According to the World Economic Forum, 85% of financial services organizations are using AI in some capacity. It’s no secret the artificial intelligence ‘arms race’ is impacting virtually every industry, especially financial services. It’s also creating interesting and novel challenges for every industry, both in its application and its usage. It’s often said that technology advances faster than regulation. Is that the case with artificial intelligence, or are the rules of the road kee...

To date, nearly all mortgage loans continue to use outdated credit scoring models, though in other loan categories, much newer, more predictive, and inclusive models are most commonly used. But the mortgage industry is advancing. By next year, all mortgage loans backed by Fannie Mae and Freddie Mac will require a VantageScore 4.0 credit score. In advance of this change, Bank of America recently issued an independent research report analyzing the VantageScore 4.0 mortgage data set. ...

It's been called the “$1 trillion opportunity.” Currently, the housing market is paralyzed. Homeowners are left out of the market due to a lack of inventory or—even worse—can’t access it due to outdated credit scoring models that exclude them. Recent VantageScore research found an estimated $1 trillion of pent-up growth potential in the form of borrowers who have historically been left out of homeownership opportunities due to unfairly restrictive, decades-old scoring models. But that's...

For markets to operate efficiently and for consumers to receive the best services, it is critical that competition exists in the financial services industry. Credit unions, or not-for-profit financial cooperatives, have unique structural differences that allow them to pass profits onto their member-depositors in the form of lower loan interest rates, higher yields on savings, and fewer or lower fees. With historically high interest rates deeply impacting household budgets and consumers’...

CreditGauge, VantageScore’s monthly analysis of consumer credit health, found that in April 2024, delinquencies declined for a second straight month. To date, consumers are weathering economic pressures fairly well. But is this proof of a climb out of a delinquency-heavy phase, or are household budgets on a bumpy roller coaster ride longer-term? Atif Mirza is Vice President of Digital at VantageScore, where he manages the VantageScore suite of digital tools for lenders – CreditGauge, Inclusio...

Through exploitative interest rates of up to 600%, predatory lenders extract an estimated $9 billion from consumers each year – often from low-income communities of color and other populations unable to access the credit they need. We know what financial inclusion is, and why it’s important. But what creates ‘financial exclusion’ to begin with, and how can we work to eradicate it? David Henderson, Founder and CEO of Giving Credit, joins The SCORE this week. Giving Credit is a fint...

Whether you’re a renter or a homeowner, you likely have already had to contend with some of the challenges of the current housing market. While buyers and current homeowners faced persistently high mortgage rates and low housing supply in recent years, renters also faced steep cost increases in many markets. Will 2024 be more of the same? Selma Hepp is the Chief Economist for CoreLogic, America’s largest provider of advanced property and ownership information, analytics and data-enabled servi...

Originations across many product types – mortgage, credit cards, and the like -- were all lower in 2023 than the year prior. Historically high interest rates pinched consumers and made it less appealing to open new lines of credit. Will 2024 be more of the same? What can consumers and lenders alike expect in the coming year? Is the economy’s elusive ‘soft landing’ anywhere in sight? Kelsey Zhu, Lead Analyst at Bernstein/Autonomous, joins The SCORE this week. Kelsey to talk us through w...

Spending is up! Delinquencies are up? And oh, it's an election year! With the resumption of student loan payments, persistent inflation, and other potential challenges, what can consumers expect in 2024? To be sure, all eyes will be on the economic health of consumers. This week, Susan Fahy joins THE SCORE Podcast to discuss what CreditGauge reveals about Americans’ current credit health. Susan is VantageScore’s EVP and Chief Digital Officer. In addition to spearheading the mont...

Recent news headlines indicate that consumers shopped big this past holiday season, and retail numbers, on the surface, appeared to be up. But given notable economic pressures like record-high inflation, how much of that was just paying ‘more’ for ‘less’? And how can consumers make sure they’re getting the best possible deal when using credit? This week’s guest on The SCORE is Matt Schulz, Chief Credit Analyst at Lending Tree, America’s largest marketplace for loans. Matt joins Th...

