FICO Score 10 T vs VantageScore 4.0 Performance Analysis

This white paper presents a detailed analysis comparing the predictive performance of FICO® Score 10 T and VantageScore 4.0 in the context of mortgage origination. The analysis conducted by FICO data scientists indicates that FICO Score 10 T significantly outperforms VantageScore 4.0 in terms of predictability, particularly in detecting loan losses. The paper discusses the limitations of VantageScore 4.0, including its reliance on mortgage-specific variables that may disadvantage certain groups of borrowers. It highlights the impact of data truncation on the perceived performance of Classic FICO compared to VantageScore 4.0. Furthermore, the document raises concerns about the integrity of VantageScore's model changes post-validation by the GSEs, questioning whether these alterations affect the reliability of its predictive power. The findings suggest that adopting FICO Score 10 T could lead to increased loan approvals and improved pricing for borrowers, benefiting a wide range of stakeholders in the mortgage industry.