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- 11/26/99 - creditscoring.com author appears on program The Money Maze on radio station KBZS in San Francisco
- 12/3/99 - Fair, Isaac representative appears on program The Money Maze on radio station KBZS in San Francisco and states, "The Fair, Isaac credit score doesn't care how many credit cards you have, in essence." Statement contradicts May 1, 1997 and August 19, 1997 Experian Information Solutions statement that the "Number of revolving bank accounts" was one of the "factors which can affect risk score formulation." Statement also contradicts handout titled Fair, Isaac Credit Bureau Risk Score Factor Reason Codes (with Fair, Isaac's insignia at the top and 13 Fair, Isaac office addresses on the back) obtained on July 22, 1999, at Federal Trade Commission meeting in Washington entitled Public Forum: The Consumer and Credit Scoring. Handout listed, in a column labeled "Reason Statement,":
03 - Too few bank revolving accounts
04 - Too many bank or national revolving accounts
05 - Too many accounts with balances
23 - Number of bank or national revolving accounts with balances
26 - Number of bank revolving or other revolving accounts
28 - Number of established accounts.
- "The Credit Bureaus each provided Fair Isaac with a very large sample of randomly selected credit files. They provided the current file as well as a copy of that file as it appeared 24 months before. The files were compared and separated into two groups: Those who were delinquent within 24 months and those who were not. The sets of files were analyzed and a number of characteristics were identified as 'predicting' the delinquent behavior."
- 10/10/99: Fair, Isaac Teams With Mortgage Information Corporation to Offer Portfolio Defense Solutions - "To build the sophisticated scoring system, Fair, Isaac analysts are working with a large and diverse sample of prime loans,
empirically identifying a wide range of factors that contribute to a borrower's prepayment risk."
- Case Study: ScoreNet maximizes resources, reduces costs at GMAC Mortgage - "Within its home equity portfolio, GMAC Mortgage uses Fair, Isaac credit bureau scores to prioritize collections. The most recent score determines whether it begins collection activity immediately or waits up to 25 days. During this waiting period, it also tempers written communication depending on bureau score.
- Forbes (11-29-99) Fannie and its Enemies
- 11/12/99 - HUD Secretary Andrew Cuomo: "In effect, FHA's new automated underwriting system will be like a glass box, exposed to the light of day and public scrutiny."
- MBA web site: "Black loan applicants are rejected more frequently than white applicants, and the immediate reason in many cases seems to be that blacks get lower FICO scores."
- Freddie Mac: "Statistics show that 72 percent of white households own homes, compared to 46 percent of African-American households... Moreover, income alone does not explain this disparity. For example, among people with incomes under $25,000, 48 percent of African-American borrowers have 'bad' credit, compared to 31 percent of white borrowers; in the $65,000 to $75,000 income bracket, 34 percent of African-American borrowers have 'bad' credit compared to 20 percent of white borrowers."
Minorities and low-income borrowers present a slightly larger risk." (source: MSN MoneyCentral). The Equal Credit Opportunity Act prohibits discrimination based on race and national origin. Who decided race would be a part of the data and evaluation? Why did you make that evaluation?
(also, see The Big (unanswered) Questions for the Big Meeting: Peter L. McCorkell, senior vice president at Fair, Isaac, said, "
- Fair Credit Full Disclosure Act - H.R.2856, SPONSOR: Rep Cannon, Chris (introduced 09/14/99).
A bill to amend the Fair Credit Reporting Act to require the disclosure of all information in a consumer's file, including credit scores, risk scores, and any other predictors.
- HomeFree USA On-Line Mortgage Achievement Form: "Reveals your credit score and current financing eligibility from the lender's perspective"
- "a shadow world that is almost beyond the reach of the law and is certainly above and beyond the reach of the consumer."
- PART TWO
- MSN MoneyCentral newsgroup
- ICA has just started the process of dissolution and therefore is not accepting membership applications or product orders.
- California Association of REALTORS® - (7/28/99: This page is now missing.)
