Fannie Mae and Freddie Mac Will Require the Use of FICO Score 10 T

FICO Score 10 T gives mortgage lenders the flexibility and predictive power to make more precise lending decisions

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James Wehmann by James Wehmann

Executive Vice President, Scores

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The Federal Housing Finance Agency (FHFA) has announced that FICO® Score 10 T has been validated and approved for use by Fannie Mae and Freddie Mac (the Enterprises). This decision means that FICO Score 10 T will be required to be used when available, as FICO is today, for each conforming mortgage delivered to the Enterprises.

FICO® Score 10 T is our newest version of FICO® Scores and integrates trended data. It is FICO’s most powerful score to-date and gives mortgage lenders unparalleled flexibility and predictive power while preserving the trusted and proven FICO Score minimum scoring criteria. FICO Score 10 T is a significant improvement over the current FICO Scores used in mortgage lending today.  Plus, FICO Score 10 T utilizes a consistent odds-to-score relationship as the prior FICO Score version used by the Enterprises, offering continuity and stability for lenders, investors and consumers.

FICO® Score 10 T incorporates trended credit bureau data. Different than traditional credit bureau data, the use of trended data considers a historical view of data such as account balances for the previous 24+ months, giving lenders more insight into how individuals are managing their credit. 

These improvements in predictive power enable FICO® Score 10 T to help mortgage lenders safely avoid unexpected credit risk and better control default rates, while making more loans to more consumers. 

To learn more about FICO® Score 10 T please visit: www.fico.com/ficoscore10T

FICO is the only independent analytic provider and has been trusted for more than 30 years across industries. FICO® Scores remain the cornerstone of the consumer lending ecosystem by competing and winning every day, and are used by more than 90% of top lenders. FICO will continue to innovate and provide the industry with the most predictive and reliable measure of credit risk.

 

We look forward to working with the FHFA and the Enterprises on the timeline and implementation process.

James Wehmann
James Wehmann
James M. Wehmann is executive vice president responsible for the Scores business unit. Prior to working at FICO, Jim was senior vice president, global marketing at Digital River, a leading provider of cloud commerce solutions. During nearly nine years with the company, he was responsible for developing, marketing, selling and executing the company’s marketing services offerings. Prior to joining Digital River in 2003, Jim served as vice president of marketing at Brylane, Inc., where he was responsible for all aspects of marketing strategy and brand management for the company’s largest division. Before that he was responsible for new customer acquisitions as senior vice president of marketing for one of the country’s largest credit card issuers, Bank One. He also spent nearly eight years at Fingerhut Companies, Inc., where, as senior vice president, marketing, he developed and implemented segmented credit marketing strategies. Jim is a graduate with distinction of the Kellogg School of Management, where he earned a Master of Business Administration. He earned his Bachelor of Science from the Carlson School of Management at the University of Minnesota.
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