Average FICO Scores at Record Highs
Kathleen Howley in a September 16, 2019 article in housingwire.com writes that consumer FICO scores are presently the highest on record.
Credit unions approving or pricing loans based on recent FICO scores may well be making decisions looking at the rosiest of borrowers’ financial pictures. A recession could well result in dramatic reductions in borrowers’ financial conditions leading to increased delinquencies and charge-offs. Credit unions need management tools in place that track and immediately report digressions in credit scores so action can be taken to mitigate loan losses.