Mortgage Capital Trading, Inc. (MCT®), the de facto leader in innovative mortgage capital markets technology, and FICO, a global analytics software leader, have today announced a strategic collaboration to integrate FICO® Score 10 T for mortgage asset buyers and sellers on MCT Marketplace. The firms anticipate that mortgage lenders and investors transacting on the largest mortgage asset exchange for the U.S. secondary market, MCT Marketplace, will benefit by leveraging FICO Score 10 T, the company’s newest, most innovative and most predictive scoring model.

“By integrating the new FICO Score 10 T into secondary marketing processes, we hope to help the 50 percent of delegated correspondent sellers and 95 percent of correspondent buyers that we serve to expand their opportunities and optimize their margins,” said Tom Farmer, Chief Investment & Corporate Development Officer at MCT. “Through the enhanced precision and predictive power of FICO Score 10 T, savvy capital markets professionals may find opportunities for sharper pricing.”

FICO® Score 10 T provides even greater precision in making lending decisions, helping lenders 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
  • May reduce default risk and losses by up to 17 percent
  • Allowing lenders to offer more favorable loan terms to borrowers
  • Can help lenders and investors project cash flow more accurately.

“Today’s announcement underscores MCT's leadership in redefining how credit risk is measured and managed,” said Devin Norales, Director of Mortgage and Capital Markets at FICO. “By leveraging FICO Score 10 T, they are improving credit risk transparency for investors while building a stronger foundation for long-term portfolio performance. We encourage mortgage investors to start exploring the benefits of incorporating FICO Score 10 T into their risk assessment models.”

With 35 percent of mandatory, delegated mortgage volume being transacted on MCT Marketplace, it is a natural venue for buyers and sellers of mortgage assets to test the value of FICO ® Score 10 T in the pricing of both whole loans and mortgage-backed securities. MCT will be facilitating this analysis alongside a pilot group of clients currently in progress.

"Leveraging FICO Score 10 T on MCT Marketplace has provided our team with a deeper understanding of credit risk and pricing precision,” shared Greg Richardson, EVP of Capital Markets at Primis Mortgage. “This advanced predictive analytics tool has not only streamlined our operations and maximized returns in a competitive environment but also opened up opportunities to offer more competitive rates to qualified borrowers. By aligning pricing strategies with enhanced credit insights, we’re able to better serve our customers and strengthen our market position."

Completion of the integration is planned for mid-2025, at which time FICO® Score 10 T will be available to all MCT Marketplace users. Mortgage lenders or investors interested in learning more about how the new score may benefit their secondary marketing are encouraged to schedule a consultation.

About MCT

For over two decades, MCT has been a leading source of innovation for the mortgage secondary market. Melding deep subject matter expertise with a passion for emerging technologies and clients, MCT is the de facto leader in innovative mortgage capital markets technology. From architecting modern best execution loan sales to launching the most successful and advanced marketplace for mortgage-related assets, lenders, investors, and network partners all benefit from MCT’s stewardship. MCT’s technology and know-how continues to revolutionize how mortgage assets are priced, locked, protected, valued, and exchanged – offering clients the tools to perform under any market condition.

For more information, visit https://mct-trading.com/ or call (619) 543-5111.

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/en. Join the conversation at https://x.com/FICO_corp & https://www.fico.com/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.

MEDIA CONTACT: Julie Huang press@fico.com

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