"The companies said mortgage lenders will receive a single score that includes a consumer's credit history and account activity, such as deposits and spending patterns, to better assess loan applicants. The score will be available through Plaid's Consumer Reporting Agency, Plaid Check. FICO said the update is designed to align closely with its traditional score while offering more detail, allowing lenders to begin using it without major system changes."
"This is the beginning of a new chapter in responsible and inclusive lending. Adam Yoxtheimer, head of partnerships at Plaid, said lenders are increasingly looking for ways to get a clearer view of consumer finances beyond traditional credit reports. By combining Plaid's real-time connectivity and intelligence with FICO in this next-generation credit score, we are helping lenders make more confident, inclusive credit decisions through a simple and scalable solution."
FICO and Plaid will provide mortgage lenders with a single, next-generation score combining traditional credit history and real-time account activity such as deposits and spending patterns. The score will be delivered through Plaid Check and designed to align closely with FICO's traditional score while adding cash-flow detail, enabling lenders to adopt it without major system changes. The update aims to broaden assessment of consumer credit readiness, reduce onboarding time, and work with existing channels that use FICO. FICO's scores are used by 90% of top U.S. lenders; Plaid powers nearly one million daily financial data connections.
Read at www.housingwire.com
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