The new UltraFICO credit score is scheduled to roll out as a pilot program in early 2019.
It’s an opt-in score that uses data about consumers’ banking behavior—the length of time their bank accounts have been open, the frequency of activity, and evidence of saving—in addition to their payment practices to calculate a score.
Experian, FICO, and Finicity estimate this new score has the potential to improve credit access for many Americans, and assert that it’s particularly relevant for those with current credit scores in the upper 500s to lower 600s. Consumers with limited credit history or those with previous financial distress also could benefit.
I’ve heard from a lender that the new system won’t show judgements on the initial credit search. It only comes later in the second, deep search right before they close the loan. Does anyone know if that’s accurate information? If so, I foresee lots of hassles.
The credit reporting agencies (CRA’s – Experian, Equifax and Transunion) are no longer providing information on either judgments or tax liens. The credit bureaus (the ones to put together and sell credit reports) now seem to be relying on Lexisnexis or similar type company to provide that information. The question is how accurate is it? That’s why the CRA’s stopped including it – much of it was not verifiable or just plain wrong. Mortgage companies will have to see if the credit report provider they use is providing that information.
That would bust out some loans, just as the Seller is expecting to close, on possibly two homes at once, a sale and a purchase. I see that as a huge disappointment for lots of people, giving Realtors potential for more Realtor distrust and dislike! Once a loan approval is given, it should not be retractable unless Buyers situations change.
Lets see…Experian was hacked. So why not give them access to your banking information. What could possibly go wrong.
Actually it was Equifax that was hacked, but nonetheless, what gives them (the credit reporting agencies) the right to look at your banking information without your permission. If it was just numbers, i.e. number of late charges, average account balance, etc. with no account numbers, at least the information shared would not be account specific.
Ron Stuart- that is why it is an “opt-in” program.
Are you kidding? We don’t need them into our business or information any further that they already are and that is for sure!!
My sentiments exactly!
Ultra FICO is, in essence, a new scoring model which now takes into account banking information. The only three scoring models on any mortgage credit report are FICO v. 2.0 (Experian), FICO Classic 04 (Transunion) and FICO Beacon 5.0 (Equifax). Those are the only scoring models approved for any GSE backed loan and they are 14-20 years old. Until that changes, there will probably not be any impact on credit scores on a mortgage credit report. THAT SAID, often times low scores are a result of inaccurate information, and any report generating low scores should be reviewed by someone trained… Read more »
Looks like this is at least an opt-in choice for consumers, but I feel sorry for those who are forced by a lender to utilize the service. So much for lenders doing some due diligence, and what a security breach nightmare waiting to happen!
Congratulations, you just admitted to a felony and provided a good address to locate you. I’m sure they’ll see you soon. Pretty stupid to post that