Standard & Poors Ratings Services has fully integrated VantageScore into LEVELS 6.6, Standard & Poors U.S. mortgage analytical model.
VantageScore is the borrower credit score jointly developed by the three national credit reporting companies (Equifax, Experian, and TransUnion).
VantageScore was designed as a benchmark of borrower credit risk and likelihood of repayment. It is derived using a statistical method based on the borrowers credit history and leverages the same algorithm across all three major credit reporting companies. Its scoring methodology provides lenders with a consistent interpretation of consumer credit files across all three major credit reporting companies and the ability to score a broad population.
With the acceptance of the VantageScore into our model, LEVELS will be able to offer the market even greater transparency and insight into the performance and surveillance of RMBS securities, says David Goldstein, managing director, Standard & Poors. It will also provide banks greater flexibility in using LEVELS as a risk management tool in monitoring their whole loan mortgage portfolio.
Standard & Poors acceptance of VantageScore further supports the predictiveness of the score and will provide new insight into the securitized mortgage loan market, says Barrett Burns, president & CEO, VantageScore Solutions, LLC.
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