FICO weighs subscription model for mortgage scores in 2027
New 2027 structure would sit next to FICO’s $10 Preferred Program
A potential shift by FICO to a subscription model for mortgage scores could have significant implications for the real estate industry, particularly for those involved in leasing. While the current $10 Preferred Program provides an affordable option for individuals to access their credit scores, a subscription model could change the way lenders and property managers assess creditworthiness.
The introduction of a subscription model would likely benefit frequent users, such as mortgage brokers and lenders, who regularly require access to credit scores. However, for less frequent users, such as property managers and landlords, the new model may not offer the same level of cost savings as the current pay-per-use system. As the industry continues to evolve, it's essential to consider how changes to credit scoring models may impact leasing decisions and the overall rental market.
Looking ahead, it's crucial to monitor how FICO's potential subscription model may influence the development of alternative credit scoring models and the growing trend of using non-traditional credit data. As the 2027 implementation date approaches, stakeholders in the leasing industry should stay informed about any updates and assess how changes to credit scoring may affect their business operations and relationships with tenants.
Originally reported by housingwire.com. LeaseNews adds analysis for real estate & property readers.