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The Advantage of VantageScore?
How alternative scoring methods could affect risk assessment in the current lending environment
May 9, 2007
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WHAT: |
In February, the Department of Justice concluded its investigation of the credit scoring system VantageScore without action, leaving the Fair Isaac lawsuit as the last remaining hurdle for the venture. According to a special report released in April by Fitch Ratings, FICO-evaluated loans that had additional risk factors, such as high combined loan to value ratios (CLTVs) and lack of income verification, had higher absolute default rates.
Given the current mortgage climate, the question now becomes how will VantageScore, and other alternative scoring methods, affect the industry, particularly in the now-beleaguered subprime market? |
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WHO: |
John Padilla, executive vice president of business development at Zoot Enterprises, the industry’s leading independently-owned instant decisioning provider currently working with all three credit bureaus and Fair Isaac Corp. Zoot applications processed more than 200 million credit transactions in 2006. Padilla, a former bureau executive, is experienced in credit scoring, reporting and decisioning topics and is available to discuss how alternative scoring methods can be implemented to augment lenders’ current risk evaluation models. |
About Zoot Enterprises
Bozeman, Mont.-based Zoot Enterprises provides large financial institutions with highly configurable, credit bureau independent instant credit decisioning and loan origination systems. Its fast, flexible and highly secure solutions reduce risk and improve performance for seven of the top-ten U.S. financial institutions accounting for more than 200 million credit transactions a year. The company's product lines support a wide range of transactions and allow clients to adapt to market changes in real-time. The ability to meet virtually any credit origination need has led to the company's long-term partnerships with the nation's most innovative financial institutions. Visit www.zootweb.com or call 406.586.5050 for more information.
MEDIA CONTACTS: William Mills Agency, Andrew McCaskill, 678-781-7210 or Zoot Enterprises, Eric Lindeen, 406-556-7449
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