How it performs in the real estate industry

 

In the real estate industry the VantageScore 3.0 model provides a 19 percent performance improvement over the CRC credit score model for account management, and a 12 percent performance improvement for originations for the Near-Prime to Super-Prime credit tiers.

Further, a nine percent performance improvement is seen over the VantageScore 2.0 model for account management, and an eight percent performance improvement for originations among the same population segment.

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The VantageScore 3.0 model performs extremely well in a real estate lender’s “decisioning zone”–the middle 40 percent of the population as ranked by credit risk–which is typical territory for mainstream lender originations. The VantageScore 3.0 model provides a 36 percent performance improvement over the CRC credit score model for account management, and a 27 percent performance improvement for originations among Prime and Near-Prime consumers.

A 24 percent performance improvement is seen over the VantageScore 2.0 model for account management in the decisioning zone, as well as a 35 percent performance improvement for originations.

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For the Subprime population segment, the VantageScore 3.0 model provides a 15 percent performance improvement for account management, and a five percent performance improvement for originations when compared to the CRC credit scoring model. The model provides a four percent performance improvement for account management, and one percent performance improvement for originations when compared to the VantageScore 2.0 model.

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And in looking at performance improvement across economic quadrants and account types, VantageScore 3.0 achieves the following lifts for the Prime, Near-Prime and Super Prime segments. Improvements are even stronger for the Prime and Near-Prime segments specifically.

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Why it’s more consistent

Nearly identical risk assessment across the three CRCs

VantageScore 3.0 provides strong risk alignment across CRCs for the real estate industry. For the near-prime to super prime credit tiers, default rates vary by an average of 0.14 percent for account management 20-point score bands, and 0.22 percent for originations.

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More consistent consumer scores across the three CRCs

For the real estate industry, consistency of consumer scores remains strong in the VantageScore 3.0 model, with 81 percent of consumer scores within 20 points when sourced from two or more CRCs, and 93 percent of consumer scores within 40 points across CRCs.

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Score distributions

With the real estate industry, score distributions are highly consistent across all CRCs.

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In the real estate industry, VantageScore 3.0 achieves virtually identical performance across the three major CRCs for both originations and account management accounts.

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