive scoring
model
FICO World – Today at FICO® World, the industry's leading
analytic and AI event, analytics software leader FICO (NYSE: FICO)
announced a significant milestone in the adoption of FICO® Score 10
T by the mortgage industry. Since 2023, clients with over $100
billion in annualized mortgage originations and approximately $300
billion in eligible mortgage portfolio servicing have signed up for
the FICO Score 10 T.
Additionally, Liberty Home Mortgage is the latest to choose to
adopt FICO® Score 10 T for non-conforming loans. It joins a growing
number of mortgage lenders embracing FICO’s newest, most
innovative, and most predictive scoring model.
Among the pioneering organizations to embrace FICO® Score 10 T
for non-conforming mortgage loans are: Movement Mortgage, a top 10
retail mortgage lender; CrossCountry Mortgage (CCM), the nation’s
number three retail mortgage lender; Primis Mortgage, a subsidiary
of Primis Bank; and Premier Lending Inc. (Premier Lending), a
family-owned Charlotte, N.C., based mortgage leader and more.
Liberty Home Mortgage’s proactive adoption of the new model
results from FICO’s strategic relationship with Lenders One®
Cooperative, a national alliance of independent mortgage bankers,
banks and credit unions dedicated to helping its members maximize
revenue, reduce costs, and improve decision making. Lenders One
connects members with preferred solution and technology providers
and is the first organization of its kind to collaborate with FICO
to support member education and adoption of FICO® Score 10 T.
“Liberty Home Mortgage is always striving to promote
homeownership, and we believe that FICO continues to work
tirelessly to help more consumers become homeowners and better
fulfill the American Dream,” said Khash Saghafi, president of
Liberty Home Mortgage Corporation. “FICO is such a
long-established and well-respected pillar of the financing
industry that we jumped at the chance to work closely with them and
their amazing team to help consumers and move this industry
forward.”
Introduced in 2020, FICO® Score 10 T incorporates trended credit
bureau data to further enhance the score’s predictive power.
Lenders using FICO Score 10 T for non-conforming mortgage products
can better evaluate new applications in real-time and can make more
data-driven lending decisions.
“We are seeing incredible momentum with lenders realizing the
power of our most innovative and predictive score, FICO Score 10
T,” said Joe Zeibert, vice president of Mortgage and Capital
Markets at FICO. “FICO is looking forward to enabling more
lenders to make better informed credit decisions, while responsibly
helping more consumers achieve the dream of homeownership.”
Zeibert, along with Jason Stenger, chief operating officer of
Movement Mortgage, were featured speakers at FICO® World on
Tuesday, April 16, discussing how the latest scoring models can
increase liquidity for lenders and help more Americans realize
their dreams of homeownership.
As pointed out by Stenger, FICO Score® 10 T can provide greater
precision in making lending decisions. The model can be used by
lenders to better manage credit risk and default rates when
extending competitive credit offers to consumers. FICO Score 10 T
can enable an increase in mortgage originations of up to 5 percent
(without taking on additional credit risk) and reduce default risk
and losses by up to 17 percent. The increased predictive power can
also help lenders project cash flow more accurately.
FICO is committed to assisting mortgage industry participants
looking to transition to its most current model, FICO® Score 10 T.
The FICO Score Migration Resource Center provides a detailed
guide to support organizations through their score transition with
key planning steps and activities, in addition to implementation
best practices.
About FICO
FICO (NYSE: FICO) powers decisions that help people and
businesses around the world prosper. Founded in 1956, the company
is a pioneer in the use of predictive analytics and data science to
improve operational decisions. FICO holds more than 200 US and
foreign patents on technologies that increase profitability,
customer satisfaction and growth for businesses in financial
services, insurance, telecommunications, health care, retail and
many other industries. Using FICO solutions, businesses in more
than 100 countries do everything from protecting 4 billion payment
cards from fraud, to improving financial inclusion, to increasing
supply chain resiliency. The FICO® Score, used by 90% of top US
lenders, is the standard measure of consumer credit risk in the US
and has been made available in over 40 other countries, improving
risk management, credit access and transparency.
Learn more at https://www.fico.com. Join the conversation
at https://twitter.com/fico &
https://www.fico.com/en/blogs/. For FICO news and media
resources, visit https://www.fico.com/en/newsroom.
FICO is a registered trademark of Fair Isaac Corporation in the
U.S. and other countries.
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Julie Huang press@fico.com
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