- "FM WATCH is dedicated to monitoring the activities of two government-subsidized enterprises (GSEs), Fannie Mae and Freddie Mac."
- AAA American Credit Bureau - "This newsletter is designed to awaken the mortgage industry to a problem that seems to be out of control and will "destroy" our real estate industry as we know it."
- Fannie Mae Technology - Desktop Originator & Desktop Underwriter
- Federal Reserve: Partners Newsletter V6 N3 - Automated Underwriting in the Financial Services Industry Today - "For example, a typical strategy for a borrower who has an otherwise pristine payment history but who haslet his credit card payment go one payment past due, may involve sending just a friendly reminder on his next credit card statement. On the other hand, a similarly tardy borrower with a history of late payments may receive a terse phone call from a collector."
- Fun With Numbers
- Experian: "The Experian/Fair, Isaac scores range from the high-300s to the mid-800s."
- Equifax: "The highest score in numbers for Beacon is about 850..."
- Fair, Isaac: "A score range may be 0-800, 40-400, or some other range of numbers."
- Fannie Mae: "Credit scores typically used in mortgage lending range from approximately 300 to 900."
- Freddie Mac: FICO scores range from approximately 400 to 900.
- U.S.News & World Report: "Risk scores generally range from 300 to 950..."
- U.S. News and World Report: BASICS: Credit Score - "Fact: A lender must disclose the top four reasons why credit was denied."
- "FICO scores range between 375 and 900 points... "
- "The Fair Isaac range is approximately 380-830... "
- "Risk scores generally range from 300 to 950"
- "Many lenders will not even consider a loan with a FICO score below 600, some as high as 620."
- The Credit Scoring Site appears in the invest-o-rama! -- directory of credit card sites on the web: "CreditScoring.com. The facts behind credit scoring and how it works."
- The Credit Scoring Site appears in the Technology Leadership Center at Kansas State University
- "The Experian/Fair, Isaac scores range from the high-300s to the mid-800s."
- International Credit Association
- ICA MISSION STATEMENT - To advance the credit industry and profession worldwide by furnishing information, education and standards; and to further public awareness and understanding of the proper use of credit.
- "... The Association will work with governmental agencies to help advance programs to educate consumers on the proper use of credit..."
- ... International Credit Association Standards of Conduct:... To Society:... Support and participate in programs that favorably affect society, citizens and communities served by ICA, and to the fullest extent seek solutions to social problems and concerns relevant to the credit industry.
- Watch as the Credit Info Center helps 3 lucky contestants repair their credit.
- Fair, Isaac's survey: Credit Scores: 01/07/1999
- You weren't imagining it; things weren't always so wonderful: "Without these changes, a consumer's ability to shop is often impaired because multiple requests for a credit report will lower their score." Spin lives.
- Credit Scoring Questioned for Minority Lending
- "... Experian's credit bureau models and analytical products, a thirty (30) million dollar revenue product line."
- HUD Oversight of Fannie Mae and Freddie Mac - Housing
- Freddie Mac - "... But because Freddie Mac exists, millions of Americans have benefited from lower monthly mortgage payments and better access to home financing...."
- Fannie Mae - "Fannie Mae is a private, shareholder-owned company..."
- Government Sponsored Enterprises - "... The Federal Government provides a number of economic privileges to GSEs, most important of which is the implied Federal Government guarantee, which reduces Enterprise funding costs. In return for these benefits, the GSEs are required by their Federal charters and other statutes to provide public services..." (WACHTER)
"... I agree that they should be profitable, so the 20 percent profit is not what I am concerned about..." (WACHTER)
"... To perpetuate the present situation just gives the GSE that much more of a monopoly position and stifles private competition...." (CAVANAUGH)
- MBA: Mortgage Terms - 2/7/99 search for "scor" returned nothing.
- NAMB's Best Business Practices Guidelines - "... We will... Explain the loan process, from application to closing..."
- Associated Credit Bureaus, Inc. - "ACB has four priorities:..."