FICO Enhances FICO® Score Mortgage Simulator with New Automated Credit Planning Features

FICO , global analytics software leader, announced two new features for the FICO® Score Mortgage Simulator – FICO® Smart Plans and FICO® Score Potential – designed to help mortgage professionals move beyond manual scenario simulations toward more automated, algorithmically driven data planning that can deliver better loan outcomes for consumers.

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The FICO® Score Mortgage Simulator is the only authorized simulation tool for mortgage professionals built by FICO’s analytic scientists using the trusted FICO® Score algorithm. Traditionally, the tool has enabled mortgage professionals to test individual “build-your-own” or manual scenarios by adjusting specific credit variables to understand their potential impact on a borrower’s FICO® Score. The two newly launched features build on this foundation by automating and optimizing the simulated plans, with a “do-it-for-me” approach, helping lenders identify which borrowers have the greatest potential for score improvement and generate personalized credit action plans to support faster, more informed decision-making.

The latest FICO® Score Mortgage Simulator features include:

• FICO® Smart Plans: Transforms the simulation experience from “do-it-yourself” to “do-it-for-me.” Rather than manually running multiple individual “build-your-own” scenarios, mortgage professionals can set a target score goal, define a budget, or allow the system to run optimized actions, and FICO® Smart Plans automatically determines the recommended credit action plans for that borrower. The feature evaluates a range of potential credit actions such as adjusting balances, removing authorized user accounts, or resolving third-party medical collections, and delivers a system-generated set of recommended steps. FICO® Smart Plans offers three plan types to fit different needs: default score plans, target score plans, and target paydown plans, giving mortgage professionals a faster, smarter way to identify a clear path forward for each borrower.

• FICO® Score Potential: Provides loan officers with the ability to have a preview of their applicant’s potential FICO® Score increase. By calculating the approximate potential score impact of various scenarios, loan officers can quickly assess whether a client has the potential to reach a higher FICO® Score threshold — before ordering the FICO® Score Mortgage Simulator and FICO® Smart Plan feature. This is a simple but powerful way for lenders to prioritize time and focus on the applicants most likely to see meaningful score movement.

Together, these features improve, enhance, and optimize the mortgage qualification process from end to end: FICO® Score Potential helps lenders identify where to focus, and FICO® Smart Plans delivers the automated, personalized credit action plan based on the score and algorithm that ultimately is used by lenders.

“We designed FICO Smart Plans and FICO Score Potential with a simple goal: to give mortgage professionals better tools so borrowers benefit from more personalized guidance, more loan options, and a clearer path to achieving homeownership. Previously, lenders had to manually test scenarios to find the right path forward for a borrower. Now, they can let the FICO Score Mortgage Simulator do the heavy lifting by automatically evaluating credit scenarios and generating custom action plans, so lenders can make decisions faster and with full confidence in the accuracy that only the trusted FICO Score algorithm can provide,” said Geoff Smith, vice president and general manager, Consumer Scores at FICO.

The FICO® Score Mortgage Simulator supports simulations on one, two, or three credit bureaus, and models potential changes to the classic FICO® Scores used in mortgage lending – FICO Score 2, FICO Score 4, and FICO Score 5. This allows mortgage professionals to have the widest scope of insight across the FICO Scores they use. Lenders can access the tool through FICO’s partners including Xactus, MeridianLink, Credit Interlink, SharperLending Solutions, Credco (a Cotality company) and more.

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