Will use most predictive score to compare loans, retain existing customers

BOZEMAN, Mont.--(BUSINESS WIRE)--Apr. 9, 2024-- FICO, a leading analytics software firm, has announced that national mortgage lender, servicer and asset manager Planet Home Lending will be using FICO^® Score 10 T in real-time comparisons for mortgage originations and to inform retention and recapture analytics for its $100 billion servicing portfolio. Xactus will supply Planet with the new score.

As part of this move, the mortgage leader will use FICO’s newest, most innovative and predictive scoring model to analyze government and conventional loans originated by its distributed retail division or purchased by the correspondent division. Planet will also employ FICO Score 10 T to further enhance retention and recapture analysis. The company currently posts verified recapture rates as high as 89%.

“We’re eager to tap the power of FICO Score 10 T to further analyze our book of business and unlock new origination opportunities to support our continued growth,” said Planet Home Lending President, Mortgage Lending, John Bosley “Our decision to proactively incorporate this latest scoring model aligns with our overarching commitment to innovation and helping those we serve to succeed.”

Planet’s use of FICO^® Score 10 T adds to the momentum of the mortgage industry in proactively adopting the new credit scoring model. Lenders including Cardinal Financial, Primis Mortgage, Premier Lending and others have recently adopted the model for non-conforming mortgages.

FICO^® Score 10 T provides greater precision in making lending decisions. FICO Score 10 T can help lenders better manage credit risk and lower default rates while extending competitive credit offers to consumers. FICO Score 10 T can enable an increase in mortgage originations of up to 5 percent (without taking on additional credit risk) and can reduce default risk and losses by up to 17 percent. The more predictive FICO Score 10 T also helps lenders project cash flows more accurately.

“Planet’s use of FICO Score 10 T affirms its position as a forward-looking industry leader,” said Joe Zeibert, vice president of Mortgage and Capital Markets at FICO. “With the help of FICO’s innovative score, Planet gains access to deeper insight into borrower credit health, and predictive power to help manage credit risk.”

FICO is committed to assisting mortgage industry participants looking to transition to its most current model, FICO^® Score 10 T. The FICO Score Migration Resource Center provides a detailed guide to support organizations through their score transition with key planning steps and activities, in addition to implementation best practices.

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency. Learn more at www.fico.com.

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About Planet Home Lending, LLC

Planet Home Lending, LLC, Meriden, Connecticut, (NMLS #17022) is an originator, correspondent lender, rated servicer and sub-servicer of agency and non-agency residential and commercial mortgages. As an Equal Housing Lender, Planet improves the lives of borrowers by delivering a streamlined lending experience to help individuals and families thrive throughout their journey home.

For more information about Planet Home Lending, please visit https://planethomelending.com or https://phlcorrespondent.com.

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FICO Media Contact
Julie Huang
Press@fico.com

Source: FICO