Encompass Lending Group and Equity Resources, Inc. Adopt FICO Score 10 T
01 July 2024 - 10:00PM
Business Wire
Lenders One® Cooperative members will use
FICO’s newest, most innovative and predictive credit scoring model
to help reduce delinquencies and increase mortgage loan
approvals
FICO, a leading analytics software firm, has announced that
Encompass Lending Group and Equity Resources, Inc. are the latest
mortgage lenders to embrace FICO’s newest, most innovative and
predictive scoring model, FICO® Score 10 T. Their proactive
adoption of the model stems from FICO’s strategic relationship with
Lenders One® Cooperative (“Lenders One”), of which both lenders are
members. Lenders One is a national alliance of independent mortgage
bankers, banks, and credit unions dedicated to helping its members
maximize revenue, reduce costs, and improve decision-making.
Equity Resources, Inc. is a privately held mortgage lender
headquartered in central Ohio and licensed in 20 states plus the
District of Columbia. Equity Resources, Inc. originates traditional
conventional financing but also specializes in FHA, USDA and VA
lending, with a balanced approach of selling directly to the GSEs
plus aggregators. Based in the greater Houston, TX. area and
serving 46 states and the District of Columbia, Encompass Lending
Group is a full-service mortgage lender. Notably, Encompass Lending
sells 100% of its loans to aggregators rather than
government-sponsored enterprises (GSEs). With FICO® Score 10 T’s
ability to support application approval lift and reduce
delinquencies, both organizations will use the model to enhance
their respective origination efforts.
“Our proactive adoption of FICO Score 10 T will enable us to
stay one step ahead of the industry,” said Kelly Welch,
executive vice president of Equity Resources, Inc. “We are
eager to put the model into action and potentially utilize it to
allow more veterans to qualify for VA home loans. We will also use
it to compare to the traditional models and expand homeownership
into new channels of business.”
“At Encompass Lending Group, we strive to help as many people as
possible achieve a dream of homeownership,” said Paul Marsh,
chief financial officer of Encompass Lending Group.
“Proactively adopting the industry’s most innovative scoring model
will further our ability to safely and responsibly deliver on our
commitment to our customers.”
FICO® Score 10 T provides even greater precision in making
lending decisions and can help lenders better manage credit risk
and default rates when extending competitive credit offers to
consumers. The model can enable an increase in mortgage
originations of up to 5% (without taking on additional credit risk)
or reduce default risk and losses by up to 17%. The increased
predictive power of FICO Score 10 T can also help lenders project
cash flow more accurately.
“With FICO Score 10 T, Encompass Lending Group and Equity
Resources, Inc. will be positioned to serve their customers with
tools of the highest industry standards,” said Joe Zeibert, vice
president of Mortgage and Capital Markets at FICO. “We are
proud to partner with these forward-looking organizations as they
continue to grow their businesses and meet the needs of
borrowers.”
This news builds upon FICO’s recent announcement around mortgage
industry adoption of FICO® Score 10 T reaching a significant
milestone: Clients with over $125 billion in annualized mortgage
originations and approximately $380 billion in eligible mortgage
portfolio servicing rights have signed on to use the model.
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://x.com/FICO_corp &
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240701629685/en/
Media Contact Julie Huang press@fico.com
Fair Isaac (NYSE:FICO)
Historical Stock Chart
From Sep 2024 to Oct 2024
Fair Isaac (NYSE:FICO)
Historical Stock Chart
From Oct 2023 to Oct 2024