VantageScore: How the FHFA can open the door to alternative credit score models
Interesting read. What it fails to really discuss, is that Vantage Score is owned by the 3 Credit Bureaus. So, buy transitioning to Vantage Score, you will not have the same entities that control the database of information, also providing the scores. I wouldn’t be as bothered by this information, if there were not so many blatant attempts by Vantage to increase revenue, by things such as:
• Regardless of what choice lenders make at the time of origination, ensure that investors receive the Vantage Score credit score and, if possible, the current legacy credit score for every loan in every pool.
• Improve transparency by disclosing monthly credit score updates to all MBS investors.
Obviously the more frequently the Score is requested, the more revenue is generated. I’m surprised they didn’t suggest an updated score every month during the life of the loan. I think, for a while, we all need to advise the # Bureaus to sit the next few plays out, instead of trying to convince us all that we need to involve them more directly in the scoring of their date. I’m sure we would all prefer to have at least some separation of power for the time being, while the U.S. recovers from the LARGEST DATE BREACH IN THE HISTORY OF THE WORLD!!
