Transforming the Mortgage Market with FICO® Score 10 T

MCT and FICO Forge Strategic Partnership

MCT and FICO are joining forces to enhance the mortgage lending landscape through the introduction of the innovative FICO® Score 10 T. This collaboration promises to reshape how mortgage asset buyers and sellers interact on MCT Marketplace, a prominent platform in the U.S. secondary market. By embracing this cutting-edge predictive scoring model, the two companies aim to provide significant advantages to mortgage lenders and investors alike.

The Impact of FICO® Score 10 T

Integrating FICO® Score 10 T into secondary marketing processes aims to significantly benefit the large segment of delegated correspondent sellers and buyers served by MCT. According to Tom Farmer, Chief Investment & Corporate Development Officer at MCT, the new scoring model is anticipated to reveal pricing opportunities, maximizing profits while expanding market potential.

Enhancing Lending Decisions

The FICO® Score 10 T allows for greater precision in lending decisions by improving how lenders manage credit risk and default rates. This outcome creates a more competitive environment where mortgage originations can potentially rise by 5 percent without increasing credit risk.

Key Benefits for Lenders

FICO® Score 10 T offers numerous advantages including:

• Reducing potential default risk and related losses by up to 17 percent.
• Facilitating more favorable loan terms for borrowers.
• Helping lenders and investors make more accurate cash flow projections.

Redefining Credit Risk Measurement

FICO's commitment to delivering an innovative scoring solution highlights MCT's leadership in the market, according to Devin Norales, Director of Mortgage and Capital Markets at FICO. The collaboration not only promises transparency in credit risk evaluation for investors but also strengthens the foundation for sustainable long-term portfolio performance.

Applications on MCT Marketplace

MCT Marketplace serves as a natural platform to leverage FICO® Score 10 T's capabilities in pricing whole loans and mortgage-backed securities. The integration process is slated to involve a pilot group of clients to ensure its efficacy in real-world applications.

Greg Richardson, EVP of Capital Markets at Primis Mortgage, shared insights on the advantages of implementing FICO® Score 10 T. The predictive analytics tool has proven invaluable in honing their understanding of credit risk, enhancing operational efficiency, and offering competitive rates to qualified borrowers.

Looking Ahead: Timeline for Integration

Expect the full integration of FICO® Score 10 T into MCT Marketplace by mid-2025, positioning all users to utilize the advantages of this premium scoring model. Mortgage lenders and investors eager to explore the benefits of this innovative scoring system are encouraged to reach out for further discussions.

About MCT

MCT has carved a niche as a leader in innovation in the mortgage secondary market for over 20 years. By blending expertise and emerging technologies, MCT has become synonymous with advanced marketplace solutions for mortgage-related assets. Their technology modernizes how mortgage assets are transacted, ensuring clients are well-equipped to navigate any market conditions.

About FICO

FICO is pivotal in enhancing decision-making for businesses and individuals globally. Established in 1956, FICO excels in applying data science and predictive analytics to improve business operations. With over 200 patents, FICO’s solutions span multiple industries, revolutionizing risk management and operational efficiency. The FICO® Score continues to be an industry standard, widely adopted by lenders to assess consumer credit risk in the U.S. and beyond.

Frequently Asked Questions

What is the purpose of the collaboration between MCT and FICO?

The partnership aims to integrate FICO® Score 10 T into the MCT Marketplace to improve mortgage asset transactions and enhance lending decisions for users.

How will FICO® Score 10 T benefit lenders?

This new scoring model can help lenders increase mortgage originations, reduce default risk, and offer better loan terms to borrowers.

When will the FICO® Score 10 T be fully integrated?

The integration is planned for mid-2025, at which point all MCT Marketplace users can access the new scoring model.

What advantages does FICO® Score 10 T provide?

FICO® Score 10 T offers enhanced precision in lending decisions, resulting in improved management of credit risk and default rates, helping lenders navigate the competitive market.

What does MCT focus on in the mortgage market?

MCT is committed to innovation, providing leading technology solutions and expertise to reshape how mortgage assets are evaluated, transacted, and managed.

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