CrossCountry Mortgage has adopted FICO Score 10 T for non-QM loans and securities.
The goal of using FICO 10 T is to expand the number of people eligible for mortgages based on their credit scores. FICO says its new model can increase mortgage approval rates by up to 5% without additional risk, as well as reduce delinquencies by 17% for many consumers.
“CrossCountry Mortgage’s astute decision to adopt FICO Score 10 T demonstrates its commitment to innovation, credit access, and responsible business growth,” Julie May, vice president and general manager of Scores at FICO, said.
“By leveraging FICO’s most predictive credit scoring model, CCM is at the forefront of meeting the needs of today’s borrowers and investors.”
CCM is the…
By Taylor Stork, President CHLA and EVP, COO Developer’s Mortgage Company and Kelly Welch, Executive Vice President, Equity Resources, Inc.
When a consumer goes into the market to obtain a mortgage loan, they enjoy consumer protections that are arguably more extensive and specific than any other financial product.
A few examples: TRID requirements for disclosures which hold lenders to early fee estimates, RESPA prohibitions against charging for services not provided, and LO Comp prohibitions on loan originators steering loans or varying their fee based on how much they think the borrower would pay.
The same is true for the servicing of mortgage loans. Servicers must follow detailed rules, and for the two-thirds of loans that are “federal agency loans” (FHA,…
By KIMBERLEY HAAS
Building credit is important for people who want to move into homeownership but some industry leaders are working to show lenders that there are alternatives to the traditional FICO score.
A recent survey conducted on behalf of the technology company FormFree shows that of the respondents, 40% said that insufficient credit scores are one of the biggest barriers to homeownership. FICO scores are used by a majority of top lenders for their credit risk assessment needs.
While 49% of respondents said their credit score should be considered during the home loan process, 53% would prefer that their ability to pay bills on time be factored in.
FormFree released its alternative to the traditional credit score model in…
Blend Labs announced a new soft credit pull for the mortgage prequalification process.
Blend says the move is a response to an increase in the cost for lenders requesting hard tri-merge credit reports. FICO and the national credit bureaus have raised prices for credit reports, saying the “vast majority” of mortgage lenders would see price increases anywhere from 10% to 400%.
With its soft credit functionality, customers save up to 71% compared to all hard inquiries, according to initial data from Blend users.
Soft credit pulls do not negatively affect credit scores. Consumers’ data will be safe from sale to data brokers or other mortgage companies as “trigger leads.”
“With our new soft credit feature, we’re excited to provide a…
The Federal Housing Finance Agency announced Tuesday that it had validated and approved the use of the Classic FICO credit score model by Freddie Mac and Fannie Mae as work continues to assess adopting more modern credit score tools. In February, FHFA sought input on new credit score models, but Tuesday’s announcement gives FHFA time to sort through the different models. FHFA said it expects Fannie and Freddie will take “an additional year to complete the validation and approval process of the remaining credit score models submitted in response to the solicitation.” “The validation and approval of Classic FICO by the Enterprises allows them to continue supporting the mortgage market while assessing more modern credit score models that were submitted…
