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Why do FAKOs exist at all?

Moderator Emeritus

Re: Why do FAKOs exist at all?

Revelate wrote:

llecs wrote:

92235 wrote:

Why does the TU score on here exist? It is as much a FAKO as CreditKarma.

As of last year, and maybe still applies, but millions of TU98 were pulled according to FICO. It just pales in comparison to TU04. Some lenders still use it including mortgage lenders. However, the odds are small you'd ever run into a mortgage lender that uses it....kinda like TU08. Nobody uses that either, or at least not as much as TU98 I bet. 


I know that TU04 isn't offered because TU doesn't want to play. IMO, having TU98 is better than nothing. You certainly can't guesstimate TU04 using a Vantage, TransRisk, PLUS, or whatever FAKO flavor suits your fancy. 



illecs: has there any been any confirmation of TU98 (or 08) being used for a mortgage application for anything other than jumbo loans?  I know the GSE's will not accept a loan underwritten by TU98, and that's the lion's share of the mortgage market these days, and I don't know any primary lender keeping conventional mortgages on their books... any score congruence between '98 and the mortgage scores is likely as much coincidence as a FAKO's being similar unless the market has changed substantially in the past year (which may have occurred I'll admit, haven't been tracking mortgages closely).


I suppose possibly that it may be pulled as a secondary score in the GSE case?



I have no idea. I just remember a few posters here and there claim their TU98 matched their lender's pull, but I never looked at what kind of mortgage they were gunning for.

Message 11 of 14
Established Member

Re: Why do FAKOs exist at all?

FICO has a de-facto monopoly anyways. I read somewhere that 90% of lenders use the FICO score. It's the lender side that really matters, correct?

Message 12 of 14
Valued Contributor

Re: Why do FAKOs exist at all?

FAKOs exist to make profits for their sponsors.  When you're sold a FAKO no fee goes to Fair Isaac.  The CRAs have tried to get lenders to adopt their product so they can increase profit margins but have been unsuccessful.  Experian has blocked sale of FICO scores to consumers.

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
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Message 13 of 14
Regular Contributor

Re: Why do FAKOs exist at all?

Ahhh. See I thought Fair Issac and the CRAs were in cahoots. Now that I understand the dynamic this makes more sense. Thanks.

Starting Score: 556
Current Score: 672, 681, 692
Goal Score: 700, 700, 700

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Message 14 of 14