New FICO Formula

NEW -> Contingent Buyer Assistance Program
profette_IHB

profette_IHB

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<p><a href="http://online.wsj.com/article/SB119802346920538029.html?mod=rss_PJ_Main">Default Lines: The New Math Of Credit Scores</a></p>

<p>"The company that cooks up credit scores for millions of Americans is changing its recipe -- and that could affect how easily you get credit in the future.</p>

<p>Fair Isaac Corp., maker of the popular FICO credit score used by most lenders, says its new scoring model will do a better job predicting the likelihood of a borrower defaulting on a loan. For one thing, the new model, dubbed FICO 08, will be more forgiving of occasional slips by consumers, but will take a harder line on repeat offenders. Fair Isaac predicts its new system will help lenders reduce default rates on their consumer credit by between 5% and 15%."</p>
 
<p>Profette-</p>

<p>Linky acts like it will work (the pointed finger hand on IE) but doesn't...</p>

<p>Please add the full url.</p>

<p>Thanks</p>

<p>SCHB</p>
 
<p>SCHB: Try this link <a href="http://www.woai.com/mostpopular/story.aspx?content_id=e44cf949-b523-4a51-a5f8-1b1f007b9c34">www.woai.com/mostpopular/story.aspx</a></p>
 
<p>Here's an article from last year that details "credit renting" changes... </p>

<p>http://www.boston.com/news/education/higher/articles/2007/06/05/fair_isaac_changing_fico_score_formula/</p>
 
<p>Ah, WSJ is always so much more satisfying than the TV news recap. Thanks, profette.</p>

<p>And I want to go on the record as saying that in 5 years or so there will be some form of credit score leniency introduced for those that got "swept up" (I use that very tongue-in-cheek, but that will be the victim's or politician's angle) in the late stages of the housing bubble. A mortagage default on a loan someone never had a prayer of paying back or bankruptcy for a similar reason will gain some sort of special status as "not quite as bad as a mortage default that was underwritten during the sane years" (~pre-2001?). There will still be a negative effect on the credit score, but the punishment will be reduced to appease the idiot masses.</p>

<p>SCHB</p>

<p> </p>
 
<p>Tinkering with FICO is ok I guess, but the problem is the whole idea of FICO. </p>

<p>And I agree with SCHB, in a few years, if we still have a civil society in a few years, this will be treated like an unpayable medical bill, not a deal killer.</p>
 
<p>When was something done in this country to APPEASE the masses? the people???</p>

<p>The FICO was created for BIG BUSINESS and the changes or "leniency " will be done to help BIG BUSINESS.</p>

<p>The "idiot masses" that took advantage in the last few years will be there to take advantage AGAIN!</p>
 
<p>Rick-</p>

<p>The masses will want to buy homes or cars again before the next 7-10 years would expunge these negative events from their credit histories.</p>

<p>Big business may decide that they want to lend to these same folks, and may look for rationalizations that the borrow was a vicitim of circumstance and actually <em>can</em> be trusted. If they see an "untapped" market of people who want to borrow but are sidelined, their motivation will be high.</p>

<p>All it will take is some pandering politician to grease the skids, and presto, you'll have the 2013 Mortgagelender's Victim Recovery Act. Say it with your best GW Bush smirk: "We're just trying to help unsofistimicated Mericans who put their trust in greedy mortage companies toward re-establishing financial well-being."</p>

<p>Sounds harmless enough, right?</p>

<p>SCHB</p>
 
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