New FICO Credit Score for Mortgage Lenders Debuts

[Anonymous]

OP, I removed your copied article due to copyright issues. However, you can find a link to the article through the link below:

http://ficoforums.myfico.com/fico/board/message?board.id=creditnews&thread.id=4188

Message Edited by llecs on 03-18-2009 04:04 PM

[llecs]

Aside from the mortgage-enhanced FICO score for EQ (EQ-based score is the only mortgage-enhanced FICO score out there), FICO is also in the process of launching Beacon 9.0 which will also be used by lenders and is EQ's version of FICO08. TU08 was rolled out last month and EX isn't changing; still hoping to get lenders to use Vantage or PLUS I guess.

[nmorton79]

So, does any one know what will go into this new scoring system, and, what will this mean for those us who are working to get our scores above 620 so we can qualify?

[Anonymous]

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@nmorton79 wrote:

So, does any one know what will go into this new scoring system, and, what will this mean for those us who are working to get our scores above 620 so we can qualify?

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I would like to know this also , as to I'm very close to the 620...

[llecs]

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nmorton79 wrote:

So, does any one know what will go into this new scoring system, and, what will this mean for those us who are working to get our scores above 620 so we can qualify?

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The mortgage-enhanced score is a weighted score leaning towards your mortgage history and is based on the same Beacon 5.0 formula and score range found on this website and used by most lenders. So, if you have a strong mortgage history with no lates or baddies, then you'd really come out ahead of the EQ score you see now. If you have a poor mortgage history with multiple baddies, then your mortgage enhanced score would be worse. Then there are others like myself who have ZERO mortgage history. I suspect that my mortgage-enhanced score would be lower than the score pulled on this site. As a side note, some of you know about PFICOs which were offered my WaMu. Same type of deal. PFICOs were TU FICO-based scores weighted towards CC history.

This score is rolling out now, but I think that there won't be a widespread adoption of this new formula. You would really have to search to find a lender using that score. Seems as if FICO is rolling out EQ's Beacon 9.0 at the same time too. Beacon 9.0 (FICO08) is a revised Beacon 5.0 score that added some more buckets, put a greater emphasis on trending and multiple lates, and weighs less heavily on CAs under $100. BTW, the source for all of this info came from elements within FICO esp. within the webinars found on their website. Great info if anyone likes to follow this stuff.

[nmorton79]

Thanks for the info

[Lel]

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@llecs wrote:

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@nmorton79 wrote:

So, does any one know what will go into this new scoring system, and, what will this mean for those us who are working to get our scores above 620 so we can qualify?

---

The mortgage-enhanced score is a weighted score leaning towards your mortgage history and is based on the same Beacon 5.0 formula and score range found on this website and used by most lenders. So, if you have a strong mortgage history with no lates or baddies, then you'd really come out ahead of the EQ score you see now. If you have a poor mortgage history with multiple baddies, then your mortgage enhanced score would be worse. Then there are others like myself who have ZERO mortgage history. I suspect that my mortgage-enhanced score would be lower than the score pulled on this site. As a side note, some of you know about PFICOs which were offered my WaMu. Same type of deal. PFICOs were TU FICO-based scores weighted towards CC history.

This score is rolling out now, but I think that there won't be a widespread adoption of this new formula. You would really have to search to find a lender using that score. Seems as if FICO is rolling out EQ's Beacon 9.0 at the same time too. Beacon 9.0 (FICO08) is a revised Beacon 5.0 score that added some more buckets, put a greater emphasis on trending and multiple lates, and weighs less heavily on CAs under $100. BTW, the source for all of this info came from elements within FICO esp. within the webinars found on their website. Great info if anyone likes to follow this stuff.

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So, is the Beacon 5.0 the reason why the scores pulled by my lenders in the past have been quite different from the scores that I pulled from here?  Last spring, when I applied for a HELOC, my lender got a score that was about 50 points higher than the myFICO.com score.  Is this the so-called "mortgage-enhanced FICO" that has sometimes been referenced on these boards?

And I need to ask - does your screen name start with a capital "I" and a lowercase "l", or is it two capital "I"s, or two lowercase "l"s, or a lowercase "l" followed by a capital "I"?

[llecs]

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Lel wrote:

So, is the Beacon 5.0 the reason why the scores pulled by my lenders in the past have been quite different from the scores that I pulled from here?  Last spring, when I applied for a HELOC, my lender got a score that was about 50 points higher than the myFICO.com score.  Is this the so-called "mortgage-enhanced FICO" that has sometimes been referenced on these boards?

And I need to ask - does your screen name start with a capital "I" and a lowercase "l", or is it two capital "I"s, or two lowercase "l"s, or a lowercase "l" followed by a capital "I"?

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The EQ scores from this website are Beacon 5.0 scores. I know it has been a year or so, but it may be worth figuring which version of score they used. And/or see if anything changed on your EQ during that period to warrant a change from the day you pulled from here and the day you app'd. The mortgage-enhanced scores for EQ are about to be introduced and haven't rolled out yet. EX never used them. And TU had used them in the past, died a quick death, and are no longer used.

llecs is "LLECS". It is an acronym with the first two letters being the first letter in my last name and DW's maiden name.

[Anonymous]

Sorry about that.

[llecs]

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afni wrote:
Sorry about that.

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No sweat. I did it too once.