“…VantageScore has been attempting to impact the lending landscape by deploying its new credit reporting model. Its entry into the industry has had two major effects. First, it has successfully challenged the primary provider of credit reporting. Secondly, it has been able to provide an alternative credit reporting model that may be able to expand access for tens of thousands of potential borrowers.”
That’s an excerpt from an op-ed published this week in HousingWire highlighting the advantages of credit score competition and the downside of the credit score monopoly that has existed for decades in the mortgage market.
Authoring the article were David H. Stevens, the former president and CEO of the Mortgage Bankers Association and former commissioner of the Federal Housing Administration, Scott Olson, executive director of the Community Home Lenders Association and Rob Van Raaphorst, a public relations expert and senior vice president at Rational 360.
Concluding their article, they plainly state that “what this industry needs are regulators who value innovation, who will prioritize assessing new technology and adopting it themselves, who will not stand in the way of companies looking to bring new solutions to address major issues and who will stand up to monopolistic entities which threaten competition.”
Read the full story here: Opinion: How regulators can reduce costs and increase equity
View VantageScore’s playbook for implementing its 4.0 model and other resources for lenders here: VantageScore Approved for Mortgage Applications.