FICO Score 10T broadly outperforms VantageScore 4.0 in predicting mortgage default risks for borrowers, according to a new analysis from Milliman, an international actuarial and advisory firm.
“Across all measures and mortgage types, we find that FICO 10T consistently produced the highest measure of predictive power across all fit statistics and mortgage types,” Milliman reported.
The study arrives just two weeks after the heads of the Federal Housing Finance Agency (FHFA), which regulates government-sponsored enterprises Fannie Mae and Freddie Mac, and the Department of Housing and Urban Development (HUD) jointly announced that VantageScore 4.0 was going live on an incremental though system-wide basis in underwriting for government-backed ...