Here's the catch: Regardless of what "scoring model" is used, all credit scoring systems become corrupt and bloated soon enough. For example, under this new system where "22% of all people have an 800 score," a score of 700 will become viewed in the same way that a score of, say, 550, is now. In other words, would you rather be a "4 out of 5" or an "8 out of ten?" See what I mean? There's no real difference. The credit market will "equalize" all of this soon enough if it's enacted. What is REALLY needed is a system where a potential lender can look at every applicant individually as opposed to a stupid scoring system.
Well, I would rather be a 7/10 rather than a 3/5 though. Using the whole (or a larger) range tends to lend more precision to the process. But I agree with you in theory. The credit lenders will equalize this system pretty quickly and it will be interesting to see whether it's more inclusive or more exclusive. My guess is that it will be slightly more inclusive at the middle but much much more stingy about reconsiderations past what ever cut off point is declared. Myschae
In light of this supposed jump in a prime borrower's already high score, here's an interesting article I found in the Baltimore Sun recently: http://www.sunspot.net/business/rea...11nov11.story?coll=bal-realestate-headlines-1
