RC_LP_U_302.1 Origin of Credit Scores in Lending

A credit score is a statistical summary of a consumer's credit information at a specific point in time. Lenders benefit greatly from credit scores because of their ability to predict credit risk fairly and accurately. The credit score is a valuable tool when assessing the overall risk in a loan application.

Origin of Credit Scores in Lending delves into the definition, history, and utilization of credit scores in mortgage lending, specifically examining the FICO score and its benefits for lenders. Learners will understand how credit scores predict credit risk, facilitate faster credit decisions, and ensure consistency in risk assessment. The course outlines the relationship between consumer reporting agencies (CRAs) and credit scores, highlighting the data collection and reporting processes. The history section details the development of credit scoring from the 1950s, FICO's global expansion, and updates to credit score models. Upon completing the course, learners should grasp the purpose, advantages, and key aspects of credit scores in mortgage lending.

This is a single-family/residential course.