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Fair Isaac Corp. last week unveiled FICO Score Trends, a service designed to help lenders pinpoint borrower risk more accurately within specific regions and for certain types of loans. Minneapolis-based Fair Isaac developed the product in conjunction with Atlanta-based credit bureau Equifax Inc. FICO Score Trends enables lenders to analyze which groups of borrowers in certain geographic regions and within specific bands of FICO's traditional 300-850 credit-scoring range are remaining current on their payments for bankcard, automobile or mortgage loans. The service also provides data on payment trends for loans made within the past year compared with older loans. FICO Score Trends measures default risk based on the proportion of borrowers whose payments are not more than 90 days late. Careen Foster, Fair Isaac FICO Score product manager, tells CardLine lenders may use the service to get a snapshot of how the default rates in their own portfolios compare with the averages for other loans based on their type, geographic region and vintage. "Score Trends gives lenders the opportunity to look at loan-performance data from more angles than ever before, so they can see what they are doing to get better or worse performance. This kind of data helps lenders figure out what type of actions they might need to take in their underwriting or marketing programs to improve their results," she says. Fair Isaac offers Score Trends on a subscription basis.
