FICO Launches FICO Score Simulator to Help Mortgage Lenders Give Consumers More Loan Options and Favorable Rates

New analytic tool simulates changes to the FICO Score with personalized credit improvement strategies

BOZEMAN, Mont.--(BUSINESS WIRE)--Global analytics software leader FICO (NYSE: FICO) today announced a new analytic tool for mortgage professionals, the FICO® Score Mortgage Simulator.

The innovative new tool simulates the potential impacts to a consumer’s FICO® Score with various simulated changes to their credit report data, such as reducing credit card balances or deleting a collection account. With that valuable insight, mortgage professionals, such as brokers and lenders, can help potential borrowers gauge how the changes could affect their FICO Scores and show them how different credit decisions could open up more loan options and favorable interest rates.

The FICO® Score Mortgage Simulator is the only score simulator for mortgage professionals that uses FICO Scores and the actual FICO Score algorithms. Lenders using this tool will be able to run credit event scenarios from an applicant’s credit report data, such as paying off a car loan, and determine the potential impact to that individual’s actual FICO Score. The simulation will also allow the mortgage professionals to see how different credit strategies may influence potential changes to the applicant’s FICO Score.

“FICO is continuously working on innovative product offerings that can responsibly expand credit access to more people,” said Geoff Smith, vice president and general manager, Consumer Scores at FICO. “Even a few additional points in a potential borrower’s FICO Score can have a material impact on the mortgage loan terms offered. Ultimately, the FICO Score Mortgage Simulator will prove to be a powerful tool that can enable more people to achieve the dream of homeownership.”

The FICO® Score Mortgage Simulator provides:

• Dynamic Credit Scenario Planning: Easily simulate credit scenarios to project potential FICO® Score changes, and impact on loan eligibility.
• Enhanced Consumer Experience: Lenders can provide actionable recommendations that empower people to make better-informed financial decisions that may have a material impact on their FICO® Scores.
• Better Borrower Outcomes: Use of the FICO® Score Mortgage Simulator can help provide eligible borrowers with access to better interest rates and help previously ineligible borrowers qualify for a mortgage.

Xactus LLC, the leading verification innovator for the mortgage industry, is the first technology partner to be working with FICO to bring FICO® Score Mortgage Simulator to market.

“The FICO Score Mortgage Simulator is an innovative new tool, and we are thrilled to be at the forefront of bringing it to the mortgage market,” said Shelley Leonard, President of Xactus. “This tool brings a unique opportunity to allow both lenders and consumers to not only have a deeper understanding of FICO Score dynamics but provide a better experience and return for everyone.”

Lenders can learn more about the FICO® Score Mortgage Simulator by visiting www.fico.com/ficoscore10T.

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 80 countries do everything from protecting four 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.

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