Myths and misconceptions about the VantageScore model and credit scores in general have existed and been perpetuated over time. Clearing up these myths is important for the industry as well as for consumers.
Myth: VantageScore is not accepted by investors in the securitization markets, such as investors in asset backed securities (ABS).
Reality: Both Standard & Poor’s and Kroll Bond Rating Agency have rated without bias pools of consumer loans underwritten using VantageScore credit scores. In addition, many of the most sophisticated secondary market participants use the VantageScore model to help evaluate and monitor risk and to price and benchmark deals more accurately. Credit rating agencies accept loans based on the VantageScore model. VantageScore is also the dominant model used in the valuation of previously issued, private-label mortgage-backed securities.
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