How long will 2/4/5 be used?

TU8 799/EX8 786/EQ8 805 EQ5 770/EX2 757 8/18/2023

2 years ago

Wed Aug 17, 2022 4:30 pm

Saeren

Rebel Administrator

Recent HP or new account.

Level0 Last INQFriday, August 23, 2024 Gardening For24 days, 13 hours, and 9 minutes Next Level in6 days, 10 hours, and 51 minutes on September 23rd INQ 1yr onSaturday, August 23, 2025 INQ 1yr in11 months, 6 days, 10 hours, and 51 minutes INQ 2yr onSunday, August 23, 2026 INQ 2yr in1 year, 11 months, 6 days, 10 hours, and 51 minutes Goal6 months Goal DateSunday, February 23, 2025 Goal In5 months, 6 days, 10 hours, and 51 minutes

Mortgage lending is regulated so 2/4/5 will be used until regulations allow the change to a newer model basically. https://www.bhfs.com/insights/alerts-ar ... rosshairs-

2 years ago

Thu Aug 18, 2022 6:43 am

Credible

Seasoned Rebel

Credible has been gardening for over 2 years.
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Level29 Last INQMonday, March 28, 2022 Gardening For2 years, 5 months, 19 days, 13 hours, and 9 minutes Next Level in11 days, 10 hours, and 51 minutes on September 28th INQ 1yr onTuesday, March 28, 2023 INQ 1yr reached1 year, 5 months, 19 days, 13 hours, and 9 minutes ago INQ 2yr onThursday, March 28, 2024 INQ 2yr reached5 months, 19 days, 13 hours, and 9 minutes ago Goal24 months Goal DateThursday, March 28, 2024 Goal Achieved5 months, 19 days, 13 hours, and 9 minutes ago

I recall reading some articles online saying Fannie Mae will allow the usage of VantageScore 3.0 in mortgage loans as an alternative to FICO 2, 4, 5. Whether or not mortgage lenders will try using that score is still an open question. I would think FICO 10T would be a better judge of risk than any other score because It accounts for trends in utilization instead of just a recent snapshot.

2 years ago

Thu Aug 18, 2022 7:13 am

BrutalBodyShots

Senior AdministratorGoodwill Saturation Technique Author

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Level27 Last INQMonday, May 23, 2022 Gardening For2 years, 3 months, 24 days, 13 hours, and 9 minutes Next Level in6 days, 10 hours, and 51 minutes on September 23rd INQ 1yr onTuesday, May 23, 2023 INQ 1yr reached1 year, 3 months, 24 days, 13 hours, and 9 minutes ago INQ 2yr onThursday, May 23, 2024 INQ 2yr reached3 months, 24 days, 13 hours, and 9 minutes ago Goal24 months Goal DateThursday, May 23, 2024 Goal Achieved3 months, 24 days, 13 hours, and 9 minutes ago

Credible wrote: ↑Thu Aug 18, 2022 6:43 am I recall reading some articles online saying Fannie Mae will allow the usage of VantageScore 3.0 in mortgage loans as an alternative to FICO 2, 4, 5. Whether or not mortgage lenders will try using that score is still an open question. I would think FICO 10T would be a better judge of risk than any other score because It accounts for trends in utilization instead of just a recent snapshot.

That's kind of my thought process on it. Just in general you'd think over time improvements will be made (like the use of TD) which could provide lenders with a better overall picture of the credit strength of a potential customer. I'm just wondering at what point changes could be made.

2 years ago

Fri Sep 09, 2022 9:13 pm

Birdman

Primer AuthorCo-Founder

Birdman has been gardening for over 2 years.

Level30 Last INQWednesday, March 2, 2022 Gardening For2 years, 6 months, 14 days, 13 hours, and 9 minutes Next Level in15 days, 10 hours, and 51 minutes on October 2nd INQ 1yr onThursday, March 2, 2023 INQ 1yr reached1 year, 6 months, 14 days, 13 hours, and 9 minutes ago INQ 2yr onSaturday, March 2, 2024 INQ 2yr reached6 months, 14 days, 13 hours, and 9 minutes ago

It would not have changed as quickly as it will now. Considering the current environment I expect it to be changed sooner rather than later. But that could still be years off. And many lenders will continue to use it anyway for non-mortgage products.

They know they work so they’re hesitant to change plus it costs money