HousingWireHousingWire
Xactus has become the first technology partner to introduce the FICO Score Mortgage Simulator, a new tool designed to help lenders and borrowers understand how credit decisions impact mortgage eligibility.
The simulator, developed by FICO, is the only mortgage industry tool that uses FICO scores and FICO score algorithms. It is now available through verification platform Xactus360.
“We are excited about being the first company to partner with FICO to introduce this important tool to the lending community,” said Shelley Leonard, president of Xactus. “Our deep industry connections and experience with score simulation tools will play a key role in the simulator’s roll out and fostering its quick adoption.”
The tool allows lenders to simulate how various financial actions — such as paying off debt or increasing credit utilization — might affect a borrower’s FICO score.
By modeling these potential changes, lenders can help applicants understand how their credit profile influences loan options and interest rates, company leaders said.
“Together, we are thrilled to launch our innovative tool, which will ultimately empower lenders and borrowers to make more informed decisions,” said Geoff Smith, vice president and general manager of Consumer Scores at FICO.
The new product comes just months after HousingWire reported that FICO would be increasing its pricing of credit scores to $4.95, the third straight year of hikes. Companies downstream from FICO in turn also raised their prices, frustrating mortgage lenders.