In 2023, consumers balanced various financial challenges: the lingering effects of record inflation, rising credit card balances, and student loan payment resumption, among others, leaving many to explore financial products that help make changing personal budgets more manageable. In the same year, credit unions stepped in to fill gaps created by larger financial institutions and provide additional options for consumers currently excluded from the lending marketplace. This week on...

As many outlets are currently reporting, in many parts of the United States, renting is now far cheaper than buying property. Various economic factors like interest rate hikes and rising costs have created a housing system in which many Americans are renting. But does being excluded from homeownership preclude renters from using those payments to build and improve credit scores? This week on The SCORE, we’re joined by Kristian Lund from Self Financial. Self is a credit-building platform wor...

$340 billion. That figure was the commitment offered by corporations looking to help address historical injustices in American society and help close the racial wealth gap in the wake of the death of George Floyd. This week, Donovan Duncan joins The SCORE to explore where corporations and communities currently stand with regard to making good on that commitment. Mr. Duncan is Executive Vice President at Urban Strategies, Inc., a national non-profit leader in the field of community deve...

The U.S. economy is, in many ways, the envy of the world, and millions migrate annually to this country to participate and live out the ‘American Dream.’ However, inequitable access to the financial tools that preclude milestone moments, like purchasing a home, can become barriers to the ‘credit invisible’ or those otherwise unaccounted for in the financial services marketplace. So, how can fintech leaders help broaden the tent, and what role does competition play in keeping the doors o...

Do health and wealth go hand in hand? Financial issues are commonly considered one of the primary sources of stress for many people and money is a well-documented reason for divorce, for instance. But is there a real link between the two? And do your current money habits spell trouble for your long-term health? To help answer these questions, Dr. Sean Hundtofte joins The SCORE to explore the correlation between financial planning and wellbeing. Dr. Hundtofte has dedicated most of...

This fall, an estimated 44 million borrowers will stretch their personal budgets once again, adding yet another item to their bottom line – a federal student loan payment. If you don’t know where to start your repayment journey, you’re not alone. Dan Currell, CEO of the Digital Commerce Alliance and Former Deputy Under Secretary and Senior Advisor at the U.S. Department of Education, joins THE SCORE to help borrowers figure out where to start. VantageScore partnered with Dan to cr...

A year ago, VantageScore funded a pilot program in partnership with the Credit Builders Alliance aimed at using data and analytics to extend credit counseling and credit scoring information to areas of the United States with large concentrations of lower income consumers. Interested in the results? The latest episode of THE SCORE podcast features Dara Duguay, CEO of Credit Builders Alliance and Joe Lauchlan, a Financial Coach with the International Institute of Metropolitan Detroit. During th...

Is there a tradeoff between expanding the pool of potential mortgage eligible consumers and sacrificing risk management? The Federal Housing Finance Agency (FHFA), which regulates Fannie Mae and Freddie Mac, has mandated use of VantageScore 4.0 with a 3-year roadmap for implementation. Meanwhile, millions of creditworthy consumers are on the outside of the American Dream of homeownership, looking in. On this week’s episode of The SCORE, we hear from Tony Hutchinson, Senior Vice ...

We’ve all seen ads beckoning consumers to ‘FIX YOUR CREDIT’! But – is this possible, and perhaps more importantly – are consumers helped or hurt by ‘credit repair’ agencies? On this week’s episode of The SCORE, hear from Dan Smith, President and CEO of the Consumer Data Industry Association (CDIA). Beyond leading the CDIA, Dan Smith has over 20 years of experience navigating the complex consumer credit ecosystem. Dan joins THE SCORE to walk through the challenges faced by underbanked A...

It's maybe the least understood aspect of credit scoring: a 700 score today will represent a totally different risk during the next credit cycle. And as macro-economic issues change, so does the risk that any score represents. During the pandemic, consumer credit health was positively impacted by various factors such as government stimulus payments, suspended student loan obligations, and resulted in increased personal savings rates. As a result, and logically, scores rose. The econo...