On July 1, Fannie Mae and Freddie Mac published historical credit score data for FICO Score 10T and additional data for VantageScore 4.0. The two government sponsored enterprises say the release is meant to give lenders and analysts more transparency as the industry works through the move to newer credit score models.
At Informative Research, we see this as a chance for lenders to do their homework before anything changes on the origination side. Pulling historical data on both FICO Score 10T and VantageScore 4.0 lets credit and operations teams model how each score behaves on their own book, so the eventual switch is a planned move rather than a scramble. Informative Research works with lenders on both credit reports and score model choices, and IR stays neutral on which model fits a given shop.
For IR clients, the key takeaway is simple. The data to study both new score models is now on the table, so the smart step is to start analyzing it well ahead of any required change.
Tags: credit scores, FICO Score 10T, VantageScore 4.0, credit reports, GSEs, credit score modernization
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