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In the aftermath of the credit crisis, regulatory oversight of the financial services industry has greatly expanded. Lenders in the US must show that they are in compliance with guidelines for model risk management, and meet specific operational and quality-control requirements to ensure consistent precision and integrity of the score used in lending strategies and decisions. A FICO guiding principle in the development of the FICO® Score is to ensure that it helps all users meet their regulations around model development, fair lending and score use.
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