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.
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.)
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:
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