FICO (NYSE: FICO), a global analytics software leader, announced new enrollments in the FICO® Preferred Program today. DHI Mortgage, LoanDepot, Paramount Residential Mortgage Group and CMG Financial have signed up. These lenders will continue to pull FICO® Scores across their mortgage lending operations. Their participation adds fresh momentum to the FICO Preferred Program. It also shows the mortgage industry’s steady demand for low-cost credit score options. Such options lower loan execution costs for consumers.
These four lenders now join several earlier participants. Guild Mortgage, Fairway Home Mortgage, Movement Mortgage, New American Funding, PennyMac Financial Services and Rate previously announced their participation. Consequently, the roster of enrolled lenders keeps growing.
“Strong mortgage lending starts with a clear and accurate understanding of credit risk,” said Julie May, Vice President and General Manager of B2B Scores at FICO. “The FICO Preferred Program gives enrolled lenders access to the trusted standard that has supported mortgage lending for decades and FICO Score 10T, the most predictive credit score available to the mortgage industry. Better risk assessment means greater confidence for lenders and more responsible opportunities for borrowers.”
FICO Preferred Program Gives Lenders Two Credit Score Options
The program gives lenders access to both Classic FICO® Score and FICO® Score 10T. Classic FICO® Score has served as the trusted standard in mortgage lending for nearly three decades. Meanwhile, FICO® Score 10T stands as the most predictive credit score available to the mortgage industry. It incorporates trended credit bureau data and rental payment information.
Both scores may be pulled by lenders to improve their credit risk assessment. This allows them to make better risk decisions. Such decisions promote the safety and soundness of the mortgage finance system. Plus, qualified borrowers get better terms. They might also save thousands of dollars over the life of a mortgage.
Julie May, Vice President and General Manager of B2B Scores at FICO, explained the thinking behind the program.
Overall, the latest enrollments show how much mortgage lenders value credit score choice. Lenders want reliable data, lower costs and sharper risk insight. Therefore, the FICO® Preferred Program continues to draw attention across the lending industry. The program supports lenders who want low-cost credit score options without losing accuracy. Borrowers, in turn, stand to gain from better-informed lending decisions.
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News Source: Businesswire.com
