FICO (NYSE: FICO) has announced that its FICO Score 10T predictive credit score for mortgage lending, will be available for use by Federal Housing Administration (FHA)-approved lenders beginning Jan. 1, 2027.
“FHA’s announcement provides valuable clarity for the industry and allows stakeholders to continue preparing for implementation in a thoughtful and deliberate manner,” said Julie May, vice president and general manager of B2B Scores at FICO. “We support efforts that give lenders access to more predictive risk assessment tools, and we believe FICO Score 10T will help improve underwriting accuracy, expand confidence in lending decisions, and strengthen outcomes across the mortgage ecosystem.”
A new level of attention was placed on credit scoring this week when Federal Housing Finance Agency Director Bill Pulte announced the opening of VantageScore to all government-sponsored enterprise (GSE) lenders. Pulte criticized FICO by claiming the company “is not interested in offering competitive costs but instead uses various means to increase price on the American people.”
In announcing the FHA development, FICO stated that it “embraces competition as it raises the bar for the entire industry and gives lenders better tools to serve borrowers.” The FHA implemented use of VantageScore 4.0 by its lenders last April.
0 Comments