If FICO believes its 10T product is better than VantageScore 4.0 and Classic FICO, what has prevented it from implementing 10T in the mortgage market already? A recent article in National Mortgage News poses interesting questions on the state of credit score competition in the mortgage market.
A recent FICO study claims that FICO 10T outpaces VantageScore 4.0 when it comes to assessing creditworthiness. This comes on the heels of FHFA Director William Pulte deciding that homebuyers and lenders would benefit from a second choice of mortgage credit score, namely VantageScore 4.0.
On the question of the study, the Community Home Lenders of America, a representative of community-based independent mortgage bankers, does not know whether FICO’s claims have merit. A FICO summary of the study states that FICO 10T “wins on predictive accuracy. It wins on fairness. For lenders, investors, and consumers, and any stakeholder concerned about safety and soundness, FICO Score 10T is the clear choice.”
But if FICO asserts that 10T is better than both VantageScore 4.0 and its own Classic FICO score, why has it not already been implemented into the mortgage market? Additionally, if its product could have safely qualified more Americans to escape rapidly increasing rents in years past, why did the corporation not do everything it could to rush it to market and help these struggling American families?
FICO published this report in a bid to diminish VantageScore’s product. Instead, it has made clear that it knows its own current product is outdated and inadequate and has been keeping creditworthy families from becoming homeowners. The report and subsequent CEO comments have proven that FICO knows its monopoly power has been hurting people.
See why VantageScore 4.0 significantly outperforms Classic FICO in the mortgage market: https://vantagescore.com/resources/knowledge-center/press_releases/head-to-head-comparison-mortgages-vantagescore-4-0-outperforms-classic-fico.
Read about VantageScore in National Mortgage News: https://www.nationalmortgagenews.com/opinion/fair-isaacs-white-paper-makes-it-clear-it-is-raising-prices
