Home / News / Secondary Market / FICO Analytics Incorporated into Experian’s MBS Solution
Print This Post Print This Post

FICO Analytics Incorporated into Experian’s MBS Solution

Minneapolis-based ""FICO"":http://www.fico.com, a provider of analytics and decision management technology, recently announced that ""Experian Capital Markets"":http://www.experian.com/capital-markets/capital-markets-vertical.html is adding FICO credit scores to its CreditHorizons for Securities solution.

Sellers and investors of mortgage-backed securities (MBS) use Experian's CreditHorizons for Securities to surmount the limitations of loan-level data when analyzing credit risk in potential bond investments.

FICO says the addition of the FICO score, branded by Experian as the Experian/FICO Risk Model, will give[IMAGE] [COLUMN_BREAK]

managers, marketers, and investors of residential mortgage-backed securities (RMBS) deeper insights for evaluating creditworthiness of the underlying mortgages in non-agency loan pools.

CreditHorizons for Securities is used to improve pricing strategies on the sell side while helping buyers make investment decisions with greater confidence and improve risk management.

The FICO score brings an added dimension of predictive power, enabling users to better assess risks of delinquencies and defaults from securitized mortgages, according to the company. FICO explained that investors benefit from using fresh credit scores instead of scores calculated when loans were originated, since recently reported changes in borrowers' credit behavior will likely change their credit risk.

""We are excited to offer more comprehensive solutions to support the needs of the secondary market and securitization process for U.S. mortgages,"" said Jordan Graham, EVP of scores at FICO. ""We believe this combination of Experian Capital Markets and FICO solutions will increase investor confidence and make for a more efficiently functioning market.""

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.

Check Also

Fannie and Freddie: Portfolio Update

Both GSEs issued their monthly volume summaries for June. How are their portfolios weathering the current economic challenges?


Featuring daily updates on foreclosure, REO, and the secondary market, DS News has the timely and relevant content you need to stay at the top of your game. Get each day’s most important default servicing news and market information delivered directly to your inbox, complimentary, when you subscribe.