An article from Credit & Collections World makes it sound like FICO, heavily weighted towards revolving bankcards, either isn't working for mortgage lending or may be a factor in discrimination in lending, a subject heavily debated on this board over the last few days I'm not pushing this issue; I'm interested in anything that will punch holes in FICO, so it's just coincidence (or not) that I keep running across articles that mention it. http://www.creditcollectionsworld.com/cgi-bin/readstory.pl?story=20020930CCWN268.xml Key Quotes: "There are brokers who are still asking what credit scoring is about." "Ken Goins, the president of Info1 noted that there is now more consumer knowledge about credit scores and credit reporting and a lot of that has to do with the Internet. [Like creditnet!] But, both men noted, there is still a gap in the system. Looking at the Home Mortgage Disclosure Act data, there is still a gap in the percentage of whites that own homes vs. the percentage of different minorities." "Fannie Mae, he added, is moving away from the FICO score and into a more proprietary model. ... Fannie Mae will be using more "nontraditional" credit reports that get information from such sources as utilities or local merchants..." "As a result, Mr. Connizzo said, a situation that is kind of a throwback to the early days of credit reporting has developed. To create these alternative files, the data has to be gathered manually from the local merchants, insurance companies, utilities and the like. This takes the industry back to the days, he said, when the information was developed manually from local vendors."
