That could be. Mortgages are likely a different perspective on FICO 8 influence.
@Thomas_Thumb wrote:
@NRB525 wrote:That could be. Mortgages are likely a different perspective on FICO 8 influence.
My data suggests mortgage B/L is treated differently than other loans on both Fico 8 and Fico 04. Probably treated differently on Fico 9 as well although my mortgage B/L had dropped below 40% when I 1st saw a Fico 9 score. Really no change in Fico scores associated with mortgage from about 55% to 21%.
As we know there are a couple Fico reason statements that specifically state "non mortgage installment loans" when referring to negative impact of a high installment loan balance or balances.
Well hang on, my own data that I originally documented installment utilization as a thing on suggests there's no change associated with non-mortgage installment loans in FICO 8 from the same ranges you have, so how are mortgages different in that regard?
This is the FICO 8 one straight from Transunion:
- Proportion of loan balances to loan amounts is too high.
That's all loans AFAIK which matches the data.
FICO 9 with myFICO's massaging it a bit, looks conflated there too:
- The remaining balance on your mortgage or non-mortgage installment loans is too high.
Where it goes sideways is FICO 98, namely EX 2:
- The balances on your non-mortgage credit accounts are too high
It looks like there may have been a change in how they are handled, and I've never seen any installment utilization changes on FICO 04 nor have I seen the reason codes on either EQ FICO 5 or TU FICO 4 (even when I've had 3 reason codes only and it clearly showed up on FICO 8 models at the time) but at least today with FICO 8/9 it appears both from data and reason code nomenclature that all installment loans are counted basically identically.
As I recall you have a mortgage with over 80% B/L remaining. I would expect that your score is being affected by the high B/L and receive a reason statement to that effect. Yes, Fico does look at B/L for mortgages at some level. However, that reason statement does not prove lack of differentiation between mortgages and other types of loans. What proves differentiation to me is the "NON-MORTGAGE LOANS" reference in the last statement in the paste below (received for EQ Fico 04).
Think we may be talking different elements of the FICO algorithm, maybe more to that FICO 2 high debt bit we were talking about previously though that's an interesting find, thank you for posting it. I didn't see an installment utilization factor with EQ FICO 5 with either auto loans or the small secured loans in my testing anyway.
Also I'd note I have the same reason codes now with my >80% mortgage as I did with the original share secured / CD loans I was testing with, and the reason code didn't go away until <10% (some rounding factor in there to be sure) but there was clearly an upper bound shift it was just north of 55%.
Anyway hoping I can track that upper tier shift for sanity's sake as I walk my mortgage across several potential breakpoints over the next few years, but unfortunately my file isn't as good for testing on anymore as the scores aren't fixed like they were with my tax lien.