Fitch Ratings is the first rating agency with the capability to evaluate and assign ratings based on VantageScore, the only generic credit scoring model jointly developed by the three national credit reporting companies (CRCs) - Equifax, Experian, and TransUnion.
With VantageScore, the same algorithm is in place at all three CRCs, giving a consistent interpretation of consumer credit files across all three major credit reporting companies, says VantageScore.
"Fitch Ratings' decision to accept mortgage loans based on VantageScore is a major milestone," notes Barret Burns, VantageScore president and CEO. "Mortgage lenders can now securitize mortgage loans based on VantageScore, which will further raise awareness of our model's strengths and advantages."
Fitch has fully incorporated VantageScore into ResiLogic 2.1, its flagship quantitative model that provides credit risk analysis at the individual loan and pool level for residential mortgage loans. ResiLogic was recently updated to include national economic and regional performance factors, loan seasoning and adjustments for high risk loan underwriting and mortgage insurance.
Residential Mortgage
