Magazine article Mortgage Banking

VantageScore Launches New Version of Scoring Model

Magazine article Mortgage Banking

VantageScore Launches New Version of Scoring Model

Article excerpt

VantageScore Solutions LLC, Stamford, Connecticut, has introduced VantageScore 2.0, the newest version of its credit-scoring model.

The driving force behind the creation of VantageScore 2.0 was a significant change in consumer credit repayment behavior, according to Sarah Davies, senior vice president of product management, analytics and research for VantageScore. Davies said all credit models should be updated regularly to ensure they remain as accurate as possible, adding that VantageScore 2.0 shows an improved performance over the original version across the main industries where credit scores are used.

The VantageScore credit-risk model was first introduced in March 2006 in response to a demand for a credit-score model that would be more predictive, score more people and offer more consistent consumer scores across all three credit-reporting bureaus--Equifax, Experian and TransUnion.

The newest installment of VantageScore was built using a development sample compiled from two performance time frames--2006-2008 and 2007-2009--with each time frame contributing 50 percent of the sample, reflecting more recent credit conditions.

"Developing VantageScore 2. …

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