“Now that VantageScore is opening up in mortgage, there’s going to be access to better scores, better models, and a great ability to drive competition,” said Dr. Rikard Bandebo, Chief Strategy Officer and Chief Economist at VantageScore.
Dr. Bandebo and Tony Hutchinson, Head of Public Affairs at VantageScore, joined the Consumer Credit Matters podcast to discuss how mortgage credit scoring is changing with the introduction of VantageScore into the mortgage market, providing the industry more predictive and innovative models.
“Lenders and big financials want to be on the cutting edge of both technology and information,” said Tony Hutchinson. “They want to have the ability to predict performance and are going to go for the tools that allow that.”
Dr. Bandebo discussed the benefits to lenders in preparing to adopt VantageScore, which could help millions of creditworthy consumers achieve homeownership: “That’s a lot of households and potential homeowners that could get mortgage access, with a lot of good credit histories, that have been kept out of the system today.”
Additionally, Bandebo and Hutchinson highlighted recent innovations in VantageScore models, including consumer-permissioned data in VantageScore 4plus and the “phenomenal” predictive performance seen in VantageScore 5.0, the company’s newest model.
For 20 years, VantageScore has remained at the forefront of innovation in the credit scoring space. As VantageScore joins the mortgage market, this “seismic” shift will improve credit access to creditworthy Americans and inspire continued innovation.
Watch the interview here:
You can also listen to the full episode on Spotify.
