A new mortgage-friendly credit score

FICO and CoreLogic debut a new score that could help consumers who would otherwise have difficulty securing a home loan.

By MSN Money Partner Jul 17, 2012 12:49PM

This post comes from Jeanine Skowronski at partner site Credit.com.

FICO and CoreLogic have unveiled a new score designed to help lenders better determine who should be awarded a mortgage. The score could help consumers who would otherwise have difficulty getting a home loan because it incorporates new, nontraditionial data.

The data -- furnished by CoreLogic, which unveiled an alternate version of the traditional credit report back in December -- includes rental history, property records and tax lien information and data on short-term lending, such as payday loans. FICO is providing the analytics.

"We felt (the score) was important because of where we are in the economic cycle and how tight credit has gotten," FICO executive Joanne Gaskin said. The score is intended to address unknown risks and could prevent consumers from getting turned down simply because there is not enough information available regarding their credit history.

In addition to simply seeing the new score, lenders will also have the option of pulling a composite score that incorporates information from CoreLogic's database with information provided by major credit reporting agencies Equifax and TransUnion.

Gaskin said Experian has yet to agree to furnish data. (Its lack of participation is probably related to the bureau's recently unveiled Extended View score, which incorporates similar data in an attempt to help consumers with thin files secure loans. FICO competitor VantageScore provides the analytics.)

Smart Spending on the go: Get our app for Android or iPhone

FICO says the score was developed following conversations with lenders, and it is optimistic the new score will be embraced by the lending community.

"We do have a number of clients who are getting ready to go into a testing or validation phase," Gaskin said.

More from Credit.com and MSN Money:

Tags:

bankingcreditcredit ratingcredit scoremortgage

< Back to Smart Spending

1Comment

Newest

Jul 20, 2012 12:07AM

edit communiyIf ,like many of us, you've had to get your credit score, you have found things there that you have no idea what they are . Then you go to get it corrected, sorry about your luck, cause you cannot do that, so say the credit reporting agencies,because they don't want to. That would cost them money to change your rating.What has always been needed was an alternative to the big three , Hello, here we go FICO decided that they would look at what everyday working people have to do ,and that is short term loans, gotten at a premium,but, paid on time, Huge money for little cash advances, from some not so friendly companies, but necessary finances for some people having to put food on the table for thier families,or to pay those bills that have to be paid on time. That's better than our government does and sometimes better than some companies do at any time. So, finally, the credit reporting agencies have to realize the fact that ,they are not the only game in town, nor are they the best. They have wokeup to the fact that , just because you have slow payments or a skeptical payment history, does not make you a bad risk, some companies need to look at this because the public does a better job than they do, to include governments, at least they are attempting to pay thier bills. The credit community needs to take stock in the fact that , if you keep hammering the people making every attempt to pay thier bills ,you will find yourselves on the wrong end of the buisness cycle. These people are going to do what they have to, to buy food, clothes, shelter,for thier families, no matter what. And this is for the credit reporting agencies , they will do this with or without you.

Previous replies

DATA PROVIDERS

Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.

Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.

Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.

Feedback

ABOUT SMART SPENDING

Smart Spending brings you the best money-saving tips from MSN Money and the rest of the Web. Join the conversation on Facebook and follow us on Twitter.