myFICO, the consumer division of FICO, has launched a new FICO Mortgage Score Simulator to help consumers prepare their credit before applying for mortgages. Available to myFICO Premier subscribers, the tool simulates how different credit actions could impact FICO Score versions most widely used in US mortgage lending. The simulator allows users to explore how common credit behaviours—such as paying bills on time, reducing credit card balances, or applying for new credit—may affect their scores without impacting their actual credit profile. Small changes in credit profiles can significantly influence mortgage eligibility and interest rates, potentially creating substantial savings over a loan's lifetime. The tool aims to provide transparency into mortgage readiness and help consumers make informed financial decisions before applying for home loans.

FICO has partnered with LoanPASS to launch the first batch pricing tool for FICO Score 10T, enabling lenders to price thousands of files simultaneously and compare outcomes between FICO Score 10T and Classic FICO scoring models. LoanPASS was the first Product and Pricing Engine to implement FICO Score 10T for non-conforming mortgage loans. The new batch pricing functionality allows lenders to analyse performance characteristics at scale using trended credit bureau data, which provides a more comprehensive view of consumer credit behaviour over time. Early adopters of FICO Score 10T have seen potential improvements in predictive performance of up to 10% over previous versions. The tool is designed to help lenders make more informed decisions about credit risk and pricing strategies in the mortgage market.

Announcement: Moody's says FICO's $300 million term loan raises leverage but also enhances liquidity<div class="spacer-5"></div><a class="btn-more" href="https://www.moodys.com/page/viewresearchdoc.aspx?docid=PR_456911cid=7QFRKQSZE021" target="_blank" rel="noopener">Read the full article at Moody's</a>