Mortgage Lenders Report Strong Results from Early Adoption of FICO Score 10 T
More than two dozen mortgage lenders have signed up to adopt FICO Score 10 T
FICO (NYSE:FICO), a global analytics software leader, today announced strong results from its FICO® Score 10 T Early Adopter Program, which enables mortgage lenders to implement the latest and most predictive FICO® Score model for non-GSE loans. FICO now has clients with over $264 billion in annualized mortgage originations and approximately $1.43 trillion in eligible mortgage portfolio servicing that have signed up for FICO Score 10 T. Firms are adopting the score to help make credit decisions, for securitization, and for delivery to investors.
The Early Adopter Program, launched in 2023, was designed to help mortgage lenders integrate FICO® Score 10 T into their underwriting and risk management processes ahead of broader market adoption. An advantage of being a FICO Score 10 T early adopter is the ability to receive FICO Score 10 T at no additional fee from FICO. Lenders can receive FICO Score 10 T alongside Classic FICO® Score so they can evaluate the advantages before fully moving to utilizing FICO's newest and most predictive score.
By leveraging trended credit data in our new score, which analyzes borrower behavior over time rather than at a single point, lenders can make more precise lending decisions, reducing risk while responsibly expanding credit access.
Lenders utilizing FICO® Score 10 T for non-GSE loans have reported:
- 51% of mortgages have a higher FICO® Score 10 T, compared to Classic FICO® Score
- The median score was unchanged between FICO Score 10 T and Classic FICO Score
- 1.7% more mortgages score 740+ with FICO Score 10 T (compared to Classic FICO Score), which can result in better borrower terms
"Through the Early Adopter Program, lenders have been able to validate the power of FICO Score 10 T in real-world mortgage underwriting, loan production, execution and servicing," said Julie May, vice president and general manager of B2B Scores at FICO. "We are proud of the results lenders are seeing and believe that the continued adoption of FICO Score 10 T reflects the industry's commitment to responsible growth while simultaneously helping borrowers on their path to homeownership."
Recent additions to the growing list of FICO® Score 10 T adopters include ASMC, Bay Equity, Clear Mountain Bank, Equity Resources, Inc., First Option Mortgage, Homeowners Financial Group, Waterstone Mortgage, New American Funding, Michigan First Credit Union, West Gate Bank, and Quontic Bank.
"At Quontic Bank, we are inspired by the industry's embrace of FICO Score 10 T and are eager to begin utilizing FICO's most predictive and innovative credit score to better serve our customers," said James Hooper, the senior vice president of Production at Quontic Bank. "Closely aligning with our bank's mission, we believe FICO Score 10 T can help us offer more competitive rates and support financial inclusion, ultimately helping more people achieve their dream of homeownership."
To ensure seamless lender integration of FICO® Score 10 T, FICO is actively collaborating with multiple resellers including Advantage Credit, A+Advantage Plus Credit Reporting, Inc., Birchwood Credit Services, Certified Credit, Credit Information Systems, Credit Interlink, Factual Data, Informative Research, L1 Credit, Partners Credit and Verification Solutions, SettlementOne and Xactus. In addition, FICO has engaged with more than a dozen technology partners. Notably, loans utilizing FICO Score 10 T are already trading on MCT Marketplace, the largest mortgage asset exchange for the U.S. secondary market.
FICO is committed to assisting mortgage industry participants looking to transition to FICO® Score 10 T. FICO's Mortgage and Capital Markets can provide support across the mortgage ecosystem. In addition to helping the industry prepare for and understand the benefits of FICO Score 10 T, the team can help clients identify potential areas to reduce default exposure and maximize opportunity utilizing the latest credit tools and insights. More information: FICO Score Migration Resource Center
About FICO
FICO (NYSE:FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency.
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Julie Huang
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