Guest post from the FICO Analytics Blog.


It's official... the term "underwater"—as applied to a mortgage loan—has made this year’s list of new words added to the Merriam Webster Dictionary. It not only reflects a mainstream recognition of this unfortunate trend, but is also sobering reminder of today’s economic reality: homeowners’ equity has been halved since 2005, leaving more than 15 million consumers underwater on their mortgages, and more than 6.5 million of those 30% or more underwater.


What is "Alternative" Credit Data?

by ‎08-30-2012 02:50 PM - edited ‎09-05-2012 10:22 AM

Guest post from the FICO Banking Analytics Blog. 


When you stop to think about it, the term “alternative credit data” is a catch-all phrase to describe data that is not currently reported on mainstream credit reports. But what, in reality, is alternative about it?


For millions of people, it may not be alternative data but the only credit record they have. For these consumers, it would seem it is primary data. Especially if that data can help them qualify for their first mainstream credit or loan. For everyone else, such data might be considered supplemental. It can be matched with an applicant’s traditional credit bureau file to provide a richer credit profile and lead to better lending decisions.


Is US Consumer Credit Availability About to Expand?

by ‎08-01-2012 01:04 PM - edited ‎08-01-2012 01:06 PM

The following guest post by Andrew Jennings was originally published on the FICO Banking Analytics Blog.



Lately I’ve been examining the results of our latest quarterly survey of US bank risk managers. One item of note was regarding the outlook for credit availability.  In a positive sign, our survey found that lenders expected the supply of credit to satisfy demand for all types of consumer loans in the second half of this year. It’s a change from last quarter when survey respondents expected the credit supply for residential mortgages to fall short of demand.


More consumers nearing perfect FICO® Scores, but are scores improving?

by ‎05-01-2012 05:26 PM - edited ‎07-11-2012 12:55 PM

"It’s clear that there’s been a shift at both ends of the score distribution. Many consumers have moved into the top tier of the FICO® Score range by redoubling their efforts to maintain an excellent credit profile. Others have fallen into lower tiers, most likely due to the financial stress felt by many households."


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