November 9, 2026
Credit scoring has long been a foundational part of mortgage lending, helping lenders evaluate borrower risk, make informed decisions, and determine appropriate loan terms. As the industry moves toward modernized scoring models, understanding the differences between traditional FICO scores and newer innovations is becoming increasingly important.
In this episode of The Birchwood Beat, Samantha Markwood of Birchwood Credit Services welcomes Jiren Murphy from FICO to discuss the future of mortgage credit scoring, the advantages of FICO® Score 10T, and emerging technologies that could reshape how lenders evaluate borrowers.
From the use of trended credit data to innovations involving consumer-permissioned cash flow information, Jiren shares insights into how FICO is approaching the next generation of credit risk assessment.
What Is FICO Score 10T, and How Is It Different from Classic FICO?
For decades, Classic FICO scores have played a central role in the mortgage industry, supporting credit risk evaluation throughout loan origination, servicing, and secondary-market processes.
FICO Score 10T builds on the core purpose of traditional FICO scoring: helping lenders assess the likelihood that a borrower may default on future credit obligations.
However, one of the most significant differences is how the newer model evaluates credit behavior.
The Importance of Trended Credit Data
The "T" in FICO Score 10T stands for trended data.
Rather than relying primarily on a snapshot of a consumer's credit profile at a particular moment, FICO Score 10T evaluates credit behavior over a 24-month period.
This additional historical context can help lenders understand patterns such as:
- Whether a borrower consistently pays credit balances in full.
- Whether a borrower regularly makes minimum payments.
- How credit balances have changed over time.
- Whether a borrower has consolidated debt.
- How credit management behavior has evolved.
During the podcast, Jiren describes the difference as moving from a static picture of a borrower to a more complete view of their credit behavior over time.
For mortgage lenders, this additional information may support a more detailed assessment of credit risk.
1. FICO Score 10T Is Designed to Improve Risk Assessment
One of the primary themes throughout the episode is the importance of predictive accuracy in mortgage lending.
Credit scores help lenders evaluate the likelihood of future default, and the effectiveness of that evaluation can influence decisions throughout the mortgage lifecycle.
Jiren explained that FICO Score 10T was developed to improve risk assessment by incorporating additional credit behavior information.
According to the performance findings discussed by FICO during the episode, the model has demonstrated potential benefits in certain analyses, including:
- Up to 5% more loan approvals without an increase in modeled credit risk.
- A reported 17% reduction in delinquencies in the performance comparisons referenced during the conversation.
- Additional opportunities to evaluate first-time homebuyers.
- Improved insight into credit behavior through trended data and applicable rental payment information.
These are performance findings described by FICO, not guaranteed results for every lender or borrower population. The episode does not identify the complete study methodology, comparison populations, or measurement periods behind these figures.
For mortgage professionals, the important consideration is how a model performs across their own portfolios and lending programs.
2. Why FICO Score 10T Could Matter for First-Time Homebuyers
Expanding responsible access to homeownership was another major focus of the conversation.
Jiren discussed how newer scoring approaches may help lenders identify qualified borrowers who could be evaluated differently under traditional credit scoring models.
By incorporating additional information about credit behavior, FICO Score 10T may provide more insight into certain borrower profiles.
The model can also consider rental payment information when that data is available and applicable.
For first-time homebuyers, these capabilities may be particularly relevant because some applicants have limited traditional credit histories.
However, additional scoring information does not automatically translate into mortgage eligibility.
Lenders must continue evaluating income, debt obligations, assets, credit history, applicable underwriting guidelines, and other relevant factors.
The opportunity lies in helping lenders make informed decisions using a broader understanding of borrower creditworthiness.
3. Why Mortgage Lenders Should Start Testing FICO Score 10T
One of the clearest recommendations from Jiren was that lenders should begin evaluating FICO Score 10T data rather than waiting until implementation changes affect their operations.
During the podcast, Jiren discussed FICO's free-access testing initiative, which was designed to allow participating lenders to obtain FICO Score 10T alongside Classic FICO scores.
He noted that more than 80 lenders had enrolled in the program at the time of the conversation.
The purpose of this testing is to help organizations understand how newer scoring models may affect their specific borrower populations and lending workflows.
What Should Lenders Evaluate?
Borrower score differences
Compare how FICO Score 10T and Classic FICO evaluate borrowers across different credit profiles.
Potential approval opportunities
Identify borrower segments that may experience changes in scoring outcomes and evaluate how those changes interact with underwriting requirements.
Loan pricing implications
Examine how scoring differences may affect applicable pricing considerations.
Portfolio-level risk
Evaluate model performance using historical loan data and relevant risk measures.
Operational readiness
Review whether existing systems, workflows, and teams are prepared to accommodate newer scoring models.
Jiren emphasized that lenders should move beyond general awareness and begin conducting their own analyses.
Testing program availability, eligibility, and pricing should be confirmed directly with Birchwood or FICO, as these offerings may change.
4. Why a 700 FICO Score Is Not the Same as a 700 VantageScore
Another important topic addressed during the conversation was the misconception that credit scores generated by different models are directly interchangeable.
