Today’s episode includes a discussion on Agency mortgage-backed security (MBS) prepayment activity in the wake of QE4 lows. Plus, Robbie interviews FICO’s Ethan Dornhelm on how credit score modernization is giving lenders and market participants the ability to evaluate long-term predictive performance and expand responsible access to credit while preserving safety and soundness. And we close with the focus on geopolitical tensions versus inflation versus economic data.<br>This week’s podcasts are sponsored by FICO. As the industry&#x27;s most predictive credit score, FICO Score 10T combines proven performance with deeper insight into borrower behavior to help support a stronger and more resilient housing finance system.<br>The Chrisman Commentary is your go-to daily mortgage news podcast, where industry insights meet expert analysis. Hosted by Robbie Chrisman, this podcast delivers the latest updates on mortgage rates, capital markets, and the forces shaping the housing finance landscape. Whether you&#x27;re a seasoned professional or just looking to stay informed, you&#x27;ll get clear, concise breakdowns of market trends and economic shifts that impact the mortgage world.

7.8.26 Prepayment Data; FICO’s Ethan Dornhelm on Credit Score Modernization; Geopolitical Tension

Chrisman Commentary - Daily Mortgage News

Welcome to the Chrisman Commentary - Daily Mortgage News. I'm your host, Robbie Chrisman. Topics on today's episode include agency MBS prepayment activity, why geopolitics are driving rates higher again, and my interview with FICO's Ethan Dornhelm on how Credit Score Modernization is giving lenders and market participants the ability to evaluate long-term predictive performance and expand responsible access to credit while preserving safety and soundness. Here, take a listen to a little preview.

Whatever company exists, Chrisman LLC, our guiding light is to provide value to the mortgage industry. I know a big part of your role, especially with FICO Score 10T, is expanding access to credit while maintaining safety and soundness. And so can you talk about how you're helping lenders achieve both of those objectives I just mentioned?

Yeah, absolutely, Robby. I mean, our focus is to expand access to credit without lowering standards, maintaining the accuracy, the stability, the trust that investors rely on across economic cycles. So in our view, the most predictive score promotes that safe and sound lending and helps more consumers qualify for mortgages at the lowest interest rate. And the way that works is a more predictive score pushes more of the consumers who are likely to pay

pay the mortgage up the score spectrum, right? And those who are most likely to default are pushed further down the score spectrum. So a more predictive score can be used to underwrite more borrowers while still keeping the overall portfolio risk the same or even lowering it a little.

So we've seen use cases in the mortgage space where relative to classic FICO loan approval rates could be expanded by 5% without taking on any additional risk simply by virtue of this more predictive score tuned to more recent risk patterns, leveraging...

7.8.26 Prepayment Data; FICO’s Ethan Dornhelm on Credit Score Modernization; Geopolitical Tension

Read the full transcript

The candid version is on a podcast,
not the earnings call.

7.8.26 Prepayment Data; FICO’s Ethan Dornhelm on Credit Score Modernization; Geopolitical Tension

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.