The press release from the bill's sponsors noted, "Fannie and Freddie's 90 percent share of the secondary mortgage market and reliance on one credit-scoring model has created a near monopoly in this field." Fannie and Freddie currently require FICO credit scores
for all loans eligible for sale to them.
Sallie Mae also offers a 0.25 percentage point interest rate reduction for those who enrol in automatic debit, and free access to FICO Credit Scores
on a quarterly basis, the company said.
While customers can get annual credit reports free once a year, FICO credit scores
typically cost money to obtain, although some banks have been offering them free to customers.
Around 15 percent of new car buyers had FICO credit scores
below 650 in the first half of 2012, up from 10.4 percent in 2009, according to Thomas King, senior director of automotive analysis at J.D.
Program products have interest rates as low as 6.95 percent and products are available to those with FICO credit scores
as low as 600.
These companies use detailed formulas based on credit history, amount owed, length of credit history, new credit transactions and FICO credit scores
ranging from 300 at worst to 850 at best to measure a student's risk of default.
FICO credit scores
look at balances reported and available credit.
Many apartment owners nationwide, given their pursuit of filling available units with qualified and reliable residents, may have frowned upon learning last month that more than one-quarter of Americans (43 million) hold FICO credit scores
of 599 or less, which reflects poor risk for lenders.
The Fair Isaac Corporation or most known as FICO credit scores
, which are sold directly to consumers using Equifax and Transunion, are dropping each and every month.
Fair Isaac Corp., the creator of the ubiquitous FICO credit scores
, wants the next generation of scores to not only reflect a record of how well or poorly consumers have paid their debts in the past but also to predict how they are likely to react to future economic events.
Table 2 also shows how low FICO credit scores
, high mortgage interest rates, and relatively low house price appreciation within two years of origination contributed to high default rates for the 2001 vintage loans.
In August, according to agency data, approximately 23 percent of all new FHA home purchasers had FICO credit scores
above 720 -- far beyond the proportion of prior years.