Fair Isaac aka FICO unveiled a new credit score today designed specifically for mortgage lenders.
The "BEACON® Mortgage Score" aims to provide better decisioning results addressing the lending risk for both homeowners and buyers.
The new model includes 15 additional score codes to help mortgage lenders make sense of the scoring so better choices are made when it comes to providing new financing and loan modifications.
Testing showed the new score identified 25 percent more mortgages and Helocs that later became delinquent when compared with the current model. That could save the industry $1 billion in foreclosure costs.