Analytical software developer Fair Isaac (FICO) (NYSE: FICO) announced today the launch of two new features for its FICO Score Mortgage Simulator: FICO Smart Plans and FICO Score Potential. These features aim to assist mortgage professionals in transitioning from manual scenario simulations to automated, algorithm-driven data planning, ultimately delivering better loan outcomes for consumers.
The FICO Score Mortgage Simulator is the only authorized simulation tool for mortgage professionals built by FICO analytical scientists using the trusted FICO Score algorithm. Traditionally, this tool allowed professionals to test individual, self-built, or manual scenarios by adjusting specific credit variables to understand their potential impact on a borrower's FICO Score. The two new features build upon this foundation by automating and optimizing simulation plans. They adopt a "done-for-you" approach, helping lenders identify which borrowers have the greatest potential for score improvement and generating personalized credit action plans.
The newly launched features include:
FICO Smart Plans transforms the simulation experience from "do-it-yourself" to "done-for-you." Mortgage professionals can set a target score, define a budget, or let the system run optimization operations. Smart Plans will then automatically determine a recommended credit action plan for that borrower. This feature evaluates a range of potential credit actions, such as adjusting balances, removing authorized user accounts, or resolving third-party medical collections, and provides system-generated recommended steps. Smart Plans offer three plan types to meet different needs: Default Score Plan, Target Score Plan, and Target Payment Plan.
FICO Score Potential enables loan officers to preview an applicant's potential for score improvement before ordering a full simulator report. By calculating the approximate potential score impact of various scenarios, loan officers can quickly assess whether a client has the potential to reach a higher FICO Score threshold.
Geoff Smith, Vice President and General Manager of FICO Consumer Scores, stated: "Our goal in designing Smart Plans and Score Potential is simple: to provide mortgage professionals with better tools, allowing borrowers to benefit from more personalized guidance, more loan options, and a clearer path to homeownership. Now, they can let the simulator automatically evaluate credit scenarios and generate customized action plans, enabling faster decision-making."
The simulator supports simulations for one, two, or three credit bureaus and models the classic FICO Score used in mortgages. Lenders can access the tool through FICO partners such as Xactus, MeridianLink, Credit Interlink, SharperLending Solutions, and Credco.
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