What’s next for mortgage scoring? In this interview, FICO’s Joe Marsocci sits down with Diego Sanchez to explain how Score 10T is reshaping underwriting and capital markets strategies. The adoption curve is accelerating with his team supporting lender implementation and growing institutional interest. Marsocci also shares insights on how FICO is working with key stakeholders to modernize credit evaluation and deliver better outcomes for borrowers, lenders, and investors alike.

The evolution of mortgage scoring

“It is FICO’s latest scoring model that incorporates trended data, analyzing credit usage over 24 months rather than a single point in time. It provides about a 5% increase in loan approval rates while maintaining strong risk control,” Marsocci said.

As the mortgage industry grows, credit scoring models are following suit. FICO Score 10T is the latest innovation aimed at improving lending decisions and expanding access to credit. Marsocci added a brief point about the model’s impact on default rates.

“It reduces default rates by 17%, improves how medical collections and authorized users are treated, and aligns with how GSEs have already been using trended data in their underwriting systems,” he added.

Lender adoption and implementation

“Around 25 lenders, including major players like United Wholesale Mortgage, Planet Home, Cross Country, and Cardinal Financial, have started using FICO Score 10T, ” Marsocci noted.

“The model is particularly popular for non-traditional loan products, such as Jumbo, VA, DSCR (Debt-Service Coverage Ratio), and non-QM (non-qualified mortgage) loans, which often require more nuanced credit evaluations,” he added.

Marsocci also said that lenders can pull their FICO Score 10T along with their credit scores. As a result, lenders can compare its performance and view how it impacts approvals and portfolio risk before committing to integrating it within their underwriting process.

Modernizing credit evaluation

FICO Score 10T is drawing interest from capital markets with its potential to grow mortgage-backed securities (MBS) and improve overall credit evaluation methods.

Capital markets’ interest in FICO Score 10T

“Investors and securitization markets have responded positively to FICO Score 10T due to its ability to enhance loan performance predictability,” Marsocci said. “More reliable cash flow projections make mortgage-backed securities (MBS) more attractive, not just in mortgage lending but also in auto loans, personal loans, and other asset-backed securities. The model’s transparency and consistency help strengthen liquidity in the secondary market.”

The first MBS issuance using FICO Score 10T

In 2023, Cardinal Financial became the first lender to issue an MBS entirely backed by loans underwritten with FICO Score 10T. Their analysis found that borrowers assessed using this model generally received higher credit scores, enabling them to qualify for better loan terms without added credit risk,” Marsocci said.

“This milestone represents a significant shift in how lenders and investors evaluate mortgage credit, potentially leading to more favorable lending conditions and increased homeownership opportunities—especially for underserved groups like military members and veterans,” he added.

How lenders can integrate FICO Score 10T

Lenders, servicers, and investors looking to adopt FICO Score 10T can find more information at FICO.com/FICOscore10T or contact FICOscoreinfo@FICO.com.

FICO representatives also attend major industry events, providing professionals with opportunities to discuss integration strategies in person,” Marsocci said.