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Fair Isaac (FICO) recently announced that it would be licensing its credit scores for evaluating mortgage borrowers’ creditworthiness. This decision comes as a significant development in the world of credit analytics.

Obtaining a mortgage can be a daunting process, with lenders carefully considering an individual’s credit history to determine their eligibility for a loan. By licensing its credit scores, FICO is providing lenders with a trusted tool to help them make informed decisions when evaluating potential borrowers.

FICO scores are widely used by lenders to assess an individual’s credit risk and determine their likelihood of repaying a loan. These scores are based on various factors, including payment history, credit utilization, length of credit history, new credit accounts, and types of credit used.

With FICO licensing its scores for mortgage evaluations, lenders can have more confidence in their decision-making process. By utilizing these scores, lenders can more accurately assess the creditworthiness of borrowers and make better-informed lending decisions.

Overall, this move by FICO is set to have a positive impact on the mortgage lending industry, providing lenders with a valuable tool to help them make sound lending decisions. Mortgage borrowers can benefit from this development as well, as it may lead to a more streamlined and efficient mortgage approval process.