Market Adoption

Issuers are increasingly using VantageScore in their operations and are communicating the relative credit-profile distribution of securitized pools to rating agencies and investors alike. A market adoption study conducted by Charles River & Associates found that thousands of users including over 2,000 financial institutions, used a total of approximately 27 Billion VantageScore credit scores in 2023 representing a 42% increase over 2022.

Companies have used VantageScore in the credit-ratings assignment process without adverse implications by the Nationally Recognized Statistical Ratings Organizations (NRSRO, often referred to as rating agencies) for related asset-backed securities.

To accurately analyze risk, market participants can leverage the power of VantageScore credit-score data to assess private-label RMBS (also known as PLMBS).

VantageScore credit scores, which are refreshed monthly, allow credit performance to be tracked more precisely, in real-time, versus relying solely on credit scores calculated at the time of origination. This allows for more accurate, ongoing assessments of a residential mortgage borrower’s risk profile and, in turn, better portfolio management.