The much-hyped VantageScore credit scoring system seems to be getting a lot of press lately, so thank you to Holden Lewis at Bankrate.com for keeping it real.
According to the VantageScore Web site, it is the "new standard in credit risk scoring".
"Why did we create VantageScore? Simply put, the industry expressed a need for a new approach to credit scoring across the three major credit reporting companies...VantageScore is a cutting-edge scoring model that consumers tell us is easy to understand and use." (emphasis added)
That's fine and all, but here is the other side of that hype as it pertains to mortgage lending (from the BankRate.com piece):
"People in the mortgage industry say there's no chance that home lenders will adopt VantageScore. They will stick with the FICO score because it has proven to be accurate."
For the mortgage industry to adopt VantageScore, it would literally eliminate hundreds of millions of data sets that predict the likelihood of mortgage default with near-certainty. As I was quoted in the article: "How is the industry going to turn its back on that?"
In the case of VantageScore, cutting-edge does not mean better, it just means newer.
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
Deborah C. Television Crewer
The Mortgage Reports is part of my morning routine. As I read, I learn more, and have come to understand the mortgage industry. I can't thank you enough!
Lorraine L. Medical Compliance
Thank you for The Mortgage Reports. I find your reports to be both helpful and informative.
Jerolyn C. CPA
The Mortgage Reports isn't just basic mortgage rate information -- it's analysis on rate changes and trends, and updates on the laws in lending. Subscribing to the site's daily updates is worthwhile.
2017 Conforming, FHA, & VA Loan Limits
Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)