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Feature also put more weight on credit card usage than the original FICO score—high balances close to the credit card's limit brought a greater penalty to the credit score than before. VantageScore 2.0 was introduced in 2010 and was based on a deeper sample size of credit files than the previous version. This time, some 45 million active credit reports from 15 million anonymous consumers across the three major credit bureaus were analyzed. By looking at data from overlapping timeframes both before and during the economic crisis (2006–2008 and 2007–2009), VantageScore reduced the model's sensitivity to volatile consumer behavior that could be attributed to the economic meltdown. The new VantageScore also changed some of the emphasis on credit behavior: Filling out new applications for credit accounts became a greater influence on numerical scoring range as the score than it had been under the score. This includes consumers FICO score: 300 to 850. previous version, while account who have showed no activity on VantageScore 3.0 changes the balances and length of credit histheir credit files for several years, way collection accounts, such as tory became less influential than have no open accounts, or those those for medical bills, are evaluthey had been. who use little credit. ated. Previously, such accounts "Another change that will impact negatively impacted credit scores credit scores is that credit reports Only Certainty Is for 7.5 years even if the bill was are now showing more information Change paid off. The new VantageScore than ever before," Wiermanski will be the only credit score that said. "Some credit bureaus are inredit scoring has come a ignores collections that have been cluding 'time series information,' a long way since it was first seven-year history of each account paid or settled. Another new feaintroduced. Today, credit scores ture of VantageScore is designed Receive a consumer that shows how thefree subscription to MReport! can influence much more than to benefit people affected by natumanages debt over time." ral disasters. If a lender has placed just home or auto loans; they're being used for decisions about a notation on an account showing VantageScore 3.0 employment, insurance rates, the consumer has been affected For more apartment rentals, utility acLaunches information on a natural disaster, VantageScore contact Jason Myers at 214.525.6700 by your free subscription, counts, and more. That's why will ignore any negative informaJason.Myers@TheFiveStar.com. the evolution of these models s the newer kid on the tion about that account when is so good to see; each update block, VantageScore is calculating the credit score. helps ensure that credit scores working hard to ensure its Finally, VantageScore 3.0 will to offer a more accurate picture of model is beneficial to consumers be able to provide credit scores for a consumer's creditworthiness. and lenders alike. A completely some 27 million to 30 million more That's a good thing—for lenders revamped model was introduced consumers, including those whose credit files can't generate a FICO and consumers alike. in March that uses the same C A news and strategies for the evolving mortgage market themreport.com June 2013 On Your Side: Mortgage Banking News, Done Better 63 43 O r i g i n at i O n a n a ly t i c S Fear Not, LeNDers evoLutioN oF risk maNagemeNt Leaders have to tow a fine line in order to remain ahead of the competition, and are resorting to new strategies and tools to ensure they are successful in their efforts. Although it may seem a herculean task, complying with the CFPB's new rules and regs shouldn't be cause for alarm. 53 76 Servicing gobbLiNg uP tHe getaways SecOn dary market moviNg Past coDePeNDeNcy With prices for vacation homes finally starting to rally, would-be buyers are packing up their bags after packing in the deals. Building a Better The GSEs once counted on the Treasury for their survival, but now that the roles have been reversed is it prudent to use them as the Treasury's shoulder to lean on? Community Homebuyers Look to Piece togetHer tHeir Dream LocaLes as tHe recovery takes sHaPe theMReport.com Origination | Servicing | Analytics | Secondary Market Experts you trust. People you know. News you want. MReport brings today's housing finance headlines into focus. You know mortgage banking, and we know you, which is why you can count on MReport to provide insight into the latest industry innovations. Committed to giving originators, servicers, and all lending professionals access to smarter perspectives, MReport believes it's time to think differently about the mortgage marketplace. Because the American Dream is evolving . . . are you? Subscribe now! Call 214.525.6700 or connect with us online at TheMReport.com. The M Report | 29 or