Jiren explained that while different scoring models may use similar numerical ranges, they can evaluate credit risk differently.
For example, a 700 FICO score and a 700 VantageScore 4.0 do not necessarily represent identical probabilities of default.
Different models may use distinct methodologies, data attributes, development populations, and risk calculations.
Why Does This Matter for Mortgage Lenders?
When evaluating different scoring models, lenders should consider more than the numerical score.
Important considerations include:
- The model's predictive performance.
- The probability of default associated with a particular score.
- Differences in borrower score distributions.
- How score changes affect underwriting and pricing.
- The model's performance across relevant borrower populations.
The key takeaway: Mortgage lenders should evaluate the risk represented by a credit score rather than assuming scores from different models have identical meanings.
This becomes especially important as the industry continues exploring modernized credit scoring approaches.
5. Understanding the Role of Credit Scores Throughout the Mortgage Lifecycle
Credit scores influence more than the initial mortgage application.
During the episode, Jiren discussed how Classic FICO scores have historically supported decisions across multiple stages of the mortgage ecosystem.
These include:
- Loan origination.
- Credit risk evaluation.
- Mortgage pricing.
- Loan servicing.
- Secondary-market and investor analysis.
As newer scoring models are evaluated, lenders and other mortgage industry participants must consider how changes could affect these interconnected processes.
A successful transition requires more than updating a credit score field within a loan origination system.
Organizations may also need to review risk policies, operational procedures, data integrations, and investor requirements.
Understanding the broader mortgage lifecycle can help lenders prepare for these changes more effectively.
6. UltraFICO and the Potential of Cash Flow Data
Beyond FICO Score 10T, Jiren highlighted another emerging development: the use of consumer-permissioned cash flow data in credit scoring.
He discussed UltraFICO, a scoring approach designed to incorporate additional financial information alongside traditional credit data.
What Is Consumer-Permissioned Cash Flow Data?
Consumer-permissioned cash flow data refers to financial account information that a consumer authorizes a provider or lender to access.
This may include information from:
- Checking accounts.
- Savings accounts.
- Money market accounts.
- Deposit and withdrawal activity.
- Other relevant account transaction patterns.
Jiren explained that financial account data can provide additional insight into how consumers manage their money.
For example, a consumer's traditional credit history may not fully reflect recent improvements in their financial behavior.
Additional cash flow information could potentially help lenders better understand that consumer's current financial circumstances.
How Does Plaid Fit Into the Picture?
During the conversation, Jiren discussed FICO's work with Plaid to help facilitate access to consumer-permissioned financial account information.
This type of integration can support the use of cash flow information in certain credit evaluation applications.
However, UltraFICO and related cash flow-based scoring capabilities should not be assumed to be approved for every mortgage product or underwriting program.
Lenders should confirm the applicable use cases, requirements, and product availability before considering implementation.
7. The Future of Mortgage Credit Scoring
Throughout the episode, Jiren emphasized FICO's focus on developing scoring tools that support informed lending decisions and broader access to credit.
As the mortgage industry evolves, several themes are becoming increasingly important.
Greater Use of Historical Credit Information
Trended credit data can provide additional context about how borrowers manage credit over time.
Expanded Data Capabilities
Consumer-permissioned financial information may create new opportunities to evaluate certain borrower populations.
More Detailed Risk Evaluation
Modernized scoring models are designed to improve the information available to lenders when assessing creditworthiness.
Increased Emphasis on Testing and Validation
Lenders will need to understand how different models perform across their specific portfolios and lending programs.
Continued Industry Collaboration
Credit reporting providers, scoring companies, lenders, and other mortgage industry participants all play important roles in helping organizations navigate changes.
8. Key Takeaways for Mortgage Professionals
The conversation between Samantha Markwood and Jiren Murphy highlights several important considerations for lenders preparing for the next generation of mortgage credit scoring.
- Understand FICO Score 10T. The model incorporates 24 months of trended credit data to provide additional insight into borrower credit behavior.
- Evaluate predictive performance. Scoring models should be assessed based on their ability to predict risk, not simply their numerical outputs.
- Start comparing data. Reviewing FICO Score 10T alongside Classic FICO may help lenders identify potential portfolio and operational impacts.
- Recognize differences between scoring models. FICO and VantageScore scores should not automatically be treated as interchangeable.
- Explore emerging innovations. Consumer-permissioned cash flow data may offer additional ways to evaluate creditworthiness in supported lending applications.
- Stay informed. Monitor official guidance and work with knowledgeable partners as credit scoring requirements evolve.
Prepare for Credit Scoring Modernization with Birchwood Credit Services
As the mortgage industry continues to evaluate new credit scoring models and technologies, preparation and education remain essential.
At Birchwood Credit Services, we're committed to helping mortgage professionals navigate industry developments and better understand the information available to support their lending operations.
Whether you're evaluating FICO Score 10T, comparing credit scoring models, or exploring new credit reporting capabilities, our team is here to help.
Have questions about FICO scores or preparing your lending operations for credit scoring modernization?
Contact Birchwood Credit Services
The Birchwood Beat features conversations with industry experts about the trends, technologies, and developments shaping the future of mortgage lending and credit reporting.
