The Holiday Balancing Act: FICO vs. VantageScore
The other day, someone asked me an increasingly common question: Should we use FICO or VantageScore? It’s a fair question, especially as we close out a whirlwind 2024 and look ahead to 2025. With the holidays right around the corner, it feels like the perfect time to slow down and reflect on these pivotal decisions.
In the mortgage industry, we’re standing at a crossroads when it comes to credit reporting. Rising costs have sparked a debate about whether it’s time to move away from the traditional tri-merge reports. Some are suggesting a leap straight to using a single credit bureau, bypassing bi-merge entirely. On one hand, it sounds like a simpler, more cost-effective approach. On the other hand, it raises big questions about compliance, data accuracy, and fairness to borrowers.
It’s a bit like preparing for the holiday season—deciding which traditions to hold onto, which new trends to try, and finding a balance that works for everyone. The decisions we make now, whether about credit scoring models or reporting structures, have the potential to shape our industry for years to come.
As we wrap up the year, let’s take this opportunity to reflect not just on the challenges we’ve faced but also on the progress we’ve made. These conversations are complex, but they’re also necessary. So, as we head into the holidays, let’s keep an eye on what’s next and stay committed to building a stronger, fairer mortgage industry for 2025 and beyond.
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