Just Listed brings you the latest news and information from the Twin Cities-area commercial and residential real estate market and beyond from veteran reporters Jim Buchta and Kristen Leigh Painter.

New FICO formula could revamp credit scores

Posted by: Jim Buchta under Buying Updated: August 11, 2014 - 10:39 AM

If you were interested in my Sunday story about easing mortgage credit standards, take note of this:  FICO is luanching a new a credit model called FICO Score 9, which will enable lenders to do a better job measuring a borrower's credit stability on everything from auto loans to home mortgages. Score 9 will be available to lenders this fall.

Here's what Jim Wehmann, executive vice president for Scores at FICO, had to say about these upcoming changes: “FICO Score 9 uses a more refined treatment of consumers with a limited credit history and those with accounts at collection agencies, so that lenders can grow their credit and loan portfolios more confidently...by applying innovative predictive modeling techniques on recent data to capture consumer credit behavior, FICO Score 9 will extend FICO’s leadership in providing the credit score that most accurately and fairly defines U.S. consumer credit risk.”

Here's a link to the full details.

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