Fair Isaac or FICO is now tracking who they suspect will default on their mortgage with their new black-box risk-identification
Supposedly this new statistical risk-scoring model can detect up to 67% of people planning a strategic default on their mortgage before they even make one late payment or non payment. This “black box” is proprietary information and they may be tracking you if you have opened multiple lines of credit recently. Other reasons why you may trigger their sights is how long you have been in your home and if you have any equity in your property. You may by chance have fallen under their radar and you may be receiving letters in the mail to discourage you from walking away even if that is not your intention whatsoever. If it looks like a duck and quacks like a duck then they figure that you must be a duck. But what if you are a goose?
Would you be offended if your lender suspects that you are going to default on your mortgage when you have an 800+ FICO. Maybe your lines of credit have been shrunk because you fit into the black box parameters? Inman News reports that they may be using scare tactics now to keep you from defaulting, once they have identified you as a risk. You may find the complete article at this link below: