Cardinal Financial Works with FICO to Offer First VA Mortgage-Backed Security Decisioned on FICO® Score 10 T

Mortgage Leader to Integrate FICO’s Most Predictive Score to Help More Veterans Buy Homes

BOZEMAN, Mont.--(BUSINESS WIRE)--FICO, a leading analytics software firm, has announced that mortgage leader Cardinal Financial (Cardinal) is the latest in the movement to adopt FICO^® Score 10 T for non-conforming mortgage loans. The lender is also the first to plan to issue a United States Department of Veterans Affairs (VA) Mortgage- Backed Security (MBS) using FICO’s newest and most predictive scoring model.

As part of this, Cardinal will integrate FICO® Score 10 T into its proprietary loan origination software, Octane®, to provide an enhanced valuation of the company’s portfolio. With the adoption of FICO Score 10 T, Cardinal can benefit from a more predictive and precise scoring model, to help enable the lender to increase its VA loan production and help more veterans buy a home.

“At Cardinal Financial, we're dedicated to redefining the home financing experience, placing a premium on simplicity and transparency. Our partnership with FICO to integrate the FICO Score 10 T into our operations underscores this commitment, particularly expanding our assistance to Veterans," said Joshua Mitzner, Executive Vice President of Capital Markets at Cardinal Financial. "With the integration of the latest FICO Score 10 T, we're poised to broaden our support, empowering a greater number of veterans and their families to realize their dream of homeownership.”

FICO® Score 10 T provides even greater precision in making lending decisions. FICO Score 10 T can help lenders better manage credit risk and default rates while extending competitive credit offers to consumers. FICO Score 10 T can enable an increase in mortgage originations of up to five percent (without taking on additional credit risk) and reduce default risk and losses by up to 17 percent. FICO^® Score 10 T can also help lenders project cash flow more accurately.

“With the adoption of FICO® Score 10 T, Cardinal Financial is proactively enhancing its operations to better serve its customers by using the most predictive FICO Score model in the market today,” said Julie May, vice president and general manager of Scores at FICO. “FICO is thrilled to help enable Cardinal to continue to put its customers’ needs at the center of every financing decision.”

FICO is committed to assisting mortgage industry participants looking to transition to its most current model, FICO^® Score 10 T. The FICO Score Migration Resource Center provides a detailed guide to support organizations through their score transition with key planning steps and activities, in addition to implementation best practices.

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency. Learn more at www.fico.com.

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About Cardinal Financial

Cardinal Financial is a dynamic, forward-thinking mortgage organization committed to designing an exceptional experience and tailored home financing solutions for borrowers. Licensed to sell directly through Fannie Mae, Freddie Mac, and Ginnie Mae, the firm operates in all 50 states, offering a wide range of lending options to help more people achieve homeownership. Cardinal Financial's innovative approach is powered by Octane®, their custom-built loan origination platform, designed to streamline the lending process from start to finish. Visit CardinalFinancial.com for more information.