GSEs still trying to implement "New" Scoring Models

[Anonymous]

To all my fellow members :
The Govt is still trying to persuade Fannie and Freddie Mac to look at new scoring models because of FHFA. In the news today they are looking at Fico 9 & I believe the older Fico 4 "or" with a push from the 3 CRAs to implement Vantage score.
They are calling Fico a Monopoly.
Well members "In my opinion" Vantagescore was created by ALL 3 CRAs, and they want to talk about a monopoly??? If they think this is fair to the citizens of the USA "Huh" I question the thought. For 27 - 28 yrs now Fico has been the only fair Model (Models). The truth is they want to make $$$$$$. They are using FHFA as a scapegoat.
Why hasn't another private Co. try to get in on the Market????
My final thoughts:
If ever Vantagescore uses their model for any scoring "It is a disadvantage to the consumer. They are horrible and want to keep us down for profit." It's a JOKE". Go look at a credit or banking institution and see the RIDICULOUS SCORE YOU HAVE FROM VANTAGESCORE "
MY FELLOW MEMBERS OF THE COMMUNITY, Please make sure your voice is heard about this situation and let's try to put it to rest. For our children and grandchildren it will be a nightmare if the 3 CRAs get what they want. Talk about a Monopoly.....
Have a Blessed Happy Holiday to ALL in the MyFico Community & Happy New Year
Mako50

[Revelate]

For reference: https://www.fhfa.gov/PolicyProgramsResearch/Policy/Pages/Credit-Scores.aspx

It's still just a solicitation phase and realistically I don't see any major changes coming.  Also I don't know if there's really any teeth behind the government's request anymore: non-trivial changes with the CFPB stance, so I don't see much here.

The fact is this is just all politics, and politics these days in my opinion is a zero sum game.  The consumer isn't really at issue here, it's just about whether FICO or the bureaus win or lose financially.  

I don't think Vantage is a complete joke, actually I've found it to be somewhat similar to FICO 9 in scoring: recent things are penalized hard, older stuff not so much.  I'm mostly clean everywhere now and my VS 3 is inline with my FICO 8 even with everything kissing 800.  I haven't seen VS 4 anywhere yet and to my knowledge that's the one the bureaus are pushing hard on... basically they can do this once every so often and with the new model's marketing they're pushing it for all it's worth.

Also for consumers?  There will be some new normal, some new average, and a bunch of tiers based around that.  Everything would change on the requirements side, and that may or may not be beneficial for consumers even if I suspect that the majority (read as greater than call it 66%) of people have higher scores on any newer model than the current FICO 04/98 mix the GSE's underwrite on today: part of that's just FICO's mechanics on the older models where you couldn't score an 850 ever, heck can't get above 818 on the EQ portion of the mortgage trifecta.

Ultimately I don't think much will happen: end of the day the government wants money, and the GSE's have been something of a cash cow.  They likely won't make that change lightly, and it will assuredly be a while in coming... Titanic meet Iceberg if they get it wrong.

[Anonymous]

I don't read the news that other people push on me unless they also disclose having researched it.

For political news, go to opensecrets and look up which lobbying groups financed the ex-ambulance chasers in DC and you'll see what you thought was the news wasn't news at all.

There's a reason Equifax is unscathed this year, and it's because they're a solid profit line for ex-ambulance chasers.  So I ignore Equifax news and admit to slightly laughing at everyone who accepted their "free" services this year in exchange for giving up their right to sue Equifax forever.

[marty56]

I would be suprised if they selected a new model that raised peoples credit score because the goal here should be to save money and reduce risk.  Also if a forum member was on the panel, I would have to sign a NDA thus limiting a person's ability to say help people here improve their credit score.  IMHO a waste of effort.  They should just follow what other lenders are doing.  Industry standard if you will.

[Revelate]

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@marty56 wrote:

I would be suprised if they selected a new model that raised peoples credit score because the goal here should be to save money and reduce risk.  Also if a forum member was on the panel, I would have to sign a NDA thus limiting a person's ability to say help people here improve their credit score.  IMHO a waste of effort.  They should just follow what other lenders are doing.  Industry standard if you will.

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Don't the GSE's set the standard with regards to the mortgage market?  I'm confused what you are referring to senor .