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#2147482 - 09/25/17 07:19 PM Credit Scoring Model
Vander Offline
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Vander
Joined: Jul 2003
Posts: 216
Texas
I'm trying to determine how specific this should be. We use the Experian Fair Isaac Version 2 model. Do you think it's acceptable to choose #2 Experian Fair Isaac, or do I need to provide the exact model using the "other" field?

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#2147509 - 09/25/17 10:33 PM Re: Credit Scoring Model Vander
David Dickinson Offline
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David Dickinson
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Central City, NE
Good question in which we don't have any guidance. It is my opinion that you can choose #2. You don't need to use the other field and get more specific. Others?
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#2147546 - 09/26/17 02:00 PM Re: Credit Scoring Model Vander
RR Joker Offline
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RR Joker
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The Swamp
I would agree that it makes sense. Surely they aren't trying to make that especially difficult based on differing versions crazy
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#2147574 - 09/26/17 03:42 PM Re: Credit Scoring Model Vander
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
They didn't break down the Fair Isaac versions like they did the FICO Risk Scores & VantageScore versions so I would also agree.
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#2148667 - 10/04/17 05:54 PM Re: Credit Scoring Model Vander
Skyline Offline
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Skyline
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If you pull three scores using three different models, but use the middle score in underwriting...Do you report the model of that middle score or report that more than one credit score model was used?
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#2148702 - 10/04/17 07:47 PM Re: Credit Scoring Model Vander
Dan Persfull Offline
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Dan Persfull
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Posts: 46,765
Bloomington, IN
Name and Version of Credit Scoring Model. Indicate the name and version of the credit scoring model used to generate the credit score, or scores, relied on in making the credit decision by entering the applicable Code from the following:


IMO if you used only the middle credit score in your decision then you only report that score and that credit scoring model.
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#2148706 - 10/04/17 07:52 PM Re: Credit Scoring Model Vander
Skyline Offline
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Skyline
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Posts: 589
Thank you Dan. I think that I was overthinking "relied upon". The fact we relied upon three different scores to come up with the middle score that we use in reporting and underwriting purposes. When would reason 7 be used as Credit Scoring Model if a credit score was reported?
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#2149253 - 10/10/17 03:40 PM Re: Credit Scoring Model Vander
Aruba123 Offline
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Joined: Jan 2012
Posts: 70
New York
I have a question regarding loans to non-natural persons.

If we rely on the credit score of a guarantor, or an owner of the entity, do we report a credit score? Originally I understood that for loans to non-natural persons the code for NA should be used for credit score. I recently learned that the credit score can be relied on for approval or denial of an application, in addition to the property financials. Basically, the line of business stated that a loan could be denied based on credit score on a loan to a natural person.

Is there any guidance that speaks to this?

Thank you!

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#2149482 - 10/11/17 09:51 PM Re: Credit Scoring Model Vander
Compliance Chick Offline
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Posts: 192
New Orleans, La.
we are not reporting the credit scores for guarantors. only reporting scores for the natural person applicant and co-applicant.
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#2149483 - 10/11/17 09:52 PM Re: Credit Scoring Model Vander
Compliance Chick Offline
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Posts: 192
New Orleans, La.
When would bank use the code for more than 1 credit scoring model used?
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#2149517 - 10/12/17 01:39 PM Re: Credit Scoring Model Vander
Skyline Offline
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Skyline
Joined: Sep 2005
Posts: 589
I posted this same question earlier in the thread and I think I came up with my own response. If you pulled three credit scores and your procedures were to take an average of the three to arrive at a single score, used that score for underwriting...then you can use the code for more than 1 credit score used.
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