CrossCountry Mortgage Adopts FICO® Score 10 T, Providing Forward Looking Insights for Mortgage-Backed Security Investors
First Mortgage Lender Committed to Issuing Mortgage-Backed Securities Exclusively Based on FICO Score 10 T
Additionally, CCM is the first mortgage lender to commit to issuing mortgage-backed securities (MBS) exclusively based on FICO® Score 10 T. This move will enable investors to update their guidelines to accept the most predictive score for MBS and allow the
As an industry leader and first to adopt FICO Score 10® T, CCM’s commitment to the scoring model is leading the way for a growing number of companies to adopt the model as well.
"By proactively issuing mortgage-backed securities exclusively based on FICO Score 10 T, we’re helping to empower investors to make smarter decisions,” said
FICO Score 10® T provides even greater precision in making lending decisions. FICO Score 10 T can help lenders better manage credit risk and default rates when extending competitive credit offers to consumers. Compared to the version of the FICO® Score used by the Enterprises today, FICO® Score 10 T can enable an increase in mortgage originations of up to 5 percent (without taking on additional credit risk) or reduce default risk and losses by up to 17 percent. The more predictive FICO Score 10 T also helps lenders project cash flows more accurately.
“CrossCountry Mortgage’s astute decision to adopt FICO Score 10 T demonstrates its commitment to innovation, credit access and responsible business growth," said
FICO is committed to assisting mortgage industry participants looking to transition to its most current model, FICO® Score 10 T. The
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